With President Donald Trump’s dramatic tariff hikes on the cusp of starting, countries around the world scrambled on Thursday to finalize their trade frameworks with the United States, figure out the tax rates their goods might face and prepare for the unknown.

Shortly before Friday deadline for the tariffs beginning, Trump said he would enter into a 90-day negotiating period with Mexico, one of the nation’s largest trading partners, with the current 25% tariff rates staying in place, down from the 30% he had threatened earlier.

“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Mexican leader Claudia Sheinbaum wrote on X after a call with Trump that he referred to as “very successful” in terms of the leaders getting to know each other better.

White House press secretary Karoline Leavitt said at Thursday’s news briefing that Trump “at some point this afternoon or later this evening” would sign an order to impose new rates starting at 12:01 a.m. EDT Friday. Countries that had not received a prior letter from Trump or negotiated a framework would be notified of their likely tariff rates, either by letter or executive order, she said.

The unknowns created a sense of drama that have defined Trump’s rollout of tariffs over several months, with the one consistency being his desire to levy the import taxes that most economists say will ultimately be borne to some degree by U.S. consumers and businesses.

“We have made a few deals today that are excellent deals for the country,” Trump told reporters on Thursday afternoon without detailing the terms of those agreements or nations involved.

Trump said that Canadian Prime Minister Mark Carney had called ahead of 35% tariffs being imposed on many of his nation’s goods, but “we haven’t spoken to Canada today.”

Trump imposed the Friday deadline after his previous “Liberation Day” tariffs in April resulted in a stock market panic. His unusually high tariff rates unveiled in April led to recession fears, prompting Trump to impose a 90-day negotiating period. When he was unable to create enough trade deals with other countries, he extended the timeline and sent out letters to world leaders that simply listed rates, prompting a slew of hasty deals.

Trump reached a deal with South Korea on Wednesday, and earlier with the European Union, Japan, Indonesia and the Philippines. His commerce secretary, Howard Lutnick, said on Fox News Channel’s “Hannity” that there were agreements with Cambodia and Thailand after they had agreed to a ceasefire to their border conflict.

Among those uncertain about their trade status were wealthy Switzerland and Norway.

Norwegian Finance Minister Jens Stoltenberg said it was “completely uncertain” whether a deal would be completed before Trump’s deadline.

But even the public announcement of a deal can offer scant reassurance for an American trading partner.

EU officials are waiting to complete a crucial document outlining how the framework to tax imported autos and other goods from the 27-member state bloc would operate. Trump had announced a deal Sunday while he was in Scotland.

“The U.S. has made these commitments. Now it’s up to the U.S. to implement them. The ball is in their court,” EU Commission spokesperson Olof Gill said. The document would not be legally binding.

Trump said as part of the agreement with Mexico that goods imported into the U.S. would continue to face a 25% tariff that he has ostensibly linked to fentanyl trafficking. He said autos would face a 25% tariff, while copper, aluminum and steel would be taxed at 50% during the negotiating period.

He said Mexico would end its “Non Tariff Trade Barriers,” but he didn’t provide specifics.

Some goods continue to be protected from the tariffs by the 2020 U.S.-Mexico-Canada Agreement, or USMCA, which Trump negotiated during his first term.

But Trump appeared to have soured on that deal, which is up for renegotiation next year. One of his first significant moves as president was to tariff goods from both Mexico and Canada earlier this year.

U.S. Census Bureau figures show that the U.S. ran a $171.5 billion trade imbalance with Mexico last year. That means the U.S. bought more goods from Mexico than it sold to the country.

The imbalance with Mexico has grown in the aftermath of the USMCA as it was only $63.3 billion in 2016, the year before Trump started his first term in office.

Besides addressing fentanyl trafficking, Trump has made it a goal to close the trade gap.

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Associated Press writers Lorne Cook in Brussels and Jamey Keaten in Geneva contributed to this report.

This story was originally featured on Fortune.com

© Adrian Wyld/The Canadian Press via AP, File)

Numerous countries around the world are facing the prospect of much higher duties on their exports to the United States on Friday, a potential blow to the global economy, because they haven’t yet reached a trade deal with the Trump administration.

Some of the United States’ biggest trading partners have reached agreements, or at least the outlines of one, including the European Union, the United Kingdom, and Japan. Even so, those countries face much higher tariffs than were in effect before Trump took office. And other large trading partners — most notably China and Mexico — received an extension to keep negotiating and won’t be hit with new duties Friday, but they will likely end up paying more.

President Donald Trump intends the duties to bring back manufacturing to the United States, while also forcing other countries to reduce their trade barriers to U.S. exports. Trump argues that foreign exporters will pay the cost of the tariffs, but so far economists have found that most are being paid by U.S. companies. And measures of U.S. inflation have started to tick higher as prices of imported goods, such as furniture, appliances, and toys rise.

For those countries without an agreement, they could face duties of as much as 50%, including on large economies such as Brazil, Canada, Taiwan, and India. Many smaller countries are also on track to pay more, including South Africa, Sri Lanka, Bangladesh, and even tiny Lesotho.

