Technologies
Tariffs Explained as Trump Threatens Major New Taxes Against Canada and Brazil
The pause on the biggest of Trump’s tariffs won’t end this week, but the president continues to pledge steep new duties against major countries.
President Donald Trump’s second-term economic plan can be summed up in one word:Â tariffs. As he unleashed a barrage of those import taxes, markets trembled and business leaders sounded alarms about the economic damage they would cause. In response to the initial chaos after “Liberation Day” in April, the heaviest of Trump’s tariffs were paused for 90 days — that is, until this week — but they’ve been extended again through Aug. 1. More recently, the administration hiked tariffs against Canada to 35% and threatened Brazil with a 50% rate.
Amid the uncertainties and upheavals, Trump has barreled forward with his plans, including doubling the tariffs on steel and aluminum imports and announcing a new plan to increase the rate for China to 55%. He also hyped up a trade deal on July 2 that leaves Vietnam’s import tax rate at a historically high 20%. The sweeping tariff initiative will likely impact your cost of living, which we know from our surveys is something you’re worried about.
That all came after Trump’s push hit its biggest roadblock yet, when the US Court of International Trade ruled late last month that Trump had overstepped his authority when he imposed tariffs. That ruling was stayed but the fight is likely to head to the Supreme Court. All the while, major US companies like Apple and Walmart have butted heads with the administration over the tariffs and their bluntness about how tariffs will make affording things harder for consumers.
Amid all this noise, you might still be wondering: What exactly are tariffs and what will they mean for me?
The short answer: Expect to pay more for at least some goods and services. For the long answer, keep reading, and for more, check out CNET’s price tracker for 11 popular and tariff-vulnerable products.
What are tariffs?
Put simply, a tariff is a tax on the cost of importing or exporting goods by a particular country. So, for example, a 60% tariff on Chinese imports would be a 60% tax on the price of importing, say, computer components from China.
Trump has been fixated on imports as the centerpiece of his economic plans, often claiming that the money collected from taxes on imported goods would help finance other parts of his agenda. The US imports $3 trillion worth of goods from other countries annually.Â
The president has also shown a fixation on trade deficits, claiming that the US having a trade deficit with any country means that country is ripping the US off. This is a flawed understanding of the matter, many economists have said, since deficits are often a simple case of resource realities: Wealthy nations like the US buy specific things from nations that have them, while those nations in turn may not be wealthy enough to buy much of anything from the US.
While Trump deployed tariffs in his first term, notably against China, he ramped up his plans more significantly for the 2024 campaign, promising 60% tariffs against China and a universal 20% tariff on all imports into the US.Â
“Tariffs are the greatest thing ever invented,” Trump said at a campaign stop in Michigan last year. At one point, he called himself “Tariff Man” in a post on Truth Social.Â
Who pays the cost of tariffs?
Trump repeatedly claimed, before and immediately after returning to the White House, that the country of origin for an imported good pays the cost of the tariffs and that Americans would not see any price increases from them. However, as economists and fact-checkers stressed, this is not the case.
The companies importing the tariffed goods — American companies or organizations in this case — pay the higher costs. To compensate, companies can raise their prices or absorb the additional costs themselves.
So, who ends up paying the price for tariffs? In the end, usually you, the consumer. For instance, a universal tariff on goods from Canada would increase Canadian lumber prices, which would have the knock-on effect of making construction and home renovations more expensive for US consumers. While it is possible for a company to absorb the costs of tariffs without increasing prices, this is not at all likely, at least for now.
Speaking with CNET, Ryan Reith, vice president of International Data Corporation’s worldwide mobile device tracking programs, explained that price hikes from tariffs, especially on technology and hardware, are inevitable in the short term. He estimated that the full amount imposed on imports by Trump’s tariffs would be passed on to consumers, which he called the “cost pass-through.” Any potential efforts for companies to absorb the new costs themselves would come in the future, once they have a better understanding of the tariffs, if at all.
