• Some companies are already telling customers they'll need to raise prices due to Trump's tariffs.
• At least one — Chipotle — has said it's not planning on passing the cost to consumers
• The tariff announcement has become a key talking point businesses now need to consider.

I'd like to formally announce I will not be passing the cost of the tariffs down to Business Insider Today's newsletter readers.

President Donald Trump's taxes on Canadian, Mexican, and Chinese goods have absolutely no impact on my ability to produce the daily newsletter. (And it's also free to subscribe.)

But don't let the details get in the way of a feel-good story: I am willing to carry the burden of these taxes for you, the reader.

My declaration might sound silly (It is!), but there are undoubtedly some serious conversations taking place at businesses about communicating the impact of these new tariffs.

Some companies aren't wasting time making clear that customers will have to take this one on the chin. Target CEO Brian Cornell said some grocery costs could go up as early as this week, while Best Buy CEO Corie Barry said price increases on imported products are now "highly likely."

Both executives didn't get too specific on their earnings calls, but the message was clear: Don't blame us if we have to raise prices.

They're not alone. Companies big and small have been telegraphing potential price increases due to tariffs for a while. As legendary investor Warren Buffett recently said of tariffs: "Over time, they are a tax on goods. I mean, the Tooth Fairy doesn't pay 'em!" (We've got a full rundown on the products most susceptible to tariffs.)

But one company took a very different approach. Before Tuesday's announcement, Chipotle made clear it was not planning on raising its prices due to tariffs.

Chipotle CEO Scott Boatwright told "NBC Nightly News" that the chain planned to absorb any price increases.

"We are fortunate to have such an extraordinary economic model at Chipotle that we can withstand those types of inflationary pressures and not have to pass those costs off to the consumer," Boatwright said.

What a win for the finance bros! You can't tax these gains! I'll take double meat and some guac, please!

Oh, wait, there's one more thing.

Boatright went on to say Chipotle could still raise prices if the cost of the tariffs becomes a "significant headwind."

Oh, ok…

And tariffs aren't even set to hit Chipotle that hard. At least, according to Chipotle. Executives previously played down the impact of tariffs on a recent earnings call. Despite Mexico supplying roughly 90% of the avocados eaten in the US, according to CNBC, the chain only gets about half its supply from Mexico. And Chief Financial Officer Adam Rymer said the produce it gets from our neighbors to the south accounts for only about 2% of its sales.

Hmmm, alright.

Chipotle is also not philosophically opposed to passing along the cost to customers. In fact, the chain literally just did it. In December, Chipotle raised prices by 2% nationwide to offset inflation, its first price increase in over a year. The price hike also addressed the hit to its profit margin that came with ensuring "consistent and generous portions."

So, to recap: A chain that says it's pretty insulated from tariffs and recently raised its prices will do its best not to raise prices on consumers. (But no promises.)

Siri, where is the nearest Moe's?

To be fair to Chipotle, the tariffs are projected to cost the chain some money. Rymer previously estimated that tariffs on Mexico, Canada, and China would increase its cost of sales — or how much it pays for the stuff it sells you — by about 0.6%.

That's not nothing, especially when fast-food chains have been fighting to keep prices down in the face of an uncertain economic future. So, credit Chipotle for attempting to avoid passing on the costs to customers rather than just waving the white flag on tariffs or using the trade tax as cover to raise its prices.

"It is our intent today to hold pricing constant because we don't know if the tariffs are transitory, if they're going to be permanent, or how they will impact our business in the future." Laurie Schalow, chief corporate affairs officer for Chipotle, told me via email.

But just as some have said Trump's tariff plan is part of a bigger negotiation tactic, don't be surprised if companies look to borrow from the president's playbook. The hot-button issue could be an excuse for businesses to raise prices or an opportunity to tout that they're holding the line to protect their customers.

• The Office of Personnel Management quietly revised a memo about firing probationary employees.
• The update specifies that OPM can't fire workers in other agencies and follows a recent court ruling.
• It's unclear if this impacts the thousands of probationary employees who have already been fired.

The Office of Personnel Management quietly revised a memo on Tuesday about the firing of probationary federal employees. The memo includes two new sentences indicating that individual agencies, not OPM, are responsible for terminating workers.

