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The White House is coordinating a five-year research plan to study ways of modifying the amount of sunlight that reaches the earth to temper the effects of global warming, a process sometimes called solar geoengineering or sunlight reflection.

The research plan will assess climate interventions, including spraying aerosols into the stratosphere to reflect sunlight back into space, and should include goals for research, what’s necessary to analyze the atmosphere, and what impact these kinds of climate interventions may have on Earth, according to the White House‘s Office of Science and Technology Policy. Congress directed the research plan be produced in its spending plan for 2022, which President Joe Biden signed in March.

Some of the techniques, such as spraying sulfur dioxide into the atmosphere, are known to have harmful effects on the environment and human health. But scientists and climate leaders who are concerned that humanity will overshoot its emissions targets say research is important to figure out how best to balance these risks against a possibly catastrophic rise in the Earth’s temperature.

Getting ready to research a topic is a very preliminary step, but it’s notable the White House is formally engaging with what has largely been seen as the stuff of dystopian fantasy. In Kim Stanley Robinson’s science fiction novel, “The Ministry for the Future,” a heat wave in India kills 20 million people and out of desperation, India decides to implement its own strategy of limiting the sunlight that gets to Earth.

Chris Sacca, the founder of climate tech investment fund Lowercarbon Capital, said it’s prudent for the White House to be spearheading the research effort.

“Sunlight reflection has the potential to safeguard the livelihoods of billions of people, and it’s a sign of the White House’s leadership that they’re advancing the research so that any future decisions can be rooted in science not geopolitical brinkmanship,” Sacca told CNBC. (Sacca has donated money to support research in the area, but said he has “zero financial interests beyond philanthropy” in the idea and does not think there should be private business models in the space, he told CNBC.)

Harvard professor David Keith, who first worked on the topic in 1989, said it’s being taken much more seriously now. He points to formal statements of support for researching sunlight reflection from the Environmental Defense Fund, the Union of Concerned Scientists, and the Natural Resources Defense Council, and the creation of a new group he advises called the Climate Overshoot Commission, an international group of scientists and lawmakers that’s evaluating climate interventions in preparation for a world that warms beyond what the Paris Climate Accord recommended.

To be clear, nobody is saying sunlight-reflection modification is the solution to climate change. Reducing emissions remains the priority.

“You cannot judge what the country does on solar-radiation modification without looking at what it is doing in emission reductions, because the priority is emission reductions,” said Janos Pasztor, executive director of the Carnegie Climate Governance Initiative. “Solar-radiation modification will never be a solution to the climate crisis.”

Three ways to reduce sunlight

The idea of sunlight reflection first appeared prominently in a 1965 report to President Lyndon B. Johnson, entitled “Restoring the Quality of Our Environment,” Keith told CNBC. The report floated the idea of spreading particles over the ocean at a cost of $100 per square mile. A one percent change in the reflectivity of the Earth would cost $500 million per year, which does “not seem excessive,” the report said, “considering the extraordinary economic and human importance of climate.”

The estimated price tag has gone up since then. The current estimate is that it would cost $10 billion per year to run a program that cools the Earth by 1 degree Celsius, said Edward A. Parson, a professor of environmental law at UCLA’s law school. But that figure is seen to be remarkably cheap compared to other climate change mitigation initiatives.

A landmark report released in March 2021 from the National Academies of Sciences, Engineering, and Medicine addressed three kinds of solar geoengineering: stratospheric aerosol injection, marine cloud brightening, and cirrus cloud thinning.

Stratospheric aerosol injection would involve flying aircraft into the stratosphere, or between 10 miles and 30 miles skyward, and spraying a fine mist that would hang in the air, reflecting some of the sun’s radiation back into space.

“The stratosphere is calm, and things stay up there for a long time,” Parson told CNBC. “The atmospheric life of stuff that’s injected in the stratosphere is between six months and two years.”

Stratospheric aerosol injection “would immediately take the high end off hot extremes,” Parson said. And also it would “pretty much immediately” slow extreme precipitation events, he said.

“The top-line slogan about stratospheric aerosol injection, which I wrote in a paper more than 10 years ago — but it’s still apt — is fast, cheap and imperfect. Fast is crucial. Nothing else that we do for climate change is fast. Cheap, it’s so cheap,” Parson told CNBC.