Which Trump tariffs have gone into effect?
Following Trump’s “Liberation Day” announcements on April 2 and subsequent shifting by the president, the following tariffs are in effect:
- A 50% tariff on all steel and aluminum imports, doubled from 25% as of June 4.
- A 30% tariff on all Chinese imports until the new deal touted by Trump takes effect, after which it will purportedly go up to 55%. China being a major focus of Trump’s trade agenda, it has faced a rate notably higher than other countries, peaking at 145% before trade talks commenced.
- 25% tariffs on imports from Mexico and 35% on those from Canada. This applies only to goods from each country that are not covered under the 2018 USMCA trade agreement brokered during Trump’s first term. The deal covers roughly half of all imports from Canada and about a third of those from Mexico, so the rest are subject to the new tariffs. Energy imports not covered by USMCA will be taxed at only 10%.
- A 25% tariff on all foreign-made cars and auto parts.
- A sweeping overall 10% tariff on all imported goods.
For certain countries that Trump said were more responsible for the US trade deficit, Trump imposed what he called “reciprocal” tariffs that exceed the 10% level: 20% for the 27 nations that make up the European Union, 26% for India, 24% for Japan and so on. These were meant to take effect on April 9 but were delayed by 90 days due to historic stock market volatility, and then delayed again to Aug. 1. These rates are subject to change until that new effective date, and some have already been altered: the rate against Japan was upped to 25%, the same as the rate against South Korea; Trump has also threatened a 50% rate against Brazil.
â Rapid Response 47 (@RapidResponse47) April 2, 2025
Trump’s claim that these reciprocal tariffs are based on high tariffs imposed against the US by the targeted countries has drawn intense pushback from experts and economists, who have argued that some of these numbers are false or potentially inflated. For example, the above chart says a 39% tariff from the EU, despite its average tariff for US goods being around 3%. Some of the tariffs are against places that are not countries but tiny territories of other nations. The Heard and McDonald Islands, for example, are uninhabited. We’ll dig into the confusion around these calculations below.
Notably, that minimum 10% tariff will not be on top of those steel, aluminum and auto tariffs. Canada and Mexico were also spared from the 10% minimum additional tariff imposed on all countries the US trades with.
On April 11, the administration said smartphones, laptops and other consumer electronics, along with flat panel displays, memory chips and semiconductors, were exempt from reciprocal tariffs. But it wasn’t clear whether that would remain the case or whether such products might face different fees later.
How were the Trump reciprocal tariffs calculated?
The numbers released by the Trump administration for its barrage of “reciprocal” tariffs led to widespread confusion among experts. Trump’s own claim that these new rates were derived by halving the tariffs already imposed against the US by certain countries was widely disputed, with critics noting that some of the numbers listed for certain countries were much higher than the actual rates and some countries had tariff rates listed despite not specifically having tariffs against the US at all.
In a post to X that spread fast across social media, finance journalist James Surowiecki said that the new reciprocal rates appeared to have been reached by taking the trade deficit the US has with each country and dividing it by the amount the country exports to the US. This, he explained, consistently produced the reciprocal tariff percentages revealed by the White House across the board.
Just figured out where these fake tariff rates come from. They didn’t actually calculate tariff rates + non-tariff barriers, as they say they did. Instead, for every country, they just took our trade deficit with that country and divided it by the country’s exports to us.
So we⊠https://t.co/PBjF8xmcuvâ James Surowiecki (@JamesSurowiecki) April 2, 2025
“What extraordinary nonsense this is,” Surowiecki wrote about the finding.
The White House later attempted to debunk this idea, releasing what it claimed was the real formula, though it was quickly determined that this formula was arguably just a more complex version of the one Surowiecki deduced.
What will the Trump tariffs do to prices?
In short: Prices are almost certainly going up, if not now, then eventually. That is, if the products even make it to US shelves at all, as some tariffs will simply be too high for companies to bother dealing with.
