Good morning. Donald Trump proposes that the US takes over Gaza. China pulls Apple into the US trade dispute. And not even Barbie Land can escape the impact of tariffs. Listen to the day’s top stories.
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Trump proposed the US take over Gaza, relocate Palestinians to other countries, and rebuild it as a new “Riviera.” Speaking alongside Israeli leader Benjamin Netanyahu, Trump said he’d be open to US troops securing the area in a “long-term ownership position”—a change of stance given his long-term pushback against America’s involvement in “forever wars.” It’s a contentious idea that prompted a stern rebuke from Saudi Arabia. Here’s why it’s so controversial. Whoever ends up in charge, with Gaza reduced to 42 million tons of rubble, rebuilding will be a huge job.
The US-China tariff spat escalated with the US Postal Service temporarily suspending inbound international packages from China and Hong Kong Posts. Hope you weren’t waiting on a shipment from Shein or Temu. China, meanwhile, took aim at Apple. It’s said to be laying the groundwork for a potential probe into the tech giant’s policies and the fees it charges app developers.
Looks like a rough day ahead for tech stocks as Nasdaq futures slipped. It was dragged down by shares in Google’s parent company Alphabet, whose worse-than-expected results unnerved investors about the billions it’s spending on AI. Speaking of, Google removed a passage from its AI principles that pledged to avoid using the technology in potentially harmful applications, such as weapons.
Walmart is eliminating some jobs and asking workers to move to central offices in Bentonville, Arkansas, or Sunnyvale, California, as it ramps up a push to consolidate its corporate footprint. Elsewhere, a venture capital-backed startup was accused of illegally jacking up rents for furnished apartments in Los Angeles—more than 50% in one example—after last month’s wildfires.
Trucks cross the Peace Bridge at the Canada-US border on Monday. Photographer: Cole Burston/Bloomberg
America’s threats of punishing new tariffs are sparking a “race to the border” for US manufacturing businesses.
The pace of developments in recent days has rattled producers and forced them to game out ways to protect their operations. Even after Trump put a one-month hold on the Mexico and Canada duties, executives are still rushing to get products shipped across the border while they can.
Even Barbie's not immune from the impact of levies. Mattel boss Ynon Kreiz (he’s the real one, not Will Ferrell) is considering increasing the price of the iconic doll and Hot Wheels toys to offset the costs.
Trade wars, tariff threats and logistics shocks are upending businesses and spreading volatility. Understand the new order of global commerce with the Supply Lines newsletter.
The Big Take
A slump in demand for diamonds has left De Beers floundering—and threatens to frustrate its owner’s plans to sell what was once the titan of the $80 billion market.
The market is betting that Trump and China’s President Xi Jinping will follow ancient Chinese general, strategist and philosopher of war Sun Tzu to subdue each other without fighting, John Authers writes. But with the US unable to stop consuming far more than it makes, China may now find that it’s passed the point where conflict can be avoided.