“And it’s not imperfect because we haven’t got it right yet. It’s imperfect because the imperfection is embedded in the way it works. The same reason it’s fast is the reason that it’s imperfect, and there’s no way to get around that.”

One option for an aerosol is sulfur dioxide, the cooling effects of which are well known from volcanic eruptions. The 1991 eruption of Mount Pinatubo, for instance, spewed thousands of tons of sulfur dioxide into the stratosphere, causing global temperatures to drop temporarily by about 1 degree Fahrenheit, according to the U.S. Geological Survey.

A giant volcanic mushroom cloud explodes some 20 kilometers high from Mount Pinatubo above almost deserted US Clark Air Base, on June 12, 1991 followed by another more powerful explosion. The eruption of Mount Pinatubo on June 15, 1991 was the second largest volcanic eruption of the twentieth century.

Arlan Naeg | Afp | Getty Images

There’s also a precedent in factories that burn fossil fuels, especially coal. Coal has some sulfur that oxidizes when burned, creating sulfur dioxide. That sulfur dioxide goes through other chemical reactions and eventually falls to the earth as sulfuric acid in rain. But during the time that the sulfur pollution sits in the air, it does serve as a kind of insulation from the heat of the sun.

Ironically, as the world reduces coal burning to curb the carbon dioxide emissions that cause global warming, we’ll also be eliminating the sulfur dioxide emissions that mask some of that warming.

“Sulfur pollution that’s coming out of smokestacks right now is masking between a third and a half of the heating signal from the greenhouse gases humans have already emitted into the atmosphere,” Parson said.

In other words, we’ve been doing one form of sunlight reflection for decades already, but in an uncontrolled fashion, explained Kelly Wanser, the executive director of SilverLining, an organization promoting research and governance of climate interventions.

“This isn’t something totally new and Frankenstein — we’re already doing it; we’re doing it in the most dirty, unplanned way you could possibly do it, and we don’t understand what we’re doing,” Wanser told CNBC. 

Spraying sulfur in the stratosphere is not the only way of manipulating the amount of sunlight that gets to the Earth, and some say it’s not the best option.

“Sulfur dioxide is likely not the best aerosol and is by no means the only technique for this. Cloud brightening is a very promising technique as well, for example,” Sacca told CNBC.

Marine cloud brightening involves increasing the reflectivity of clouds that are relatively close to the surface of the ocean with techniques like spraying sea salt crystals into the air. Marine cloud brightening generally gets less attention than stratospheric aerosol injection because it affects a half dozen to a few dozen miles and would potentially only last hours to days, Parson told CNBC.

Cirrus cloud thinning, the third category addressed in the 2021 report from the National Academies, involves thinning mid-level clouds, between 3.7 and 8.1 miles high, to allow heat to escape from the Earth’s surface. It is not technically part of the “solar geoengineering” umbrella category because it does not involve reflecting sunlight, but instead involves increasing the release of thermal radiation.

Known risks to people and the environment

There are significant and well-known risks to some of these techniques — sulfur dioxide aerosol injection, in particular.

First, spraying sulfur into the atmosphere will “mess with the ozone chemistry in a way that might delay the recovery of the ozone layer,” Parson told CNBC.

The Montreal Protocol adopted in 1987 regulates and phases out the use of ozone depleting substances, such as hydrochlorofluorocarbons (HCFCs) which were commonly used in refrigeration and air conditioners, but that healing process is still going on.

Also, sulfates injected into the atmosphere eventually come down as acid rain, which affects soil, water reservoirs, and local ecosystems.

Third, the sulfur in the atmosphere forms very fine particulates that can cause respiratory illness.

The question, then, is whether these known effects are more or less harmful than the warming they would offset.

“Yes, damaging the ozone is bad, acid deposition is bad, respiratory illness is bad, absolutely. And spraying sulfur in the stratosphere would contribute in the bad direction to all of those effects,” Parson told CNBC. “But you also have to ask, how much and relative to what?”

The sulfur already being emitted from the burning of fossil fuels is causing environmental damage and is already killing between 10 million to 20 million people a year due to respiratory illness, said Parson. “So that’s the way we live already,” he said.