While the effects of a lot of tariffs might not be felt straight away, some potential real-world examples have already emerged. Microsoft has increased prices across the board for its Xbox gaming brand, with its flagship Xbox Series X console jumping 20% from $500 to $600. Kent International, one of the main suppliers of bicycles to Walmart, announced that it would be stopping imports from China, which account for 90% of its stock.
Speaking about Trump’s tariff plans just before they were announced, White House trade adviser Peter Navarro said that they would generate $6 trillion in revenue over the next decade. Given that tariffs are most often paid by consumers, CNN characterized this as potentially “the largest tax hike in US history.” Estimates from the Yale Budget Lab, cited by Axios, predict that Trump’s new tariffs will cause a 2.3% increase in inflation throughout 2025. This translates to about a $3,800 increase in expenses for the average American household.
Reith, the IDC analyst, told CNET that Chinese-based tech companies, like PC makers Acer, Asus and Lenovo, have “100% exposure” to these import taxes, with products like phones and computers the most likely to take a hit. He also said that the companies best positioned to weather the tariff impacts are those that have moved some of their operations out of China to places like India, Thailand and Vietnam, singling out the likes of Apple, Dell and HP. Samsung, based in South Korea, is also likely to avoid the full force of Trump’s tariffs.Â
In an effort to minimize its tariff vulnerability, Apple has begun to move the production of goods for the US market from China to India.
Will tariffs impact prices immediately?
In the short term — the first days or weeks after a tariff takes effect — maybe not. There are still a lot of products in the US imported pre-tariffs and on store shelves, meaning the businesses don’t need a price hike to recoup import taxes. Once new products need to be brought in from overseas, that’s when you’ll see prices start to climb because of tariffs or you’ll see them become unavailable.Â
That uncertainty has made consumers anxious. CNET’s survey revealed that about 38% of shoppers feel pressured to make certain purchases before tariffs make them more expensive. About 10% say they have already made certain purchases in hopes of getting them in before the price hikes, while 27% said they have delayed purchases for products that cost more than $500. Generally, this worry is the most acute concerning smartphones, laptops and home appliances.
Mark Cuban, the billionaire businessman and Trump critic, voiced concerns about when to buy certain things in a post on Bluesky just after Trump’s “Liberation Day” announcements. In it, he suggested that consumers might want to stock up on certain items before tariff inflation hits.
“It’s not a bad idea to go to the local Walmart or big box retailer and buy lots of consumables now,” Cuban wrote. “From toothpaste to soap, anything you can find storage space for, buy before they have to replenish inventory. Even if it’s made in the USA, they will jack up the price and blame it on tariffs.”
CNET’s Money team recommends that before you make any purchase, especially a high-ticket item, be sure that the expenditure fits within your budget and your spending plans. Buying something you can’t afford now because it might be less affordable later can be burdensome, to say the least.
What is the goal of the White House tariff plan?
The typical goal behind tariffs is to discourage consumers and businesses from buying the tariffed, foreign-sourced goods and encourage them to buy domestically produced goods instead. When implemented in the right way, tariffs are generally seen as a useful way to protect domestic industries.Â
One of the stated intentions for Trump’s tariffs is along those lines: to restore American manufacturing and production. However, the White House also says it’s negotiating with numerous countries looking for tariff exemptions, and some officials have also floated the idea that the tariffs will help finance Trump’s tax cuts.
Those things are often contradictory: If manufacturing moves to the US or if a bunch of countries are exempt from tariffs, then tariffs aren’t actually being collected and can’t be used to finance anything. This and many other points have led a lot of economists to allege that Trump’s plans are misguided.Â
As for returning — or “reshoring” — manufacturing in the US, tariffs are a better tool for protecting industries that already exist because importers can fall back on them right away. Building up the factories and plants needed for this in the US could take years, leaving Americans to suffer under higher prices in the interim.Â
That problem is worsened by the fact that the materials needed to build those factories will also be tariffed, making the costs of “reshoring” production in the US too heavy for companies to stomach. These issues, and the general instability of American economic policies under Trump, are part of why experts warn that Trump’s tariffs could have the opposite effect: keeping manufacturing out of the US and leaving consumers stuck with inflated prices. Any factories that do get built in the US because of tariffs also have a high chance of being automated, canceling out a lot of job creation potential. To give you one real-world example of this: When warning customers of future price hikes, toy maker Mattel also noted that it had no plans to move manufacturing to the US.