Less than a week ago, a federal judge ruled that OPM doesn't have the power to fire employees in other agencies and had exceeded its legal authority. US District Judge William Alsup said in his ruling that OPM had to inform agencies it didn't have such power. The updates to the memo appear in line with that directive.

The memo was first published on January 20, President Donald Trump's first day in office, and much of it remains unchanged, according to BI's comparison of original and revised versions.

Originally, the document directed agencies to send a list of all probationary employees to both a general OPM email and Amanda Scales, OPM's chief of staff who is associated with the White House DOGE Office. The new version only says to send the list to the general email.

The original version described probationary periods as tools to "assess employee performance and manage staffing levels," suggesting they could be used for workforce reductions. The revised memo drops the staffing management language, instead describing probationary periods only as a way to ensure employees "will be an asset to the Government."

OPM sent agencies' chief human capital officers an email about the new memo, saying that it is "aware of recent litigation challenging the terminations of various probationary employees in different departments of the federal government," according to a copy reviewed by BI.

"The revised memorandum clarifies and confirms that OPM has not directed, and is not directing, your agency to take specific performance-based actions against probationary employees," the email says. It is signed by the "CHCO Council."

Thousands of probationary employees — typically people with less than two years of experience in their roles — have already been fired. It's not clear whether they will be re-hired under the new guidance.

Representatives for the White House and OPM did not respond to BI's request for comment.

• President Donald Trump ordered a pause in US military aid for Ukraine.
• An advisor to Ukraine's president told BI the decision puts a spotlight on Patriot air defenses.
• The US-made Patriot missile batteries have been critical to defending Ukraine from Russian attacks.

KYIV, Ukraine — President Donald Trump's decision to freeze military aid to Ukraine is fueling concerns about the future of key weapons, particularly its American-made Patriot air defense systems.

"For us, the most critical positions are, undoubtedly, everything related to missile defense systems, particularly the Patriot systems. The largest production of these is in the United States," Mykhailo Podolyak, an advisor to Ukrainian President Volodymyr Zelenskyy, told Business Insider during an interview in Kyiv on Tuesday.

Trump on Monday ordered a pause in the delivery of military aid to Ukraine to pressure Zelenskyy into peace talks with Russia on unfavorable terms. The move, though not necessarily surprising, has escalated the already tense situation following a contentious Oval Office meeting last week.

Podolyak, speaking through a translator, said that Ukraine still needs to identify which areas of US security assistance would be affected by Trump's aid decision and which weapons or ammunition could be replaced by other partner nations.

He singled out Ukraine's Patriot air defenses as an important concern and said Kyiv would continue to work with the US and Europe to find ways to protect civilians and infrastructure from regular Russian bombardments.

"Russia is not stopping its attacks; it continues missile strikes on civilians and critical infrastructure. Russia is not stopping and will not stop," Podolyak said. "Therefore, we will continue to look for ways to counter Russian strikes — both across the entire territory of Ukraine and along the front line."

"We will search for available tools on the global market and use them to destroy Russia's capabilities," he said.

Patriots have been crucial

The American-made MIM-104 Patriot surface-to-air missile system manufactured by Lockheed Martin and Raytheon has played a crucial role in protecting Ukraine from Russian attacks since Kyiv first obtained it from the US nearly two years ago.

Ukraine now reportedly operates six Patriot systems at undisclosed locations around the country. These batteries have helped Kyiv shoot down Russian ballistic missiles, including some that the Kremlin claimed were unstoppable.

The US is not alone in providing Patriots; other NATO countries like Germany and the Netherlands have provided Ukraine with batteries and missile interceptors. But Trump's decision to pause aid raises questions about the future of what is now Kyiv's top air defense asset.

Ukraine is said to be running low on Patriot interceptor missiles, for which the US has been a key supplier. Halting further supply could prove detrimental.

Trump's move was a sobering moment for Ukraine. The Biden administration pledged more than $65 billion in security assistance to Ukraine after Russia launched its full-scale invasion in February 2022.

On Tuesday, in Kyiv, locals expressed frustration and anger with the new military aid pause in conversations with BI.

"There [are] consequences for the front-line cities," said one local resident, who introduced himself as Viktor and didn't give his last name. "Lack of weapons will result in more bombing of those cities. If we are talking about air defense — here in Kyiv and other cities where civilians will die because we don't have enough Patriots, for example."

