Trump Threatens Tech Tariffs in Digital Taxes Reprisal

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1:47Bloomberg Tech is live from coast to coast with Caroline Hyde in New York and Ed Ludlow in San Francisco This is Bloomberg Tech coming up, AT &T plans to buy $23 billion worth of Spectrum licenses from EchoStar adding to coverage in virtually every US market. Plus, the digital services tax fight re-escalates as President Trump threatens more tariffs and restrictions on advanced tech and chips in retaliation. This is we await a cabinet meeting with President Trump this hour. We'll discuss what to expect, but first we check in on these markets, which there is a macro story at play here that affects the bond market.

2:26Stocks are actually pretty resilient in light of anxiety around French political drama, US Fed drama. Y eso se va a hablar, seguro, cuando llegamos a la Cámara de la Cámara. Pero ahora, estamos en un par de 10 % en el Nasdaq. Big tech está trabajando en la pérdida de puestos más, ahead de los key earnings este mes, de acuerdo. Pero también, como se ha hablado de un stock de individuales, que afecta AT &T y Echostar. Vamos a la que se ha llegado, porque AT &T está en 1.4%. It ha entrado higher earlier en el sesión, as it spends big a extend its spectrum, its accesses a licences, buying them from Echostar, which, remember, el presidente de esta compañía actually met con el Trump administration.

3:03es que se hagan más 80 % como lo que se hagan de ellos para vender a Spectrum. Vamos a ver los datos. Kelsi Griffiths es con nosotros para diga a los datos. ¿Qué el mercado le gusta? Es que AT &T es paying más más que antes de Echostar para estos licencias. Eso es correcto. Estamos viendo los stocks reactivos bastante espectacularmente a esta deal que se anunció y como mencioné, Caroline, We are seeing kind of the latest step to resolve a regulatory probe over Echostar potentially not putting its licenses to the highest and best use. We know that Echostar met with the FCC chair Brendan Carr and also President Trump about a month ago.

3:49And both companies are saying that this is an important step forward toward resolving that probe. That probe, which, well, those at Echostar had said had distracted them from actually making the investments into using of the licenses. There was a threat of bankruptcy at one point. They weren't paying on their bonds. But tell us the AT &T side of this. Why spend big on these licenses? Exactly. So AT &T is really kind of making the most of this moment. These mid and high band spectrum licenses Don't come available very often Because this is a limited and very valuable resource And AT &T is really jumping on the chance To increase its portfolio And really beef up its spectrum holdings With this addition So even though it's a lot of debt to take on right now This is a really valuable investment in their future And something that customers are also Going to feel the difference from pretty immediately They're going to feel the difference Just remind the consumer y remind the audience why it is so expensive but so crucial to reinvest in Spectrum to access.

4:57Spectrum is what carries all of our wireless communications. It's what enables it. It's sort of like a highway that gets jammed during rush hour. If you're not able to open up more lanes then you're going to experience gridlock. AT &T is effectively opening more lanes on that highway to keep that wireless traffic moving. I love that analogy. As always, we thank you so much for digging deep, Kelsey Griffiths, on all things telecoms. Let's get an investor take now. Ted Mortenston is with us. He's managing director over at Baird. They have a cool$525 billion in asset center management. What's so interesting is AT &T here basically reinvesting money they've saved through the recent budget, Ted.

5:37Are we going to see more companies commit to infrastructure in this way? I think so. I mean, the big, beautiful bill gives a lot of flexibility and depreciation writing off of assets. And I think AT &T had, you know, a very, very big tax advantage. And they're going to put$3 billion in just into optical. I think what this spectrum buy is, you know, low band spectrum is incredibly limited. And it gives AT &T a long-term look at increasing capacity. y estoy seguro que en la redacción es la redacción de la redacción y expandiendo la capacidad y la redacción de la redacción como la redacción de la redacción de la redacción de la redacción es también probablemente muy mucho John Stanky has venido a hablar sobre la necesidad de la necesidad de la necesidad de la necesidad de la chatbot que es interesante de la ecostar en muchas formas This is once again the administration playing a very key role in, as they see them, key assets, bringing in the chair of Echostar to the administration because President Trump was worried about a potential bankruptcy of what he saw as a key piece of infrastructure.