Trump has reportedly been fixated on the notion that Apple’s iPhone — the most popular smartphone in the US market — can be manufactured entirely in the US. This has been broadly dismissed by experts, for a lot of the same reasons mentioned above, but also because an American-made iPhone could cost upward of $3,500. One report from 404 Media dubbed the idea “a pure fantasy.” The overall sophistication and breadth of China’s manufacturing sector have also been cited, with CEO Tim Cook stating in 2017 that the US lacks the number of tooling engineers to make its products.
For more, see how tariffs might raise the prices of Apple products and find some expert tips for saving money.
Technologies
NBA commissioner Adam Silver says league could introduce âsmart ballâ technology as soon as next year
Commissioner Adam Silver says the NBA could begin using a new “smart ball” in games as soon as next year, potentially transforming how officials make calls.
NBA Commissioner Adam Silver says the league could begin using a new âsmart ballâ in games as soon as 2027, potentially transforming how officials make calls on the basketball court.
In an interview with CNBCâs Contessa Brewer, Silver revealed that the NBA is working with official basketball manufacturer Wilson to develop a ball embedded with a tiny microchip Bluetooth sensor that can track movement, spin and changes in trajectory.
âWeâre experimenting with putting a small chip in the ball that weighs roughly a gram,â Silver said.
The technology has already been tested in the NBAâs G League, Summer League, and some preseason games, where players used basketballs both with and without the chip. Silver said players have been pleased with the results.
âNobody could tell the difference. So thatâs a good sign,â he said.
The chip weighs just one gram, compared with the roughly 620-gram or 1.4 pound basketball. Silver said the league wanted to ensure that even the most experienced players wouldnât notice a change in how the ball feels or bounces.
One of the most immediate applications could be officiating.
Silver said the technology could help referees determine whether a player touched the ball before it went out of bounds by detecting subtle changes in its spin. It could also help identify whether a shotâs trajectory was altered.
âI think you could see as soon as next year us using it for officiating in our games,â Silver said.
Beyond officiating, Silver sees a significant opportunity to bring the technology to consumers, allowing basketball players of all ages to analyze and evaluate their shooting mechanics.
For example, a player taking hundreds of shots could use data collected by the chip to understand which shooting angles and ball rotations are most likely to result in a basket.
âYouâll then see the graph, and youâll see for which the angle of the shots that went in, theyâre more likely to go in,â Silver said.
While the officiating application could arrive as soon as next year, Silver said a consumer version may take longer.
âI think the consumers version [of the smart ball] is a few years away, but itâs a really exciting opportunity.â
NBA playersâ union raises concerns over wearables
The league is also exploring the use of wearable technology during games, but negotiations with the National Basketball Players Association have yet to produce an agreement.
The NBA says officials experimented with wrist wearables in select preseason and summer league games this year in a âsuccessful pilot program,â but it will not extend into the season. The technology allowed the referees to communicate with the replay center about reviews, scoring changes and clock malfunctions.
Silver said players routinely use wearable devices off the court to monitor everything from sleep to physical performance, but concerns remain over how data collected during games could be used by teams.
âI think we have to come to some agreement on exactly how the information is used. But it seems everybody wants that information,â Silver said.
The biggest sticking point is whether that information could affect contract negotiations, Silver said.
âIf you could see a player was slowing down or something like that, theyâre worried that that could get used in bargaining, and I get that,â he said.
Silver acknowledged those concerns and said the league needs to reach an agreement with the playersâ union on how the information would be used.
