Three Things (4/14)

Tariffs, But Not on Chips (Yet)

As the U.S. rolls out its latest round of tariffs targeting Chinese imports, a key exception has temporarily shielded consumer tech devices from immediate price hikes. On Friday evening, the administration announced that smartphones, tablets, and laptops—many of which rely on advanced chips and components produced in Southeast Asia—were notably exempt from the reciprocal tariffs issued earlier this month. This reprieve benefits tech giants like Apple, but also a wide range of U.S. companies building AI infrastructure, data centers, and connected consumer hardware. The logic behind the exemption? Punishing U.S. companies for a supply chain they can’t yet replace would be self-sabotage.

But the relief may be fleeting. According to recent statements from the Trump administration, these products will soon fall under a targeted set of “semiconductor tariffs” designed to force reshoring of chip and display panel manufacturing. The administration signaled that in “a month or two,” a new round of duties will hit core components like semiconductors and flat panels. In effect, the administration is using a two-step strategy: avoid economic whiplash now, but apply surgical pressure later. For the U.S. tech sector, this sets up a crucial period of transition—where the future of their global supply chains could soon carry a much higher price tag.

When Augusta Becomes Airbnb's MVP

Every April, Augusta, Georgia becomes the epicenter of a uniquely American economic surge, thanks to the Masters Tournament. Local homeowners rent out their properties for as much as $15,000 to $40,000 during the week, while hotels, restaurants, and service providers brace for one of their busiest stretches of the year. Some restaurants reportedly do 10% of their annual business during Masters week alone. Beyond lodging and dining, the tournament fuels a mini-boom for food distributors, event planners, drivers, and even private chefs, all feeding off the spike in high-end visitor demand.

The ripple effect is substantial: the Masters generates an estimated $120 million to $140 million in economic impact annually for the Augusta area. Thousands of temporary jobs are created in the leisure and hospitality sectors, and Richmond County sees a tax revenue windfall, particularly from hotel and motel taxes. While most cities would kill for this kind of year-round activity, Augusta gets it in one concentrated shot—demonstrating just how powerful a single event can be in driving regional growth. The Masters isn’t just a golf tournament; it’s a temporary economic engine, where short-term rentals become small businesses and the city itself becomes a weeklong hospitality empire.

A Spike That Hits Home

Mortgage rates surged past 7% last week, but this time the driver wasn’t inflation data or a surprise Fed move—it was the bond market unraveling in the wake of President Donald Trump’s chaotic tariff push. His latest escalation in the U.S.–China trade war sparked one of the most dramatic selloffs in Treasuries in decades, with 10-year yields spiking 50 basis points to 4.49%—the sharpest weekly rise since the aftermath of 9/11. The scale of the move shocked Wall Street, as investors pulled back from what were once considered the world’s safest assets, rattled by both economic uncertainty and fears about U.S. policy direction. Even a cooler-than-expected inflation report couldn’t stop the bleeding.

This volatility is now hitting Main Street in a big way. Since mortgage rates closely track the 10-year Treasury yield, the surge in yields has made home loans significantly more expensive—virtually overnight. For buyers already grappling with high prices and limited inventory, this spike further erodes affordability and puts homeownership even further out of reach. And the impact goes beyond housing. Higher yields ripple through the economy, raising borrowing costs for consumers, small businesses, and corporations alike. Trade policy isn’t just a geopolitical lever—it’s affecting everyday financial decisions. By shaking confidence in U.S. debt, this bond market upheaval is tightening financial conditions and threatening to stall momentum.