• Barry Diller said to give Trump's tariffs "a little good spirit," though he thinks "it's going to end in tears."
• "I like big gambles," he said. "Maybe you can pull it off. Maybe manufacturing can come back.
• The Budget Lab at Yale warns that tariffs won't offset the GOP's proposed tax cut bill.

Barry Diller thinks that President Donald Trump's tariffs should be allowed to come to pass.

"I think it's going to end in tears," the Hollywood mogul and IAC chairman said of Trump's tariff during Monday's episode of the "On with Kara Swisher" podcast.

"But you know what?" the 83-year-old billionaire continued. "It's a big gamble. I like big gambles. Maybe you can pull it off. Maybe manufacturing can come back. Maybe it can end taxes for people where you just simply get money from others."

"Don't be in this derangement syndrome, and let's see giving it a little good spirit rather than a violent negative spirit — and that's my attitude right now," Diller added.

Trump's broad-reaching tariffs have met challenges thus far, and he has paused some of the highest levies. Business leaders, even those who have openly supported him, have expressed concerns about their economic impacts, and stocks tumbled when the tariffs were announced.

The Budget Lab at Yale recently said in a report that the income reaped from tariffs won't come close to offsetting the Republicans' proposed tax cuts, which could pass given their majority in Congress and may cost the country $3.4 trillion over the next 9 years.

"If we account for the likelihood that these provisions would become permanent, at the end of 30 years the debt-to-GDP ratio would be over 180%, even assuming substantial revenue from tariffs," the non-partisan policy research group wrote. "For context, the only countries with a higher debt-to-GDP ratio currently are Japan and the Sudan."

In a separate report on May 12, the Budget Lab at Yale found that Trump's tariffs would cost the average American household a loss of $2,800 per household on average in 2024 dollars in purchasing power.

Higher tariffs on 75 trading partners imposed on April 2 were suspended for 90 days starting on April 9. Tariffs on China were temporarily lifted for 90 days on May 14 to negotiate a broader trade agreement.

Expedia did not respond to a request for comments.

• Ray Dalio said on X that Moody's credit downgrade doesn't cover the risks of government money printing.
• Moody's downgraded US credit to Aa1, citing growing deficits and ballooning interest payments.
• A GOP tax bill could worsen US debts, with proposed tax breaks and increased defense spending.

Billionaire investor Ray Dalio thinks Moody's recent downgrade of the US sovereign credit rating doesn't capture the danger of the federal government simply printing cash to cover its bills.

"You should know that credit ratings understate credit risks because they only rate the risk of the government not paying its debt," Dalio, the founder of Bridgewater Associates, warned said on X. "They don't include the greater risk that the countries in debt will print money to pay their debts thus causing holders of the bonds to suffer losses from the decreased value of the money they're getting."

"For those who care about the value of their money, the risks for US government debt are greater than the rating agencies are conveying," Dalio added.

Dalio's comments came after Moody's, the international financial services company, downgraded the US credit from Aaa to Aa1 on Friday, citing growing deficits and surging interest payments. That makes Moody's the last of the three major credit agencies to bump America's credit off the highest rating. S&P Global Ratings downgraded the US back in 2011, and Fitch Ratings followed suit in 2023.

In response to the downgrade, stocks slipped on Monday while Treasury yields spiked. The 30-year bond yield jumped 4.995%, and the 10-year bond yield rose to 4.521%.

Adding to investor concerns, economists are sounding the alarm on a tax cut bill proposed by Republicans that could come to pass given the slim GOP majorities in both the House and the Senate.

The bill proposes tax breaks for the wealthiest Americans through a higher estate tax exemption, interest tax breaks for private equity, and a $150 billion boost in defense spending. It also plans to increase the child tax credit by $500 and eliminate taxes on tips and overtime pay.

Despite the bill also proposing spending cuts to Medicaid and SNAP and to hike taxes for immigrants, the Budget Lab at Yale, a nonpartisan policy research center, says that the GOP bill would worsen America's debt.

"The bill as currently proposed would substantially add to the deficit, even if accounting for possible tariff revenue," authors of the report wrote, "If we account for the likelihood that these provisions would become permanent, at the end of 30 years the debt-to-GDP ratio would be over 180%, even assuming substantial revenue from tariffs."

According to the report, Sudan and Japan are the only two countries with a debt-to-GDP ratio over 180%.

"Assuming temporary provisions expire, the bill's baseline cost of $3.4 trillion would make it the largest spending package in US history," the report added.

In a rare Sunday night vote on May 18, the GOP tax cut bill narrowly passed the House Budget Committee, which days before rejected the bill. The bill now heads to the House for a vote this week.

A spokesperson for Dalio did not immediately respond to a request for comment.

• Heath Ceramics is doubling down on its resale program as consumers grapple with tariffs.
• The California-based company emphasizes that its products hold value in the long run as a strategy.
• The pre-loved market is booming for curated vintage as well as regular necessities, secondhand platforms say.

As tariffs drive up the cost of imports and bite into household budgets, some American companies are amping up their secondhand offerings and avoiding the tariff question altogether.

For Health Ceramics, a California-based pottery business with a relatively new resale program, this economic moment has brought a silver lining in the form of a booming peer-to-peer market for used goods.

A single new Heath plate costs between $30 and around $200, depending on factors like size and rarity. By comparison, the average imported 10-inch stoneware plate on Target's website is listed at $3 each pre-tax.

"You are buying a piece of ceramics that was actually made by your neighbor with clay that came from California, a few hours away," Meghan Wernetti, Heath's director of creative operations, told Business Insider. "You're not paying for a 21-day cruise across the ocean."

Heath has always known there was a booming secondhand market, says Wernetti, but they didn't launch their peer-to-peer marketplace until last year.

With tariffs driving up prices for new products overall for most businesses, Heath is doubling down on its "Pass the Plate" resale program by launching a vintage market next month in its tile factory in San Francisco, and trying out buybacks for those looking to pass on their Heath products.

"If these changes help shine light on a different way to do business that can still be very sustainable and fulfilling for customers and employees, that would feel like a silver lining, of what is otherwise a hard moment in the short term," said Wernetti.

Wernetti recognized that being American-made alone may not convince people to pay a higher price, but emphasizing the long-term value has drawn in more customers and more traffic for its online site.

"It reinforces the idea that Heath is for collecting — it holds its value," Wernetti said. "You can love it for 10 years and then pass it on, and it's still going to be just about as good as new."

Secondhand is having a moment

Secondhand shopping is receiving a boost, both for curated high-end vintage and regular necessities.

Vintage resale platform Chairish told BI that after it launched an "American Vintage is Tariff Free" ad accompanied by a collection, the company saw a 100% to 700% increase in engagement and rate of sales, which it said is "unprecedented."

A spokesperson of secondhand platform OfferUp told BI that the site saw a 22,914% increase in searches for "uppa" after tariff price hikes took effect for some popular baby stroller brands like UPPAbaby in early May. One stroller retailer told Business Insider in April that the brand's strollers, which are made in China, would cost $1,199 — up from $899.

Beyond helping people pass on their dinnerware, Wernetti said Heath's resale program is strengthening its relationship with customers and allowing consumers to rethink a "race to the bottom" mode of production in which wages and quality are continuously slashed to meet a lower price point.

"It's not about nostalgia or framing Heath as a relic of a different time," said Wernetti. "It's about doing things in a way that makes sense — for the people who make the product, the people who use it, and the worlds in between."

• OpenAI launched Codex, an AI tool to write codes and fix bugs for developers.
• As an AI Agent, Codex could also help users with an Amazon order or a dinner reservation.
• Codex and GPT-4.5, which was launched in April, both come with a heftier price tag of $200 per month.