6:52How much are you having to navigate this, an ever more active administration in big tech? This is, I think it's unprecedented. You bring a great point up, Carolyn. This is unprecedented of actually having an administration que aprende el problema sobre la tecnología global sobre la condenación de ese digital tax Tesla con el equipo retrato con más adenientes empezamos con Nvidia 거래�cate el China H20 el tema que este es tackling es muy en el Parker que nos ha festive, amen tomando hasta anterior y también se llama intel también ¿Puedo que la pregunta ¿Puedo que la administración generalmente align con la responsabilidad de la liderazgo para dar dinero para los shareholders en muchas formas ¿Puedo que la gente generalmente net positiva para los businesses?

7:48Voy a pasar a esa pregunta ¿Puedo que la gente solo te lo que está haciendo desde la tecnología desde la tecnología es que están rolling la roca muy rápido y se han llegado a la búsqueda It gives the U.S. a tremendous advantage from a technology standpoint if you look at going head-to-head with China on AI. But also from an infrastructure standpoint, we're years ahead of Europe right now. And having a non-bureaucratic administration that understands the issues around technology is a real benefit for the U.S. people. It does create perhaps sometimes just general uncertainty for businesses in the way in which they run.

8:28I'm just thinking of perhaps the threat that we just had today. We're going to discuss it more after this conversation, Ted. But how to tackle digital services taxes on Alphabet and Meta. He's threatening more restrictions on chips made by NVIDIA and AMD. Just how do you see tariff headwinds for companies? Or can they see through them? Because the tailwinds of generative AI are just so huge. I think there's a few issues. This is playing chess on four levels, to be honest with you. I mean, the tariffs long term, we'll see some inflationary impact to it. But I think what the administration is doing is they're looking at this, one of the most prolific builds that I've seen in 30 years of doing technology.

9:15They understand that the stakes on generative AI, whether it be AGI or actually agentic-based systems, it's crucial that the U.S. actually is in the leadership role and is developing AI in a way that, Si miras a la economía de este año, es de un millón de 400 millones de dólares, un 53%. Nunca hubo visto un arquitecto de build como esto. Y nos da el economía de la economía y, muy bien, la defensa postura, un gran advantage de la global perspectiva. ¿Y dónde está la mispricedad en el mercado ahora, Ted? ¿Dónde están oportunidades? I think there's tremendous opportunities on just looking at who has all the next generation technology.

10:15I mean, if you look what NVIDIA is doing with not only Blackwell, but the follow on the Rubin, Silicon Advantage, Jensen's doing something that no one has ever done in technology from a systems approach. He is rewriting The architectural issues On high performance compute Whether it be from networking Memory to the Core GPUs but also these Cuda direct queries on software He's got a three to four Year lead on anybody in the world Doing this So just from a NVIDIA Standpoint and the picks And shovels that will go into Ruben I would have your viewers do a fair amount of work on the optical space because Jensen is pivoting the whole architecture from basically a copper infrastructure to optical.

11:10And they're developing 1.6 terabit solutions that were on the drawing board that are getting accelerated. And in your notes, as always, you talk about the optical options, Sienna being one of them, some of the other stocks that give you exposure. Ted Mortenston, so great to catch up. Baird Managing Director, we thank you. Ahora, President Trump fights back against Europe's digital taxes We were just talking about it with Ted Trump saying more tariffs and export restrictions could be on the way for those countries who impose them More on that next, this is Bloomberg Tech

11:53President Trump He's vowed to impose new tariff y export restrictions on advanced tech and semiconductors in retaliation against other nations' digital services taxes. Now, the latest move raises uncertainty over tariff rates for U.S. trading partners once again. Rundberg's Tyler Kendall joins us now from the White House. This is a recurring theme, the ire from President Trump around these basically European taxes. Right, exactly, Caroline. In fact, you recall back in February, President Trump had actually signed a memorandum that opened the door for the second y la violencia de 2016 a través de 1859 y un plan de nazions serpilientes por guay a huripito de 100 Gracias.