The duties originated from Trump’s April 2 “Liberation Day” announcement that the United States would impose import taxes of up to 50% on nearly 60 countries and economies, including the 27-nation European Union. Those duties, originally scheduled for April 9, were then postponed twice, first to July 9 and then Aug. 1.

Will the deadline hold this time?

As of Thursday afternoon, White House representatives — and Trump himself — insisted that no more delays were possible.

White House press secretary Karoline Leavitt said Thursday that Trump “at some point this afternoon or later this evening” will sign an order to impose new tariff rates starting midnight on Friday.

Countries that have not received a prior letter on tariffs from Trump or negotiated a trade framework will be notified of their likely tariff rates, Leavitt said, either in the form of a letter or Trump’s executive order. At least two dozen countries were sent letters setting out their tariff rates.

On Wednesday, Trump said on his social media platform Truth Social, “THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED.”

Which countries have a trade agreement?

In a flurry of last minute deal-making, the Trump has been announcing agreements as late as Thursday, but they are largely short on details.

On Thursday, the U.S. and Pakistan reached a trade agreement expected to allow Washington to help develop Pakistan’s largely untapped oil reserves and lower tariffs for the South Asian country.

And on Wednesday, Trump announced a deal with South Korea that would impose 15% tariffs on goods from that country. That is below the 25% duties that Trump threatened in April.

Agreements have also been reached with the European Union, Pakistan, Indonesia, Vietnam, the Philippines, and the United Kingdom. The agreement with the Philippines barely reduced the tariff it will pay, from 20% to 19%.

And which countries don’t?

The exact number of countries facing higher duties isn’t clear, but the majority of the 200 have not made deals. Trump has already slapped large duties on Brazil and India even before the deadline was reached.

In the case of Brazil, Trump signed an executive order late Wednesday imposing a 50% duty on imports, though he exempted several large categories, including aircraft, aluminum, and energy products. Trump is angry at Brazil’s government because it is prosecuting its former president, Jair Bolsonaro, for attempting to overturn his election loss in 2022. Trump was indicted on a similar charge in 2023.

While Trump has sought to justify the widespread tariffs as an effort to combat the United States’ chronic trade deficits, the U.S. actually has a trade surplus with Brazil — meaning it sells more goods and services to Brazil than it buys from that country.

Negotiations between the U.S. and Canada have been complicated by the Canadian government’s announcement that it will recognize a Palestinian state in September. Trump said early Thursday that the announcement “will make it very hard” for the U.S. to reach a trade deal with Canada.

Late Wednesday, Trump said that India would pay a 25% duty on all its exports, in part because it has continued to purchase oil from Russia.

On Thursday, the White House said it had extended the deadline to reach a deal with Mexico for another 90 days, citing the complexity of the trade relationship, which is governed by the trade agreement Trump reached when he updated NAFTA in his first term.

For smaller countries caught in Trump’s cross hairs, the Aug. 1 deadline is particularly difficult because the White House has acknowledged they aren’t able to negotiate with every country facing tariff threats. Lesotho, for example, a small country in southern Africa, was hit with a 50% duty on April 2, and even though it was postponed, the threat has already devastated its apparel industry, costing thousands of jobs.

“There’s 200 countries,’’ the president acknowledged earlier this month. “You can’t talk to all of them.’’

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AP Writers Josh Boak and Wyatte Grantham-Philipps contributed to this report.

This story was originally featured on Fortune.com

© Anna Moneymaker/Getty Images

In 2020, a disgruntled litigant posing as a deliveryman opened fire at the New Jersey home of District Judge Esther Salas, killing her 20-year-old son Daniel Anderl. Five years later, as President Donald Trump steps up hiscriticism of federal judges who have blocked some of his agenda, dozens of judges have had unsolicited pizzas delivered to their homes, often in Daniel Anderl’s name.

District Judge John J. McConnell, Jr. of Rhode Island, who stalled Trump’s initial round of across-the-board spending cuts, is among those who received pizzas in Anderl’s name. His courtroom also has been flooded by threatening calls, including one profanity-laced one that called for his assassination.

McConnell, Jr. played a recording of the call during an unusual discussion Thursday where multiple federal judges discussed threats they have received — a notable conversation because judges usually only speak publicly from the bench and through their rulings, and rarely if ever, about personal threats and attacks. Salas and others said the number of attacks has escalated in recent months.

Without using his name, Salas called on Trump and his allies to tone down the rhetoric and stop demonizing the judiciary, for fear of what more could happen.

“We’re used to being appealed. But keep it on the merits, stop demonizing us,” Salas said. “They’re inviting people to do us harm.”

Thursday’s event was sponsored by Speak up for Justice, a nonpartisan group supporting an independent judiciary. District Judge John C. Coughenour of Washington recalled having a police SWAT team called to his home to respond to a false report of an attack after Coughenour in January halted Trump’s executive order ending birthright citizenship for children of people in the country illegally.

District Judge Robert S. Lasnik of Washington also had pizzas delivered in Anderl’s name to both his home and those of his two adult children, each in different cities, after an article in which he was quoted as being critical of attacks on judges was picked up by a television station in the Pacific Northwest, where he hears cases.

