Become informed in minutes...

President Trump’s continued reliance on aggressive tariff strategies introduces fresh layers of economic and policy risk for multinational businesses and global supply chains. While the White House seeks new trade agreements to sidestep higher duties—with at least one announcement expected imminently—Trump remains committed to using tariffs as a tool to drive domestic production. “I wouldn’t [remove them] because if somebody thought they were going to come off the table, why would they build in the United States?” he said on NBC. Despite market stabilization, including a nine-day rally in the S&P 500, the U.S. economy contracted in Q1 2025, driven in part by import stockpiling and declining consumer demand. Risk professionals should monitor sustained volatility stemming from unresolved U.S.-China tensions, where 145% tariffs remain in place and progress is tied to fentanyl-related negotiations. Warren Buffett criticized protectionist policy over the weekend, warning: “Trade should not be a weapon.” Meanwhile, Congress’s attempt to pass a tax-and-spending bill by July 4 faces headwinds over Medicaid and SALT deduction disputes, creating additional uncertainty for fiscal planning and business investment.

 

Wall Street Journal

President Trump's administration has proposed a $163bn federal budget cut, slashing non-defense spending on education, housing, and health research, while boosting defense and border security funding. Homeland security spending would rise nearly 65%, and non-defense discretionary spending would fall 23%, reaching its lowest since 2017. The budget includes over 40% cuts to the National Institutes of Health and the Centers for Disease Control and Prevention, a $2.49bn cut to the IRS, and nearly 50% cuts to the Department of Housing and Urban Development. It also slashes about 15% from the Department of Education and reduces funding for the Federal Bureau of Investigation and other federal law enforcement. Critics, including Democrats and some Republicans, argue the cuts are too severe or misdirected. The proposal, aimed at shrinking government and extending Trump’s 2017 tax cuts, may face significant changes from Congress despite Trump’s influence over Republican lawmakers. 

 

The New York Times

Reuters

The Washington Post

Massive upheaval at the IRS has disrupted tax season operations and introduced long-term compliance risks. Over 30,000 staff have accepted buyouts or been laid off, while high-level turnover includes four commissioners and multiple senior officials. Michael Faulkender became the fifth acting commissioner in 2025 following a string of short tenures. Treasury Secretary Scott Bessent and Elon Musk’s Department of Governmental Efficiency (DOGE) are reshaping the agency, eliminating the Direct File program and planning major data centralization via a unified API, potentially in partnership with Palantir. However, privacy concerns loom, as 50 senior tech staff remain on paid leave. A Treasury report revealed the IRS underreported Direct File costs by $8.8m, leading to scrutiny. Meanwhile, Congress slashed IRS funding, leaving unresolved questions about enforcement capacity and taxpayer assistance. “Anything where you need people at the IRS will take more time,” said David Shapiro, partner at Saul Ewing LLP. A Yale Budget Lab study warned that staff reductions could cut $1.4B in costs but forfeit $8.3B in tax revenue.

 

Accounting Today

The Wall Street Journal reports that the Trump administration is exploring ways to challenge the tax-exempt status of nonprofit organizations, raising concerns among IRS staff about the politicization of the agency. After Andrew De Mello's appointment as acting IRS chief counsel, internal meetings began focusing on changing rules for denying tax-exempt status. Senior IRS official Gary Shapley reportedly prioritized investigations into select nonprofits, though no specific groups were named. Critics worry this effort targets institutions disfavored by Trump, like Harvard University. The IRS has historically avoided politically driven crackdowns on nonprofits, but Trump’s administration is now considering scrutinizing organizations tied to diversity efforts. Concerns persist that these moves could undermine longstanding IRS neutrality and public trust in the agency. 