The military aid pause escalates a substantial rift between Washington and Kyiv, coming just a few days after Trump and Vice President JD Vance berated Zelenskyy at the White House over peace negotiations. Ukraine's leader left without signing an anticipated rare-earth-minerals deal.

Zelenskyy said Tuesday that it was "regrettable" how the meeting unfolded and that it was "time to make things right."

"Regarding the agreement on minerals and security, Ukraine is ready to sign it in any time and in any convenient format," he wrote on social media. "We see this agreement as a step toward greater security and solid security guarantees, and I truly hope it will work effectively."

• Warner Bros. Discovery drew criticism for its decision to end its TV deal with the NBA.
• WBD CEO David Zaslav said, "Not doing the NBA was a great decision" for the company.
• He said at a conference that WBD would turn its attention to franchises it owns, like Harry Potter.

When Warner Bros. Discovery decided to end its 35-year partnership with the National Basketball Association, some industry insiders worried the company was making a huge mistake. CEO David Zaslav is putting those fears to rest.

"Not doing the NBA was a great decision for us," Zaslav said at a Morgan Stanley conference on Tuesday.

WBD's latest distribution deals with Charter and Comcast have shown that the company can still secure higher rates for most of its TV networks without the NBA, as Business Insider previously reported.

The company is also investing in other sports. It's kicking off a new deal with NASCAR this year, and has picked up more rights to college sports.

Not having the NBA also saves WBD money. The NBA's last TV contract was worth $24 million over nine years and the league scored a big increase with its latest deal. The new 11-year contract with Disney's ESPN and ABC, Comcast's NBC, is worth $76 billion.

WBD is pivoting to bolster its own franchises

Without the NBA, Zaslav said WBD can reinvest in franchises it already owns and generate more revenue. New content is coming to its Harry Potter, Lord of the Rings, DC Universe, and Game of Thrones franchises.

Zaslav thinks this move will provide some stability to the company as it continues to work with distributors to get its content to more people. Its recent pay-TV deals with Charter and Comcast let those cable companies bundle Max with their services, effectively making it free for those subscribers.

Zaslav said the company can monetize franchises it owns through content and merchandising, more than it can with sports.

"We own those," Zaslav said. "Sports is a rental business, and so you got to look and say, 'Are we going to be able to make money on this?'"

• Massachusettes police are investigating seven Tesla charging stations that were set on fire.
• Police told BI that the charging stations were the only ones in the small town outside Boston.
• Investigators suspect the fires were intentional.

A group of Tesla Superchargers in a small town outside Boston caught fire this week — and investigators suspect it was arson.

Massachusettes police are working with local officials to investigate seven Tesla charging stations that were engulfed in flames early Monday morning. Littleton Police said in a Monday press release that local officials have "determined that the fire appears to have been intentionally set."

Littleton Police Deputy Chief Jeff Patterson told Business Insider that the seven charging stations that were damaged are the only ones in the town, and none of them are useable. However, he said they are actively being repaired.

Tesla's charging account on X responded to a post about the incident on Monday and said the charging posts and wiring would be replaced in under 48 hours.

Police chief Matthew Pinard said that officers were dispatched to The Point Shopping Center at 1:10 a.m., following reports of fires at the Tesla charging station.

The officers said that "several Tesla charging stations were engulfed in flames and heavy, dark smoke" and another caught fire while they waited for the Electric Light & Water Department to arrive to shut down the power. Seven charging stations suffered heavy fire-related damage.

There were no reported injuries, and all of the fires were extinguished. The Littleton police and fire departments, along with the Massachusetts State Police Fire and Explosion Investigation Unit, are investigating the incident. The Arson Watch Reward Program is offering rewards of up to $5,000 for information about the incident.

Patterson told BI that he wasn't aware of any Tesla protests or vandalism incidents in the town.

There have been dozens of demonstrations against Elon Musk and Tesla around the country in recent weeks in response to the Tesla CEO's efforts with the Trump administration and DOGE.

Demonstrators have gathered in cities around the country to participate in "Tesla Takedown" protests, many of which have occurred outside Tesla showrooms. Some Tesla owners have also reported being subject to insults when driving or vandalism on their vehicles.