“The message to me was ‘we know where you live, we know where your kids live, and they could end up dead like Daniel Anderl did,’” Lasnik said in an interview.

Salas says U.S. Marshals have told her of more than 100 cases of so-called “pizza doxings,” unwanted deliveries to the homes of federal judges and their families, since 2024, with most occurring this year. Salas added that she’s heard of additional cases targeting state judges in states ranging from Colorado to Florida, incidents that wouldn’t be tracked by Marshals, who protect federal judges.

“This is not some random, silly act, this is a targeted, concentrated, coordinated attack on judges,” Salas said in an interview, “and yet we don’t hear any condemnation from Washington.”

Salas, nominated by Democratic President Barack Obama, in 2022 was critical of protests at the homes of Republican-nominated Supreme Court justices who revoked women’s right to have an abortion, which were followed by the arrest of a man at the home of Justice Brett Kavanaugh who said he was there to assassinate the justice. Salas said both sides of the political aisle have used worrying rhetoric about judges, but it’s reached a new peak since Trump took office.

“I’ve often referred to it as a bonfire that I believe the current administration is throwing accelerants on,” Salas said.

Trump himself has led the charge against judges, often going after them by name on social media. He’s said judges who’ve ruled against his administration are “sick,” “very dangerous” and “lunatic.” Trump’s allies have amplified his rhetoric and called for impeaching judges who rule against the president or simply disobeying their rulings. Earlier this year, several judges at the panel noted, Rep. Andy Ogles of Tennessee had a “wanted” poster of judges who’d crossed the president hanging outside his congressional office.

Lasnik said many judges appointed by presidents of both parties have told him of concerns but are nervous about discussing the issue openly.

“A lot of them don’t know how to speak up and are afraid of crossing a line somewhere where they would get a judicial complaint like judge Boasberg did,” Lasnik said, referring to District Judge James E. Boasberg of D.C., who infuriated the Trump administration by finding they likely committed criminal contempt by disobeying his order to turn around a deportation flight to El Salvador.

Though Chief Justice John Roberts has come to Boasberg’s defense, Trump’s Department of Justice this week filed a complaint against Boasberg over comments he made at a judicial conference that other judges worry the Trump administration won’t obey their orders. Last month, Trump’s Justice Department took the extraordinary step of suing every federal judge in Maryland over rules governing how they handle immigration cases.

More than five dozen judges who’ve ruled against Trump are receiving enhanced online protection, including scrubbing their identifying information from websites, according to two Trump-appointed judges who wrote Congress urging more funding for judicial security. In 2022, Congress passed a law named after Daniel Anderl allowing judges to sue internet sites to take down identifying information.

This story was originally featured on Fortune.com

© Esther Salas via AP

The tariffs planned by President Donald Trump on Friday touched off a feverish bout of activity among trade partners as key details remained unclear and nations didn’t know the taxes their goods could face — keeping an element of surprise to an event long hyped by the U.S. leader.

Just hours before the deadline, Trump on Thursday said he would enter a 90-day negotiating period with Mexico over trade as 25% tariff rates stay in place, providing a bit of clarity to a massive rewiring of the global economy that will require the president to sign a new executive order.

Trump posted on his Truth Social platform that his phone conversation with Mexican leader Claudia Sheinbaum was “very successful in that, more and more, we are getting to know and understand each other.”

The Republican president had threatened tariffs of 30% on goods from Mexico in a July letter, something that Sheinbaum said Mexico gets to stave off for the next three months.

“We avoided the tariff increase announced for tomorrow and we got 90 days to build a long-term agreement through dialogue,” Sheinbaum wrote on X.

The leaders’ morning call came at a moment of pressure and uncertainty for the world economy. As Trump’s deadline loomed, nations were scrambling to finalize the outlines of trade frameworks so he would not simply impose higher tariff rates that could upend economies and governments.

Trump reached a deal with South Korea on Wednesday, and earlier with the European Union, Japan, Indonesia and the Philippines. His commerce secretary, Howard Lutnick, said on Fox News Channel’s “Hannity” that there were agreements with Cambodia and Thailand after they had agreed to a ceasefire to their border conflict.

White House press secretary Karoline Leavitt said Trump “at some point this afternoon or later this evening” will sign an order to impose new rates starting at 12:01 a.m. EDT Friday. Countries that have not received a prior letter from Trump or negotiated a framework will be notified of their likely tariff rates, either by letter or executive order, she said.

Among those uncertain about their trade status were wealthy Switzerland and Norway.

Norwegian Finance Minister Jens Stoltenberg said it was “completely uncertain” whether a deal would be completed before Trump’s deadline.

But even the public announcement of a deal can offer scant reassurance for an American trading partner.

EU officials are waiting to complete a crucial document outlining how the framework to tax imported autos and other goods from the 27-member state bloc would operate. Trump had announced a deal Sunday while he was in Scotland.

“The U.S. has made these commitments. Now it’s up to the U.S. to implement them. The ball is in their court,” EU commission spokesman Olof Gill said. The document would not be legally binding.

