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Canadian goods imported into the U.S. will face a blanket 35% tariff starting next month, President Trump said Thursday, in an announcement that came in the midst of active trade negotiations between the two countries. However, an exemption for goods that comply with the nations’ free-trade agreement, the U.S.-Mexico-Canada Agreement, would still apply, according to a White House official. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter," Mr Trump said in the letter to Canada Prime Minister Mark Carney. “These Tariffs will be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with the United States of America." Meanwhile, Bloomberg reports that Vietnam’s leadership was caught off guard by President Trump's announcement that it agreed to a 20% tariff, and the Southeast Asian nation is still seeking to lower the rate.

 

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Sentiment among U.S. small businesses fell slightly in June as owners continued to worry about taxes ahead of a major legislative win for the Trump administration. The National Federation of Independent Business (NFIB) said Tuesday that its optimism index, a gauge of sentiment among small firms, edged down 0.2 points to 98.6 in June, slightly above its long-term reading of 98. A consensus of economists polled by the Wall Street Journal expected 98.7. A substantial increase in respondents reporting excess inventories contributed the most to the decline, the NFIB said, with nearly one in eight businesses reporting inventories were "too high" in June, almost double that in May. Respondents also reported a substantial decline in how they see the health of their own businesses, with 49% reporting "good" and 8% reporting "excellent," down from 55% and 14%, respectively, in May. Those reporting fair or poor business health increased.

 

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Apple, Visa, and Mastercard have persuaded a US judge to dismiss a lawsuit accusing them of conspiring to suppress competition in the payments network market and causing merchants to pay inflated transaction fees. The lawsuit, filed by beverage retailer Mirage Wine & Spirits and other businesses, was brought on behalf of a proposed class of thousands of merchants. It alleged that Visa and Mastercard paid Apple what amounted to a “very large and ongoing cash bribe” of hundreds of millions of dollars a year to keep it from competing with them. In his ruling, U.S. District Judge David Dugan in Illinois said the merchants’ allegations “completely ignore the difficulties, costs and time, risks, and potential for failure associated with such an endeavour."

 

Reuters

A fierce legal battle is unfolding as OpenAI engages in a trademark dispute with iyO Inc. over a new AI communication interface. The conflict escalated when iyO sued OpenAI and its CEO Sam Altman for trademark infringement, claiming that their similar names could confuse consumers. U.S. District Judge Trina Thompson has allowed iyO's case to proceed, ordering OpenAI to cease using the "io" brand until the hearing. iyO has also filed a lawsuit against a former employee, Dan Sargent, for allegedly leaking confidential information. iyO CEO Jason Rugolo expressed his frustration, stating, “I feel kind of stupid now,” reflecting on his previous pitches to Altman and Jony Ive. The outcome of this dispute could significantly impact the future of AI interfaces.

 

U.S. News

Boston Consulting Group is facing its most serious reputational crisis in decades over unauthorized work linked to a controversial Gaza humanitarian project. Two senior partners—Chief Risk Officer Adam Farber and Social-Impact Practice Head Rich Hutchinson—stepped down from leadership roles after it emerged that other partners, later fired, went beyond authorized pro bono work. The project involved collaboration with Orbis Operations and led to the creation of the Gaza Humanitarian Foundation, which has drawn international criticism for dangerous aid delivery methods and modeling for postwar Palestinian relocation. CEO Christoph Schweizer acknowledged the reputational damage, calling the association “deeply troubling.” Former employees question BCG’s risk oversight, and a U.K. parliamentary committee has requested a full explanation by July 22.

 

Wall Street Journal

The U.S. Environmental Protection Agency (EPA) is facing backlash after placing 139 employees on leave for signing a letter criticizing the Trump administration's policies. Justin Chen, president of the American Federation of Government Employees Council 238, said: "These employees engaged in protected speech on a matter of significant public concern," emphasizing that their actions are safeguarded by federal law. The letter, signed by hundreds of EPA staff, accused the agency of harmful deregulatory actions and neglecting scientific evidence amid a major reorganization under President Trump. Chen urged EPA Administrator Lee Zeldin to reinstate the employees and halt any disciplinary actions against them. The EPA has not yet commented on the situation.

 

U.S. News

The U.S. National Highway Traffic Safety Administration (NHTSA) has launched a recall query into 27,816 Polestar 2 vehicles following unresolved rear-view camera failures. Despite a 2023 recall and software update targeting 2021–2024 models, 109 complaints indicated persistent issues. The initial remedy aimed to reduce camera lag and simplify the display during reversing, but Polestar has now admitted the update didn’t fix the problem. The NHTSA's Office of Defects Investigation is examining whether Polestar’s response adequately addressed the safety risk. A recall query signals regulatory concern that the manufacturer's corrective action may be insufficient.

 

Reuters

A new Axiom survey shows that 66% of in-house legal teams primarily use general-purpose AI like ChatGPT, while only 7–17% use legal-specific tools. Based on 600 responses from lawyers across eight countries, the report highlights strong interest in generative AI but limited structured implementation. ChatGPT leads usage (42%), followed by Microsoft Copilot (25%), Google Gemini (20%), and Anthropic Claude (15%). However, just 38% of teams have AI policies, and fewer have formal training or privacy protocols. Axiom’s data suggests legal departments are eager but underprepared. “An alarming proportion of AI use appears unstructured,” the report notes.