OpenAI on Friday rolled out a powerful new tool for software developers, as the company pushes further into automating coding tasks with AI.

The new product, called Codex, is an AI agent designed to help programmers write code, fix bugs, and run tests — often simultaneously.

"Technical teams at OpenAI have started using Codex as part of their daily toolkit," OpenAI said in a blogpost. "It is most often used by OpenAI engineers to offload repetitive, well-scoped tasks, like refactoring, renaming, and writing tests, that would otherwise break focus."

"When uncertain or faced with test failures, the Codex agent explicitly communicates these issues, enabling users to make informed decisions about how to proceed," OpenAI added.

Unlike traditional chatbots that respond to prompts and generate responses in mostly words, AI agents like Codex can interact with other software and online services, such as helping you with a DoorDash order or booking a dinner reservation.

The Codex rollout came after OpenAI launched GPT-4.5 in February. A livestream demo highlighted its improved reasoning, intuition, and reduced hallucinations.

CEO Sam Altman described it as "the first model that feels like talking to a thoughtful person," but also said that its intelligence and nuance comes at steep computational cost. Due to GPU shortages, GPT-4.5 was initially available only to $200-per-month ChatGPT Pro users.

Codex is now available to subscribers of OpenAI's ChatGPT Pro plan, which costs $200 a month. OpenAI also said it will eventually bring Codex to its other premium offerings.

OpenAI did not immediately respond to a request for comments.

• Elon Musk's America PAC is facing a class action lawsuit that alleges unpaid fees to canvassers.
• The PAC promised to pay a $47 fee to each petition signer and for each signature collected.
• This is the second legal challenge against America PAC's petition payment promises.

Elon Musk's America PAC is facing a class action lawsuit over its promise to pay petition signers and signature collectors.

Three plaintiffs from Pennsylvania, Georgia, and Nevada filed the lawsuit on May 8. It alleged that the billionaire-backed super PAC failed to compensate individuals who signed or referred others to sign a petition during President Donald Trump's 2024 campaign.

Musk's PAC initially promised to pay each registered voter in seven swing states who signed the PAC's "Petition in Favor of Free Speech and the Right to Bear Arms" $47, an amount that was later increased to $100 for Pennsylvania. The same reward was also promised for each successful referral of a registered voter in swing states who signed the petition, at $100 per signature, only in Pennsylvania.

According to the complaint filed in the Eastern District Court of Pennsylvania, Steven Reid worked as a canvasser for America PAC in Michigan and Georgia and referred "many voters" to sign the petition. But despite repeated attempts to collect payment, Reid was never compensated, according to the complaint, and estimates he is owed "several thousand dollars."

"Plaintiffs are in communication with numerous others who referred voters to sign the America PAC petition, who are likewise frustrated that they did not receive full payments for their referrals," the lawsuit alleged.

"There are expected to be more than 100 Class Members, and the amount in controversy is expected to exceed $5,000,000," the lawsuit added.

An attorney for Musk, representatives of Tesla, and the America PAC did not immediately respond to requests for comments.

This is the second legal challenge regarding America PAC's petition payment promise. A separate class-action suit filed on April 1 by an anonymous Pennsylvania man in Bucks County made similar claims, alleging that Musk's PAC owes him $20,000 for signature-gathering work.

"Plaintiff has repeatedly contacted Defendants, making multiple attempts to receive full payment for his referrals, but to no avail," the complaint said.

These payment pledges, made on Musk's own X account and through ads authorized by the America PAC, aren't the only instances in which the richest man in the world promised to pay individuals for participating in a political activity.

In Wisconsin's Supreme Court race, Musk also promised, through a social media post, to pay $1 million each to two Wisconsin electors who had already voted and attended his event. The post was made on March 27, before the poll closes by the end of April 1.

The candidate that Musk championed eventually lost the Wisconsin Supreme Court race.

• Chinese e-commerce sites have reduced the price of Apple's iPhone 16 ahead of a shopping festival.
• Business Insider found iPhones discounted for hundreds of dollars compared to official listings.
• Apple faces declining sales in China as local brands like Xiaomi gain market share.

Chinese e-commerce websites have slashed some Apple iPhone prices by hundreds of dollars ahead of the 618 shopping festival.

The 618 shopping festival, or June 18, typically lasts around two weeks and is the second-largest annual shopping festival in China, which frequently generates more than $100 billion in revenue for its largest e-commerce platforms.

On JD, Business Insider found a white iPhone 16 Pro with 128GB of storage on an interest-free 12-month payment plan listed at 5,380 yuan, or around $745. That is at least a $360 markdown from Apple's official listing price of 7,999 yuan on its mainland China website.

Another 256GB iPhone 16 pro on the same payment plan is selling at 6,220 yuan on JD, down from Apple's official listing price of 8,999 yuan.

On Tmall, by Chinese e-commerce giant Alibaba, BI also saw at least one brand new iPhone 16 for 5,299 yuan, also around $230 down from the Apple official listing price of 6,999 yuan.

On Apple's US official website, a 128GB iPhone 16 Pro would cost $999, while an iPhone 16 with the same amount of storage is listed at $799.

Apple did not immediately respond to a request for comments and did not clarify whether these discounts in China are part of an official promotion initiated by Apple.

These markdowns follow Apple's struggling sales in China, as cheaper domestic brands gain popularity and shoppers grow thriftier. Apple saw its iPhone shipments down 9% in China in comparison to the first quarter of 2024, and its Q2 sales in China also missed expectations.

However, according to a report by the International Data Corporation, smartphone shipments in China grew 3.3% overall in the first quarter, largely due to local Apple rivals like Xiaomi, which saw a 39.9% increase in shipments in China in the same quarter compared to 2024.

A Xiaomi 15 Pro, one of its latest models with at least 256GB in storage, is listed for 4,999 yuan on its China website, which is less than $700.

Meanwhile, to boost soft consumer spending as China grapples with internal economic issues triggered by a property market crisis, the Chinese government expanded consumer subsidies on smartphones and other tech devices, but only for products priced under 6,000 yuan ($821), leaving many Apple models too expensive to qualify for the discount.

• JPMorgan revised its recession forecast after President Donald Trump's tariff truce with China.
• Trump and China agreed to lift most tariffs on each other for 90 days for further negotiations.
• A JPMorgan analyst said that the chances of a US recession are now below 50%, but risks remain.

JPMorgan is revising its 2025 recession prediction after President Donald Trump reached a temporary tariff truce with China.

In a Tuesday note, the bank said the chances of a US recession this year had fallen below 50%, down from a previous estimate of 60% after Trump announced sweeping tariffs on April 2.

"The administration's recent dialing down of some of the more draconian tariffs placed on China should reduce the risk that the US economy slips into recession this year," wrote JPMorgan chief US economist Michael Feroli. "We believe recession risks are still elevated, but now below 50%."

JPMorgan found that the tariff change meant the average effective tariff rate had reduced from 24% to 14%, representing a tax cut of almost $300 billion.

"Most of that prior tax was likely to have been borne by US consumers in the form of higher prices," Feroli said. "The rolling back of this tax should provide some relief to consumer spending, and in our modeling is enough to tip the second-half growth outlook from one of modest contraction to one of modest growth."

He added that the lower tariffs are still a boost to inflation, however, which will affect disposable income and in turn, consumer spending.

The shift follows Trump's announcement of a 90-day tariff pause that scales back duties on US imports from China from up to 245% to 30% as negotiations continue.

Although stocks have rallied and regained losses since April 2, some — including Federal Reserve board governor Adriana Kugler — have said the economy is not out of the woods yet.

JPMorgan also raised its projection for US economic growth this year to 0.6%, up from 0.2% before the China tariff pause.