Trump said as part of the agreement with Mexico that goods imported into the U.S. would continue to face a 25% tariff that he has ostensibly linked to fentanyl trafficking. He said autos would face a 25% tariff, while copper, aluminum and steel would be taxed at 50% during the negotiating period.

He said Mexico would end its “Non Tariff Trade Barriers,” but he didn’t provide specifics.

Some goods continue to be protected from the tariffs by the 2020 U.S.-Mexico-Canada Agreement, or USMCA, which Trump negotiated during his first term.

But Trump appeared to have soured on that deal, which is up for renegotiation next year. One of his first significant moves as president was to tariff goods from both Mexico and Canada earlier this year.

U.S. Census Bureau figures show that the U.S. ran a $171.5 billion trade imbalance with Mexico last year. That means the U.S. bought more goods from Mexico than it sold to the country.

The imbalance with Mexico has grown in the aftermath of the USMCA as it was only $63.3 billion in 2016, the year before Trump started his first term in office.

Besides addressing fentanyl trafficking, Trump has made it a goal to close the trade gap.

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Associated Press writers Lorne Cook in Brussels and Jamey Keaten in Geneva contributed to this report.

This story was originally featured on Fortune.com

© AP Photo/Marco Ugarte, File

A rural Texas county was missing some of its key leadership in the initial hours of a catastrophic flood that came barreling through the region, causing widespread destruction and killing more than 130 people earlier this month.

Kerr County’s sheriff and its emergency management director both acknowledged Thursday during a legislative hearing that they were asleep when it first became apparent that a major flood event was unfolding. Moreover, Judge Rob Kelly, the top executive of Kerrville County, was out of town on July 4, the day of the flood.

Their testimony, which came during a joint House and Senate panel of lawmakers who visited the hard-hit Texas Hill Country, revealed a lack of on-duty leadership in the key initial moments of the flooding that killed at least 136 people, including 27 youths and counselors at an all-girls camp.

William “Dub” Thomas, Kerr County’s emergency management coordinator, told lawmakers that he was sick the day before the flooding occurred and missed two calls with Texas Emergency Management officials. Kerr County Sheriff Larry Leitha and Thomas both acknowledged being asleep as a crisis was unfolding.

Lt. Gov. Dan Patrick expressed his frustration.

“I’m not pointing a finger, I’m not blaming you, I just want to set the record straight. Everyone was here that day working their ass off, and you were nowhere to be found,” Patrick said as the audience applauded.

Thomas said on the morning of July 4, he was first awakened by his wife around 5:30 a.m., about two hours after emergency rescue operations were underway, and quickly drove to the sheriff’s office.

“There was no visible flooding on my drive into the office, but it quickly became clear that the situation was escalating,” he said.

In other testimony, local officials said they needed but lacked an updated warning system, when flash flooding swept away homes and vehicles and left families begging for rescue on the roofs of their homes earlier this month.

Others who testified Thursday before an audience of hundreds of people — some who wore green ribbons in memory of the victims — called for urgent improvements for better flood warnings and flood mitigation.

Kelly said residents had virtually no warning of the impending weather catastrophe until it was too late.

“We need stronger communications and better broadband so we can communicate better,” he said, adding that poor cell service did not help those along the river. “What we experienced on July 4 was sudden, violent and overwhelming.”

Leitha presented a timeline of events to lawmakers and said emergency responders realized they had an “all-hands-on-deck” situation as early as 3:30 a.m., when dispatchers received a call from a family stranded on their roof requesting air evacuation. But Leitha acknowledged he was not alerted of the flooding until about an hour later, at around 4:20 a.m.

Kelly, who holds a position in Texas that functions as the county’s chief executive officer, testified that he was out of town at Lake Travis on the morning of the flood and woke up around 5:30 a.m.

Rep. Ann Johnson, a Democrat from Houston, asked Leitha whether the county should have a protocol in place for when three of the top county officials are not available during an emergency.

“Yes, ma’am, we can look at that real hard,” Leitha said. “Yes, I can look and maybe they can call me earlier.”

Residents along the Guadalupe River have said they were caught off guard and had no warning when rainfall struck. Kerr County does not have a warning system along the river after several missed opportunities by state and local agencies to finance one.

The hearing comes as authorities have begun publicly releasing records and audio — including 911 calls — that have provided new glimpses into the escalating danger and chaos in the early hours of the July Fourth holiday. They include panicked and confused messages from residents caught in trees as well as families fleeing with children from homes with water creeping up to the knees.

“People are dying,” one woman tells a 911 operator in call logs released by nearby Kendall County. She says she had a young relative at a church camp in Kerr County who was stranded along with his classmates because of the high waters.

“I don’t want them to get stuck in a low-water crossing. And what are they going to do? They have like 30 kids,” the woman says.

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Lathan is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues.

This story was originally featured on Fortune.com

© AP Photo/Eric Gay

Former NBA star Gilbert Arenas was arrested Wednesday along with five other people, including a suspected member of an Israeli organized crime group, on suspicion of hosting illegal high-stakes poker games at a Los Angeles mansion owned by Arenas, federal prosecutors said.