Still, he suggested that allowing wearables during games is a logical next step as athletes increasingly rely on technology to monitor their performance.
âI think the players are in a position right now where theyâre essentially wearing wearables 22 hours a day, and the only time theyâre not wearing them is when theyâre playing in the game,â Silver said. âSo that canât make sense.â
âWeâll work something out with them,â he added.
Technologies
AIâs quiet safety gatekeepers are stepping into the spotlight
The intensifying AI safety debate is bringing a small group of third-party evaluators into the center of a multitrillion-dollar industry.
Two months ago, independent evaluators occupied a relatively sleepy corner of the multitrillion-dollar artificial intelligence industry. Now theyâre being asked to come to its rescue.
While Anthropic and OpenAI are the heart of a fierce debate over whether they can safeguard their advanced models and grow their businesses simultaneously, the companies are seeking support from a handful of small third-party groups like Model Evaluation and Threat Research (METR), Apollo Research and Transluce.
The evaluators, which mostly operate as nonprofits, are still finding their footing in an industry where capital is flowing at historic levels and new models are rolling out faster than ever. Their primary role has been to assess AI model capabilities and risks, and to call attention to instances where the technology behaves badly.
In the absence of a federal push for regulations, evaluators have taken on outsized importance. Anthropic CEO Dario Amodei pledged to embed independent evaluators in his company last month â a move that OpenAI CEO Sam Altman quickly endorsed.
President Donald Trump supported the idea, as did most of the largest U.S. tech companies. But left unanswered are questions about how those third parties should be funded, what level of access they will have and what the reporting structure will ultimately look like.
âTo a degree, the problem, as always, is money,â Suresh Venkatasubramanian, a computer science professor at Brown University, told CNBC in an interview. âWho is paying for these companies to do their work? How are they going to support them? You need an ecosystem, you need a viable business model for this.â
Right now, Anthropic, OpenAI and the infrastructure partners that are profiting from the AI boom are writing the rules. Critics say thatâs like asking the biggest banks to protect us from a financial crisis or allowing pharmaceutical companies to put drugs on the market without regulatory clearance.
President Trump recently lauded AI executives for their âtremendous self-policing,â and signaled that he intends to leave companies to their own devices, unwilling to impede the growth of the industry thatâs driving the economy and stock market. Trump encouraged AI companies to âpartner with an independent external auditor or evaluatorâ as part of a voluntary accord he presented in late September.
Itâs a conversation that Amodei kicked off In his viral essay last month, when he called for a âslower paceâ in advanced model development after researchers left his company and voiced their concerns about the existential threats the technology poses.
As the AI labs move to put evaluators in place, friction is already starting to emerge.
OpenAI fired three employees last week for âviolating our policies on accessing and handling sensitive company information,â according to a spokesperson. Two of those employees, Mikita Balesni and Tomek Korbak, said they believe they were dismissed because of how they communicated with third-party evaluators.
âMy former colleagues are telling me they are confused about what to believe,â Balesni wrote in a post on X on Thursday. âThey also are afraid to speak, and worry their personal phones will be searched for messages to us and third parties. I worry the pervading fear to speak up and engage with third parties will mean OpenAI will cut corners on safety behind closed doors.â
OpenAI disputed that characterization and said in a post on Friday that itâs âactively finalizing contracts with third-party safety assessors and will announce details in the coming weeks.â
âWe are committed to embedding external assessors and continue to make close collaboration with independent safety organizations a core part of our safety work,â OpenAI wrote.
An OpenAI spokesperson said in an emailed statement that its upcoming work with evaluators âbuilds on existing collaboration with independent safety organizations,â including METR and Redwood Research.
Anthropic didnât respond to CNBCâs request for comment.
âIâve never seen an issue move so fastâ
The AI evaluator ecosystem consists mostly of small organizations, including METR and Apollo Research, and larger accounting and auditing firms like Accenture.
AI labs have been working with evaluators in limited capacities, but Andrew Freedman, CEO of policy nonprofit Fathom, said the field is quickly maturing.