Some of the anti-Tesla and Musk efforts have resulted in arrests.

Colorado police arrested a woman last week on suspicion of her involvement in a series of vandalism incidents at a Tesla dealership, including painting "Nazi cars" in graffiti on the dealership building and throwing Molotov cocktails at vehicles. The suspect was charged with criminal intent to commit a felony, criminal mischief, and using explosives or incendiary devices during a felony, according to police records.

Nine people were also arrested at a Tesla showroom protest in Manhattan on Saturday, Reuters reported. Police said hundreds of people showed up to the protest, some of whom entered the building, prompting employees to close the store. Videos from the protest also captured some of the store's glass shattered.

Are you a Tesla driver or employee with a story to share? Contact the reporter at [email protected]

• Linda McMahon was confirmed as Trump's education secretary on Monday night.
• Shortly after her confirmation, she released a memo outlining her goals for the Department of Education.
• They include prioritizing private school voucher programs and getting rid of "divisive DEI" curricula.

President Donald Trump's newly confirmed education secretary is ready to carry out her boss' vision of eliminating her own department.

After being confirmed on Monday night, Education Secretary Linda McMahon published a memo outlining her goals for the Department of Education. She framed her goals as the department's "final mission" to reshape education in the US, saying that coming changes will "profoundly impact" the agency's operations.

"Removing red tape and bureaucratic barriers will empower parents to make the best educational choices for their children," McMahon said. "An effective transfer of educational oversight to the states will mean more autonomy for local communities. Teachers, too, will benefit from less micromanagement in the classroom—enabling them to get back to basics."

McMahon highlighted three goals on which to center the Department of Education's restructuring:

1. Ensure parents are the "primary decision makers" in their kids' education
2. Focus public education on math, reading, science, and history, and not "divisive DEI programs and gender ideology"
3. Establish postsecondary education as a path to well-paying careers that meet the demands of the workforce.

These follow Trump's executive orders related to education in January. One focused on expanding school voucher programs, partly by redirecting federal funds from public to private schools, while the other prioritized "patriotic education" in public classrooms to eliminate curriculum that doesn't align with the president's politics.

McMahon's first goal is about expanding parents' roles in their children's education by providing them with publicly funded vouchers to use at private institutions. It has long been a priority for Trump and Republican lawmakers. Trump's plan to take it a step further by considering reallocating federal block grants meant to boost underfunded schools to private school vouchers would be an escalation, education policy experts previously told BI. The administration would likely have to go through Congress to implement those changes.

McMahon's focus on math, reading, science, and history is also in alignment with Trump's executive orders. One of them proposed diverting funding away from public schools that teach "gender ideology and discriminatory equity ideology." The Trump administration recently cut $900 million in research contracts at the Education Department, and some department employees and experts said that the cuts could hinder data collection on kids' math and reading progress.

McMahon did not elaborate further in her memo regarding her third goal for higher education. She said during her confirmation hearing that she would preserve programs enshrined in law, like the Public Service Loan Forgiveness program. She also wrote a September opinion piece in The Hill expressing support for expanding Pell Grant eligibility to workforce training programs, not just college degree programs.

Trump and Republican lawmakers have criticized broad student-loan forgiveness and former President Joe Biden's key repayment plan, which allowed for cheaper payments. Continuing those efforts is not likely to be prioritized under McMahon.

It's still unclear how Trump's executive orders will be carried out. The orders asked McMahon and other agency heads to prepare guidance on implementing changes to the school system, and it's possible the guidance could end up being less impactful than Trump and McMahon's stated aims.

Jon Valant, the director of the Brown Center on Education Policy at The Brookings Institution, previously told BI that even as schools await formal guidance from the department, it's possible that some districts might prematurely take into account McMahon and Trump's directives.

"People may interpret them as having more bite than they actually do," he said.

McMahon's new guidance comes as Trump has reiterated over the past few weeks that he wants to eliminate the Department of Education altogether. While McMahon said during her confirmation hearing that abolishing the agency would require an act of Congress, she told Democratic lawmakers in a recent letter that she "wholeheartedly" supports Trump's mission that "the bureaucracy in Washington should be abolished so that we can return education to the states."

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