Good morning. Nvidia said it has received assurances from the Trump administration that it can sell its H20 artificial-intelligence chip in China, days after Chief Executive Jensen Huang met President Trump.

Sea change: The administration’s move marks a turnabout after the Commerce Department restricted sales of the chip in April, costing Nvidia billions of dollars. The news came during a visit by Huang to Beijing, where he was meeting senior officials. “I’m very happy,” he told reporters.

Riding high: The U.S. chip company has been on a winning streak and last week became the first company valued at more than $4 trillion. Now one of its few weak spots—difficulty selling in China owing to U.S. export restrictions—is likely to be shored up, although Nvidia still can’t sell its most-advanced chips to Chinese customers.

What’s next: The administration said Nvidia would be allowed to sell the H20 chip after licenses are granted by the Commerce Department, according to the company. Nvidia said it would resume deliveries soon of the chip, which was designed for Chinese customers and has been a top seller in the country since 2024.

Trade talks move: The U.S. decision to allow more Nvidia chips to flow to China again was viewed in Beijing as a gesture of good faith in trade talks, said people close to official thinking. Access to chips and advanced technology has been a main priority for Chinese negotiators.

Mexico fines institutions hit by U.S. fentanyl order.

Mexico’s banking and stocks regulator has fined three financial institutions that were targeted last month with novel U.S. sanctions for allegedly helping to move money for drug cartels, Risk Journal’s Richard Vanderford reports.

The Comisión Nacional Bancaria y de Valores said it fined commercial banks CIBanco and Intercam as well as brokerage firm Vector. CIBanco and Intercam were penalized for alleged failures to prevent money laundering, while Vector was fined over a number of alleged regulatory offenses. The fines total about 185 million pesos, equivalent to about $9.8 million.

This follows last week’s extension of a deadline by which U.S. banks and other entities are barred from moving money to and from the three Mexican institutions.

Interactive Brokers to pay $11.8 million in settlement with U.S.

Online broker-dealer Interactive Brokers has agreed to pay more than $11.8 million to the U.S. Treasury Department to settle allegations it violated various U.S. sanctions.

The Greenwich, Conn.-based public brokerage and investment firm allegedly provided services to about 200 customers in Iran, Cuba, Syria and the Russia-controlled Crimea region of Ukraine between 2016 and 2021, according to the Treasury Department’s Office of Foreign Assets Control.

• China is seeking to further consolidate its global lead over the U.S. in certain industrial areas by making sure crucial technologies won’t easily fall into the hands of foreign rivals. Its latest target: electric-vehicle batteries.
   
• A court in Beijing sentenced a Japanese pharmaceutical executive on Wednesday to 3½ years in prison on charges of espionage, Japan said, in a case that heightened tensions between the two countries and concerns about legal risks for foreign businesspeople in China.
   
• Delta Air Lines agreed to pay $8.1 million to settle U.S. Justice Department claims that it overpaid executives while taking federal Covid relief money.
   
• House members voted down a key procedural measure that would have cleared the way for votes on cryptocurrency-related bills, reports Barron's.
   
• Public Company Accounting Oversight Board Chair Erica Williams is stepping down after Securities and Exchange Commission Chairman Paul Atkins asked her to resign.
   
• The U.K. intelligence community and external experts believe the U.S. withdrawal from the Iran nuclear agreement in 2018 has significantly increased the nuclear threat posed by Iran. A new parliamentary report said Tehran now is “much more dangerous” than when the deal was in place.
   
• Western sanctions have strengthened an “axis of the sanctioned” by driving China, Russia, North Korea and Iran into increased cooperation and allowing their investors to acquire valuable assets while Western businesses are blocked from sanctioned markets, according to research published Monday.
   
• International networks are using increasingly sophisticated techniques to acquire dual-use technologies and evade counter-proliferation sanctions, Canada’s financial intelligence unit said in a bulletin Monday.

Trump bets constantly shifting tariff strategy can remake global trade.

President Trump’s whirlwind of trade moves is driven by a bet that keeping other countries guessing will allow him to better dictate negotiating terms with trading partners, ultimately making it easier to bend them to his will, according to Trump’s aides and allies.

The downside risks of that bet have become clearer in recent days. Trump’s tendency to back off deadlines threatens to weaken his hand, and his use of a novel legal theory to underpin much of his trade agenda opened him up to a legal challenge that might send the trade agenda back to the drawing board.

• Forget TACO. Trump Is Winning His Trade War.
• Trump Effect Starts to Show Up in Economy
• Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is Reached
• China Says Its Economy Held Up Under Trump Tariff Attack
• Canada PM Carney Signals U.S. Tariffs May Be Here to Stay

America’s biggest rare-earth producer makes a play to end China’s dominance.

At an industrial site in this Texas city, men dressed in head-to-toe protective gear dip giant ladles into a well of molten metal heated to 1,800 degrees Fahrenheit. They’re making something the U.S. has hardly, if ever, produced at commercial scale in recent decades: rare-earth metals.

The factory is the most visible mark of MP Materials’ high-stakes, billion-dollar bet that an American company can take on China’s dominance over the metals—and the magnets they power in everything from cars and smartphones to missile systems.

• Apple Commits $500 Million for Rare-Earth Magnets From U.S. Supplier

• President Trump’s decision to sell Patriot air-defense systems and other arms for use by Ukraine could provide a badly needed boost to Kyiv in its war with Russia. But the central questions are how long it will take to get the new weapons into Ukraine and in what quantity.
   
• Artillery, rocket launchers and self-propelled howitzers opened fire at a training area in northern Australia on Monday, kick-starting three weeks of military drills between the U.S. and 18 allies.
   
• Israel’s recent war with Iran served as a cautionary tale for countries with sophisticated missile defenses and those that seek to have them. While most of Iran’s missiles and drones were knocked down, Tehran changed tactics and found gaps in Israel’s armor through trial and error.

• JPMorgan Chase Chief Executive Jamie Dimon sounded Wall Street’s clearest warning against the Trump administration’s attacks on Federal Reserve Chair Jerome Powell, describing the central bank’s independence as crucial.
   
• President Trump is expected to sign an executive order in the coming days designed to help make private-market investments more available to U.S. retirement plans, according to people familiar with the matter.
   
• Senate Republicans narrowly advanced Tuesday night a slimmed-down $9 billion package of spending cuts that preserves funding for AIDS treatments in Africa, after reaching an agreement with the White House on a key concern for a group of GOP lawmakers.
   
• The U.K. government set up a secret project to relocate thousands of Afghans to Britain, after a defense official accidentally disclosed a list containing the personal information of 18,700 Afghans who had requested to flee their homeland, putting them at risk of reprisals by the Taliban.
   
• Some of the world’s biggest companies pledged tens of billions of dollars to accelerate the development of artificial intelligence in Pennsylvania, the latest splashy investments to draw praise from President Trump.

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