âIâve worked in politics and policy for the last 20 years of my life, and Iâve never seen an issue move so fast on so many different political spectrums,â Freedman told CNBC in an interview. He said he expects an âinflux of capitalâ to flow into the ecosystem.
Rayan Krishnan, CEO of independent evaluator Vals AI, said his for-profit startup, which builds benchmarks to measure how AI models perform on industry-specific tasks, has grown from eight employees to roughly 30 this year, and in August announced a $40 million funding round.
METR, a nonprofit, announced in August that it had raised commitments of around $71 million over the last six months. Thatâs up from total 2024 contributions of $13.6 million, according to the groupâs most recent filing with the Internal Revenue Service.
By late that month, METRâs profile had risen further. OpenAI enlisted two of its employees and a contractor to put together a postmortem report detailing how the companyâs models escaped containment, accessed the open internet and breached open-source developer platform Hugging Face. METR said it did not accept payment from OpenAI for the assessment.
Kevin Werbach, faculty director of the Wharton Accountable AI Lab at the University of Pennsylvania, said the ecosystem is ânot robust enough right now.â METR, for example, employs fewer than 50 full-time staffers, according to its website.
The power imbalance between the small evaluators and the leading labs that have raised tens of billions of dollars and employ thousands of people raises questions surrounding potential conflicts.
âIf you want true third-party evaluation, you need true independence financially and otherwise,â said Venkatasubramanian. âItâs not just a matter of not getting paid, itâs a matter of, will there be consequences if I am an auditor and I put out a report that looks unfavorable to this company? Is my business going to dry up?â
Anthropic acknowledged the complexity in a blog post last month, as it announced it will embed employees from Faculty, Accentureâs specialist AI business, to test safeguards and assess whether models will behave in line with human values. Anthropic said that âgiven the importance and urgency of this work,â it will fund Accentureâs contributions directly.
âThere are, as yet, no standards for what information embedded evaluators should have access to, or how they should report what they find. There is also no settled system for funding independent evaluation,â Anthropic said. âLong-term, we think funding should come from pooled or government sources.â
Anthropic said itâs in discussions with METR and other nonprofit evaluators that are planning to use their own funding to pilot âelementsâ of embedded evaluation.
Will the government step in?
In June of last year, Fathom introduced a marketplace framework for Independent Verification Organizations, or IVOs. These groups would be licensed by the government and authorized to test whether AI companies are meeting various safety criteria.
Freedman, the groupâs CEO, said government oversight is key because otherwise third-party evaluators can become beholden to the large AI labs for revenue, incentivizing them to âstart rubber stamping stuffâ to maintain favor.
Some lawmakers are on board.
IVOs are a key provision of the âłFrontier Risk Oversight, National Transparency, Independent Evaluation, and Reportingâ (FRONTIER) Act, which Reps. Lori Trahan, D-Mass., and Jay Obernolte, R-Calif., introduced in July. Fathom helped draft language and provided technical expertise for the bill, Freedman said.
OpenAI global affairs chief Chris Lehane told reporters in September that he sat down with one of the billâs sponsors on Capitol Hill to express support for the IVO provision.
âIt was important for them to hear that and hear it from us, and we wanted to be really clear about that,â Lehane said, according to reports.
Meanwhile, lawmakers in California, Connecticut and Virginia have taken steps to implement IVOs, and states like Massachusetts are weighing independent safety evaluations more broadly.
California Governor Gavin Newsom recently signed two bills involving IVOs, one establishing a âfirst-in-the-nation framework,â and the other creating a state registry for AI auditors. Anthropic threw its support behind both bills in August, and OpenAI formally endorsed them last month, the same day Newsom signed them into law.
Lehane wrote in a blog post at the time that âwe prefer independent technical assessments to be required at the federal level,â but in the absence of federal action, âCalifornia can help establish the rules of the road.â
Freedman said he thinks it will be âreally difficultâ for companies like OpenAI and Anthropic to work out how to engage with independent evaluators on their own. However, with the governmentâs role unclear, âitâs a muscle worth developing in the interim,â he said.