Feroli also predicts that the personal consumption expenditures price index, a key measure of inflation, will rise to 3.5% rather than 4%, but still higher than 2.2% at the start of the year.

Feroli's note also addressed a mild risk in the job market as businesses hold off on new hirings and investments due to economic uncertainties brought on by tariffs. A long list of major companies, including Morgan Stanley, Wayfair, UPS, and Meta, have been laying off staff this year.

"We still project a modest contraction in employment later this year, as labor demand is projected to slow even more than labor supply," wrote Feroli.

"Our updated labor market outlook is less demanding of immediate action to stem employment risks; for the Fed, we are pushing back the timing of the resumption of rate cuts from September to December."

• Palantir CEO Alex Karp praised Saudi engineers at Riyadh's investment forum and criticized Europe.
• European organizations are slower in AI adoption compared to their US counterparts, a report said.
• Europe has more stringent AI regulations, and many ways of utilizing AI are categorized as high-risk.

At an investment forum in Riyadh, Alex Karp, CEO of defense tech company Palantir Technologies, praised Saudi engineers for meritocracy and patriotism — and took a swipe at Europe over its slow AI adoption.

"You're seeing a receptivity in this region, especially in the kingdom," Karp said at the Saudi-US Investment Forum on Tuesday. "But the receptivity is on the back of people who have a deep tradition in engineering excellence and, quite frankly, believe in their own future."

Karp was addressing a request from panel host and CNBC anchor Sara Eisen to expand upon a previous comment that the countries and regions that are best utilizing AI right now are the US and the Middle East.

"Obviously, the great contradistinction here is Europe, where, you know, it's like people have given up, and we — I really hope that turns around in Europe," he added.

The talk came as President Donald Trump received a royal welcome with golden chairs and Arabian horses in Riyadh on Tuesday as he kicked off his Gulf tour. Flanked by executives from Google, Nvidia, BlackRock, and others to discuss AI, defense, and energy with Saudi officials, Trump said he aims to secure $1 trillion in deals.

Based on an October 2024 report published by QuantumBlack, AI by McKinsey, European organizations lag behind their US counterparts by 45 to 70% in terms of AI adoption. And while Europe leads in producing AI semiconductor equipment — machinery and tools used to make semiconductors — the report said that Europe has below 5% market share in areas like raw materials, cloud infrastructure, and supercomputers.

"Opportunity remains wide open, but Europe is starting from a disadvantage," the report QuantumBlack wrote.

Europe is also known for much more stringent AI regulations. On August 1, 2024, Europe enacted the AI Act, the first-ever legal framework on AI, and established an AI office to oversee the implementation of these regulations.

The AI Act is just one part of a wider package of measures that the EU said ensures "trustworthy AI," which explicitly banned practices such as AI-based manipulation and deception, real-time remote biometric identification for law enforcement purposes in public spaces, and individual criminal offense risk assessment.

According to the AI Act, ways of using AI, such as robot-assisted surgery and credit scoring, are also categorized as "high-risk" and subjected to strict scrutiny.

The best-known European AI company that raised the most amount of funds is French AI startup Mistral, which is backed by over €1 billion in funding. Dubbed as Europe's answer to OpenAI, the company has recently ruled out acquisition and is eyeing an IPO while pushing its open-source AI models and generative chatbot "Le Chat" into new markets.

• The US and China agreed to suspend most tariffs for 90 days to allow for further talks.
• Trade experts believe US-China trade will spike during talks, and that the eventual deal will be broad.
• Stocks surged on the news, but a Fed governor remains concerned about inflation and economic slowdown.

The US and China agreed to suspend most tariffs on each other's goods for 90 days, following high-stakes negotiations in Geneva over the weekend.

As the tariff pause begins on Wednesday, experts expect a spike in trade between the countries, as companies race to front-load inventory while negotiators work on a deal.

"The negotiations suggest that both countries realize they need each other," Andrew Collier, a senior fellow at the Mossavar-Rahmani Center for Business and Government of the Harvard Kennedy School, told Business Insider.

The temporary truce slashes China's tariffs on the US from 125% to 10% and the US's tariffs on China from 145% to 30%. The deal leaves President Donald Trump's fentanyl-related 20% tariffs in place and does not restore the de minimis exemption, which applied to e-commerce from China and allowed Temu and Shein orders to remain duty-free.

Following the agreement, stocks rallied sharply on Monday, especially for tech. The Nasdaq Composite and the S&P 500 each surged around 3%, while the Dow Jones Industrial Average jumped more than 2.4% and gained over 1,000 points.

A spike in US-China trade

As businesses rush to get shipments across the Pacific while tariffs are lower, Scott Kennedy, senior advisor in Chinese business and economics at the Center for Strategic and International Studies, told Business Insider that he expects US-China trade to speed up during the 90-day negotiation.

"US-China trade should bounce back," said Kennedy. "We may see a substantial jump in cargo for companies that are worried that we will be back at this intersection in a few months, and they need to take advantage of this respite to expand to accelerate trade."

Chinese exports to the US spiked 15.6% in December 2024 compared to the same month in 2023 as businesses frontloaded inventory in anticipation of tariffs once President Donald Trump was inaugurated.

"Our ocean freight bookings from China to US increased 35% in the first day since the trade deal," Flexport CEO Ryan Petersen posted on X on Monday. "A big backlog is looming, soon the ships will be sold out."

However, smaller businesses have previously told BI that they have cash flow constraints when ordering and storing a large volume of products. Increased demand for cargo shipping within a short time frame may also drive up shipping costs.

At the end of the 90 days, trade experts expect the outcome of negotiations to be broad and substantial, but believe there will be some thorny issues that can't be resolved quickly.

Kennedy of CSIS is expecting the US to focus on China's industrial policy, fentanyl, and intellectual property theft, while China would likely try to resolve US export controls, restrictions on investment, and the fees that are scheduled to be imposed on Chinese ships by October.

"With an extremely broad agenda, and the challenge will be narrowing that agenda toward something that looks like potential concessions by both sides," said Kennedy.

Collier told BI that leaders of both countries are under different kinds of pressures to seal the deal.

"How the US will then try to tackle the knotty issue of state subsidies and China's aggressive mercantilism will have to wait for another chapter," he said.

Cautious optimism

While the stock market reacted to the US-China tariff pause with optimism, Federal Reserve Board Governor Adriana Kugler said that overall tariffs at their new level are still higher than they have been in recent decades. She said in a speech on Monday that this could still lead to a negative supply shock and a squeeze on real income.

"And the uncertainty associated with these tariffs has already generated effects on the economy through front-loading, sentiment, and expectations," Kugler said.

Kugler expects economic growth to come short of last year's 2.5% expansion, even though recession forecasts are sliding in betting markets as US-China tension cools. Progress made in combatting inflation has also slowed, she said, and inflation is still above the 2% goal.

"Trade policies are evolving and are likely to continue shifting," she added. "Even as recently as this morning."

• Amazon renewed hit show "Beast Games," created by YouTuber MrBeast, for two more seasons.
• The first season of "Beast Games" drew 50 million viewers in 25 days, according to Amazon.
• The show broke 44 Guinness World Records and awarded a $10 million prize.

Amazon is doubling down on one of its biggest hits.

"Beast Games," the high-stakes reality competition created and hosted by YouTube star MrBeast, also known as Jimmy Donaldson, has been renewed for seasons two and three on Amazon Prime Video, the company announced Monday.

"Our goal was to deliver the biggest, boldest competition series ever created, and the response has exceeded every expectation," said Jeff Housenbold, CEO of MrBeast Industries.

"'Beast Games' resonated with fans around the world, and that's a testament to the creativity of Jimmy and the entire Beast team. We're grateful to Amazon for their continued partnership, and we're excited to raise the bar even higher in the next two seasons," Housenbold added.