Meanwhile, “the world is getting hotter, and there will be catastrophic impacts for many people in the world,” said Pasztor.

“There’s already too much carbon out there. And even if you stop all emissions today, the global temperature will still be high and will remain high for hundreds of years. So, that’s why scientists are saying maybe we need something else, in addition — not instead of — but maybe in addition to everything else that is being done,” he said. “The current action/nonaction of countries collectively — we are committing millions of people to death. That’s what we’re doing.”

For sunlight-reflection technology to become a tool in the climate change mitigation toolbox, awareness among the public and lawmakers has to grow slowly and steadily, according to Tyler Felgenhauer, a researcher at Duke University who studies public policy and risk.

“If it is to rise on to the agenda, it’ll be kind of an evolutionary development where more and more environmental groups are willing to state publicly that they’re for research,” Felgenhauer told CNBC. “We’re arguing it’s not going to be some sort of one big, bad climate event that makes us all suddenly adopt or be open to solar geoengineering — there will be more of a gradual process.”

A man waits for customers displaying fans at his store amid rising temperatures in New Delhi on May 27, 2020. – India is wilting under a heatwave, with the temperature in places reaching 50 degrees Celsius (122 degrees Fahrenheit) and the capital enduring its hottest May day in nearly two decades.

Jewel Samad | Afp | Getty Images

Research it now or be caught off guard later?

Some environmentalists consider sunlight relfection a “moral hazard,” because it offers a relatively easy and inexpensive alternative to doing the work of reducing emissions.

One experiment to study stratospheric aerosols by the Keutsch Group at Harvard was called off in 2021 due to opposition. The experiment would “threaten the reputation and credibility of the climate leadership Sweden wants and must pursue as the only way to deal effectively with the climate crisis: powerful measures for a rapid and just transition to zero emission societies, 100% renewable energy and shutdown of the fossil fuel industry,” an open letter from opponents said.

But proponents insist that researching sunlight-modification technologies should not preclude emissions-reduction work.

“Even the people like me who think it’s very important to do research on these things and to develop the capabilities all agree that the urgent top priority for managing climate change is cutting emissions,” Parson told CNBC.

Keith of Harvard agreed, saying that “we learn more and develop better mechanism[s] for governance.”

Doing research is also important because many onlookers expect that some country, facing an unprecedented climate disaster, will act unilaterally to will try some version of sunlight modification anyway — even if it hasn’t been carefully studied.

“In my opinion, it’s more than 90 percent likely that within the next 20 years, some major nation wants to do this,” Parson said.

Sacca put the odds even higher.

“The odds are 100 percent that some country pursues sunlight reflection, particularly in the wake of seeing millions of their citizens die from extreme weather,” Sacca told CNBC. “The world will not stand idly by and leaders will feel compelled to take action. Our only hope is that by doing the research now, and in public, the world can collaboratively understand the upsides and best methods for any future project.”  

Correction: The Climate Overshoot Commission has not issued a formal statement of support for sunlight reflection.

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Samsung backs South Korean AI chip startup Rebellions ahead of IPO

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Samsung backs South Korean AI chip startup Rebellions ahead of IPO

The Rebel-Quad is the second-generation product from Rebellions and is made up of four Rebel AI chips. Rebellions, a South Korean firm, is looking to rival companies like Nvidia in AI chips.

Rebellions

South Korean artificial intelligence chip startup Rebellions has raised money from tech giant Samsung and is targeting a funding round of up to $200 million ahead of a public listing, the company’s management told CNBC on Tuesday.

Last year, Rebellions merged with another startup in South Korea called Sapeon, creating a firm that is being positioned as one of the country’s promising rivals to Nvidia.

Rebellions is currently raising money and is targeting funding of between $150 million and $200 million, Sungkyue Shin, chief financial officer of the startup, told CNBC on Tuesday.

Samsung’s investment in Rebellions last week was part of that, Shin said, though he declined to say how much the tech giant poured in.

Since its founding in 2020, Rebellions has raised $220 million, Shin added.

The current funding round is ongoing and Shin said Rebellions is talking to its current investors as well as investors in Korea and globally to participate in the capital raise. Rebellions has some big investors, including South Korean chip giant SK Hynix, telecommunication firms SK Telecom and Korea Telecom, and Saudi Arabian oil giant Aramco.

