Wall Street Breakfast Podcast: Trump Signs New Tariff Order

President Trump enacted revised reciprocal tariffs, applying new duties ranging from 10% to 41% to various nations, with Canada's rate increasing to 35% by August 2025 and China facing an August 12 agreement deadline. Separately, Reddit (RDDT) saw a 15% premarket surge following robust Q2 earnings, which included a 78% revenue jump and strong Q3 guidance surpassing consensus estimates, while Palantir (PLTR) secured a landmark U.S. Army contract worth up to $10 billion over ten years, consolidating its software and data framework.

Analysis

The market is processing a mix of significant company-specific news against a backdrop of renewed trade policy uncertainty. Reddit (RDDT) delivered a standout second quarter, evidenced by a 15% premarket stock surge. The company's revenue grew 78% year-over-year to $500 million, driven by an 84% increase in advertising revenue, and it swung to a net income of $89 million from a $10 million loss a year prior. Critically, its forward guidance for Q3 revenue ($535M-$545M) and adjusted EBITDA ($185M-$195M) substantially exceeds consensus estimates, signaling strong operational momentum supported by a 21% rise in daily active users. Concurrently, Palantir (PLTR) has secured a transformative enterprise agreement with the U.S. Army, valued at up to $10 billion over ten years. This deal, Palantir's largest ever, consolidates 75 separate contracts and establishes the company as a foundational software and data provider for the Army, securing a significant, long-term revenue pipeline. In contrast, the broader market faces headwinds from a revised U.S. tariff order, which imposes new duties ranging from 10% to 41% on various countries and raises tariffs on Canadian imports to 35% effective August 2025. This action, coupled with an August 12 deadline for a trade agreement with China and negative premarket futures, injects volatility and uncertainty into global supply chains.

Key Decisions for Investors

• Given Reddit's significant beat on all key metrics and exceptionally strong forward guidance, investors may view the current momentum as a validation of its advertising model and user growth strategy.
• The landmark $10 billion U.S. Army contract provides Palantir with unparalleled long-term revenue visibility and solidifies its competitive moat in the defense sector, warranting a potential upward revision of its long-term valuation.
• Investors should closely monitor companies with significant exposure to international trade, particularly those sourcing from Canada or relying on stable US-China trade relations, as the new tariff regime introduces material risk to input costs and margins.