Will Trump's Tariffs Spoil Earnings Season?
Meantime, we're taking a look at the earnings reports streaming in; Polymarket's plan to make betting available in the United States, and your thoughts on the Coldplay kiss-cam episode I wrote about on Monday.
C.E.O.s in the spotlight
Wall Street had set a pretty low bar for this earnings season. Fears that President Trump's trade war would roil supply chains and inflation and concerns of consumers pulling back on purchases were expected to weigh on corporate profits and guidance.
So far, that hasn't materialized. The S&P 500 closed at another record on Monday, helped by a batch of somewhat upbeat earnings calls, even with little evident progress on trade talks before Trump's Aug. 1 tariffs deadline.
But a new test begins this week. Bellwethers like Coca-Cola and General Motors are next in line. The carmaker on Tuesday reported a second-quarter sales decline, and said that tariffs on foreign-made vehicles and parts wiped out $1.1 billion in profits in the same period. Stellantis said something similar on Monday.
Mary Barra, G.M.'s C.E.O., wrote in a statement that the company was adapting 'to new trade and tax policies, and a rapidly evolving tech landscape.'
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Forbes
42 minutes ago
- Forbes
Governments Worldwide Race To Lock In AI Leadership
The Global Race for AI dominance heats up In the past three months, the global AI race went into overdrive. Washington, Brussels, Beijing, Tokyo, Seoul, and even India's Gujarat state rolled out ambitious plans for building AI capacity. These documents aren't the run of the mill, vague strategy memos. They are statements about plans to lead the next era of technology. These announcements all carry a similar urgency. They direct billions toward infrastructure, talent, and data systems, while defining which countries and companies will get access to these assets, as well as which will not. The AI Action plans all serve to direct government efforts and funding in a more direct manner than seen before, and these plans all aim to shake up the rapidly growing and shifting AI markets. The United States AI Action Plan: Deregulation and a Security Lens President Donald Trump left little to interpretation when he unveiled 'Winning the AI Race: America's AI Action Plan' on July 23. 'To secure our future, we must harness the full power of American innovation,' he said. His remarks and the text of the plan made clear that China was the country on his mind. The US plan structured its AI Action plan to move quickly. It calls for removing regulatory hurdles that might slow AI research or deployment and discourages state-level restrictions. Federal dollars will flow into chip plants, data centers, and AI-focused workforce training. Agencies are also being told to buy AI systems that align with the administration's definition of 'objective truth' and avoid what it calls 'ideological bias.' National security is also central to the US AI Action Plan. The government will tighten export controls on advanced AI hardware and software while creating 'secure AI export packages' for allies. Secretary of State Marco Rubio summed it up: 'America sets the technological gold standard worldwide, and the world continues to run on American technology.' Europe: Focused on Fixing an Infrastructure Deficit The European Union's AI Continent Action Plan, released before the US' action plan on April 9, is all about accelerating European AI efforts, if not catching up. Europe lags the US and China in cloud and data center capacity, and the plan directly addresses that. Brussels will fund massive 'AI factories' and 'AI Gigafactories' through public-private partnerships. Think CERN, but for compute power. The plan also promises to build out a unified market for data through new European Data Spaces. These shared datasets are meant to fuel AI model training without violating the bloc's strict data protection rules. 