13:34La ley de la ley de la ley de la ley

14:05Redu Portugal.

14:25como Alphabet and Meta. ¿Cómo lo que los gobiernos han hecho estos tipos de empresas contra estos taxos? Bueno, sabemos que hay un gran esfuerzo de lobbying aquí en Washington con los secretarios de sector CEOs que visiten la White House tratando de hacer un movimiento cuando se trata de las decisiones de los políticos de esta administración. Y hemos visto eso, quizás, más en el frente cuando se trata de los tarifes o los tarifes de los tarifes en los semiconductores y chips. Y como lo sabes, y en la semana de la semana, en este programa. Estamos tratando de glean los detalles de lo que esos tarifos son realmente van a ver.

14:59Y tiene que ver con la administración que quiere ver más de un directo de estos empresas y cambiar sus supply chains para hacer estos productos y estos productos. Es algo que estamos viendo muy closely aquí, pero, de hecho, es como esta tensión como el Estado de protegerse la industria de la industria pero también, por ponerse en estos exportadores podría ultimately end up harming la competición moving forward. Tyler Kendall, we appreciate it from the White House. Let's get the European perspective on this. Bloomberg's Peter Elstrom now standing by in London. Europe is very committed to these taxes, whether or not it is some sort of bargaining chip mentality or waiting what the OECD eventually does in terms of leveling the playing field on taxes on such big juggernauts.

15:42But remind us, 2019, France first put it in. Right, yeah, that's exactly right. Now, Trump was not specific about which countries he was criticizing here for having these digital service taxes. As you alluded to earlier, the spokeswoman for the EU said that it's our sovereign right to impose these taxes. And then she went on to say that we're not targeting any particular company or country where these companies are coming from. But in the end, this is essentially a lot of European companies taxing a lot of American companies. You have taxes on things like search engines, i.e. Google, on digital advertising like Facebook and Meta, y también en streaming servicios como Netflix en particular.

16:22Así que se ha visto en Francia en 2019 donde impone un taxado. Ahora hay otros países como Austria está taxando advertising. Hay Poland está taxando digital streaming services. Y aquí en el UK, están haciendo search engine y advertising, también. Así que es un poco de un patchwork de taxes a este punto, pero están siendo imposed. Y ahora este borde de Trump es diciendo que se va a retaliar si en realidad estos países proceden con estos tipos de digitales. Pero como podemos ver desde este gráfico de la momenta, es un buen error para países como Francia para conseguir un millón de un millón por año por obtener estos tipos de taxas en revenues, Peter.

17:01More broadly, ¿cudemos ver, no en el camino de Canadá, pero también en el view de empresas que se basen en el dinero en Europa? ¿Es algo que Meta y Alphabet han tratado de hacer restrict the amount of ultimate revenue that is going in that direction to Europe? I mean, certainly these companies, as Tyler was alluding to earlier, they've been lobbying a lot within Washington. They've also been lobbying a lot here in Europe to be able to get some sort of advantages, whether those are tax advantages, relief from some of these taxes in particular. They've been pushing very hard to be able to do that, and they have not been afraid to go to the Trump White House to be able to get their backing to push back on some of these issues.

17:44Sometimes it's been about free speech online, sometimes it's been about taxes, sometimes it's been about their treatment. It's partly because the U.S. does have the biggest technology companies. They are very active in Europe and they want to be able to affect the playing field as much as they can to their own advantage. I have to see also how an OECD agreement could change all of this. Bloomberg's Peter Elstrom is so good to get the European perspective. We appreciate it. Now coming up, Elon Musk says Apple is unfairly favoring OpenAI on iPhones in a new lawsuit. More context on that next. This is Bloomberg Tech.