 

Reuters

Wall Street Journal

Many U.S. mayors fear that President Trump’s immigration crackdown will worsen city finances by scaring undocumented immigrants into not paying taxes. Cities like Los Angeles, San Francisco, and New York rely on taxes from these immigrants—who contributed $100bn in 2022 alone—to fund essential services. A new IRS-ICE data-sharing agreement could intensify fears, undermining public trust and cooperation. If immigrants go underground, tax revenues may drop by $313bn over a decade. City officials warn this could cripple budgets already strained by pension shortfalls, climate costs, and slow economic growth, with Los Angeles potentially facing early consequences. 

 

Bloomberg

Despite a “strategic pause” announced by the Treasury in March, the IRS spent nearly $1 billion on IT procurement in Q1 2025—marking its largest quarterly technology spend on record. The investment reflects continued momentum in the agency’s modernization agenda, including updates to legacy systems reliant on outdated coding languages. Procurement growth has been fueled by expanded use of federal IT acquisition vehicles and professional services contracts. However, the future of the broader modernization effort remains uncertain amid budget cuts, staffing disruptions, and political scrutiny. The contradiction between record Q1 tech investment and long-term program slowdown creates uncertainty for vendors, systems integrators, and finance leaders monitoring federal contract flows and modernization timelines.

 

Bloomberg Law

Bloomberg Tax

With global trade tensions and tariff shocks creating uncertainty, CFOs are advised to focus on five key actions: maintain transparent investor communications, analyze and renegotiate supplier relationships, reassess financial strategies for cash flow and risk diversification, manage long-term risks, and seek strategic opportunities amid disruption. Experts emphasize the importance of scenario planning, conservative guidance, and maintaining agility. CFOs are urged to focus on controllable factors and resist short-term cost cuts that could undermine long-term value.

 

CFO Leadership

A new SAP Concur CFO Insights report finds that CFOs are prioritising cost optimisation and efficiency as their top strategies for driving company growth in 2025. The survey of 350 finance leaders highlights that 69% are focused on efficiency, with 58% turning to automation and AI to streamline processes. Key external challenges include worsening economic conditions, geopolitical tensions, and supply chain constraints.

 

Concur

The FASB is finalizing a project aimed at simplifying loan loss financial reporting rules. The initiative addresses concerns that banks may "double count" losses on healthy loans during mergers or acquisitions. The board instructed its staff to draft a final version of the proposal, which seeks to amend the current expected credit loss (CECL) accounting standard. Released in June 2023, the proposal reflects FASB's commitment to streamline guidance and improve clarity in financial reporting.

 

Bloomberg Tax

The U.S. Federal Reserve's incoming vice chair for supervision, Michelle Bowman, is expected to review and potentially revise the confidential ratings assessing the health of major U.S. banks, according to the Wall Street Journal. These supervisory ratings evaluate banks on capital, liquidity, and governance. Any changes may concern Fed examiners, given the extensive evaluation process already in place. The Fed is delaying the release of updated ratings for banks with over $100bn in assets until Bowman’s Senate confirmation. Nominated by President Donald Trump, Bowman favors lighter regulation and has criticized Biden-era financial oversight efforts. She is expected to alter how future ratings are calculated, prompting industry scrutiny and debate. 

 

Reuters

Wall Street Journal

The U.S. Consumer Financial Protection Bureau (CFPB) has partnered with industry groups to request a federal court to annul a regulation that prevents consumer credit reports from including medical debt. This motion, filed in a Texas court, argues that the CFPB overstepped its legal authority. The regulation, which is set to take effect in June, was designed to eliminate up to $49bn in medical debts from the credit reports of 15m Americans. The Biden administration supported the policy, asserting that medical debts are not indicative of a borrower's repayment ability. However, industry representatives argue that the ban could obscure critical information about borrowers.

 

Accounting Today

The U.S. Consumer Financial Protection Bureau (CFPB) has partnered with industry groups to request a federal court to annul a regulation that prevents consumer credit reports from including medical debt. This motion, filed in a Texas court, argues that the CFPB overstepped its legal authority. The regulation, which is set to take effect in June, was designed to eliminate up to $49bn in medical debts from the credit reports of 15m Americans. The Biden administration supported the policy, asserting that medical debts are not indicative of a borrower's repayment ability. However, industry representatives argue that the ban could obscure critical information about borrowers.

