The Trump administration froze $2.2 billion in grants to Harvard University on Monday after the elite university announced it would not comply with demands for reforms to stop antisemitism and other forms of discrimination. As Breitbart News reported: Harvard University revealed that it will not comply with the Trump administration’s list of demands for the university to make changes to its policies regarding hiring, governance, student admissions, and antisemitism. In response, the Trump administration has suspended some $2.2 billion of nearly $9 billion in federal grants at risk. Nvidia has announced plans to build AI supercomputers in Texas and invest up to $500 billion in AI production within the United States. Barron’s reports that AI powerhouse Nvidia has commissioned over a million square feet of manufacturing space in Arizona and Texas to build and test its Blackwell chips and AI supercomputers. This marks the first time that Nvidia will be producing its cutting-edge AI technology entirely within the United States. The tariff doomsday machine is roaring again. This time, it’s over talk of a 50% tariff on certain imports. Predictably, the panic-peddlers are out in force, warning that such a tariff means retail prices will skyrocket 50%. It’s an easy line to chant, but it’s wrong — flat wrong — and anyone with a basic grasp of economics should know better. Let’s make one thing clear: a tariff applies to the transaction value, not the final retail price. The transaction value is what the importer pays the exporter, plus freight and insurance. That cost is just the first step in a long supply chain. By the time a product reaches the consumer, it’s been marked up to cover domestic shipping, warehousing, employee wages, utilities, sales tax, and profit margins for every hand it passes through. The tariff is just one input among many. Take a simple example. A retailer imports a widget with a $100 transaction value. Add a 50% tariff, and the cost to the importer becomes $150. That importer then sells it wholesale — perhaps at $200 — to a retailer, who marks it up again to $300 for sale. That $50 tariff is now 16.7% of the retail price. Even if every penny of the tariff is passed along, you’re not looking at a 50% increase in retail price — you’re looking at something closer to 17%. But here’s the kicker: tariffs are not always fully passed on to the consumer. Importers and retailers know they can’t raise prices beyond what the market will bear. Sometimes they absorb part of the cost, cut expenses, renegotiate contracts, or shift to different suppliers. The market reacts; it doesn’t just lie down and take it. The National Bureau of Economic Research analyzed the 2018–2019 U.S. tariffs on Chinese goods. They found that for every 10% tariff, retail prices rose 1–2%. So even a 50% tariff, if applied, might cause retail prices to edge up 5–10% — not 50%. That’s a far cry from the alarmist headlines. https://www.zerohedge.com/political/no-50-tariff-doesnt-mean-50-price-hike 
America ‘Divests’ from Harvard: Trump Admin Freezes $2.2 Billion in Grants:
America Winning: Nvidia to Invest $500 Billion to Build AI Chips and Supercomputers in Texas:
No, A 50% Tariff Doesn't Mean A 50% Price-Hike:
