Innovation Insider - February 4th, 2025
The new administration has come out swinging. Over the weekend, it was officially announced the the US would be imposing a 25% tariff on all goods from Canada and Mexico (excluding energy which would be at 10%) and 10% on all goods from China. Pause. It seems that Mexico and Canada have made agreements with the US to pause tariffs for 1 month in exchange for stronger commitments to securing their borders and fighting the flow of illegal drugs. Mexico is sending 10,000 troops to the border to help stop the flow of fentanyl. Canada announced a $1.3 billion border plan, it is sending 10,000 troops to the border, appointing a “fentanyl czar” and listing cartels as terrorists. Let’s explore tariffs a little bit.
Tariffs, often seen as a tool for economic protectionism, are likely to have many effects on international trade and negotiations with both immediate and long-term consequences. On one hand, tariffs can lead to short-term benefits for domestic industries by protecting them from foreign competition, encouraging local production, and reducing trade deficits. Countries may use tariffs as leverage in negotiations, particularly in trade disputes, hoping to force concessions or reshape global supply chains to favor their interests. However, the broader, more complex impact is likely to be negative for global trade.
In the longer term, tariffs can disrupt established global supply chains, increase costs for consumers, and reduce the efficiency gains that free trade has traditionally brought. Industries reliant on cheap foreign goods may face higher production costs, which could eventually lead to inflationary pressures. Furthermore, retaliatory tariffs from trading partners can escalate into trade wars, where the losses from restrictions and counter-restrictions outweigh any potential benefits. This may result in diminished global cooperation, decreased trust among trading nations, and delays in resolving systemic issues like intellectual property rights, labor standards, or environmental regulations.
From a negotiation perspective, tariffs complicate diplomatic relations. While they can be used as bargaining chips, they often shift negotiations into zero-sum thinking, where the goal is to "win" rather than achieve mutually beneficial outcomes. Tariff impositions may also incentivize countries to seek alternative trading partners, forming new blocs or alliances, thus fragmenting global trade. This could limit the effectiveness of multilateral institutions, like the World Trade Organization, which is designed to mediate and resolve such conflicts.
So what’s going to happen with the new tariff regime? It’s hard to predict because it’s a little unprecedented in the modern era. It will be interesting to see how things unfold. Hopefully in the long run, each country is able to turn it from a zero-sum game into a positive sum game. One possible outcome is that each country becomes more self-sufficient and productive in their own right, less reliant on foreign countries, and also produces more that they are able to export and trade with other nations.
What do you think?
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Let’s jump into this week’s highlights.
News
DeepSeek, is causing a buzz in Silicon Valley with its advanced reasoning model that outperforms many current competitors. The company’s breakthrough is stirring curiosity about its potential in various industries.
DeepSeek Claims Its Reasoning Model Beats OpenAI’s O1 on Certain Benchmarks. DeepSeek’s reasoning model is claiming to outperform OpenAI’s O1 on specific benchmarks, prompting discussion in the AI community. The competition in AI model performance continues to heat up.
Behind Cushion’s Bankruptcy: 3 Things You Should Know About the $82M Fintech Startup. Cushion, a fintech startup once valued at $82 million, has filed for bankruptcy. Key factors behind the collapse include financial mismanagement, market challenges, and an inability to scale its core offering.
OpenAI Seeks $40B in Funding at $340B Valuation, Including From Stargate Backer SoftBank. OpenAI is looking to raise $40 billion in funding, bringing its total valuation to $340 billion. Among the interested investors is SoftBank, which previously backed Stargate, highlighting the growing financial backing for AI firms.
Tech War: Huawei’s Cloud Unit Faces New US Restrictions Amid Growing Tensions. Huawei’s cloud division is grappling with heightened restrictions from the U.S., amid ongoing tech rivalry between the two nations. The sanctions are affecting Huawei’s ability to expand its cloud services globally.
DeepSeek Punctures Tech Spending Plans and What Analysts Are Saying. DeepSeek’s disruptive AI advancements are forcing companies to rethink their tech spending priorities. Analysts suggest that businesses might need to adjust their strategies to stay competitive in the evolving AI landscape.
Trump Administration to Offer Federal Workers Buyouts or Resignations. The Trump administration is offering buyouts to federal workers or encouraging voluntary resignations as part of an effort to streamline government operations. This move is part of a broader plan to reduce federal workforce costs.
OpenAI has unveiled its latest AI model, O3 Mini, designed to improve reasoning abilities over previous versions. This new tool is expected to enhance AI’s capacity to handle complex decision-making tasks.
Perplexity AI Sued by Software Company for Trademark Infringement. Perplexity AI is facing a trademark infringement lawsuit from a software company claiming the AI startup's branding is too similar to its own. The lawsuit raises concerns about intellectual property rights in the rapidly growing AI industry.
Google’s Voluntary Exit of Platforms & Devices Team: What It Means. Google’s voluntary exit program for its Platforms & Devices team signals a shift in the company’s strategy. This restructuring could impact Google’s hardware and software development, especially in areas like Pixel devices.
Tether Reports $13B Profit for 2024, With Rising Bitcoin and Gold Prices Contributing. Tether has reported a $13 billion profit for 2024, driven by the surge in Bitcoin and gold prices. The stablecoin issuer's strong performance highlights its growing influence in the digital asset market.
Developer Profiles of the Week
Michael is a fullstack NodeJS / React engineer who has 12 years of professional experience. Michael has worked with companies ranging from startups to several hundred employees and he also has some leadership experience. Michael is based in California and is ready for his next challenge.