AI chip startup Rebellions looks to raise up to $200 million ahead of IPO

Rebellions was last valued at $1 billion. Shin said the current round of funding would push the valuation over $1 billion but declined to give specific figure.

Rebellions is aiming for an initial public offering once this funding round has closed.

“Our master plan is going public,” Shin said.

Rebellions designs chips that are focused on AI inferencing rather than training. Inferencing is when a pre-trained AI model interprets live data to come up with a result, much like the answers that are produced by popular chatbots.

With the backing of major South Korean firms and investors, Rebellions is hoping to make a global play where it will look to challenge Nvidia and AMD as well as a slew of other startups in the inferencing space.

Samsung collaboration

Rebellions has been working with Samsung to bring its second-generation chip, Rebel, to market. Samsung owns a chip manufacturing business, also known as foundry. Four Rebel chips are put together to make the Rebel-Quad, the product that Rebellions will eventually sell. A Rebellions spokesperson said the chip will be launched later this year.

The funding will partly go toward Rebellions’ product development. Rebellions is currently testing its chip which will eventually be produced on a larger scale by Samsung.

“Initial results have been very promising,” Sunghyun Park, CEO of Rebellions, told CNBC on Tuesday.

South Korean AI startup Rebellions says tariffs could delay IPO by 'a little bit'

Park said Samsung invested in Rebellions partly because of the the good results that the chip has so far produced.

Samsung is manufacturing Rebellions’ semiconductor using its 4 nanometer process, which is among the leading-edge chipmaking nodes. For comparison, Nvidia’s current Blackwell chips use the 4 nanometer process from Taiwan Semiconductor Manufacturing Co. Rebellions will also use Samsung’s high bandwidth memory, known as HBM3e. This type of memory is stacked and is required to handle large data processing loads.

That could turn out to be a strategic win for Samsung, which is a very distant second to TSMC in terms of market share in the foundry business. Samsung has been looking to boost its chipmaking division. Samsung Electronics recently entered into a $16.5 billion contract for supplying semiconductors to Tesla.

If Rebellions manages to find a large customer base, this could give Samsung a major customer for its foundry business.

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Europe sets its sights on multi-billion-euro gigawatt factories as it plays catch-up on AI

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Europe sets its sights on multi-billion-euro gigawatt factories as it plays catch-up on AI

Data storage tapes are stored at the National Energy Research Scientific Computing Center (NERSC) facility at the Lawrence Berkeley National Laboratory, which will house the U.S. supercomputer to be powered by Nvidia’s forthcoming Vera Rubin chips, in Berkeley, California, U.S. May 29, 2025.

Manuel Orbegozo | Reuters

Europe is setting its sights on gigawatt factories in a bid to bolster its lagging artificial intelligence industry and meet the challenges of a rapidly-changing sector.

Buzz around the concept of factories that industrialize manufacturing AI has gained ground in recent months, particularly as Nvidia CEO Jensen Huang stressed the importance of the infrastructure at a June event. Huang hailed a new “industrial revolution” at the GTC conference in Paris, France, and said his firm was working to help countries build revenue-generating AI factories through partnerships in France, Italy and the U.K.

For its part, the European Union describes the factories as a “dynamic ecosystem” that brings together computing power, data and talent to create AI models and applications.

The bloc has long been a laggard behind the U.S. and China in the race to scale up artificial intelligence. With 27 members in the union, the region is slower to act when it comes to agreeing new legislation. Higher energy costs, permitting delays and a grid in dire need of modernization can also hamper developments.

Henna Virkkunen, the European Commission’s executive vice president for tech sovereignty, told CNBC that the bloc’s goal is to bring together high quality data sets, computing capacity and researchers, all in one place.

“We have, for example, 30% more researchers per capita than the U.S. has, focused on AI. Also we have around 7,000 startups [that] are developing AI, but the main obstacle for them is that they have very limited computing capacity. And that’s why we decided that, together with our member states, we are investing in this very crucial infrastructure,” she said.

These are very big investments because they are four times more powerful when it comes to computing capacities than the biggest AI factories.

