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GOP wins 2 Florida special elections in Trump strongholds but by about 10 points less than in 2024

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Republicans Jimmy Patronis and Randy Fine won special elections Tuesday in two Florida congressional districts, bolstered by President Donald Trump’s endorsement to fill vacant seats in reliably Republican strongholds.

Patronis, the state’s chief financial officer, fended off a challenge from Democrat Gay Valimont even though she far outraised and outspent him. He will fill the northwest Florida 1st District seat vacated by former Rep. Matt Gaetz, who was chosen to be Trump’s attorney general but withdrew from consideration amid allegations of sexual misconduct, which he has denied.

In north Florida’s 6th District, Fine won against Democratic challenger Josh Weil for a seat vacated by Mike Waltz when he was tapped to become Trump’s national security adviser.

The win bolsters Republicans’ margin to 220-213 in the House of Representatives.

Special elections are often low-turnout events that can lead to surprising results. While GOP wins were widely expected in both districts — two of the most heavily Republican in the country — it’s notable that Democrats narrowed the margins considerably from November.

The races were among the first electoral tests of Trump’s new administration. The narrowing margins may signal a shift in public sentiment, driven by unusually strong enthusiasm as Democrats from across the country poured millions into the races. The opposition party hoped that backlash to the president’s overhaul of federal agencies and firing of federal workers would carve into the GOP’s margins at the polls.

Trump takes credit for the wins

Trump congratulated both candidates late Tuesday and said his endorsement helped them secure a victory.

“THE TRUMP ENDORSEMENT, AS ALWAYS, PROVED FAR GREATER THAN THE DEMOCRATS FORCES OF EVIL. CONGRATULATIONS TO AMERICA!” he said on his Truth Social platform.

At a waterfront restaurant in Pensacola, congratulatory text messages were already lighting up Patronis’ phone as early results were posted Tuesday night. Patronis worked the crowd of about 100 people, shaking hands and giving hugs, his wife Katie and two sons in tow.

“Let it be known that this election is a reminder the Florida Panhandle will forever be red, and it’ll forever be Trump country,” Patronis told his supporters. “And even their $6 million could not overcome one simple post on social media by Donald Trump.”

Fine spoke to about 100 supporters at the 2A Ranch Saloon in Ormond Beach, a barn-like building adorned with Trump decor, including cardboard cutouts of the president and a photo signed by first lady Melania Trump. Above Fine, a glowing “Trump is still my president” sign hung from the overhead balcony.

After the speech, Fine downplayed the narrowing margin, saying it was in the double digits and in a special election.

“I think it’s hard to say that’s an underperformance,” Fine said.

Weil said in a statement that the “race was closer than anyone ever imagined.”

“This result is also a warning sign to Donald Trump, Randy Fine, and the unelected oligarchs taking apart the government,” Weil said.

What do the results show?

Republicans in both districts are on track to win with narrower margins than their predecessors in every county. They also are on track to trail Trump’s 2024 share of the vote in the two congressional districts.

In the 6th Congressional District, Trump received roughly 65% of the vote in 2024, just behind the 67% Waltz received in his final House reelection bid. In Tuesday’s special election, Fine was underperforming Waltz by about 10 percentage points.

In Volusia County, Trump received 58% and Waltz received about 60% in 2024, while Fine was hovering around the 50% mark with nearly all the votes reported.

Fine, a self-described “conservative firebrand,” had faced growing pressure during the race’s final days as some Republicans publicly criticized his campaign and fundraising efforts, questioning whether this race would embarrass Republicans less than 100 days into Trump’s administration. Weil’s campaign raised an eye-popping $9 million compared to Fine’s $1 million.

National Democratic leaders attributed Weil’s fundraising success to what they characterized as widespread outrage against Trump. That outrage failed to materialize in large enough numbers to overturn the outcome, foiling Democrats’ hope to pull off a huge upset that would have buoyed their party.

The Democratic National Committee’s chair, Ken Martin, said the results showed “Democrats overperformed.” The National Republican Congressional Committee said the victories sent a message that “Americans are fired up to elect leaders who will fight for President Trump’s agenda and reject the Democrats’ failed policies,” spokesperson Mike Marinella said.

What did voters say?

Carol Vyhonsky, who drove to Fine’s election party from her home in Brevard County with a group of her friends, said she had no issues with Fine’s victory not being as strong as his predecessor’s was last year.

