Trump's Trade Wars, AI Displacement, Bitcoin's Future And More: This Week In Economy

It’s been an eventful week in the world of business and finance. Here’s a quick look at the top stories that made headlines.

Trump’s Trade Wars, AI Displacement

Amid President Donald Trump‘s trade wars, the real story for Wall Street in 2026 is a tug-of-war between record-high valuations, a "messy" Federal Reserve, and a literal war in the Middle East. However, experts have told Benzinga that what looks like a bubble to some is simply "agility" to others.

Patrick Sarch, of the White & Case LLP, stated that current market conditions are prompting short-sellers to identify companies whose fundamentals don’t support their valuations.

Arthur Hayes: The longer Trump Lingers In Iran, Higher The Chances Of Bitcoin Surging

Arthur Hayes, Chief Investment Officer at Maelstrom Fund, said that a prolonged U.S.-Iran conflict could force the Federal Reserve to print more money, ultimately driving Bitcoin (CRYPTO: BTC) higher.

In an essay titled iOS Warfare, Hayes analyzed the Trump administration's decision to strike Iran and what could happen to investment portfolios as a result.

Satya Nadella Warns: AI Will Displace Workers

Microsoft Corp. (NASDAQ:MSFT) CEO Satya Nadella warned that AI-driven job displacement is imminent, and companies and workers who ignore it risk being left behind.

"I'm not saying there is not going to be displacement. We have to be clear-eyed about it," Nadella said in a recent episode of the OMR Podcast.

Trump’s Replacement Tariffs

The Trump administration's replacement tariff will generate only a fraction of the revenue lost after the Supreme Court struck down most of its 2025 levies, according to a new analysis, leaving the federal government staring at a potential $1.7 trillion hole over the next decade.

The Committee for a Responsible Federal Budget (CRFB), using the Congressional Budget Office's tariff model, estimated in a report released Wednesday, that the 10% tariff will raise roughly $35 billion over its 150-day legal window — about half the $65 billion the IEEPA tariffs would have raised in the same period. At 15%, that figure rises to $50 billion, covering about three-quarters of the shortfall.

Scott Bessent Says Tariffs Will Rise To 15%

Treasury Secretary Scott Bessent stated that President Donald Trump's global tariff, currently at 10%, is slated to rise to 15% "sometime this week."

In an interview on CNBC’s “Squawk Box" on Wednesday, Bessent predicted that by August, the tariff rates would return to their original levels.

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