"Beast Games," which premiered in December 2024, drew 50 million viewers in just 25 days, according to Amazon. The series pits 1,000 contestants against each other in a series of intense physical, mental, and social challenges, all for the chance to win a $10 million cash prize — the largest ever awarded on a competitive reality TV show.

The first season ended with Player 831, Jeffrey Randall Allen, taking home the grand prize after selecting the correct briefcase in a final game of chance. That last twist doubled the original $5 million prize.

In March, the show opened casting for season two. According to a casting call, the requirements to compete included an age limit of at least 18 and possession of a valid passport through January 2026. Applicants were also required to answer a list of questions in a one-minute horizontal video.

In December, Business Insider revealed the terms contestants agreed to for the preliminary round of "Beast Games." The documents included a release form and a contestant questionnaire form. Contestants also agreed to certain protocols, like giving up consent to the use of hidden cameras and recording devices.

In total, "Beast Games" broke 44 Guinness World Records during production, including most participants in a single reality show season, most people eliminated in one episode, and the most money ever won in a single episode of a competition show.

MrBeast, 27, is known for his massive giveaways and over-the-top stunts, which helped him amass over 332 million subscribers on his main YouTube channel — more than any individual creator in the world.

• Cardinal Robert Francis Prevost became Pope Leo XIV, the first American pope.
• Leo XIV's management style is one of caution, active listening, and leading by example.
• Leo XIV has been critical of JD Vance and President Trump's policies, especially on immigration.

American-born Cardinal Robert Francis Prevost was introduced to the world on Thursday from the balcony of St. Peter's Basilica as Pope Leo XIV, becoming the 267th leader of the Roman Catholic Church — and the first ever pope from America.

Before becoming pope, Prevost was chosen in 2023 by Pope Francis to be in charge of selecting bishops. In August 2024, he said during a talk at St. Jude Parish in Chicago that Francis chose him for "a different perspective."

With 133 voting cardinals, the 69-year-old polyglot and naturalized Peruvian citizen was elected by the Conclave to succeed Pope Francis, who died in April.

Two cardinals who spoke to the Washington Post noted that he was seen as a skilled manager.

From looking through past interviews, it's evident that Pope Leo XIV's management style could reshape the Catholic church — and provide us with tips on leadership.

'Listen to his neighbors'

Pope Leo XIV has placed emphasis on the idea of synodality promoted by Pope Francis — a concept that emphasizes the importance of everyone working together in communion to make decisions about the life and mission of the Church.

In an interview with Vatican Media in 2023, Leo XIV said that a bishop should possess the "ability to listen to his neighbor and seek advice," in addition to having a "much broader vision of the Church and reality and experience the universality of the Church."

"A fundamental element of the portrait of a bishop is being a pastor, capable of being close to the members of the community, starting with the priests for whom the bishop is father and brother," said Leo XIV. "To live this closeness to all, without excluding anyone."

Promoting inclusivity

Leo XIV praised Pope Francis' 2022 decision to name three women as full members of the dicastery — a department or office of the central administrative office of the Catholic Church, also known as official congregations — which gives them a voice on the selection of bishops.

In a March 2024 interview with Catholic News Service, Leo XIV said that the inclusion of women "contributes significantly to the process of discernment in looking for who we hope are the best candidates to serve the church in episcopal ministry."

Under Pope Francis, women of faith have joined priests as voting representatives for religious orders for the very first time, and when appointing 70 non-bishop members of the synod in 2023, Francis had also asked that half of them be women.

Leading by example

Leo XIV commended Pope Francis in a March 2024 interview with Catholic News Service for being "a pastor who preaches by gesture" in his "effective and important" pushback against attitudes of clericalism among bishops.

Clericalism is the belief that church leaders are morally better and more talented than regular people, and that their authority should be the main focus.

"It's important to find men who are truly interested in serving, in preaching the Gospel," said Leo XIV in the 2024 interview with Catholic News Service, "Not just with eloquent words, but rather with the example and witness they give."

"And we must not hide behind an idea of authority that no longer makes sense today. The authority we have is to serve, to accompany priests, to be pastors and teachers," Leo XIV added in a 2023 interview with Vatican News.

Non-partisanship

While Leo XIV has been critical of policies, he has cautioned against partisanship and anchors most of his criticism in Catholic social teaching — the church's guide on how to approach social, economic, and ecological issues.

In mid-April, the then-cardinal shared a post in what appears to be his X account criticizing Trump and El Salvador's president for mocking the deportation of Maryland resident Kilmar Abrego Garcia. The post linked to a Catholic Standard article in which Bishop Evelio Menjivar asked Catholics, "Is your conscience not disturbed? How can you stay quiet?"

In February, he also shared articles on X that are critical of Vice President JD Vance, a Catholic convert, including one from the National Catholic Reporter. He echoed the headline in his post: "JD Vance is wrong: Jesus doesn't ask us to rank our love for others."

The article challenged Vance's assertion in a Fox News interview that it is a "Christian concept" to prioritize loving those closest to them over people from other nations, in reference to the treatment of immigrants.

In 2017, the day after the Las Vegas music festival mass shooting on October 1, when Leo XIV was the Bishop of Chiclayo, Peru, the account also shared a post from a Democratic senator, criticizing Republicans for not speaking up about gun violence, and that their "cowardice to act cannot be whitewashed by thoughts and prayers."

Voting records show that he voted in three Republican primaries in the state of Illinois in Will County between 2012 and 2016. Illinois voters do not register by party, so voting in Republican primaries doesn't necessarily indicate a person's party affiliation.

Leo XIV has never endorsed a party or a candidate and urged unity over partisanship.

"We must be able to listen to one another," said Leo XIV in a 2023 interview with Vatican Media, "To recognize that it is not a question of discussing a political agenda or simply trying to promote the issues that interest me or others."

• Delta Air Lines and Korean Air have invested $550 million in Canada's WestJet for equity stakes.
• The investment comes at an uncertain time for Canada-US travel due to Trump's policies.
• Delta and WestJet previously explored a joint venture, but it fell through in 2020.

Delta Air Lines and Korean Air will pay a combined $550 million in exchange for stakes in Canada's WestJet, the three companies announced in a joint statement on Friday.

Delta, headquartered in Georgia, will invest $330 million to acquire a 15% stake in the Calgary-based carrier, while Korean Air will commit $220 million to acquire a 10% stake. The partnership will increase connectivity between each airline's existing international routes, which are focused primarily throughout North America, Europe, and Asia.

Walter Cho, Chairman and CEO of Korean Air and Hanjin Group, said in a press release that the partnership will "create long-term value for customers through greater choice and convenience."

Ed Bastian, Delta's CEO, added that the investment "ensures that we remain focused on providing a world-class global network and customer experience for travelers in the United States and Canada."

The venture, which reconceptualized prior partnership plans between WestJet and Delta that fell through in 2020, comes at an uncertain moment for travel between Canada and the US — and, for Americans, international travel in general.

Business Insider previously reported that many Canadians are opting not to travel to the US out of anger over Trump's tariffs on their country and his repeated suggestion to make the US's northern neighbor the 51st state.

Longwoods International, a market research consultancy, found in an April survery of 1,000 Canadian travelers that 36% of respondents said they'd planned to travel to the US in the next 12 months but decided to cancel their plans, while 60% they're less likely to visit the US in the next year due to political reasons.

In March, WestJet Airlines vice chairman Alex Cruz told CNBC that Canadian travelers were opting for Central America over the US, and that "there's clearly been a reaction" toward Trump's tariff policies.

American travelers visiting other countries like Canada have also previously told BI that they have encountered increased hostility, and that negative perceptions toward Trump's policies have carried over to Americans in general.