All six defendants are charged with one count of conspiracy to operate an illegal gambling business and one count of operating an illegal gambling business, according to a statement from the U.S. Attorney’s Office. They were all scheduled to be arraigned Wednesday afternoon.

Arenas, 43, is also charged with making false statements to federal investigators, the statement said. He is named in the indictment as ”Agent Zero,” a nickname from his playing days with the Washington Wizards.

Arenas appeared in court Wednesday afternoon in downtown Los Angeles and was released on a $50,000 bond after pleading not guilty to the charges. His trial is scheduled for Sept. 23.

His attorney Jerome Friedberg said outside the courthouse that he hadn’t had much time to speak with his client and couldn’t comment on the case.

“At this point in the case, he is presumed innocent, right?” Friedberg said. “He has the same right as any other citizen to that presumption and that’s how he should be treated.”

The other five defendants are residents of Los Angeles ranging in age from 27 to 52. Among them is a 49-year-old man described by prosecutors as “a suspected organized crime figure from Israel.”

The indictment says that from September 2021 to July 2022, the defendants staged the home in the Encino neighborhood to host “Pot Limit Omaha” poker games and other illegal gambling activity. The poker players paid a “rake,” a fee charged as a percentage or fixed amount from each hand gambled, court documents claim.

One of the defendants hired young women who, in exchange for tips, served drinks and provided massages and “offered companionship” to the poker players, according to prosecutors.

“The women were charged a ‘tax’ – a percentage of their earnings from working the games. Chefs, valets, and armed security guards also were hired to staff these illegal poker games,” the statement said.

The Israeli man faces separate charges including marriage fraud and lying on immigration documents. He is suspected of conspiring with a 35-year-old Los Angeles woman to enter into a sham marriage for the purposes of obtaining permanent legal status in the U.S.

If convicted, the defendants would face a statutory maximum sentence of five years in federal prison for each count, prosecutors said.

Arenas averaged 20.7 points during an 11-year career with four teams, most notably a seven-plus season stint in Washington from 2004-11.

Charismatic and mercurial, Arenas — who counted “Agent Zero” (representing his number) and “Hibachi” for the way he could heat up during a game among his many nicknames — was a three-time All-Star, a gifted scorer and one of the key cogs in a handful of Wizards teams that enjoyed modest success in the mid-to-late 2000s.

Yet Arenas’ run in Washington ended in disgrace. Arenas and teammate Javaris Crittenton were suspended for the balance of the NBA season in January 2010 following a locker-room incident in which both players pulled guns on each other.

Arenas returned to play briefly for Washington the following season before being traded to Orlando. He then bounced to Memphis in 2011, coming off the bench for 17 games before stepping away to play in the Chinese Basketball Association in 2012-13. He never returned to the NBA.

His son, Alijah Arenas, was a Los Angeles high school basketball star who is a highly touted freshman player for the University of Southern California. His college career is on hold pending knee surgery and rehab is expected to take months, the school said last week.

This story was originally featured on Fortune.com

© AP Photo/Nick Wass, File

Microsoft said Wednesday that annual revenue for its flagship Azure cloud computing platform has surpassed $75 billion, up 34% from a year earlier.

The Azure cloud business is a centerpiece of Microsoft’s efforts to shift its focus to artificial intelligence, but until Wednesday the company hadn’t disclosed how much money it makes.

The revelation came in the software giant’s end-of-year earnings report, one that also showed a 24% spike in the company’s quarterly profit that beat Wall Street expectations and pleased investors wary about Microsoft’s ongoing construction of costly new data centers needed to meet cloud computing and AI demand.

“We continue to scale our own data center capacity faster than any other competitor,” CEO Satya Nadella said on an investor call, boasting that the company now has more than 400 of the sprawling facilities across six continents.

Microsoft’s fiscal fourth-quarter profit was $34.3 billion, or $3.65 per share, beating analyst expectations for $3.37 per share.

It posted revenue of $76.4 billion in the April-June period, up 18% from last year. Analysts polled by FactSet Research had been looking for revenue of $73.86 billion.

Microsoft launched Azure more than a decade ago, but the service has increasingly become intertwined with its AI ambitions, as the company looks to sell its AI chatbot and other tools to big business customers that are also reliant on its core online services.

It still trails behind its lead competitor, Amazon Web Services, which reported $107.6 billion in revenue for its fiscal year that ended in December.

Building the infrastructure to power cloud and AI technology is expensive, and Microsoft has looked for savings elsewhere. It announced layoffs of about 15,000 workers this year even as its profits have soared.

Nadella told employees last week the layoffs were “weighing heavily” on him but also positioned them as an opportunity to reimagine the company’s mission for an AI era.

Still, the overall workforce numbers haven’t changed. The company said it employed 228,000 full-time employees as of June 30, the exact same amount it reported a year ago, though slightly more of them are now U.S.-based and fewer of them are in product support roles or consulting services.

Promises of a leaner approach have been welcomed on Wall Street, especially as Microsoft and other tech giants are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology.

Google said after releasing its earnings last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft’s chief financial officer, Amy Hood, said she expects capital spending for the July-September quarter to be $30 billion.

