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President Trump has announced a 25% tax on goods imported from Japan and South Korea, citing ongoing trade imbalances with these key U.S. allies. The tariffs are set to take effect on August 1st. In letters posted on Truth Social, he warned both nations against counter measures and emphasized the importance of maintaining fair trade relations, adding: “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge." This move marks a significant escalation in U.S. trade policy, potentially impacting various sectors reliant on imports from these countries.

 

Bloomberg

Los Angeles Times

President Trump has confirmed the U.S. will resume arms shipments to Ukraine, reversing a recent pause following stalled peace talks with Russia. “They are getting hit very hard… we’re gonna have to send more weapons,” Trump said. The halted shipment included Patriot interceptors, howitzer rounds, and various missiles. Trump attributed the delay to a Pentagon munitions review post-Iran strikes, denying he ordered a freeze. The U.S. has sent $66.9bn in aid to Ukraine since 2022, with further transfers under review.

 

Bloomberg

Wall Street Journal

Bloomberg reports that Russian drone maker Aero-HIT has allegedly partnered with Chinese firms to boost drone production for military use in Ukraine, despite Western sanctions. Documents reviewed by Bloomberg reveal Aero-HIT, sanctioned by the U.S., plans to produce up to 10,000 drones monthly, including the Veles FPV model, priced around $1,000 each. The company has reportedly worked with Chinese drone giant Autel Robotics to localize production of the EVO Max 4T, a civilian drone adapted for combat. While Autel denies any ties since 2022, Aero-HIT documents suggest collaboration resumed in late 2024. The project aims to produce 30,000 units annually with advanced tech integration.

 

Bloomberg

A conflict in Myanmar's Kachin state between the Kachin Independence Army (KIA) and the military junta could destabilize nearly half the global supply of heavy rare earths. The KIA's advance on Bhamo—a key town near the China border—has led Beijing to threaten a rare-earth trade blockade unless the rebels pull back. Despite mining disruptions, China imported 12,944 metric tons from Myanmar between January and May 2025, down 50% year-over-year. Prices for minerals like terbium spiked after KIA raised taxes and throttled production. China’s move reflects its effort to preserve its mineral pipeline and strategic leverage in Myanmar.

 

Reuters

President Trump is revamping the Public Service Loan Forgiveness program, which may target organizations involved in "illegal activities." Critics, including Betsy Mayotte, president of the Institute of Student Loan Advisors, express concerns that this could be a politically motivated move, commenting: "That's definitely an indicator for me that this is politically motivated and perhaps will be used as a tool for political punishment." The proposed changes could block many from receiving loan relief, particularly affecting those working for nonprofits that assist immigrants and transgender youth. The Education Department's draft proposal allows the secretary to determine eligibility based on vague definitions of illegal activity, raising fears that entire hospital systems or cities could lose their status. The formal proposal is expected to be finalized by July 2026.

 

Los Angeles Times

The U.S. Department of Veterans Affairs has announced a significant reduction in planned employee cuts for this fiscal year, now targeting a decrease of about 30,000 staff instead of the initially proposed 80,000. The agency, which employed approximately 480,000 individuals at the start of the Trump administration, expects to conclude the fiscal year with nearly 450,000 staff members. VA Secretary Doug Collins stated, "A department-wide RIF is off the table, but that doesn't mean we're done improving VA." The agency has already seen nearly 17,000 employees leave between January and June, with an additional 12,000 expected to exit by September 30. This decision comes amid criticism from veteran groups and Democrats regarding the original downsizing plan.

 

U.S. News

The Trump administration's travel and visa restrictions have created significant staffing challenges for U.S. hospitals, particularly in low-income and rural areas. According to a report from the Associated Press, many international medical residents are unable to start their training due to visa complications. Despite the lifting of the J-1 visa pause in mid-June, some residents still face difficulties securing appointments at U.S. embassies. The Association of American Medical Colleges warns of a physician shortage in the U.S. within the next 11 years, making foreign medical residents crucial for filling employment gaps. This year, over 6,600 international medical residents were matched to U.S. programs, the highest on record.