Henna Virkkunen

European Commission’s executive vice president for tech sovereignty

“We have everything what is needed to be competitive in this sector, but at the same time we want to build up our technological sovereignty and our competitiveness.”

So far, the EU has put up 10 billion euros ($11.8 billion) in funding to set up 13 AI factories and 20 billion euros as a starting point for investment in the gigafactories, marking what it says is the “largest public investment in AI in the world.” The bloc has already received 76 expressions of interest in the gigafactories from 16 member states across 60 sites, Virkkunen said.

The call for interest in gigafactories was “overwhelming,” going far beyond the bloc’s expectations, Virkkunen noted. However, in order for the factories to make a noteworthy addition to Europe’s computing capacity, significantly more investment will be required from the private sector to fund the expensive infrastructure.

‘Intelligence revolution’

The EU describes the facilities as a “one-stop shop” for AI firms. They’re intended to mirror the process carried out in industrial factories, which transform raw materials into goods and services. With an AI factory, raw data goes into the input, and advanced AI products are the expected outcome.

It’s essentially a data center with additional infrastructure related to how the technology will be adopted, according to Andre Kukhnin, equity research analyst at UBS.

“The idea is to create GPU [graphics processing units] capacity, so to basically build data centers with GPUs that can train models and run inference… and then to create an infrastructure that allows you to make this accessible to SMEs and parties that would not be able to just go and build their own,” Kukhnin said.

How the facility will be used is key to its designation as an AI factory, adds Martin Wilkie, research analyst at Citi.

“You’re creating a platform by having these chips that have insane levels of compute capacity,” he said. “And if you’ve attached it to a grid that is able to get the power to actually use them to full capacity, then the world is at your feet. You have this enormous ability to do something, but what the success of it is, will be defined by what you use it for.”

Telecommunications firm Telenor is already exploring possible use cases for such facilities with the launch of its AI factory in Norway in November last year. The company currently has a small cluster of GPUs up and running, as it looks to test the market before scaling up.

Telenor’s Chief Innovation Officer and Head of the AI Factory Kaaren Hilsen and EVP Infrastructure Jannicke Hilland in front of a Nvidia rack at the firm’s AI factory

Telenor

“The journey started with a belief — Nvidia had a belief that every country needs to produce its own intelligence,” Telenor’s Chief Innovation Officer and Head of the AI Factory Kaaren Hilsen told CNBC.

Hilsen stressed that data sovereignty is key. “If you want to use AI to innovate and to make business more efficient, then you’re potentially putting business critical and business sensitive information into these AI models,” she said.

The company is working with BabelSpeak, which Hilsen described as a Norwegian version of ChatGPT. The technology translates sensitive dialogues, such as its pilot with the border police who can’t use public translation services because of security issues.

We’re experiencing an “intelligence revolution” whereby “sovereign AI factories can really help advance society,” Hilsen said.

Billion-euro investments

Virkkunen said the region’s first AI factory will be operational in coming weeks, with one of the biggest projects launching in Munich, Germany in the first days of September. It’s a different story for the gigafactories.

“These are very big investments because they are four times more powerful when it comes to computing capacities than the biggest AI factories, and it means billions in investments. Each of these need three to five billion [euros] in investment,” the commissioner said, adding that the bloc will look to set up a consortium of partners and then officially open a call for investment later this year.

Bertin Martens, senior research fellow at Bruegel, questioned why such investments needed to subsidized by government funds.

“We don’t know yet how much private investment has been proposed as a complement to the taxpayer subsidy, and what capacity and how big these factories are. This is still very much unclear at this stage, so it’s very hard to say how much this will add in terms of computing capacity,” he said.

Power consumption is also a key issue. Martens noted that building an AI gigafactory may take one to two years — but building a power generation of that size requires much more time.

“If you want to build a state-of-the-art gigafactory with hundreds of thousands of Nvidia chips, you have to count on the power consumption of at least one gigawatt for one of those factories. Whether there’s enough space in Europe’s electricity grid in all of these countries to create those factories remains to be seen… this will require major investment in power regeneration capacity,” he told CNBC.

UBS forecasts that the current installed global data center capacity of 85 GW will double due to soaring demand. Based on the EU’s 20-billion-euro investment and the plan for each factory to run 100,000 advanced processors, UBS estimates each factory could be around 100-150 MW with a total capacity for all of the facilities of around 1.5-2 GW.

