Trump’s Tariffs Have Little Effect on US Trade Deficit

US Trade Deficit Persists

• 💡 Despite Trump's aggressive tariffs, the US trade deficit increased, reaching $91.5 billion annually and falling only 0.2% from the previous year.
• 📊 The deficit for physical products actually grew by almost 6% last year when adjusted for inflation, indicating tariffs had little impact on reducing it.
• ⚠️ Research from JP Morgan showed tariffs paid by midsize US businesses tripled, and a New York Fed study found 90% of the burden fell on US companies and consumers.
• 🔄 Reasons for the tariffs' ineffectiveness include importers rerouting supply chains to lower-tariff countries like Mexico and Vietnam, and companies stockpiling imports to get ahead of potential duties.

Hershey's Ingredient Controversy

• 💬 The grandson of the Reese's Peanut Butter Cup inventor publicly criticized Hershey's for changing ingredients in some Reese's products, calling a Mini Hearts product "not edible."
• 🍫 Hershey's stated they haven't changed the original Reese's Peanut Butter Cup recipe but have adjusted formulas for new products to match changing consumer tastes.
• 📈 Rising cocoa prices are a factor, leading many companies to reformulate chocolate mixtures to maintain margins.
• ✅ While "milk chocolate" has precise FDA definitions, other Hershey's bars like Rolos and Mr. Goodbar no longer list it, suggesting ingredient changes.

E-commerce Shake-ups

• 🤝 Etsy sold Depop, its secondhand clothing app, to eBay for $1.2 billion, a move seen positively by investors for both companies.
• 🚀 eBay aims to attract Gen Z shoppers with Depop, as 90% of its 7 million buyers are under 34, while Etsy focuses on shedding a "distracting" asset despite a $400 million loss on the sale.
• 🛍️ The resale marketplace is growing due to factors like squeezed household incomes, increasing sustainability concerns, and a rising anti-fast fashion movement.

Amazon's Market Volatility

• 📉 Amazon experienced a 9-day losing streak, wiping out $450 billion from its market cap, primarily due to investor concerns over its projected $200 billion spending on AI infrastructure.
• 👑 Despite the stock drop, Amazon officially dethroned Walmart as the biggest global company by revenue, reporting $717 billion in 2025 sales.
• ☁️ Amazon's revenue growth is largely attributed to its highly profitable AWS cloud computing business, which Walmart does not directly compete with.

AI and Legal Fees

• 🤖 Consulting giant Accenture is requiring senior staff to use AI tools for promotion consideration, with CEO Julie Sweet pushing for all 780,000 employees to adapt to the AI era.
• 💰 Elite lawyers are charging up to $6,000 per hour, with partner rates at top firms rising 16% last year, driven by high demand for specialized expertise in areas like telecom regulation.