U.S. and China announce a deal to cut tariffs 🚀

In partnership with

Big News 📣

U.S. and China Slash Tariffs in 90-Day Truce

In a significant de-escalation of trade tensions, the U.S. and China have agreed to reduce tariffs for a 90-day period. The U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce duties on U.S. goods from 125% to 10%.

U.S. Treasury Secretary Scott Bessent emphasized the mutual desire for balanced trade and ruled out decoupling. Both sides highlighted the cooperative tone of the talks, which also addressed issues like fentanyl precursor flows from China.

• Positive signs ✅ : This agreement, reached after negotiations in Geneva, has sparked optimism in financial markets, with global stocks rising and gold prices falling

• Welcome move 👏🏻: Trade talks between the U.S. and China drew praise from WTO chief Dr. Ngozi Okonjo-Iweala, who called the outcome a “significant step forward.” She warned that a split global economy could shrink real GDP by nearly 7%.

Trump to Sign Executive Order to Reduce Prescription Drug and Pharmaceutical Prices

In a sweeping move to reduce prescription drug costs, President Donald Trump announced Sunday that he will sign an executive order pegging U.S. drug prices to those paid by other wealthy nations, potentially cutting prices by 30% to 80%. The plan would apply initially to drugs covered under Medicare, significantly expanding current federal pricing controls.

The U.S. currently pays the highest prices in the world for many branded medicines, often nearly triple the cost in Europe or Japan. Trump’s order, expected Monday, would force prices down by benchmarking them to the lowest rates paid abroad. “I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World,” he said on Truth Social.

• Pharma Drama 💊: After the announcement, shares of U.S. drugmakers AbbVie, Amgen, Pfizer, Eli Lilly, and Merck fell 2.1% to 3.6% in premarket trading.

Learn AI in 5 minutes a day

This is the easiest way for a busy person wanting to learn AI in as little time as possible:

1. Sign up for The Rundown AI newsletter

2. They send you 5-minute email updates on the latest AI news and how to use it

3. You learn how to become 2x more productive by leveraging AI

Sign up to start learning.

TLDR 🗓️

IAG Orders 53 Jets, Backs Long-Haul Demand

British Airways' parent company, IAG, has ordered 53 wide-body aircraft—32 Boeing 787-10s and 21 Airbus A330-900neos—signaling confidence in long-haul travel despite global economic uncertainty.

The order, announced days after a new US-UK trade deal, was reportedly unrelated to the agreement, though IAG welcomed any tariff relief on aerospace components. The planes will replace 35 older aircraft and expand the group’s transatlantic fleet. Despite concerns over Trump’s tariffs and U.S. border policies, IAG reported strong demand, particularly in premium cabins, and a Q1 operating profit of €198 million.

USPS Reports $3.3 Billion Loss in Q2

The U.S. Postal Service reported a net loss of $3.3 billion for the second quarter of fiscal year 2025, up from $1.5 billion a year earlier. The loss was driven by $1.2 billion in non-cash workers’ compensation adjustments, rising retirement costs, and inflation-related expenses.

Controllable loss, excluding these uncontrollable items, stood at $848 million. Total revenue held steady at $19.7 billion, with slight gains in First-Class Mail and package revenue despite declining volumes. USPS also reported cost savings of $116 million in transportation and a 10 million-hour reduction in labor. Executives stressed continued reliance on their 10-year reform plan to achieve long-term financial stability.

Skechers to Go Private in $9.4B Buyout Amid Tariff Pressure

Footwear brand Skechers will be taken private by investment firm 3G Capital in a $9.42 billion deal, marking the largest buyout in sneaker industry history. The offer of $63 per share represents a 28% premium over last week’s close.

The deal comes as Skechers faces mounting pressure from President Trump’s tariff on Chinese imports, which are critical to the brand’s U.S. supply chain. Analysts say the volatile macro climate likely accelerated the move. Founder and CEO Robert Greenberg, 85, will remain in charge post-acquisition. The deal is expected to close by Q3 2025, backed by debt financing from JPMorgan.

Key Takeaways from Shopify’s Q1 2025 Results

✅ Shopify’s total revenue rose 26.8% year-over-year to $2.36 billion, beating analyst estimates by 1.3%.

✅ Non-GAAP earnings per share came in at $0.25, missing expectations by 3.85%

✅ Gross Merchandise Volume reached $74.75 billion, reflecting a 22.8% increase from last year, with B2B GMV surging 109%.