“The polling was looking a little iffy there for a while, but he pulled through,” Vyhonsky said. “As long as he won, that’s the important thing.”

Retired nurse Brenda Ray and her husband, Vietnam War veteran Mike Ray, made it to the polls to support Patronis earlier in the day. Brenda Ray said she didn’t know a lot about him but supported him because she believes he’ll “vote with our president.”

“That’s all we’re looking for,” she said.

Who are Fine and Patronis?

Fine was first elected to the Florida House in 2016 and ran each year as a representative until 2024 when he successfully won his election to the Florida Senate. He is known for his support of Israel and his efforts to restrict LGBTQ+ rights.

Patronis’ family founded the well-known Panama City restaurant Capt. Anderson’s, located along the Gulf of Mexico. He has been involved in Florida politics since he was in college, interning in the Florida Senate before being elected to the Florida House of Representatives in 2006. He was appointed by then-Gov. Rick Scott to become the state’s CFO in 2017 and won races to keep the Cabinet-level office in 2018 and 2022.

This story was originally featured on Fortune.com



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How CEOs should deal with Trump — even if it means ‘vaporware’ announcements

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  • In today’s CEO Daily: Peter Vanham talks to Nobel prize winner Simon Johnson about how CEOs should deal with President Trump.
  • The big story: Nvidia banned from exporting chips to China.
  • The markets: Moving down.
  • Analyst notes from Bank of America on airline cuts, WARC on adspend, and Goldman Sachs on investors exiting U.S. trades.
  • Plus: All the news and watercooler chat from Fortune.

Good morning. Nobel prize winners Simon Johnson and Daron Acemoglu wrote a whole book, Power and Progress, about the need to seize back control from a small elite of hubristic, messianic leaders pursuing their own interests (it helped them win the prestigious 2024 Economics prize). 

I was curious, then, what advice Johnson might have now for Fortune 500 business leaders dealing with the Trump administration’s prohibitive and volatile tariffs today. Surprisingly, Johnson was quite direct about what he thinks CEOs need to do now.

“Trump likes deals. There’s room for all kinds of deals,” he told me. “Go make a deal with someone in the administration. Make a big announcement in the US, with job creation—which may or may not materialize—and in return you ask for temporary dispensation, to keep the business alive and justify building in the US.” 

Michigan is a good place to start, he advised. “Or other industrial swing states such as Wisconsin, and Pennsylvania, and perhaps Ohio, Indiana, and Minnesota. It’s not rocket science, either.” 

It doesn’t take a Nobel winner to predict that a lot of investment announcements will eventually turn out to be “vaporware” as Johnson puts it. The economics of Made in USA will prove to be impossible, starting with a mismatch in salaries (“Either you pay American workers $3 a day, which they’re not going to do, or the iPhone will cost you many multiples of what it costs now”). 

But with few alternative options, Johnson sees the realpolitik of investment-announcements-for-special-deals as the best strategy for business, especially for car makers and, to a lesser degree, high-profile electronics companies, such as Apple.

The companies that will eventually return to the US, Johnson said, are likely to do so in a highly automated way, as opposed to doing so with a lot of job creation.

And even so, in some sectors, such as textiles, toys, or other lower-end manufacturing, “even with the best intentions, it will be impossible” to manufacture in the US, Johnson said. For companies in those sectors, bonding together in trade associations and asking for dispensations would be the most viable alternative. 

Finally, companies across sectors would do well to remind the government they need the rule of law to thrive, Johnson advised. “You don’t want to be the squeaky wheel, but [companies] need to be serious about this.” — Peter Vanham

More news below.

Contact CEO Daily via Diane Brady at diane.brady@fortune.com

This story was originally featured on Fortune.com



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Hong Kong will stop shipping small packages to the U.S. after Trump drops ‘de minimis’ exemption that let Shein and Temu sell to Americans

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Hong Kong’s post office will stop shipping small parcels to the United States after Washington announced plans to charge tariffs on small-value parcels from the southern Chinese city, the government said Wednesday.

The U.S. government earlier announced that it would end a customs exception allowing small-value parcels from Hong Kong to enter the U.S. without tax, slapping a 120% tariff on them starting from May 2. The “de minimis” exemption currently allows shipments that are worth less than $800 to go tax-free.

A government statement said Hongkong Post would not collect tariffs on behalf of Washington, and will suspend accepting non-airmail parcels containing goods destined for the U.S. on Wednesday, since items shipped by sea take more time. It will accept airmail parcels until Apr. 27.

