Our Man in Berlin
The secret to Berlin's success so far appears to lie with Chancellor Friedrich Merz and his disciplined approach to the trans-Atlantic relationship. When the Bundestag voted Mr. Merz's government into power on May 6, U.S.-German relations were not in the happiest state. In February, Vice President JD Vance met with Alice Weidel, leader of the Alternative for Germany party, or AfD. Secretary of State Marco Rubio called the German decision to classify the AfD as an extremist organization 'tyranny in disguise.'
Mr. Merz deftly walked a line, firmly rejecting criticisms of German democracy while aligning Berlin with key Trump administration priorities. Committing to spending 5% of gross domestic product on defense, taking a tougher stance on immigration, and focusing attention on the dangers of Chinese mercantilism to the German economy all went down smoothly in Washington.
Mr. Merz, a successful businessman, may have an easier time understanding the American president than do career politicians with less feel for the private sector. Knowing that a working relationship with Mr. Trump was a key to his success overall, the new German chancellor has tended the bilateral relationship assiduously. At his first Oval Office meeting, Mr. Merz presented the president with a gold-framed copy of Mr. Trump's grandfather's German birth certificate. Mr. Merz has refused to criticize Mr. Trump in public and has nothing but nice things to say about their telephone conversations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
6 minutes ago
- New York Post
Nvidia CEO Jensen Huang can resume AI chip sales to China after Trump meeting
Nvidia will resume sales of its H20 AI chips to China after CEO Jensen Huang met with President Donald Trump in the White House last week in an effort to convince him to remove export controls that had hamstrung the company. The Trump administration has assured Nvidia that licenses to export the chips will be granted, ending months of halted shipments that had severely impacted the company's access to one of its largest markets, according to a statement from the firm. The news sent Nvidia's stock soaring more than 5% in pre-market trading. Last week, the chipmaker became the first public company in history to surpass a $4 trillion market valuation. Daniel Ives, senior analyst at Wedbush Securities, hailed the development on Tuesday as 'a watershed moment for Nvidia, the AI Revolution thesis, and the overall US tech industry,' called the decision 'a monster win for the Godfather of AI Jensen and Nvidia.' 4 Nvidia will resume sales of its H20 AI chips to China after CEO Jensen Huang met with President Trump in the White House last week, the company said. REUTERS He added that the green light will likely propel Wall Street's growth estimates for Nvidia 'meaningfully over the coming years with China back in the fold.' In April, Nvidia had paused shipments of the H20 chips — leading to $4.5 billion in inventory write-downs and an estimated $2.5 billion in lost projected sales. The company halted sales of the chips after the Trump Administration implemented a licensing requirement as part of the president's 'Liberation Day' trade moves. The halt not only impacted revenue but gave Chinese rivals an opening in the race for AI dominance. 'This is all a game of high-stakes poker between Nvidia and the Trump Administration,' Ives wrote in a note to clients. 'There is only one chip in the world fueling the AI Revolution and it's Nvidia. That is clearly understood both in the Beltway and Beijing — it's the new gold or oil in this world.' The H20 chip was originally engineered to comply with earlier US export controls on China. With export licenses now expected, the company anticipates a significant boost in revenue during the second half of 2025. In May, Reuters reported that Nvidia was preparing to launch a new AI chip in China, based on the RTX Pro 6000D, priced significantly lower than the H20 due to its weaker specifications and simpler manufacturing requirements. 4 Huang meets with Trump at the White House on April 30. REUTERS The chip would be part of Nvidia's latest generation of Blackwell-architecture AI processors. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales, according to its latest annual report. Nvidia has been pushing to re-integrate China into its supply chain, though Huang's visit drew scrutiny in both countries. A bipartisan group of US senators recently sent a letter to Huang urging him not to meet with Chinese companies connected to military or intelligence bodies. During his visits, Huang said the world has reached an inflection point where AI has become a fundamental resource, like 'energy, water and the internet.' He emphasized Nvidia's support for open-source research, foundation models, and applications that 'democratise AI' and empower emerging economies. 4 A senior analyst called the decision 'a monster win for the Godfather of AI Jensen and Nvidia.' REUTERS 'General-purpose, open-source research and foundation models are the backbone of AI innovation,' he told reporters in Washington. 'We believe that every civil model should run best on the US technology stack, encouraging nations worldwide to choose America.' Investor enthusiasm reflects Nvidia's dominant grip on the AI hardware market, where it commands an estimated 97% share of the GPU accelerator segment. GPU accelerators are powerful computer chips that help speed up complex tasks like training artificial intelligence systems. 4 The news sent Nvidia's stock soaring more than 5% in pre-market trading. Last week, the chipmaker became the first public company in history to surpass a $4 trillion market valuation. Getty Images They work alongside regular processors to handle the heavy lifting of AI computations — similar to a turbocharger in a car engine. Nvidia makes most of these chips, which is why it plays such a big role in the AI boom. Meanwhile, rival chipmakers such as AMD and Intel are expected to introduce their own offerings to meet Chinese demand for AI computing, putting additional pressure on regulators and global suppliers alike. The Post has sought comment from the White House.
Bloomberg
an hour ago
- Bloomberg
Bessent on Inflation, Jerome Powell, Nvidia, Trade Deals
US Treasury Secretary Scott Bessent discusses US inflation, getting the 'formal process' underway to find a successor to Jerome Powell as Federal Reserve Chair, trade deals with China and the European Union, and whether market reaction impacts the Trump administration's approach to tariffs and trade. (Source: Bloomberg)
Bloomberg
an hour ago
- Bloomberg
Hungary's Orban Broaches Topic of Succession After Poll Plunge
Hungarian Prime Minister Viktor Orban, Europe's longest-serving premier who's facing the toughest political challenge to his rule, said his party could survive an eventual change of leadership. Orban broached the topic of succession after 15 years of uninterrupted rule as an opposition party has overtaken his Fidesz party in polls ahead of next year's election. The notion that only he could lead Fidesz is a 'myth,' the 62-year-old premier said.