Microsoft didn’t disclose Wednesday to what extent sweeping U.S. tariffs are affecting its revenue, but its annual report lists tariffs among a number of risks the company faces.

“Increased geopolitical instabilities and changing U.S. administration priorities create an unpredictable trade landscape,” the company said. It also said the “volatility of U.S. tariffs has triggered economic uncertainty and could impact cloud and devices supply chain cost competitiveness.”

This story was originally featured on Fortune.com

© AP Photo/Jason Redmond, File

Whether it serves as a chill escape from the onslaught of the real world or simply a way to beat vacation doldrums, a viral Roblox game about gardening has become the surprise hit of the summer.

Grow a Garden, created by a 16-year-old in a few days, has shattered records for the most concurrent players of any game in history, beating out video games that take years and millions of dollars to develop.

And there’s no one to shoot, fight or race. If your last attempt at cultivating vegetables was FarmVille in 2010, don’t worry — your tomatoes will grow even if you never water them.

Grow a Garden is as simple as its name suggests — players can fill a plot of land with plants and animals, harvest and sell, trade or steal each others’ bounty. The game is low stress, with an aesthetic reminiscent of Minecraft and a soundtrack of soothing classical tunes such as Mozart’s Rondo Alla Turca playing in the background. Its popularity has further cemented Roblox’ place not just in the gaming world but in popular culture — for better or for worse, it’s where the kids hang out.

“The word I keep hearing used over and over to describe this particular game is that it’s chill, which is just such a nice alternative. I get a lot of sort of that Animal Crossing vibe from it. You know, like you can check in, you can check your gardens, you can get some new seeds, you can plant them,” said Becky Bozdech, editorial director at the nonprofit Common Sense Media. “I have an 11-year-old son who (plays it) and he says to him the big difference is that a lot of games have a big giant objective that you have to do, but in Grow a Garden, you can just kind of hang out and do what you want.”

Coincidence or not, Grow a Garden soared to popularity around the same time that Take-Two Interactive announced it would delay the launch of its wildly anticipated Grand Theft Auto 6 until next year. In late June, the gardening game logged 21.6 million concurrent players, surpassing Fortnite’s previous record of 15.2 million according to Roblox. Analysts who follow Roblox’s stock say Grow a Garden is helping boost the company’s revenue and will push the company’s quarterly earnings numbers above Wall Street’s expectations.

While it’s not clear if the GTA audience flocked to this simple gardening game to pass the time until then, the timing reignited the age-old debate about who gamers are and what titles are taken seriously by the video game establishment. It happened with Candy Crush, with puzzle games, with Animal Crossing. Are people who play cozy games true gamers? Or is the title reserved for the folks who shoot enemies in Call of Duty or drive around creating mayhem in GTA?

“There’s a huge percentage of gamers that play Roblox and the actual industry just views it as like this esoterically immature platform of weird gameplay habits,” said Janzen Madsen, the New Zealand-based CEO and founder of Splitting Point studios, which acquired the game from its teenage creator. “Well, I actually think in five years this is what player expectation is gonna be. And because you guys haven’t embraced it, like you’re not gonna know how to make games.”

To start growing your garden, you’ll need a Roblox account. The game will start you out with an empty plot and some money — sheckles — and a starter seed. From there, you can plant seeds, harvest and sell your crops and buy more seeds, animals or tools for your garden. While it is possible to play the game without spending real-world money, it will take longer. Once you sell enough crops, you earn money to buy more expensive seeds beyond basic carrots and blueberries.

“For me, I just, I really want to get all the rarest stuff. I’m a completionist, so I want everything and that’s what’s fun for me,” said Leah Ashe, a YouTuber who plays Grow a Garden and other popular games to an audience of 5.3 million. “It’s really cool because you can come together because the seed shop is global, so everybody’s shop is the exact same. So you can work with other people and be like, ‘Oh my gosh, the sugar apple is in stock. Get online!’ The seed shop updates every five minutes, so there’s always something pulling you back into the game.”

For Roblox, which has faced a backlash for not doing enough to protect kids on its gaming service, Grow a Garden has served as something of a reprieve — along with new safety measures such as chat restrictions and privacy tools.

New players get help from more established peers who send them gifts and let them know when rare seeds become available in the seed shop.

Bozdech said that “if you have the right supervision and guidance,” Roblox can be a positive experience for kids, allowing them to create their own designs or practice coding, for instance.

“Something like Grow a Garden, particularly, is a nice opportunity maybe for parents and kids to play together,” she said.

And perhaps the slow cultivating of a magical garden can benefit parents too.

“It’s hitting a nerve, you know?” Bozdech said. “People need an escape from the world, I think we all do.”

This story was originally featured on Fortune.com

© Janzen Madsen via AP

If you read the typical 2025 mass layoff notice from a tech industry CEO, you might think that artificial intelligence cost workers their jobs.

The reality is more complicated, with companies trying to signal to Wall Street that they’re making themselves more efficient as they prepare for broader changes wrought by AI.

A new report Wednesday from career website Indeed says tech job postings in July were down 36% from their early 2020 levels, with AI one but not the most obvious factor in stalling a rebound.

