Samsung Expands with Tesla as Tough U.S. Tariffs Loom: On a busy economic day,
Samsung announced a major strategic deal with Tesla worth $16.5 billion to supply advanced chips through 2033,
while the U.S. administration confirmed that the new tariffs will go into effect without delay at the start of August
reflecting notable shifts in the global industrial and trade landscape.

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Samsung

U.S. Commerce Secretary

Samsung Signs $16.5 Billion Deal with Tesla to Produce Advanced Chips Through 2033

Samsung Electronics, the South Korean semiconductor giant, has signed a massive $16.5 billion deal with Tesla to manufacture semiconductors.
The agreement, which spans from July 26, 2024, through the end of 2033,
represents a significant boost for Samsung’s foundry unit,
which seeks to strengthen its position in the global market.

Samsung will execute the project at its new plant in Taylor,
Texas, and expects it to boost foundry sales by up to 10% annually.
Due to commercial confidentiality, the company did not disclose full details of the deal.

Analysts view the agreement as a sign of Tesla’s confidence in Samsung’s technical capabilities,
particularly in 2nm chip manufacturing.
They believe it could soon pave the way for additional partnerships with other major tech firms.

This deal comes amid intensifying competition between Samsung and Taiwanese semiconductor titan TSMC,
which are racing to lead the AI chip and electric vehicle applications market.

It’s worth noting that Samsung and Tesla have previously collaborated on autonomous driving chips,
including Tesla’s “Autopilot” chips, reflecting a continued strategic alliance in advanced technologies.

U.S. Commerce Secretary: No Extension for New Tariff Deadline – Enforcement Begins August 1

U.S. Commerce Secretary Howard Lutnick confirmed on Sunday that the deadline to begin enforcing
The newly increased tariffs on U.S. trade partners
set for August 1 — are final and will not be extended or granted any grace period.

In an interview with Fox News, Lutnick stated:

“There are no extensions. No grace periods.
The tariffs are set for August 1, and they will be enforced. Customs will begin collecting.”

However, he noted that President Donald Trump, who continues negotiations with EU officials in Scotland,
remains open to dialogue even after the tariffs go into effect.

Lutnick added that European officials are hopeful for an agreement and that the outcome depends directly on President Trump.
Who is personally leading the negotiations?

The United States has finalized trade agreements with five countries ahead of the deadline:
The UK, Vietnam, Indonesia, the Philippines, and Japan.
These countries agreed to impose tariffs above the new base rate of 10%,
First introduced in April to most trade partners
but still below the punitive levels threatened by the Trump administration for those refusing to reach a deal.

Samsung Expands with Tesla as Tough U.S. Tariffs Loom

Samsung Expands with Tesla as Tough U.S. Tariffs Loom

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