Delta and WestJet previously explored a joint venture aimed at better coordinating schedules for flight transits, but the initiative was shelved in 2020 after US regulators demanded that WestJet relinquish some takeoff and landing slots at New York's LaGuardia Airport as a condition for approval.

WestJet and Korean Air did not immediately respond to requests for comment. Delta Air Lines referred BI to the original press release announcing the investment.

• A business owner is labeling tariff costs as a separate line on the price tag of his electric bikes.
• Businesses, large and small, are hoping to retain consumer trust by showing how much tariffs increase prices.
• Business experts say consumer awareness of tariffs could spell trouble for Trump's polling rates.

When Jared Fisher found out his major supplier of electric bikes was raising its prices by 10%, he had a choice to make: eat the cost or pass it along to his customers.

"If you cut 10% into a bicycle margin, then you might as well get ready to have your exit strategy for your business because you're not going to be able to operate," Fisher, who owns several bike shops in Nevada and Utah, told Business Insider. "There's no way."

Instead, Fisher decided to be transparent with his customers about why prices were rising on some of his products. He added a new line item directly to the price tags on bikes hanging in his shops. On one bike he sells for $7,999, the price tag now shows an additional $300 "Government Tariff Charge."

"I have no problem labeling where this tax is coming from on my products," he said. "People need to know that so I have a fighting chance on my end."

On April 2, President Donald Trump imposed a 10% baseline tariff on all imports into the US, as well as additional tariffs on dozens of trading partners. Though some of the higher tariffs — with the exception of those on China and some on Mexico and Canada — are on pause, the sweeping 10% tariffs are still in place. And prices are starting to go up.

From brick-and-mortar retailers to online small businesses, many have told Business Insider that the tariffs are forcing them to pass the cost to consumers, and it's not because they want to.

To make matters worse for smaller operations, they do not have the same bargaining power with suppliers or cash flow as larger retailers like Walmart. Suppliers in some manufacturing hubs like China are also seeing ever-shrinking margins to help absorb the tariff shock.

"Small businesses are basically in danger of going out of business because of these high tariffs," Peter Cohan, associate professor of management at Babson College and a venture capitalist, told BI, "And they're trying to preserve the trust of their customers by being very transparent about why they're raising the prices."

"Maybe they're going to lose customers because of the higher rates, but at least being transparent will help reduce the damage," Cohan added.

Larger businesses may also have considered such transparency measures. After reports that Amazon is going to start displaying how much tariffs are contributing to the price of goods on its platform, White House press secretary Karoline Leavitt called the idea a "hostile and political act." The e-commerce giant denied that it planned to display the cost of tariffs, saying its low-price section, Haul, had considered it for some items but then jettisoned the idea.

Chinese fast-fashion giants Shein and Temu — most affected by the 145% tariffs on China and the canceled de minimus exemptions — posted identical customer notices on their websites, saying that that there will be "price adjustments" because their "operating expenses have gone up" under "recent changes in global trade rules and tariffs."

At the end of April, Temu started adding "import charges" at checkout, which can double the price of the item. By May, Temu's main website appeared to have blocked US customers from seeing products shipped from China, and the site is filled with products marked "local" to signify they are at a warehouse in the US.

"Displaying tariff costs directly on product pages can offer strategic advantages for platforms like Temu and Shein," Nasim Mousavi, assistant professor at Georgia State University Robinson College of Business, told BI. "By itemizing tariffs, these platforms frame price increases as the result of external policy rather than their own pricing decisions."

"This transparency can enhance customer trust, reinforce a value-oriented brand image, and foster the perception that the platform is advocating on behalf of the consumer," Mousavi added.

According to a survey of 1,850 US adult citizens conducted between May 2 and 5 by the Economist and YouGov, 75% of those surveyed think that Trump's tariffs will increase their prices, and 61% would like businesses to display how much of a purchase price goes toward paying tariffs.

"The obvious reason why the White House wouldn't want businesses to show tariff costs is because it makes it obvious how much their policy is costing consumers," said Cohan. "It's going to drive down the poll ratings because consumers will be extremely aware of how much more they're paying and who's causing them to pay it."

• Global leaders have reacted to Trump's tariffs with a mix of criticism, concern, and calls for calm.
• Some countries, like China, have chosen to retaliate, which could complicate upcoming talks.
• Negotiations and talks thus far have not yielded concrete trade deals.

Global leaders have reacted to US President Donald Trump's sweeping tariffs with a mix of criticism, concern, and calls for calm.

As of May 7, there is a 10% blanket tariff on all goods imported into the United States, with limited exemptions for the auto industry and some electronics; additional tariffs on 75 countries were paused on April 9.

The US now has up to 245% in tariffs on imports from China, the manufacturing hub, while China has retaliated with a 125% tariff on US goods.

The Trump administration has repeatedly indicated that it is negotiating with various trading partners, including Canada, Mexico, and Japan, but none of those talks have yielded a trade deal thus far.

Trade and international relations experts have previously told Business Insider that the pressure is now on Trump to deliver trade deals before the tariff pause ends 90 days from April 9.

However, on May 6, Trump said he doesn't need to make deals in response to being asked when deals would be made.

"We don't have to sign deals, they have to sign deals with us. They want a piece of our market. We don't want a piece of their market," Trump said during the White House meeting with Canadian Prime Minister Mark Carney.

On the night of May 7, Trump teased a trade deal framework announcement for Thursday morning.

Here is what world leaders have said about Trump's tariffs and potential negotiations so far.

Canada

Prime Minister Mark Carney called Trump's April 2 tariffs "unjustified," and vowed to defend jobs in Canada "by protecting supply management, doubling revenue protections, and expanding processing capacity."

During a May 6 meeting with Trump at the White House, both leaders signaled that the USMCA — a trade agreement between the US, Canada, and Mexico — could face an overhaul.

"It is a basis for a broader negotiation," said Carney of USMCA while fielding reporter questions with Trump. "Some things about it are going to have to change, and part of the way you've conducted these tariffs has taken advantage of existing aspects of USMCA — so it's going to have to change."

Carney is considered by many as a relative newcomer in politics, but he has decades of experience in finance.

China

Trump and China have thus far disagreed on everything from whether tariffs are justified to who initiated their upcoming trade talks in Switzerland.

"The meeting between Chinese and US senior officials on economic matters was requested by the US side," China's spokesperson for the Ministry of Foreign Affairs, Lin Jian, wrote on X on Wednesday. "Recently, the US has said repeatedly it wants to negotiate with China."

Trump denied that the US had reached out first, and said, "No," on May 7 when asked if he would consider lowering his tariffs on China to help smooth upcoming talks.

China has previously suggested that the US must lower the imposed tariffs first to gain trust.

"China wants to stress: in any potential talks and discussions, if the US doesn't correct its false unilateral tariffs, it means there is a lack of genuine intent, and that will further erode mutual trust," said the spokesperson of China's Ministry of Commerce in a press conference on May 2.

"Talking one way and acting another, or using talks as a cover for coercion and pressure, simply won't work with China," the spokesperson added.

Mexico

Despite facing 25% in tariffs, Mexican President Claudia Sheinbaum has taken a less critical stance than most world leaders.

"There are no additional tariffs on Mexico, and that is good for the country," Sheinbaum said during a press conference on April 3 after Trump announced broad tariffs the day before.

Sheinbaum said Mexico was spared from more tariffs due to "the good relationship we have constructed with the US government, based on collaboration but with respect."

In a subsequent daily briefing on April 7, 2025, Sheinbaum confirmed that Mexico will not impose retaliatory tariffs on the US.