For now, the closest thing the industry has to a set of standards is what Trump called a âmorally bindingâ agreement at a luncheon he hosted for tech leaders at the White House late last month.
The one-page accord says that âevery company is responsible for developing its own technology safely and in a way that builds trust with customers and the public.â It also encourages signees to work with an âindependent external auditor or evaluator to carry out independent assessments.â
The document was signed by top execs at Anthropic, Google, Meta, OpenAI, SpaceX and Nvidia, a rare show of solidarity between leaders who have shared conflicting views on addressing AIâs risks. The executives still have to chart their own paths forward.
âIt was a performance of an attempt to show action when in fact no action actually happened,â Venkatasubramanian said. âThe things that they promise to do are things they should have been doing already, and, in fact, have claimed that they were doing in the past.â
Amodei, in his September essay, said Anthropic will equip evaluators with desks, access badges, company laptops, and permissions that are âmostly comparableâ with internal risk assessment teams. Additionally, evaluators will be supported with contracts that give them âthe right to publish key findings,â with Anthropic reserving âthe narrow abilityâ to redact certain security-sensitive or confidential information.
âThis is an unusual step for a company, but we think it is important to prove out the concept of embedded external reviewers,â Amodei wrote.
OpenAI published its own proposal days later, and said evaluators should work on âscoped and mutually agreed upon claims for assessment,â clearly explain their methodology and standards, demonstrate relevant technical expertise and disclose conflicts of interest.
The AI Evaluator Forum, which includes METR, the AI Verification and Evaluation Research Institute (AVERI), and other groups, published a public letter last month titled, âMinimum Conditions for Embedding Evaluators.â
The letter said evaluators should be transparent, shielded from retaliation and granted access equivalent to AI companiesâ âown highly privileged employees.â
âEmbedded evaluations cannot address all oversight needs and should be treated as a complement to, rather than a replacement for, broader efforts by frontier AI companies to expand external oversight,â the letter said.
Freedman said heâs seen a shift in posturing out of OpenAI and Anthropic in recent months, largely because theyâve realized they wonât be able to roll out their advanced systems without the publicâs trust.
âI donât think you need to trust that theyâve suddenly turned altruistic or that thereâs anything but corporations acting like corporations,â Freedman said.
That underscores perhaps the central problem, Werbach said. OpenAI and Anthropic are, first and foremost, competing with each other as they march toward the public markets and seek trillion-dollar-plus valuations.
âThere is a tremendous amount of personal distrust between those two companies,â Werbach said. âEven though thereâs also tremendous agreement about the need for this kind of evaluation to happen.â
WATCH: Bradley Tusk on Anthropic IPO: Why add public market pressure if safety is your top priority?
Technologies
Trump says he is ‘going to look at’ joining Saudi Arabia in the fight against Iran-backed Houthis after deadly airport strike
U.S. military involvement in the fight against the Houthis would stretch resources in the Middle East already committed to fighting Iran, analysts said.
President Donald Trump said he is considering joining Saudi Arabia in its retaliation against Tehran-backed Houthis in Yemen after a deadly attack on Riyadhâs main airport, a move that could draw the U.S. further into a second front in the Iran war.
âWe may. Weâre going to look at it,â Trump told reporters outside the White House on Saturday when asked if the U.S. would back Saudi Arabian strikes. âWe just found out about the recent attack. So, weâll make a decision. We move very quickly.â
Two Saudi Arabian government officials told MS NOW that the kingdom is requesting âurgent defense supportâ from the U.S. following the attacks.
The officials, including a senior member of the Ministry of Foreign Affairs, did not want to be identified because of the matterâs sensitivity. They added that the U.S. needs to intervene âas soon as possibleâ to help the Saudi-led coalition in Yemen fight the Houthis.