ChatGPT’s debut in late 2022 also corresponded with the end of a pandemic-era hiring binge, making it hard to isolate AI’s role in the hiring doldrums that followed.

“We’re kind of in this period where the tech job market is weak, but other areas of the job market have also cooled at a similar pace,” said Brendon Bernard, an economist at the Indeed Hiring Lab. “Tech job postings have actually evolved pretty similarly to the rest of the economy, including relative to job postings where there really isn’t that much exposure to AI.”

The template for tech CEO layoff notices in 2025 includes an AI pivot

That nuance is not always clear from the last six months of tech layoff emails, which often include a nod to AI in addition to expressions of sympathy.

When he announced mass layoffs earlier this year, Workday CEO Carl Eschenbach invited employees to consider the bigger picture: “Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.”

Autodesk CEO Andrew Anagnost explained that a need to shift resources to “accelerate investments” in AI was one of the reasons the company had to cut 1,350, or about 9%, of workers.

The “Why We’re Doing This” section of CrowdStrike CEO George Kurtz’s announcement of 5% job cuts said the cybersecurity company needed to double down on AI investments to “accelerate execution and efficiency.”

“AI flattens our hiring curve, and helps us innovate from idea to product faster,” Kurtz wrote.

It’s not just U.S. companies. In India, tech giant Tata Consultancy Services recently characterized its 12,000 layoffs, or 2% of its workforce, as part of a shift to a “Future-Ready organization” that would be realigning its workforce and “deploying AI at scale for our clients and ourselves.”

Even the Japanese parent company of Indeed and Glassdoor has cited an AI shift in its notice of 1,300 layoffs at the job search and workplace review sites.

AI spending, not replacement, is a more common factor

Microsoft, which is scheduled to release its fourth-quarter earnings Wednesday, has announced layoffs of about 15,000 workers this year even as its profits have soared.

Microsoft CEO Satya Nadella told employees last week the layoffs were “weighing heavily” on him but also positioned them as an opportunity to reimagine the company’s mission for an AI era.

Promises of a leaner approach have been welcomed on Wall Street, especially from tech giants that are trying to justify huge amounts of capital spending to pay for the data centers, chips and other components required to power AI technology.

“It’s this sort of double-edged sword restructuring that I think a lot of tech giants are encountering in this age of AI, where they have to find the right balance between maintaining an appropriate headcount, but also allowing artificial intelligence to come to the forefront,” said Bryan Hayes, a strategist at Zacks Investment Research.

Google said last week it would raise its budget for capital expenditures by an additional $10 billion to $85 billion. Microsoft is expected to outline similar guidance soon.

The role of AI in job replacement is hard to track

One thing is clear to Hayes: Microsoft’s job cuts improve its profit margin outlook for the 2026 fiscal year that started in July.

But what these broader tech industry layoffs mean for the employment prospects of tech workers can be harder to gauge.

“Will AI replace some of these jobs? Absolutely,” said Hayes. “But it’s also going to create a lot of jobs. Employees that are able to leverage artificial intelligence and help the companies innovate, and create new products and services, are going to be the ones that are in high demand.”

He pointed to Meta Platforms, the parent company of Facebook and Instagram, which is on a spree of offering lucrative packages to recruit elite AI scientists from competitors such as OpenAI.

The reports published by Indeed on Wednesday show that AI specialists are faring better than standard software engineers, but even those jobs are not where they have been.

“Machine-learning engineers — which is kind of the canonical AI job — those job postings are still noticeably above where they were pre-pandemic, though they’ve actually come down compared to their 2022 peak,” said Bernard, the Indeed economist. “They’ve also been impacted by the cyclical ups and downs of the sector.”

Economists are watching for AI’s effects on entry-level tech jobs

Tech hiring has particularly plunged in AI hubs such as the San Francisco Bay Area, as well as Boston and Seattle, according to Indeed.

But in looking more closely at which tech workers were least likely to get hired, Indeed found the deepest impact on entry-level jobs in the tech industry, with those with at least five years of experience faring better.

The hiring declines were sharpest in entry-level tech industry jobs that involve marketing, administrative assistance and human resources, which all involve tasks that overlap with the strength of the latest generative AI tools that can help create documents and images.

“The plunge in tech hiring started before the new AI age, but the shifting experience requirements is something that happened a bit more recently,” Bernard said.

Microsoft, which is staking its future on AI in the workplace, has also had its own researchers look into the jobs most vulnerable to the current strengths of AI technology. At the top of the list are knowledge work jobs such as language interpreters or translators, as well as historians, passenger attendants, sales representatives, writers and customer service representatives, according to Microsoft’s working paper.

On the other end, leading in work more immune to AI changes were phlebotomists, or healthcare workers who draw blood, followed by nursing assistants, workers who remove hazardous materials, painters and embalmers.

This story was originally featured on Fortune.com

© AP Photo/Nam Y. Huh

Federal Reserve Chair Jerome Powell gave little indication on Wednesday of bowing anytime soon to President Donald Trump’s frequent demands that he cut interest rates, even as signs of dissent emerged on the Fed’s governing board.