Sheinbaum had also previously successfully negotiated pauses on tariffs imposed on Mexico in February by highlighting her efforts in curbing fentanyl trafficking and deploying 10,000 National Guard troops to the border, issues that were listed by Trump as reasons to place duties on Mexico.

Spain

Spanish Prime Minister Pedro Sánchez called Trump's April 2 tariffs on EU imports a "unilateral attack" and "19th-century protectionism."

Sanchez also promptly announced a €14.1 billion ($15B) aid package for affected industries like aluminum, olive oil, and wine.

"We will overcome this unfair crisis without renouncing our values," Sánchez said. "Europe's hand is outstretched, and it always will be because the American people, beyond their governments, are a friendly people, but that does not mean that we are going to stand by and do nothing."

After Trump paused additional tariffs on 75 trading partners on April 9, Sánchez said the decision could open "a door to negotiation."

Germany

The outgoing chancellor of Germany, Olaf Scholz, said Trump's decisions on tariffs are "fundamentally wrong" and supported Ursula Gertrud von der Leyen, president of the EU Commission, when she called for Europe to react "united, strong, and appropriate."

"This is an attack on a trade order that has created prosperity around the globe," Scholz said at a news conference in Berlin on April 7.

"The entire global economy will suffer from these ill-conceived decisions. Businesses and consumers everywhere in the world, including in the US, will be affected," Scholz added. "The US administration is embarking on a path that can only result in losses for everyone."

German economy minister Robert Habeck said in February that Trump will "buckle under pressure" if Europe bands together.

Conservative leader Friedrich Merz became Germany's new chancellor as of May 7 and has yet to address tariffs.

Australia

Anthony Albanese, the prime minister of Australia and leader of the Labour Party, made it clear that there will be no retaliatory measures against the US.

"It is the American people who will pay the biggest price for these unjustified tariffs," said Albanese in a statement on April 3. "This is why our government will not be seeking to impose reciprocal tariffs. We will not join a race to the bottom that leads to higher prices and slower growth."

Despite being critical of Trump's tariffs, Albanese said there will be "continued constructive engagement" with the US, because the history between the two countries is "bigger than a poor decision."

Japan

Japanese Prime Minister Shigeru Ishiba urged Trump to lower tariffs against Japan in a phone call with Trump on April 7, but said a deal "won't come overnight."

"I've told the president that Japan has been the biggest investor in the United States for five straight years and the tariff policies could hurt Japanese companies' investment capabilities," said Ishiba during a news conference after the call.

During Trump's first term as president, the US and Japan signed a bilateral trade deal in 2019 that cut tariffs on US farm goods, Japanese machine tools, and other products while staving off higher duties on Japan's auto exports.

Japanese Prime Minister Shigeru Ishiba said on April 21 that Tokyo has no plan to terminate the trade deal struck in 2019, but will keep voicing "grave concern" over inconsistency between the deal and Trump's latest automobile tariffs.

Ryosei Akazawa, Japan's chief tariff negotiator, has been visiting Washington, DC, in recent weeks.

• The Walt Disney Company hosted its second-quarter earnings call on Wednesday.
• Analysts say a slowdown in travel may drag down Disney stocks.
• The company said it is building a new theme park resort in Abu Dhabi.

The Walt Disney Company says it will open a seventh theme park resort in Abu Dhabi.

Disney, which won't own the park but is licensing the operation to Miral, an immersive experiences company, announced the new destination on Wednesday.

"As our seventh theme park destination, it will rise from this land in spectacular fashion, blending contemporary architecture with cutting-edge technology to offer guests deeply immersive entertainment experiences in unique and modern ways," Disney CEO Bob Iger said in a statement online.

"Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati — an oasis of extraordinary Disney entertainment at this crossroads of the world that will bring to life our timeless characters and stories in many new ways and will become a source of joy and inspiration for the people of this vast region to enjoy for generations to come."

A blog published on Disney's website said the destination would be located on Yas Island.

Disney also reported its second-quarter finances on Wednesday.

Ahead of the earnings call, analysts at Raymond James said that while Disney's travel and leisure experiences helped diversify the company "away from the tumultuous Media space into a secularly growing business," it also made Disney "more cyclical and macro sensitive."

"As such, both the fears around tariffs and a possible recession, along with a slowdown in travel that has already begun, have dragged DIS stock down ~27% in ~6 weeks," wrote Raymond James analysts Ric Prentiss and Brent Penter.

Here are the key numbers for the second quarter compared to analysts' estimates compiled by Bloomberg:

• Earnings per share: $1.45 adjusted vs. $1.20 expected
• Revenue: $23.6 billion vs. $23.05 billion expected
• Entertainment: $10.68 billion vs. $10.48 billion expected
• Sports: $4.5 billion vs. $4.32 billion expected
• Experiences: $8.8 billion vs. $8.76 billion expected

The earnings report came after President Donald Trump on Sunday called for a 100% tariff on foreign-made films.

The announcement confused Hollywood. Industry insiders were concerned the tariffs could hurt the entertainment business, which is still recovering from labor strikes and spending cuts. In a Monday statement, the White House said the Trump administration is "exploring all options."

"Although no final decisions on foreign film tariffs have been made, the Administration is exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again," the statement said.

Analysts from Raymond James also said that "Disney's streaming networks are relatively less exposed to international content," and that the company's "emphasis on animation (largely done domestically) further insulates Disney from potential film tariffs."

However, the analysts also wrote that the idea of a film tariff poses "more questions than answers," including whether films partially shot or produced domestically would also face tariffs, and if it could be applied to libraries and movies already produced.

During its first-quarter earnings call in February, Disney reported strong earnings, surpassing Wall Street expectations with adjusted earnings of $1.76 per share and $24.69 billion in revenue.

Despite a slight dip in Disney+ subscribers in the first quarter, the entertainment division received a boost from box office hits like "Moana 2" and "Inside Out 2." In the experiences segment, Disney also saw revenue growth last quarter and has a $60 billion investment plan underway for its parks and experiences over the next 10 years.

• Lehigh County's pension board voted to halt new Tesla stock purchases over Elon Musk.
• Tesla's revenue and shares have significantly declined, drawing widespread shareholder concerns.
• Global pension funds, including some in the Netherlands and Denmark, are divesting from Tesla.

A swing county in Pennsylvania has decided that it will no longer purchase new Tesla stock, citing CEO Elon Musk's political activities and the company's declining shares.

Lehigh County, located toward the east of Pennsylvania with a relatively affluent population that is often a swing county, has a county pension board that oversees $500 million in assets. It is the first known US pension fund to stop purchasing new Tesla stock.

"Elon Musk's choice to become a political figure rather than a customer-focused leader has compromised the Tesla brand," Mark Pinsley, the Lehigh County controller who first introduced a motion to cease Tesla investments, said in a joint statement with organizers of Tesla Takedown.

"Tesla's earnings are down 71% from a year ago, their auto revenues have dropped 20%, and profitability has taken a sharp dive," Pinsley added. "We owe it to our retirees and taxpayers to take a hard look at whether these are wise investments at this time."

On Tuesday, the board not only voted to hit the brakes on new Tesla investments in a 4-2 decision, it has also and directed the county's investment manager to draft a report outlining options to divest its passively managed funds from Tesla.

The Lehigh County Controller's Office and Tesla did not immediately respond to requests for comments.

Pinsley and the retirement board of Lehigh County aren't the only ones concerned about pensions invested in Tesla.

In March, a group of 51 New York State legislators called on the state to divest its $1 billion in Tesla holdings. A top contender in the New York City Comptroller race has pledged to pull the city's $300 billion pension portfolio out of Tesla if elected.