✅Shop App native GMV jumped 94% year-over-year and 84% quarter-over-quarter, highlighting strong adoption.

✅ Adjusted operating income grew 63.7% year-over-year to $329 million.

✅ Operating expenses increased by 10.9%, but declined as a percentage of total revenue.

✅Merchant Solutions revenue rose 29% from a year ago and now accounts for nearly 74% of total revenue.

✅ Monthly Recurring Revenue increased by 20.5% year-over-year to $182 million, with Plus accounts holding steady at 34%.

Amazon Launches ‘Haul’ in the UK to Counter Temu’s Rise

Amazon has rolled out its budget-friendly shopping experience, Amazon Haul, in the United Kingdom just six months after its U.S. debut. Currently in beta, the platform offers ultra-low-priced items—most under £10, some as low as £1—across categories like fashion, home, and lifestyle.

Seen as a direct response to rising competition from Temu and Shein, Haul provides a separate in-app experience with its own search and checkout. Amazon emphasizes that all products meet regulatory safety standards. With free shipping on orders over £15 and delivery within two weeks, Haul targets price-sensitive shoppers amid inflation and tariff-driven uncertainty. A wider European expansion is expected soon.

Nvidia to Downgrade H20 Chip for China to Bypass Export Curbs

Nvidia will release a downgraded version of its H20 AI chip for the Chinese market in July, according to a Reuters report. The move comes after U.S. officials blocked the original chip, requiring an export license under tightened tech restrictions.

The modified H20 will feature significantly reduced memory and performance thresholds to comply with U.S. export rules. China accounted for 13% of Nvidia’s revenue last fiscal year, with major tech firms like Tencent and ByteDance placing substantial orders. CEO Jensen Huang visited Beijing recently, reaffirming the country’s strategic importance despite escalating regulatory hurdles.

DoorDash to Acquire Deliveroo for $3.9B in Global Expansion Push

DoorDash is acquiring British food delivery firm Deliveroo in a $3.9 billion deal, marking a major move to expand its global footprint. The all-cash offer values Deliveroo at 180 pence per share—a 44% premium over its April 4 close.

Once a high-profile UK tech listing, Deliveroo struggled after its 2021 IPO and has since faced legal, competitive, and post-pandemic headwinds. The acquisition, following DoorDash’s purchase of Finland’s Wolt in 2022, will give the combined company a presence in over 40 countries. CEO Tony Xu said the merger will help more local businesses thrive through tech and scale.

Costco April Sales Up 7%, but Growth Slows Slightly

Costco reported a 7% year-over-year increase in April net sales to $21.18 billion, despite one fewer shopping day due to the Easter shift. Same-store sales rose 4.4%, with adjusted U.S. comps up 7.1% after removing fuel and currency impacts.

E-commerce sales jumped 12.6%. While growth remains steady, it has moderated from March’s 8.6% pace.

Costco’s membership-based model continues to be a key strength, with high renewal rates, efficient supply chains, and bulk buying helping it maintain low prices and customer loyalty. Analysts remain optimistic about its pricing power, though attention is shifting to how upcoming tariffs could influence margins and supply chain costs in the months ahead.

Toyota Hit Hard by Trump’s Auto Tariffs

Toyota expects a $1.2 billion profit drop in just two months due to new 25% U.S. tariffs on imported cars and parts. Even though over half its U.S. sales come from local factories, the company still imports around 1.2 million vehicles yearly.

Japanese officials estimate that Toyota is losing $1 million every hour. The company has kept U.S. prices steady and hasn’t cut production, hoping trade talks between the U.S. and Japan will lead to a deal. But its U.S. factories are already running at full capacity, leaving little room to shift production. Toyota’s full-year profit forecast is now far below Wall Street’s expectations.

Tidbits 🍿

• Trump’s “Liberation Day” tariffs are facing a legal challenge in a quiet Manhattan trade court. What’s usually a home for fish oil disputes could now decide the fate of his global tariff spree

• Amazon shoppers are making their preferences clear, with a sharp rise in searches for U.S.-made goods. Phrases like “made in USA products only” have surged 220% year-over-year, while “made in America products only” is up 130%, and “American flag made in America” has jumped 250%, according to new data from SmartScout

• Temu is urging its Chinese merchants to shift focus to the Middle East and Latin America amid rising U.S. tariffs and the loss of the de minimis exemption

• Google has agreed to pay $1.4 billion to Texas to settle allegations over violations of the state's data privacy laws

This newsletter was curated by Shyam Gowtham

Thank you for reading. We’ll see you at the next edition!