 

Reuters

The U.S. economy continued to add jobs at a steady clip in April, although the pace of gains slowed slightly during a month that saw changing tariff announcements and market turmoil. The Labor Department reported Friday that 177,000 jobs were added last month, just below the downwardly-revised 185,000 seen in March, but well ahead of the Dow Jones estimate for 133,000. The unemployment rate remained at 4.2%. The labor force participation rate ticked higher to 62.6%. The private education and health services sector was April’s top job creator, adding 70,000 jobs last month. Many of those gains were driven by the health care industry, which contributed 51,000 of those jobs. Hospitals and ambulatory health service providers were the top job-creating firms in the industry. The transportation and warehousing industry was April’s second-biggest job creator, expanding headcount by 29,000. The federal government shed 9,000 jobs, retailers 1,800, and manufacturers 1,000. “We can push recession concerns to another month. Job numbers remain very strong, suggesting there was an impressive degree of resilience in the economy in play before the tariff shock,” said Seema Shah, chief global strategist at Principal Asset Management. “The economy will weaken in the coming months but, with this underlying momentum, the U.S. has a decent chance of averting recession if it can step back from the tariff brink in time.”

 

CNN

USA Today

CNBC

Wall Street Journal

New orders for U.S. manufactured goods increased 4.3% in March, the Commerce Department reported on Friday, missing the 4.5% surge expected among economists. Orders for durable goods shot up by 9.2%; orders for transportation equipment led the way higher, soaring by 27.1%, as orders for non-defense aircraft and parts grew by 139%. Orders for non-durable goods dipped 0.3%. Inventories of manufactured goods crept up by 0.1%, while shipments dropped 0.1%. The inventories-to-shipments ratio was unchanged at 1.45 in March.

 

RTT News

Warren Buffett will step down as CEO of Berkshire Hathaway at year-end, ending a legendary six-decade tenure that transformed the conglomerate into a global powerhouse. Greg Abel, vice chairman and current overseer of Berkshire’s non-insurance businesses, will assume the role—a move long anticipated but confirmed only during the 2025 annual meeting. While Buffett has actively groomed Abel, delegating major responsibilities and endorsing him publicly, there’s one thing he cannot pass on: his iconic reputation. “Warren’s so unique,” said Microsoft co-founder Bill Gates. Abel, a 62-year-old former accountant from Canada, will inherit a decentralized empire that spans railways, energy, retail, and more. Though he lacks Buffett’s investor mystique, Abel is seen as a capable operator. “He would make a huge mistake trying to be Warren Buffett, and he knows that,” said Fidelity’s Will Danoff. Abel’s more hands-on approach may contrast with Buffett’s famed light-touch style, signaling a new leadership era at Berkshire.

 

Wall Street Journal

SAP has extended the contracts of CEO Christian Klein and CFO Dominik Asam, reinforcing its commitment to long-term strategic execution. The move is intended to provide stability as SAP continues its transformation into a cloud-first enterprise software leader. The contract extensions signal confidence in the current leadership team’s ability to drive sustained growth and innovation.

 

SAP

Microsoft has predicted a transformative shift in the workplace with the emergence of so-called "frontier firms" where human workers will manage AI agents to enhance productivity. Jared Spataro, a Microsoft executive, said: "As agents increasingly join the workforce, we'll see the rise of the agent boss." This evolution is expected to occur in three phases: the introduction of AI assistants, AI agents as digital colleagues, and ultimately, humans directing these agents in various workflows. Microsoft anticipates that within five years, organizations will adopt this model, which promises rapid scaling and agility. However, the rise of AI also raises concerns about job displacement, with the International AI Safety report warning that "many people could lose their current jobs" as AI capabilities advance.

 

The Guardian