“For sending items to the US, the public in Hong Kong should be prepared to pay exorbitant and unreasonable fees due to the U.S.’s unreasonable and bullying acts,” the government wrote.

It will continue accepting mail that contains only documents.

Hong Kong, is caught in the middle of the trade disputes between the U.S. and China despite being a free port.

The former British colony, which returned to Chinese rule in 1997, has trade and customs policies different from mainland China’s, under the semi-autonomy granted by Beijing during the handover. But Washington began treating it as part of China after Beijing imposed a national security law in 2020, and has applied the 145% tariffs imposed on Chinese imports.

The national security law, which China says has brought back stability to the city, has virtually silenced all dissent.

This story was originally featured on Fortune.com



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Nvidia takes a $5.5 billion hit from a new Trump ban that could also hasten China’s push to make its own chips

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Nvidia, the company most closely connected to the AI boom, once again finds itself in the middle of the U.S.’s tech rivalry with China. 

The chipmaker’s shares dropped almost 7% in post-market trading after the company revealed it could no longer export its H20 chips to Chinese customers. In a securities filing, the chipmaker said that it would take a $5.5 billion charge due to the export ban.

Export controls now extend to Nvidia’s H20 chip, AMD MI308 chip, and their equivalents. AMD’s shares fell 7.6% post-market.

Shares of Nvidia’s suppliers in Asia also fell in Wednesday trading. Taiwan Semiconductor Manufacturing Corporation fell 2.5%, while memory maker SK Hynix dropped 3.9%.

Nvidia designed the H20 chip to comply with previous Biden rules on chip exports to China. In its most recent earnings report, Nvidia reported that it generated 13% of its revenue from customers using China as a billing location, down from 17% the year before. Analysts previously estimated that Nvidia shipped $12 billion worth of H20 chips to China in 2024.

The Nvidia news helped send Asia-Pacific markets lower on Wednesday. Hong Kong’s Hang Seng Index fell dipped around 1.9%, with tech firms hardest hit. Markets in South Korea, Japan, and Taiwan also fell.

Still, analysts aren’t surprised that Washington is continuing to tighten the screws on Nvidia amid an intensifying trade war and tech rivalry with Beijing. 

“Nvidia’s chip trade with China and that of others has been in the crosshairs of the U.S. government for some time,” Marc Einstein, a Japan-based research director for Counterpoint Research, says. He adds that DeepSeek’s ability to leverage less powerful chips for high performance AI has raised alarm bells  in the U.S. government. 

Dan Ives of Wedbush Securities writes that Nvidia is a “key strategic asset” for the Trump administration, and that the White House wants to ensure that the company’s chips don’t make their way to China amid Trump’s trade war. 

But that might also place Nvidia at the center of negotiations between China and the U.S., if and when they happen. Chip controls are “part of the overarching trade issues between the U.S. and China, and would likely be included in any trade deal that is reached,” Einstein says. 

Trump’s move also suggests he’s likely to continue his predecessor’s more focused export controls against China’s tech sector, even as he targets China’s exports more broadly. 

Einstein thinks Nvidia will be able to shrug off Trump’s recent chip ban, due to its strength outside the China market. Yet he warns that export controls will “hasten China’s desire for more sophisticated domestic semiconductors.”

China is quickly becoming a chip powerhouse, primarily regarding less advanced “legacy chips.” But the country is slowly making progress on its attempts to create more advanced chips at scale.

Huawei, which has been barred from buying advanced chips since 2020, showed that it could shrug off U.S. sanctions when it unveiled a premium smartphone with a domestically-manufactured processor for the first time in 2023. The Chinese tech giant has since expanded to AI chips; its Ascend chips, which are aimed at competing with processors made by Nvidia and AMD, are now being used in connection with DeepSeek, the Chinese AI model that rocked markets earlier this year.

Experts note that U.S. export controls are driving further investments in Chinese tech self-sufficiency, as the chip industry is forced to learn how to make chips without access to U.S. semiconductors and chipmaking tools. 

“It is unrealistic to expect a lead of more than a year or two, even with extremely aggressive export controls,” Gregory Allen, director of CSIS’s Wadhwani AI center, wrote earlier this year, referring to the gap between the U.S. and China in AI development. 

Beijing is also doubling down on its chip policy. Last year, officials devoted another $47.5 billion into what’s commonly known as the “Big Fund”, an initiative to develop the Chinese semiconductor sector. 

This story was originally featured on Fortune.com



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