'Europe must become a global leader in AI innovation,' European Commission President Ursula von der Leyen said. Japan: A Lighter Touch Japan takes a different approach with a recent law aiming to achieve the same goals as the AI Action Plans. With the AI Promotion Act, which passed May 28, the goal is to make the country the 'most AI-friendly' place to invest and build. Instead of strict penalties, the law sets out broad principles and imposes specific obligations only on a handful of 'high-risk' uses. A new AI Strategy Headquarters, led by the Prime Minister, will coordinate the effort. That centralized approach is designed to make decisions and allocate resources quickly. South Korea: Focusing on Trust as the Foundation South Korea's Strategy to Realize Trustworthy Artificial Intelligence (May 13) focuses on ethics and user confidence. High-risk systems must notify users when they're in use, and the government will conduct social impact assessments to track how AI changes daily life. Officials say they want citizens to feel they can trust the technology from the ground up. China: Domestic Expansion, Global Outreach China launched two AI-focused initiatives in quick succession. The Digital China 2025 plan, released May 16, aims to spread AI through every sector of the economy and raise the country's computing power. And just earlier this week at the World AI Conference & High-Level Meeting on Global AI Governance, Beijing presented an "action plan for global AI governance" as well as a new international AI governance body headquartered in Shanghai. Premier Li Qiang argued that the AI race can't be controlled by a handful of nations and companies. He promised to share open-source tools and breakthroughs with developing countries, particularly in the Global South, a clear counter to Washington's export restrictions. India's Gujarat State: Local but Ambitious And more at a local level, India's Gujarat state launched an Action Plan for Implementation of Artificial Intelligence that was approved this week, showing how AI competition is extending beyond the national level. The state plans to train 250,000 people in AI, launch 'AI factories' in smaller cities, and use the technology to modernize public services. What's Fueling this Latest Wave? There are a number of factors pushing governmental agencies to launch AI action plans and initiatives. The first is one of constrained power and compute resources. Every plan emphasizes compute power. Europe is building Gigafactories, China has a 300 EFLOPS target, and the US is fast-tracking data center permits. The second driver is that of talent shortages. The need for higher skilled AI workers both inside and outside the government is becoming critical. The US, EU, and India all say they need more AI-skilled workers. Training programs are growing and being launched everywhere. Another key driver is the realization that an AI strategy at the national level means increased national security. Governments are coming to the increasing realization that AI is a strategic asset. Some are tightening export controls, while others are fast-tracking sovereign AI models and building alliances through open-source sharing. What's missing is a shared approach to regulation. The EU has the AI Act, a dense set of rules set to take effect next year. Japan is going in the opposite direction, with minimal restrictions. The US has so far leaned on deregulation. That lack of consistency creates headaches for companies trying to operate in multiple regions. Will These Plans Bring the Market Together or Split It Apart? These new roadmaps raise a bigger question. Will governments find enough common ground to keep the AI market connected? Or will they carve it into rival blocs? Some see reasons for optimism. Countries are all worried about the same things: model safety, data security, and misuse. That could lead to at least basic shared standards, especially around how models are tested and hardened against attacks. Existing forums like the G7's Hiroshima AI Process have tried to lay that groundwork. But the split may already be happening. Washington is intent on protecting its technological edge through export bans. Beijing is using open-source promises and a proposed global AI body to build influence among developing countries. These two philosophies don't line up. If they harden, the world could end up with incompatible technical stacks and regulatory frameworks. For AI developers, that scenario would make life difficult. Building for multiple regimes means rewriting software, retraining models, and navigating a maze of compliance rules. A single set of standards would be easier, but the political realities don't point that way. The AI Race Continues to Heat Up The AI race keeps accelerating and heating up. The next phase will decide how connected or divided the global market becomes. Governments aren't waiting to see how AI technology evolves. They're laying down rules and infrastructure now, each trying to secure an advantage. European Commission President Ursula von der Leyen put it bluntly: 'The global race for AI isn't slowing down. [The] Time to act is now.'