Brad Lander, the current New York City Comptroller, has also been vocal about his dissatisfaction with Musk's leadership, but stopped short of calling for a divestment in his office's latest response to BI in April. The city's five public pension systems held more than 3 million Tesla shares worth about $1.26 billion on December 31, 2024, yet this figure has shrunk to $831 million by March 28, according to the comptroller's office.

In April, eight state treasurers penned a joint letter to Tesla's board to express concern over Musk's lack of focus on Tesla, and the American Federation of Teachers is pressing major asset managers — including BlackRock and Vanguard — to consider divestment.

Beyond the US border, the Netherlands' largest pension fund offloaded its $600 million stake in Tesla in January. Denmark's $20 billion pension fund, AkademikerPension, followed suit in March. Recently, Canada's largest public-sector union also urged national pension funds to cut ties with Tesla, though divestments have yet to happen.

Tesla has been facing growing pressure over Musk's governance of the company and his political activity.

The Tesla Takedown movement that emerged in protest of Musk's involvement in the White House DOGE office is aiming to evolve beyond demonstrations. The movement's next goal is to helping cities and states develop resolutions to divest in "all things Musk," according to a statement on April 22 after Tesla reported earnings.

As of May 6, Tesla stock has declined more than 27% since the beginning of 2025, and its Q1 revenue missed expectations. Musk has announced during the latest earnings call that he will be stepping back from his political activities at the White House.

Marketing experts have previously told BI that Tesla has alienated its core customer base, and that rebranding efforts may require significant concessions from Musk.

"To some degree Musk can say, 'I don't care because I'm so rich and I've got so many other entities that I could afford to lose a lot of money.'" David J. Reibstein, professor of marketing at the Wharton School, previously told BI. "But for the other shareholders who are bailing on the company, that's problematic."

• Palantir Technologies executives praised DOGE during their earnings call after strong results.
• The company beat earnings expectations and raised its full-year revenue outlook.
• Palantir emphasized meritocracy, launching a fellowship for non-college enrollees.

Executives at Palantir Technologies praised DOGE in their latest earnings call on Monday as the company reported its first-quarter earnings.

"This is the right thing for the country — like, we have way too much spend on things that do not work," said Shyam Sankar, CTO and executive vice president of Palantir, when asked if DOGE cuts will impact contracts.

"The government has started to resemble a fine-marbled wagyu — the fake projects that do not deliver and will never deliver crowd out and suffocate the things that could actually be excellent, so we welcome DOGE," Sankar added.

Sanker's sentiments were echoed by Alex Karp, CEO of Palantir, who later said on the earnings call that there needs to be "pressure on the system" to "root out fraud, waste, and abuse and to pen test systems to see if they create more value."

Their comments came after the AI software and defense technologies company delivered earnings that beat expectations on Monday and hiked its full-year revenue outlook to between $3.89 billion and $3.90 billion. Palantir is up 64% this year, mostly benefiting from its key defense contracts.

A government record recently viewed by Business Insider's Rosemarie Ho shows that Immigration and Customs Enforcement signed a $30 million contract with Palantir for software enhancements to its Immigration Lifecycle Operating System, or ImmigrationOS. ICE told BI at the time that it was a modification of an existing contract.

This also isn't the first time Karp has praised DOGE. In an earnings call in February, Karp said that DOGE is a "revolution" and "some people are going to get their heads cut off."

"We love disruption, and whatever is good for America will be good for Americans and very good for Palantir," said Karp.

Palantir was cofounded by its current chairman, Peter Thiel, who, alongside Elon Musk, is known as part of the "PayPal Mafia."

In a Monday letter to shareholders that quotes from St. Augustine, President Richard Nixon, and the New Testament, Karp also wrote that the company's results are "indicative of a revolution" and that it could not have been achieved if the company had "submitted to the conventional managerial model in American corporate life."

"There is no question that both cultures and companies," wrote Karp, "including the one we have built, must over a long period of time be judged 'by their fruits.' Matt. 7:16."

• Trump said kids could have fewer dolls under tariffs, but consumers buy more than toys from China.
• The US heavily relies on China for electronics, medical supplies, baby products, and apparel.
• The 145% tariff on China would drive up the costs of daily necessities for consumers.

President Donald Trump suggested kids could do with fewer toys, and there are likely plenty of Americans who agree with him.

But toys are far from the only thing the US buys from China.

From electronics that keep your household running to medical equipment used in life-saving situations, those goods likely came from China.

Trump has imposed a broad 145% tariff on China, while some Chinese goods have been hit with even higher tariff rates. In a cabinet meeting at the White House on Wednesday, when asked about trade relations with China, Trump waved off concerns that some shelves would be empty as a result of the tariffs.

"Maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls would cost a couple of bucks more than they would normally," Trump said.

The US imports about 80% of all its toys from China, according to data from the Toy Association. However, most Chinese goods would likely fall under the category of necessities, while others are an integral part of American life that cannot easily be replaced with American-made alternatives.

"A lot of products that are subjected to tariffs were never made in the US, so we don't know how to make them," Willy C. Shih, a professor of management practice in business administration at Harvard Business School, told BI.

For example, he said, "Liquid crystal flat panel displays are made in Asia, mostly in China. We don't make them in the US and we never have made them here, so it's not even a question of bringing those manufacturing back."

Shih said that moving supply chains and establishing new factories take large investments in equipment and training, which usually pay off within years if the operation is moving to a lower-cost country. The US, he says, is not a lower-cost country.

Here's a breakdown of some of the most essential goods the US sources from China.

Your home life would not look the same without China

From the first thing you touch in the morning to the last thing you see before you call it a night, your daily routine would not look the same without the presence of Chinese goods.

If you like smoothies in the morning, have a personal care routine, or plan to play Super Mario Bros. with your best buddies next Friday night, chances are you have household electronics made in China.

Trade statistics from the US Department of Commerce show that more than 97% of alarm clocks and wall clocks imported to the US came from China in 2024, along with 77% of video game consoles, 84% of household food blenders, and 93% of electric toothbrushes.

Additionally, 76% of US smartphone imports, 78% of US portable computer imports, and 70% of rechargeable lithium-ion batteries used in electronics and electric vehicles also came from China, according to United Nations Comtrade data compiled by the Atlantic Council.

Though the Trump administration in mid-April announced that some electronics, including smartphones and computers, would be exempt from the tariffs, not all are, and these exemptions could be removed at any time.

Hospitals count on medical equipment from China

According to data from the US Department of Commerce, 94% of first-aid kits and boxes imported to the US came from China, as well as 40% of rubber medical gloves and 54% of all medical adhesive dressings.

When the Biden administration announced a plan to raise tariffs on many China-made items in May 2024, the American Hospital Association published a fact sheet showing that any broad tariffs on China would impact the prices of basic medical equipment like syringes, medical masks, respirators, and gloves.

While medical supply expenses account for only around 10.5% of an average hospital's budget, they collectively accounted for $146.9 billion in 2023, an increase of $6.6 billion over 2022.

The Biden administration ended up extending exemptions to a wide range of healthcare products through May 31, 2025, including single-use sterile drapes, laparotomy sponges, and anesthesia instruments.

When asked whether these exemptions still hold under Trump's executive orders that did not specify exemptions, US Customs and Border Protection told BI in a March statement that they are "committed to supporting the Trump administration's Executive Orders related to tariffs while upholding US trade laws" and that the "dynamic nature" of their mission "requires CBP to remain flexible and adapt quickly."

The White House did not respond to a request for comment.

"Higher prices for high-volume medical supplies, such as personal protective equipment and syringes, are likely to exacerbate and prolong the financial headwinds that hospitals already face today," said the AHA in a statement in 2024.

Children get much more than just toys from China

While children need dolls, their care requires more than just entertainment.

