CNBC Daily Open: Tariffs have come — but ‘TACO trade’ seems to be still on

Markets have still got that loving feeling despite U.S. tariffs coming into effect. On Thursday, President Donald Trump’s “reciprocal” tariffs hit dozens of countries, with those not named in the list subject to a 10% baseline levy.

Aug. 7 was a culmination of quite a few deadlines the world has faced as it rides the rollercoaster of Trump’s tariff strategy, and while this deadline might already be in force, the tariffs are not really set in stone. Negotiations, of course, will keep happening, and countries could see some reprieve.

Remember, Trump walked back on “Liberation Day” tariffs a week after all the pomp and ceremony in the Rose Garden, and the July 9 deadline was pushed to Aug. 1, and then to Aug. 7. Steep tariffs announced on China have been on hold, with the deadline of Aug. 12 expected to be postponed.

So, while these might be the highest tariffs the world has seen since the Smoot-Hawley Act in the 1930s — are they here to stay?

Now, if you’d excuse me, the taco shop downstairs may be opening for business.

— Lim Hui Jie

The full list of U.S. tariffs around the world. After months of threats, deals, and posts on Truth Social, dozens of key U.S. trading partners were hit Thursday with “reciprocal” tariffs on their exports to the country. The U.S. has said that besides the list of countries here, all other exports to the U.S. will face a baseline 10% tariff rate.

A new Fed governor. Trump on Thursday announced he has selected Stephen Miran, chair of the Council of Economic Advisors, to replace Adriana Kugler, who resigned Friday. Miran will serve out Kugler’s term, which expires Jan. 31, 2026, and will not be a replacement for Fed Chair Jerome Powell.

Markets are mixed. The Dow Jones Industrial Average gave back gains and closed lower on Thursday as investors pocketed some of their profits in a volatile session. In contrast, the tech-heavy Nasdaq Composite advanced, and the S&P 500 was down marginally. In Europe, the Stoxx 600 was up 0.9% as investors assessed upbeat earnings.

Intel CEO under fire. Intel shares slipped Thursday after Trump called for the chipmaker’s CEO Lip-Bu Tan to step down. In a Truth Social post, Trump said he “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” This comes after a senator questioned Tan’s ties to Chinese companies, among other allegations.

[PRO] China trade talks benefit air freight
The uncertainty of the Trump Administration’s ongoing trade talks with China has fueled airfreight traffic as traders try to get their goods into the U.S. before the Aug. 12 deadline.

OpenAI launches new GPT-5 model for all ChatGPT users

OpenAI on Thursday announced GPT-5, its latest and most advanced large-scale artificial intelligence model.

The company is making GPT-5 available to everyone, including its free users. OpenAI said the model is smarter, faster and “a lot more useful,” particularly across domains like writing, coding and health care.

— Ashley Capoot