 

U.S. News

Intel has initiated significant layoffs, affecting thousands of employees across various divisions. New CEO Lip-Bu Tan had previously warned workers to expect these cuts as the company aims to streamline operations following years of declining sales and technical challenges. The layoffs will particularly impact the Intel Foundry division, which plans to cut 15% to 20% of its workforce. Additionally, Intel is shutting down its automotive technology business and outsourcing marketing to Accenture. With a reported $19bn loss last year, Intel is struggling to maintain its market position against competitors like AMD and Nvidia. The layoffs are expected to have a significant impact on Oregon's economy, where Intel is the largest corporate employer.

 

The Columbus Dispatch

OregonLive.com

In Vermont, nearly two-thirds of New England's milk production is at risk following a significant immigration raid on a dairy farm. The raid has instilled fear across the Northeast agriculture sector, as Brett Stokes, a lawyer for the workers, noted that “these strong-arm tactics... play a role in stoking fear in the community.” The dairy industry, which relies heavily on immigrant labor, has seen its economic impact soar to $5.4bn, with over 90% of surveyed farms employing migrant workers. Advocates warn that without these workers, the industry could collapse.

 

Boston Globe

U.S. News

Shareholder activism is expected to intensify in late 2025, following a slow Q2 marked by just 59 campaigns—a 32% year-over-year drop, according to Barclays. Concerns over President Trump’s tariffs and tax policies paused public campaigns, but private agitation remained high. JPMorgan’s Alfredo Porretti said activists are “aiming more carefully.” Activist firms like Elliott, Jana, and Starboard are eyeing new opportunities, while companies prepare for fall-winter battles with preemptive advisory hires. Board reshuffles led 43% of campaigns in H1, with M&A-related demands expected to grow. Settlements are rising, as with Jana Partners and Lamb Weston, signaling more strategic, lower-profile approaches ahead.

 

Reuters

Despite facing significant economic challenges, Iowa business executives express cautious optimism. A report from the U.S. Bureau of Economic Analysis revealed that Iowa's GDP fell by 6.1% in the first quarter of 2025, marking it as one of the worst-performing states. Manufacturing has particularly suffered, losing 8,400 jobs in the past year. Joe Murphy, president of the Iowa Business Council (IBC), noted that 56% of respondents are concerned about workforce attraction and retention, which could influence employment expectations.

 

DesMoines Register.com

Amazon has extended its annual Prime Day sales, introducing new perks for Generation Z shoppers amid concerns over tariffs and consumer spending. Despite uncertainties regarding tariffs, analysts predict that the sales event could generate $23.8bn in online spending, a 28.4% increase from last year. Jamil Ghani, Amazon Prime Vice President, explained that expanding the event to four days was in response to shoppers wanting “more time to shop and save.” However, some third-party sellers may opt out of discounts to protect their profit margins during this period of tariff uncertainty. Relatedly, Adobe Analytics expects online spending to surge to $23.8bn across U.S. retailers during the Prime event, up 28.4% from the same four-day period last year. 

 

ABC News

Reuters

Wall Street Journal

Retailers are increasingly using store-based fulfilment to compete with online platforms. This model, which gained traction during the pandemic, allows for faster delivery but poses risks, such as stockouts and customer dissatisfaction. A recent study published in the Journal of Retailing revealed that "failing to deliver a product that has been ordered online not only leads to a direct loss in revenue but also lowers future customer spending." Retailers like Walmart and Target are grappling with how to manage fulfilment failures, balancing between mitigation strategies and improving inventory accuracy. The research highlights the need for tailored approaches to fulfilment, as customer reactions vary significantly based on product type and customer expectations. Retailers must integrate their operations to enhance customer satisfaction and avoid long-term damage to loyalty.

 

Harvard Business Review

iHerb has urgently recalled approximately 60,000 units of California Gold Nutrition-branded iron supplements due to serious poisoning risks. The Consumer Product Safety Commission (CPSC) confirmed that the Daily Prenatal Multi and Ultamins Women's Multivitamins lacked required child-resistant packaging, posing a significant danger to young children. The products were sold at major retailers including Walmart and Target from January 2019 to April 2025, priced between £8 and £18. Customers are advised to return the vitamins for a full refund. Although no illnesses or deaths have been reported, children under six are particularly at risk for iron poisoning, which can lead to severe symptoms.

 

Daily Mail