Michael Wieder, cofounder of baby product brand Lalo, which sells everything from child-safe utensils to baby chairs, previously told Business Insider that the brand's primary supply chain is in China, and he would have very little ability to move it elsewhere because products for children are heavily regulated for safety.

"We work with factories that have been in the business for decades, making children's products and ensuring that they're safe," said Wieder. "All the factories we work with have all of the safety equipment, all the testing, all the engineering talent to ensure that we're making the highest quality, safest products — we can't replace that easily."

Nearly 98% of all imported baby carriages and strollers came from China in 2024, according to trade data from the US Department of Commerce.

China produces more than just fast fashion

While cheap clothes and fashion accessories from Shein and Temu have been widely criticized for their poor quality, how fast they end up in landfills, and questionable labor practices, American apparel brands, both large and small, have told BI that they are suffering the impacts of tariffs on China.

Up to 90% of US bridal gowns are made in China, according to the National Bridal Retailers Association.

Featuring intricate details like lace, boning, and thousands of hand-sewn beads, the average wedding dress already costs $2,000 according to wedding planning platform The Knot, and could more than double under tariffs.

"The overriding feeling is despair," Angie Oven, a bridal shop owner and president of the NBRA, told BI after a meeting she held with 75 of the group's members.

Haley Pavone, founder and CEO of Passion Footwear, which produces shoes with fully convertible high heels, told BI that it would be impossible for her to move her supply chain out of China due to her brand's specialized manufacturing needs and limited resources as a small business.

"Our options are to just keep paying this tariff, which isn't reasonable," said Pavone, "And so there's no way to not pass that price onto the consumer, and then we just have to hope they're willing to pay it."

• The number of Subway's US locations fell below 20,000. The chain closed 631 stores in 2024 alone.
• Subway's decline follows years of overexpansion and legal issues affecting its brand.
• Despite US closures, Subway's international locations have grown for two consecutive years.

For the first time in 20 years, the number of Subway's domestic locations dipped below 20,000, according to newly released franchise disclosure documents. In 2024 alone, the company shuttered 631 restaurants across the US, leaving it with 19,502 stores nationwide.

Subway still holds the title of the largest restaurant chain in the country by unit count.

Subway did not respond to a request for comment from Business Insider, but in a statement to CNN, Subway said it is evaluating its US footprint "using a strategic, data-driven approach to ensure restaurants are in the right location, image and format and operated by the right franchisees."

The company told CNN that it is both opening new restaurants and "relocating or closing locations as needed" to maintain a consistent guest experience.

The newest wave of Subway closures follows a decline from its peak at 27,000 locations in 2015 and a series of legal troubles.

Subway's image took a major blow in 2015 when Jared Fogle, the brand's longtime spokesperson, pleaded guilty to sex crimes involving minors and was sentenced to nearly 16 years in prison.

Subway's rapid expansion also started to backfire in 2016 when the company prioritized quantity, flooding markets with stores and often placing franchises within blocks of each other, which led to internal competition, according to franchisees who previously spoke to BI.

In 2021, a class-action lawsuit alleged that Subway's tuna was not made of actual tuna. In 2023, the case was dismissed.

Despite its decline in the US, Subway's number of international locations has now seen net growth for the second consecutive year.

• Apple released its Q2 earnings report on Thursday, beating revenue and earnings-per-share estimates.
• The earnings call touched on tariffs, consumer behavior, and legal challenges facing the company.
• Here are the six biggest takeaways from the tech giant's Q2 earnings report and subsequent call.

Apple released its Q2 earnings on Thursday, reporting mixed results that sent stocks sliding more than 3% in after-hours trading. In its call with analysts and investors, the tech giant touched on topics including tariffs, consumer behavior, and legal challenges facing the company.

Here are six takeaways from the earnings call.

1. $900 million possible tariff hit

Apple discussed the potential impact that looming tariffs imposed by President Donald Trump's administration will have on its business, projecting that the levies will add $900 million in costs in the June quarter.

"This estimate should not be used to make projections for future quarters, as there are certain unique factors that benefit the June quarter," CEO Tim Cook said during the call. "For our part, we will manage the company the way we always have: with thoughtful and deliberate decisions, with a focus on investing for the long term and with dedication to innovation and the possibilities it creates."

While Cook was somewhat vague about the estimate, Business Insider's Peter Kafka wrote that Cook seemed to suggest that the $900 million number will hold if the current tariffs remain in place, if electronics-related tariffs remain paused or if they restart, and if Apple can ship most of the products it plans to sell in the US from countries outside China.

Cook said that for the June quarter, "most of our tariff exposure relates to the February IEEPA-related tariff at the rate of 20%, which applies to imports to the US for products that have China as their country of origin."

Cook didn't answer whether Apple is considering eating those costs or passing them along to consumers.

2. Buyers didn't rush to get iPhones amid tariff talk

In response to a question from a Morgan Stanley analyst, Cook said the company didn't see any "obvious evidence" that customers were spooked enough by the talk of tariffs to go out and splurge on a new iPhone just yet — or any Apple product, for that matter.

"If you look at our channel inventory, from the beginning of the quarter to the end of the quarter, the unit channel inventory was similar, not only for iPhone, but for the balance of our products," Cook said.

Cook added that Apple did try to frontload some of its purchasing to circumvent the worst effects of the tariffs, but demand remained relatively flat.

3. Siri's newest features are delayed — again

Apple once again pushed back the launch of more personalized Siri features, like increased on-screen awareness and better contextual memory of your prior communications with friends and family, which were previously announced as part of Apple Intelligence.

These features, originally expected to launch with iOS 18, were delayed once already in March and do not have a new launch date.

"With regard to the more personal Siri features we announced, we need more time to complete our work on these features so they meet our high quality bar," Cook said. "We are making progress, and we look forward to getting these features into customers' hands."

4. Apple is still fighting its Epic Games battle

In a Wednesday filing released just ahead of Apple's Q2 earnings, District Judge Yvonne Gonzalez Rogers lambasted the company and its executives for their behavior during the Epic Games antitrust case, writing that they violated a 2021 injunction.

"The case yesterday, we strongly disagree with," Cook said during the Thursday call. "We've complied with the court's order, and we're going to appeal."

Rogers, in her order, wrote that an executive "outright lied" to the court while under oath about when Apple decided to impose a 27% commission fee on transactions facilitated through its App Store.

The court referred the matter to the United States Attorney for the Northern District of California "to investigate whether criminal contempt proceedings are appropriate."

Cook added that the company is monitoring the situation closely but didn't have anything additional to add, except that "there's risk associated" with the court's referral for further investigation and "the outcome is unclear."

5. Apple's plans to manufacture in the US

Cook opened the earnings call by spotlighting its plans to boost manufacturing in the US, reminding investors of a recently announced $500 billion domestic investment over the next four years.

"We're going to be expanding our teams and our facilities in several states, including Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington," Cook said. "And we're going to be opening a new factory for advanced server manufacturing in Texas."

Tariffs for electronics like smartphones, computers, and chips were paused on April 11, but market analysts have told BI that there is still a risk that those surcharges could return at any time. The majority of Apple's products are still produced in China.

6. Apple is shifting manufacturing to India

Despite commitment to invest in US manufacturing, Cook says he expects that the "majority" of iPhones sold in the US during the June quarter "will have India as their country of origin."

Meanwhile, Cook said that nearly all of the company's other products entering the US will come from Vietnam. However, he added that China would remain the primary manufacturing hub for Apple products sold to the rest of the world.

Analysts have cautioned that manufacturing in India would cost Apple 5% to 8% more than it does in China, which would potentially squeeze margins and add logistical hurdles.

India and Vietnam each faced 26% and 46% in additional tariffs, respectively, prior to Trump's 90-day pause on April 9. These tariffs could come back if no deal is made by the time the pause ends.