18:27In a new lawsuit, Elon Musk alleges that Apple and OpenAI are thwarting competition, saying the tech giant is unfairly favoring OpenAI across its iPhones. Joining us now to discuss is David Balto, aditrust lawyer, former policy director of the Bureau of Competition of the FTC. We come to you with your expertise in competition. Is there a leg to stand on here, legally speaking, that with a partnership and allowing OpenAI basically to be intertwined with Siri, that it's stopping fair competition for the other Gen.AI chatbots? Well, I'm afraid this is a case that's not really going to launch. Apple has a broad range of power to select who it's going to partner with.

19:09y no creo que hay un gran historia de la competición es harmada por el arregimiento que Apple ha hecho que se debe de claramente consistent con el antitrust de la ley. Ok, así que si no tiene el legal legado de estar en, es más de un argumento de la publicidad en muchas formas, ¿es there algo que puede hacer con la ratings en el app store, y la manera en que eso es deimido a ser biased o no? You know, I think Apple's been tested on this in a number of areas. And, of course, there's been litigation in this area. And I think Apple's quite careful to make sure it's not violating the law. Just, you know, fundamental principles of competition law.

19:55Apple has the ability to decide who it's going to partner with and what those arrangements are, unless it's, you know, unnecessarily exclusionary. It really prevents rivals from being able to effectively compete. And here Apple has said in a straightforward fashion, this arrangement is not exclusive. This is a question of just Elon Musk coming to the table with Apple and coming up with a better deal to convince them to include his AI product. Yeah, because the idea was always when the announcement was first made by Apple that other third parties will be invited to the table. Of course, there's an ongoing antitrust investigation that overwhelms perhaps Alphabet at the moment and the way in which payments go between Apple and Alphabet.

20:42But certainly, Gemini AI getting closer to Apple. We know that maybe a perplexity of others eventually will make some sort of agreement and that could iron out any antitrust issues. Yes, you know, I definitely think so. Pero, you know, esto es Elon Musk, también, trying a usar el musculo de antitrust laws para coercer a rival y entrar a un arraigamiento. Eso es no va a funcionar. El gobierno se va a ver con el que se hace. OK, usted dice, once again, I mean, we do know que Elon Musk ha, creo, leveled a least una o dos casos en el direction de OpenAI, y OpenAI ha now been calling it harassment en ese aspect, pero ha ha never really targeted Apple before.

21:24¿Cómo es mucho? ¿Es un destructo? ¿Cómo expensive es para empresas para hacer esto?

21:32Ustedes tienen muy fuerte, muy fuerte, y son usados a este área. Hay un costo con la empresa que desarrollan muy successful productos y tiene un importante marco. Y que costo es que se han ofendido a estos tipos de antitrust. Apple es un muy bueno consultado. company. I'm sure that they've figured out ways of entering into this arrangement with OpenAI that do not put them in hot water. And what's also interesting in the context of all of this is that Gemini AI is the competitor owned by Alphabet, which of course has the Android ecosystem and relationships with Samsung that of course integrates therefore Gemini AI.

22:16Is that part of the argument also here that plenty of people are downloading Plenty of people have stand-alone use cases, these chatbots, and it's not just using OpenAI purely through the Apple ecosystem. You know, I think that's true. But there are plenty of alternatives. And this is just a question of being able to enter into a business arrangement. You know, Musk may not like the terms that Apple is offering him. pero, finalmente, el antitrust el propósito de los antitrust el propósito, como lo ha dicho, como lo ha dicho 60 años es para proteger competición y consumidores y no competidores.