That could add around 15% to Europe’s total capacity — a sizeable boost, even when compared to the U.S., which currently owns around a third of global capacity, according to the data.

Following the announcement of the EU-U.S. trade framework, EU chief Ursula von der Leyen said Sunday that U.S. AI chips will help power the bloc’s AI gigafactories in a bid to help the States “maintain their technological edge.”

“One could argue that it’s relatively easy, provided you have the money. It’s relatively easy to buy the chips from Nvidia and to create these hardware factories, but to make it run and to make it economically viable is a completely different question,” Martens told CNBC.

He said that the EU will likely have to start at a smaller scale, as the region is unable to immediately build its own frontier models in AI because of their expense.

“I think in time, Europe can gradually build up its infrastructure and its business models around AI to reach that stage, but that will not happen immediately,” Martens said.

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India overtakes China in smartphone exports to the U.S. as manufacturing jumps 240%, report shows

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India overtakes China in smartphone exports to the U.S. as manufacturing jumps 240%, report shows

Workers assemble smartphones at Dixon Technologies’ Padget Electronics Pvt factory in Uttar Pradesh, India, on Jan. 28, 2021.

Bloomberg | Bloomberg | Getty Images

India has overtaken China to become the top exporter of smartphones to the U.S., according to research firm Canalys, reflecting the shift in manufacturing supply chain away from Beijing amid tariff-fueled uncertainty.

Smartphones assembled in India accounted for 44% of U.S. imports of those devices in the second quarter, a significant increase from just 13% in the same period last year. Total volume of smartphones made in India soared 240% from a year earlier, Canalys said.

In contrast, the share of Chinese smartphone exports to the U.S. shrank to 25% in the quarter ended June, from 61% a year earlier, Canalys data released Monday showed. Vietnam’s share of smartphone exports to the U.S. was also higher than that of China at 30%.

The surge in shipments from India was primarily driven by Apple‘s accelerated shift toward the country at a time of heightened trade uncertainty between the U.S. and China, said Sanyam Chaurasia, principal analyst at Canalys. This is the first time India exported more smartphones to the U.S. than China.

Apple has reportedly been speeding up its plans to make most of its iPhones sold in the U.S. at factories in India this year, with the aim of manufacturing around a quarter of all iPhones in the country in the next few years.

Trump has threatened Apple with additional tariffs and urged the company’s CEO Tim Cook to make iPhones domestically, a move experts have said would be nearly impossible as it would push iPhone prices higher.

While many of Apple’s core products, including iPhones and Mac laptops, have received exemptions from Trump’s “reciprocal tariffs,” officials have warned that it could be a temporary reprieve.

Its global peers, Samsung Electronic and Motorola, have also been striving to move assembly for U.S.-bound smartphones to India, though their shift has been significantly slower and is limited in scale compared with Apple, according to Canalys.

Last-mile assembly

Many global manufacturers have been increasingly shifting their final assembly to India, allocating more capacity in the South-Asian nation to serve the U.S. market, said Renauld Anjoran, CEO of Agilian Technology, an electronics manufacturer in China.

The Guangdong-based company is now renovating a facility in India with plans to move part of its production to the country. “The plan for India is moving ahead as fast as we can,” Anjoran said. The company expects to begin trial production runs soon before ramping up to full-scale manufacturing.

While shipments, which represent the number of devices sent to retailers do not reflect final sales, they are a proxy for market demand.

Overall, iPhone shipments declined by 11% year on year to 13.3 million units in the second quarter, reversing the 25% growth in the prior quarter, according to Canalys.

Shares of Apple have tumbled 14% this year, partly on concerns over its high exposure to tariff uncertainty and intensifying competition in smartphones and artificial intelligence sector.

While the company has begun assembling iPhone 16 Pro models in India, it still relies heavily on China’s more mature manufacturing infrastructure to meet U.S. demand for the premium model, Canalys said.

In April, Trump imposed a 26% tariff on imports from India, much lower than the triple-digit tariffs on China at the time, before pausing those duties until an Aug 1. deadline.

— CNBC’s Arjun Kharpal contributed to this story.

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