Plus: Trump’s tariff prescription. Good morning, Quartz readers! Rate against the machine. Here’s what you can expect from the Federal Reserve’s meeting this week — as tariffs threaten the U.S. economy and the president calls for interest rate cuts. No-guidance counselor. Some of the biggest U.S. companies have warned that President Donald Trump’s tariff-caused uncertainty means they need to pull their earnings guidance. Gap year. The U.S. trade deficit just doubled — and shows that a short-term effect of the president’s tariffs is that the country is more reliant on foreign goods, not less.
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Photo: Getty Images (Bill Pugliano)
Good morning, Quartz readers!

Rate against the machine. Here’s what you can expect from the Federal Reserve’s meeting this week — as tariffs threaten the U.S. economy and the president calls for interest rate cuts.
No-guidance counselor. Some of the biggest U.S. companies have warned that President Donald Trump’s tariff-caused uncertainty means they need to pull their earnings guidance.
Gap year. The U.S. trade deficit just doubled — and shows that a short-term effect of the president’s tariffs is that the country is more reliant on foreign goods, not less.
Bear minimum. A billionaire hedge fund manager who predicted the 1987 stock market crash has warned that the stock market will head to “new lows” amid tariffs on China.
Bitter pill. Rite Aid just filed for bankruptcy — after previously filing for bankruptcy in 2023 — and announced that it will close or sell off all of its stores.
Not child’s play. Mattel warned consumers that the Trump administration’s tariffs are going to cause prices to go up on Barbies, American Girl dolls, Hot Wheels, and more.
Code shoulder. Despite a strong first-quarter earnings report, Palantir stock slid as Wall Street balked at its valuation, AI business, and decelerating international growth.
Wheel trouble ahead. Amazon’s robotaxi company, Zoox, recalled its driverless car software after a Las Vegas crash where no one was injured.

Trump says the U.S. doesn’t need “ANYTHING” Canada has — “other than their friendship.” In a Truth Social post, the president wrote that the U.S. is subsidizing Canada by $200 billion a year and giving away free military protection. Trump also insisted that the U.S. doesn’t need Canadian cars, oil, or lumber.
The president’s comments came just hours before a high-stakes meeting with newly elected Canadian Prime Minister Mark Carney, a seasoned central banker who brings more than maple syrup to the table. Carney has navigated the global financial crisis and Brexit — and now faces a demotion to a so-called “51st state.”
But while Trump’s message on social media was clear, the economic data tells a more complicated — and contradictory — story.
According to data from the U.S. Census Bureau, U.S. demand for Canadian goods is rising, not falling. The U.S.’ trade deficit with its northern neighbor widened sharply in March (to $4.9 billion) — driven by increased imports of the very goods Trump singled out: Canadian cars, oil, and lumber. Quartz’s Catherine Baab has more on the subtle economics behind loud politics.

Trump’s next tariff target might just be your medicine cabinet.
The president announced plans Monday to impose sweeping tariffs on pharmaceutical imports within two weeks — potentially as high as 200% — as part of a push to bring drug manufacturing back to U.S. soil.
“Pharma companies are going to come roaring back,” Trump said. But experts say tariffs could jack up drug prices, deepen shortages, and destabilize a market already running a fever. The U.S. imports over $200 billion in pharmaceuticals annually — mostly from Europe — and many critical drugs rely on active ingredients made abroad.
A 25% tariff could add up to $51 billion a year to drug costs, according to a 2023 analysis from Ernst & Young. Generics manufacturers — already operating on razor-thin margins — have warned that tariffs would strain them even further. And with over 270 drugs already in short supply, the timing couldn’t be worse.
Big pharma is hedging its bets: Companies such as Pfizer, Eli Lilly, and AstraZeneca are investing billions in U.S. facilities, but they also warn that tariffs could slow innovation, delay launches, and force hard trade-offs between price and access. Quartz’s Shannon Carroll has more on why pharmaceutical supply chains aren’t built for border walls.