 

Non-Billable

Nick Schneider from Eckert Seamans warns that recent lawsuits against AI media-generators could jeopardise the technology's economic viability and undermine essential copyright principles. Major copyright holders, including Walt Disney Co. and Universal Studios Inc., have filed lawsuits claiming that AI media-generators are profiting from their copyrighted works, amounting to hundreds of millions of pounds. Schneider notes: "If copyright creators succeed in their lawsuits, the profitability of AI media-generators could crater." He argues that while some aspects of the lawsuits may have merit, the expansive theories proposed could stifle innovation and limit creative expression. Schneider suggests that a collaborative approach, similar to the music industry's response to piracy, could provide a solution that benefits all parties involved.

 

Bloomberg Law

The number of Americans filing new applications for jobless benefits unexpectedly fell to a seven-week low last week, the Labor Department reported on Thursday, suggesting employers may be holding on to workers despite other indications of a cooling labor market and creating no urgency for the Federal Reserve to resume its interest rate cuts. initial claims fell for a fourth straight week in the seven days to July 5th, slipping 5,000 to a seasonally-adjusted 227,000. Economists were expecting claims to move higher to 238,000, according to FactSet. The four-week moving average fell to 235,500, the lowest since late May, while continuing claims, reported with a one-week lag, rose by 10,000 to 1.965m. “It’s difficult to find a new job right now. Young people are struggling to get their first jobs and anyone who has been laid off is having a hard time landing their next role,” Heather Long, chief economist at Navy Federal Credit Union, wrote Thursday. “The labor market is frozen outside of healthcare, education and law enforcement jobs. Hiring is anemic in other sectors as companies remain cautious in this environment.”

 

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The U.S. labor market is set to experience significant changes, with certain occupations projected to decline by 10% or more by 2030, according to the Bureau of Labor Statistics. A report by 24/7 Wall St. highlights that while the economy is expected to add 6.7m jobs from 2023 to 2033, overall employment growth will slow to 0.4% annually. The healthcare and social assistance sectors are anticipated to see the most growth due to an aging population and rising chronic conditions. Conversely, many of the jobs at risk are low-skill positions vulnerable to technological advancements. The report notes: "A bulk of disappearing jobs are low-skill occupations with few, if any, educational requirements."

 

Al.com

DOGE has gained high-level access to the National Payment Service system, which manages billions in government payments and loans for U.S. farmers and ranchers. Scott Marlow, a former USDA official, emphasized the sensitivity of the data, commenting: "The farmer's entire financial life... it's there." This access allows DOGE to view and modify personal information, raising significant privacy concerns. Critics, including Senator Ron Wyden, warn that DOGE's involvement could disrupt essential financial support for farmers, especially during challenging times. The USDA's internal protocols are being challenged as DOGE's access deepens, potentially leading to severe consequences for agricultural producers.

 

NPR / National Public Radio

Linda Yaccarino has stepped down as chief executive of X, Elon Musk’s rebranded Twitter platform, after two years in the role. Brought in from NBCUniversal to repair strained ties with advertisers, Yaccarino struggled to assert control over a company many viewed as still firmly under Musk's command. Her resignation comes amid renewed scrutiny of X's AI chatbot Grok, as well as broader concerns about Musk's unfiltered use of the platform. Though credited with some progress on the advertising front, analysts suggest her role was largely symbolic. Ms Yaccarino said she was "immensely grateful" to Musk for "entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App." 

 

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Tesla’s board faces a July 13 deadline to schedule its annual shareholder meeting or risk noncompliance with Texas law. Twenty-seven investors, including major public pension funds and advisory firms, urged the board to hold the meeting, citing concerns over leadership focus, company performance, and accountability. The 2024 meeting occurred on June 13, making this year’s overdue. Texas law mandates such meetings annually if shareholders request them. Tesla stock is down over 20% amid falling sales and distractions surrounding Elon Musk’s involvement outside the company. The board also delayed filing its proxy statement. 

 

Wall Street Journal

Levi Strauss has raised its fiscal-year guidance as its direct-to-consumer business flourishes despite tariff concerns, sending its shares up 8% in after-hours trading on Thursday to $21.23. The company now expects annual revenue to increase 1%-2%, after previously guiding for a 1%-2% decline in fiscal-year sales. It also raised its annual adjusted earnings per share range to $1.25-$1.30, up from $1.20-$1.25, ahead of analysts’ estimates for $1.23 per share. The guidance is predicated on tariffs on imports from China remain at 30%, and are 10% for the rest of the world. The second quarter brought a profit of $67m, or 22 cents adjusted, up from $18m a year earlier, and beating the 13 cents forecast by analysts, according to FactSet. Overall revenues increased 6.4% to $1.45bn, beating analysts’ $1.37bn estimate.

 

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