Johnatas is a fullstack engineer with 7 years of professional experience. He has worked extensively with Python, Golang and React. Johnatas also has experience with AWS and multiple databases. Johnatas is a well versed Brazilian based engineer who would be an exceptional addition to any team.
Please email us at hiring@donestreet.com to learn more about these talented developers and how you can bring them onto your team.
Engineering and Security
Using Tails When Your World Doesn't Feel Safe Anymore. Privacy Guides provides a comprehensive guide on installing and using Tails, a privacy-focused Linux distribution designed for anonymous internet browsing and secure data handling. It walks users through the installation process, which can be done via USB or DVD, and explains the key features of Tails, such as its ability to route all internet traffic through the Tor network for anonymity. The guide also covers the use of Tails for safely managing sensitive files, avoiding tracking, and maintaining online privacy without leaving traces on the computer used.
Meta Confirms Zero-Click WhatsApp Exploit Spying on Users. Meta has confirmed that a zero-click exploit in WhatsApp was used to spy on users, leveraging vulnerabilities in the app to install spyware without any user interaction. This highlights ongoing concerns around mobile security and espionage.
DeepSeek AI Unveils Janus, a Multi-Purpose Reasoning Model for Business Intelligence. DeepSeek AI has introduced Janus, a multi-purpose reasoning model designed to enhance business intelligence. The model aims to streamline decision-making and analytics by processing vast amounts of data quickly and accurately.
Top 5 AI-Powered Social Engineering Attacks to Watch Out For in 2025. As AI advances, cybercriminals are leveraging these tools to conduct more sophisticated social engineering attacks. The article outlines the top five types of AI-powered attacks to be aware of, including phishing and deepfake-based manipulations.
HR Notices
From Recruitment to Retention: How Talent Intelligence is Changing HRTech. Talent intelligence is transforming HRTech by offering data-driven insights that enhance recruitment, employee engagement, and retention strategies. These technologies help companies make smarter hiring decisions and improve workforce management.
Talent Shortages May Cost $85T by 2030, PI Report Offers Solutions. A report from PI forecasts that global talent shortages could cost the economy up to $85 trillion by 2030. It also suggests solutions for organizations to tackle this issue, such as better talent analytics and strategic workforce planning.
Top HR Tech Trends to Watch in 2025. Covering the top HR tech trends for 2025, SHRM covers topics including AI-driven hiring tools, employee experience platforms, and predictive analytics for workforce planning. These innovations are reshaping the way HR departments manage talent.
The Intersection of Employee Engagement and Predictive Analytics in Workforce Management. Explore how combining employee engagement strategies with predictive analytics is revolutionizing workforce management. Predictive tools help businesses anticipate employee needs and improve overall productivity and satisfaction.
Funding
Defense Tech on the Rise: SpaceX Veterans Raise $100M for Hypersonic Weapons. Former SpaceX engineers have raised $100 million to develop affordable hypersonic long-range strike weapons, aiming to revolutionize defense technology with advanced capabilities. The funding could lead to significant breakthroughs in military hardware.
Ex-Autodesk Execs Snag $46M to Build the Next-Gen of Architecture Design. A group of former Autodesk executives has raised $46 million to develop a next-generation architecture design platform. The project seeks to combine AI and advanced design tools to reshape how buildings and infrastructures are created.
Final Round AI Secures $6.88M in Oversubscribed Seed Funding to Transform the Job Search Journey. Final Round AI has raised $6.88 million in seed funding to improve the job search experience. The platform uses AI to provide personalized career recommendations and job-matching services, aiming to streamline the hiring process for both candidates and employers.
Acquisitions / Mergers
Cracking the DNA Code: Nucleus Genomics Acquires Irish Biotech Cambrean, Grabs $14M from Reddit Co-Founder and Peter Thiel Fund. Nucleus Genomics has acquired the Irish biotech firm Cambrean, marking a strategic move to enhance its genomic technology. The company also secured $14 million in funding from Reddit co-founder Alexis Ohanian and Peter Thiel’s venture fund to accelerate its expansion into the personalized genomics space.
Resource of the week
Privacy Guides is a website dedicated to providing comprehensive, up-to-date resources and recommendations for protecting your digital privacy and security. It offers detailed guides on tools and best practices for maintaining anonymity online, including using secure messaging apps, VPNs, password managers, and privacy-focused operating systems like Tails. The site also helps users navigate privacy settings for various digital platforms and services, ensuring they can safeguard their personal data against surveillance, hacking, and unwanted tracking.
Book Recommendation of the Week
The Lessons of History by Will Durant and Ariel Durant. The Lessons of History by Will and Ariel Durant is a concise exploration of the patterns and principles that have shaped human history. Drawing from their extensive 11-volume work The Story of Civilization, the Durants distill key insights into the forces that drive the rise and fall of civilizations, including the roles of culture, religion, economics, and war. They explore how these factors interact to influence the trajectory of societies, offering reflections on human nature, governance, and progress. The book encourages readers to reflect on the cyclical nature of history and the lessons we can learn from past civilizations to avoid repeating their mistakes. Through a broad, interdisciplinary lens, the Durants provide a thought-provoking analysis of humanity’s achievements and failures.
This Day in History
On February 4th, 1789. George Washington was unanimously elected the first U.S. president. George Washington, the commander of the Continental Army during the Revolutionary War, is unanimously elected the first president of the United States by all 69 presidential electors who cast their votes. John Adams of Massachusetts, who received 34 votes, was elected vice president. The electors, who represented 10 of the 11 states that had ratified the U.S. Constitution, were chosen by popular vote, legislative appointment, or a combination of both four weeks before the election.
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