Newsweek
an hour ago
- Newsweek
Food Prices Will Rise Under Trump, Group Warns
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. President Donald Trump's tariffs, scheduled to increase on August 1, could result in significantly higher prices for a range of food groups. This is according to an analysis published Monday by the bipartisan Tax Foundation, which found that these will impact nearly 75 percent of U.S. food imports, which it said will "likely lead to higher food prices for consumers." Newsweek reached out to the White House via email for comment. Why It Matters It has repeatedly been warned that the higher import taxes implemented as a result of the Trump administration's economic agenda will increase costs for U.S. businesses reliant on foreign goods or components, and that this will translate into higher consumer prices as companies pass along these added expenses. What To Know According to the Tax Foundation, citing data from the U.S. International Trade Commission, 74 percent of the $221 billion worth of imported food products last year would be subject to the new administration's tariff policies. Among specific products, liqueurs and spirits were the most imported category last year, followed by baked goods, coffee, fish, and beer. Together, these accounted for roughly 21 percent of total food imports. Should reciprocal tariffs go into effect on August 1, following a second delay after their announcement in early April, exporting countries will again face duties ranging from the global baseline of 10 percent to over 30 percent in many cases. The administration has defended tariffs as a necessary tool to amend historic trade imbalances, while boosting U.S. manufacturing and increasing demand for domestically sourced goods. However, the think tank notes that many organic foods, such as bananas, cannot be "onshored" due to the climates required for production, the land necessary to meet U.S. demand and the fact that consumers "often prefer the foreign alternative to American-grown products." Main: File photo of Chiquita brand bananas for sale at a grocery store in Zelienople, Pennsylvania. Inset: President Donald Trump at the White House on July 22, 2025. Main: File photo of Chiquita brand bananas for sale at a grocery store in Zelienople, Pennsylvania. Inset: President Donald Trump at the White House on July 22, 2025. Chip Somodevilla // AP Photo file The Tax Foundation noted that there are several exemptions to the tariffs, which could lessen the overall price impact, including for goods covered by the United States-Mexico-Canada Agreement (USMCA). This allows around 63 percent of agricultural imports from Canada and Mexico—America's top two food exporters—to flow into the U.S. without being subject to Trump's import taxes. In addition, trade deals struck by the Trump administration, including with Indonesia, Japan and, most recently, the European Union, cap tariffs at rates below the levels originally unveiled by the president on "Liberation Day." However, the president has also announced new duties in recent weeks, including a 50-percent tariff on Brazil, the fourth-largest exporter of food products to the U.S., according to the Tax Foundation. Meanwhile, Trump has increased tariffs on imports not covered by the USMCA, which are currently set at a 25 percent tariff, but set to rise to 30 percent and 35 percent for Mexico and Canada, respectively, come August 1. What People Are Saying The Tax Foundation, in the report released Monday, wrote: "President Trump has often defended tariffs on the grounds that they will boost domestic production and create jobs. However, in the case of food imports, it is often difficult or impossible to onshore production due to land scarcity and a lack of suitable climates for certain goods. Consumers also often prefer the foreign alternative to American-grown products. This means tariffs on food imports will likely lead to higher food prices, making consumers worse off." What Happens Next On Friday, the pause on reciprocal tariffs will end, and countries unable to secure deals before this deadline will see their rates revert to early April levels. Speaking to Fox News recently, Commerce Secretary Howard Lutnick said that there would be no further tariff extensions beyond this date. "No extensions. No more grace periods," Lutnick said. "August 1, the tariffs are set. They'll go into place."
Business Insider
3 hours ago
- Business Insider
Blackstone says real estate executive Wesley LePatner was among those killed in NYC shooting
The Blackstone executive Wesley LePatner was among those killed on Monday by a gunman who entered the company's Park Avenue offices, the private equity giant said in a statement Tuesday morning. LePatner, a mother and wife, was the $1.2 trillion firm's global head of core+ real estate and CEO of Blackstone Real Estate Income Trust, an evergreen real estate fund. Her death has left staff at the New York-based asset manager "heartbroken," the statement said. "Words cannot express the devastation we feel. Wesley was a beloved member of the Blackstone family and will be sorely missed. She was brilliant, passionate, warm, generous, and deeply respected within our firm and beyond. She embodied the best of Blackstone," the statement continued. LePatner, a Yale graduate and trustee of New York's Met Museum, was an executive at Goldman Sachs before joining Blackstone in 2014. She told Business Insider in 2022 that her unit was, "for all intents and purposes, a startup." "I faced all the challenges one could imagine when building a multibillion-dollar business — from hiring to ensuring standards remain high, moving quickly to keep up with growth, and staying ahead of market swings and growing pains," she said. She also served on the board for the UJA-Federation of New York, which honored her at its Wall Street dinner in 2023. Blackstone's President Jon Gray presented her with a leadership award and lauded her ascent in finance and her support of women on Wall Street, according to a press release. LePatner is one of four victims who lost their lives to the gunman, who has been identified by the police as Shane Tamura. The gunman died of an apparent self-inflicted gunshot wound in the building.