23:00Basically, Musk es asking a court to stand antitrust law en su cabeza y ponerlo en la posición de proteger sus intereses y no los intereses de consumidores. Ahora, nos agradecemos todo el expertise en todo esto, de acuerdo, We want to just break some other news when it comes to the legal system right now. And we understand that a lawyer for Lisa Cook, the Federal Reserve's Lisa Cook, has been saying that they will file a lawsuit challenging the firing, the firing currently being demanded by, of course, President Trump. We knew that Donald Trump had made moves to oust Federal Reserve Governor Lisa Cook following allegations that she hadn't falsified mortgage documents.

23:40Es Es uniso decenзado en algo que ha sido una partida De mi mere heirlo con la Federal Reserve Es una buena inversió Seηió det lahir en el mercado Celeoles que trabajé continua en el 30 El dólar ha estado acabando con expectativas Y ahora tenemos una declaración Seguintes entendí de la studios, ¿verdad de Lucy Cook? Que lesunun las contrataciones Policidades que vengan this firing Esto es una cosa probable que se dice En la clima jefe en el tribunal Mas y para esta認為 Mas y para esta認為 We do want to say our thanks to David Balto. He's the antitrust lawyer who was just discussing that fight between Elon Musk, OpenAI and Apple.

24:16But coming up in the tech space for you now, investors are waiting in video earnings for a gauge in the chip sector as President Trump vows potential new tariffs. That's next. This is Bloomberg Tech.

24:36Welcome back to Bloomberg Tech. ¡Gracias por ver el mercado!

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25:37AMD. On the back of that, NVIDIA up 0.7 % as many wait with bated breath for their earnings after the bell tomorrow. Ian King is the man we can do that with, of course. He owns the semiconductor coverage for us at Bloomberg. And Ian, many wait for NVIDIA as some sort of macro bellwether here. For me and for many, it's got to be whether we get any clarity on China, right? Yeah, no, this is the big confusion. I mean, the underlying market for this company's products es lo que está bien según todos los indicadores que estamos viendo pero este mercado que es el mayor mercado para los semiconductores pero no tan importante para NVIDIA es este gran gran esfuerzo de uncertainty ¿qué es el gobierno de Estados Unidos lo que va a hacer next?

26:22¿qué es el gobierno de China lo que va a hacer next? ¿qué productos serán los que se vendan y el problema es que no sabemos demasiadas respuestas y eso es lo que está mudando el agua masivamente porque incluso aunque es relativamente importante para NVIDIA, hay todavía millones de millones de dólares en la stake. En el tema de la swirling y la uncertainty, una otra elemento de eso fue injectado con President Trump, diciendo que quizás el incremento de la inversión de las que impone digital servicios taxes. He means básicamente Europe. No hay una reacción de eso. ¿Es que se sienta que ese elemento de lo que es preciado en?

27:01¿Es que crees que eso puede ser un realidad? que es still waiting on certain semiconductor tariffs to come in. Yeah, I mean, you talk to investors as well and I think the reaction you'll get is the same one that I get, which is, how can we worry about what we don't know, what seems to change from one day to the next, what doesn't have a very constant element to it, whether these things come and go. It's obviously a lot of negotiations being done in public. There are concerns, of course, because this country exports a massive amount de tecnología en algunos aspectos y importan en otros. Pero realmente es el impacto en el mundo en términos de semiconductores que ha sido la gran preocupación so far rather than el impacto en la importancia de chips que no son tan grande.

27:48Y con nerviosidad, incluso la acción de H20s a China, comes in siempre la exuberancia de lo que es next. Just take us up a speed con la que nos ha dado en términos de que se han convertido en un sistema de black whale de China en la longa termina. Eso parece que es lo que estamos hablando ahora. Sí, esto fue algo que fue hintado por NVIDIA. Y luego President Trump se dijo, si se trae un de estos, ¿qué tal si se trae un de estos? Y tal si se puede ver un de estos. Y tal si puede hacer un poco de un cut en un que también. Y eso sería un cambio para NVIDIA. That would give them a path forward to keeping their Chinese customers at least a little bit happy, not as happy as they would be if they could buy everything, of course.