The White House did not immediately respond to a CNBC request for comment.
The Saudi General Authority of Civil Aviation said the attack on King Khalid International Airport in Riyadh killed 12 people and injured 309 others, the countryâs official Saudi Gazette media outlet reported.
Colonel Turki Al-Maliki, the spokesman for the Saudi-led Coalition to Support Legitimacy in Yemen, which has been leading the fight against the Houthis, described the attack as a âwar crime.â
âTherefore, the Joint Forces Command of the Coalition will respond decisively to this terrorist attack in accordance with the Customary International Humanitarian Law,â Al-Maliki said in a post on X.
It was the second deadly assault on Riyadhâs airport in less than a week.
Three Saudi nationals, including a pilot, were killed in attacks on the facility by Iran-backed Houthi militants on Thursday.
Following Saturdayâs attack, the Houthis renewed their warning against using Saudi airports.
âWe renew our warning to all airlines, experts, employees, workers and travellers against using Saudi airports and airspace, as they are vulnerable to attack and have become a theatre of operations for our forces, with the exception of the airports in (the holy cities of) Mecca and Medina,â the Houthis said in a post on X.
Saudi Arabia, a key U.S. ally in the Middle East, intervened in Yemenâs civil war between the Houthis and its internationally recognized government after the group seized the Yemeni capital Sanaa in 2014.
Last month, the Trump administration approved the potential $24.3 billion sale of nearly 50 F-35 warplanes to Saudi Arabia in what was seen as a major boost for the kingdom as it faces intensifying attacks from the Houthis. The sale is under congressional review.
International energy conference still on
The Saudi energy ministry said a long-planned international energy conference will still take place in Riyadh on Sunday, Reuters reported.
The five-day WPC Energy Congress is taking place at a convention center near King Khalid airport. State television told Reuters that more than 70 ministers, 300 company executives and representatives of more than 25 international energy organizations have confirmed their attendance, though it was not clear whether the participants would attend in person or virtually.
Reuters said a ministerial meeting of the International Energy Forum is also set to take place, with its plenary session to be held behind closed doors.
Energy choke points
In addition to attacks on civil aviation, the Houthis have also been trying to choke off oil tanker traffic through the Bab el Mandeb strait, a key entry point to the Red Sea, as Iran has effectively done in the Strait of Hormuz to the north of the Arabian Peninsula.
Earlier this month, Yemeni government forces said they reclaimed the strategic port city of Mokha from the Houthis.
Energy prices have soared since the start of the Iran war, which began with U.S. and Israeli airstrikes on Iranian targets on Feb. 28, putting pressure on consumers globally.
The surge in domestic fuel prices has been a key issue for voters ahead of next monthâs U.S. midterm elections.
But that support would be expensive militarily.
âPotential U.S. involvement in the Saudi-Yemeni government air campaign to degrade Houthi ballistic missile capabilities would mark the first direct U.S. military action against the group since the conclusion of Operation Rough Rider in May 2025,â according to the Critical Threats Project, part of the American Enterprise Institute think tank.
The offensive aimed to suppress the Houthisâ capabilities, but recent attacks show the group has regrouped.
âAfter seven months of war, there are questions about the U.S. capacity to wage a sustained campaign against the Houthis, return to combat against Iran if necessary, and prepare for contingencies in other parts of the world, notably East Asia,â Steven Cook, an expert on Arab and Turkish politics at the Council on Foreign Relations think tank, wrote last month.
Meanwhile, the United Kingdomâs defense secretary said his government is also examining how to support Saudi Arabia.
âIâve spoken to my Saudi counterpart [Khalid bin Salman] on a number of occasions in recent weeks to look at what more we can do to support Saudi Arabia, and Iâm afraid last night explains precisely why we are providing that support,â Wes Streeting said in an interview on BBC television on Sunday.
Streeting said the U.K. is not getting involved in offensive operations âat this stage.â
âWeâve always been clear that there isnât a military solution to this conflict,â Streeting added.
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