The Fed left its key short-term interest rate unchanged for the fifth time this year, at about 4.3%, as was expected. But Powell also signaled that it could take months for the Fed to determine whether Trump’s sweeping tariffs will push up inflation temporarily or lead to a more persistent bout of higher prices. His comments suggest that a rate cut in September, which had been expected by some economists and investors, is now less likely.

“We’ve learned that the process will probably be slower than expected,” Powell said. “We think we have a long way to go to really understand exactly how” the tariffs will affect inflation and the economy.

There were some signs of splits in the Fed’s ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while nine officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didn’t vote.

The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies.

Powell has in the past signaled during a news conference that a rate move might be on the table for an upcoming meeting, but he gave no such hints this time. The odds of a rate cut in September, according to futures pricing, fell from nearly 60% before the meeting to just 45% after the press conference, the equivalent of a coin flip, according to CME Fedwatch.

“We have made no decisions about September,” Powell said. The chair acknowledged that if the Fed cut its rate too soon, inflation could move higher, and if it cut too late, then the job market could suffer.

Major U.S. stock indexes, which had been trading slightly higher Wednesday, went negative after Powell’s comments.

“The markets seem to think that Powell pushed back on a September rate cut,” said Lauren Goodwin, chief market strategist at New York Life Investments.

Powell also underscored that the vast majority of the committee agreed with a basic framework: Inflation is still above the Fed’s target of 2%, while the job market is still mostly healthy, so the Fed should keep rates elevated. On Thursday, the government will release the latest reading of the Fed’s preferred inflation gauge, and it is expected to show that core prices, excluding energy and food, rose 2.7% from a year earlier.

Gus Faucher, chief economist at PNC Financial, says he expects the tariffs will only temporarily raise inflation, but that it will take most of the rest of this year for that to become apparent. He doesn’t expect the Fed to cut until December.

Trump argues that because the U.S. economy is doing well, rates should be lowered. But unlike a blue-chip company that usually pays lower rates than a troubled startup, it’s different for an entire economy. The Fed adjusts rates to either slow or speed growth, and would be more likely to keep them high if the economy is strong to prevent an inflationary outbreak.

Earlier Wednesday, the government said the economy expanded at a healthy 3% annual rate in the second quarter, though that figure followed a negative reading for the first three months of the year, when the economy shrank 0.5% at an annual rate. Most economists averaged the two figures to get a growth rate of about 1.2% for the first half of this year.

The dissents from Waller and Bowman likely reflect jockeying to replace Powell, whose term ends in May 2026. Waller in particular has been mentioned as a potential future Fed chair.

Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, “it would say more about auditioning for the Fed chair appointment than about economic conditions.”

Bowman, meanwhile, last dissented in September 2024, when the Fed cut its key rate by a half-point. She said she preferred a quarter point cut instead, and cited the fact that inflation was still above 2.5% as a reason for caution.

Waller said earlier this month that he favored cutting rates, but for very different reasons than Trump has cited: Waller thinks that growth and hiring are slowing, and that the Fed should reduce borrowing costs to forestall a rise in unemployment.

There are other camps on the Fed’s 19-member rate-setting committee — only 12 of the 19 actually vote on rate decisions. In June, seven members signaled that they supported leaving rates unchanged through the end of this year, while two suggested they preferred a single rate cut. The other half supported more reductions, with eight officials backing two cuts, and two — widely thought to be Waller and Bowman — supporting three reductions.

The dissents could be a preview of what might happen after Powell steps down, if Trump appoints a replacement who pushes for the much lower interest rates the White House desires. Other Fed officials could push back if a future chair sought to cut rates by more than economic conditions would otherwise support.

Overall, the committee’s quarterly forecasts in June suggested the Fed would cut twice this year. There are only three more Fed policy meetings — in September, October, and December.

When the Fed cuts its rate, it often — but not always — results in lower borrowing costs for mortgages, auto loans and credit cards.

Some economists agree with Waller’s concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care.

“We are in a much slower job hiring backdrop than most people appreciate,” said Tom Porcelli, chief U.S. economist at PGIM Fixed Income.

This story was originally featured on Fortune.com

© AP Photo/Julia Demaree Nikhinson, File

U.S. fashion retailer American Eagle Outfitters wanted to make a splash with its new advertising campaign starring 27-year-old actor Sydney Sweeney. The ad blitz included “clever, even provocative language” and was “definitely going to push buttons,” the company’s chief marketing officer told trade media outlets.

It has. The question now is whether some of the public reactions the fall denim campaign produced is what American Eagle intended.

Titled “Sydney Sweeney has great jeans,” the campaign sparked a debate about race, Western beauty standards, and the backlash to “woke” American politics and culture. Most of the negative reception focused on videos that used the word “genes” instead of “jeans” when discussing the blonde-haired, blue-eyed actor known for the HBO series “Euphoria” and “White Lotus.”

Some critics saw the wordplay as a nod, either unintentional or deliberate, to eugenics, a discredited theory that held humanity could be improved through selective breeding for certain traits.

Marcus Collins, an assistant professor of marketing at the University of Michigan’s Ross School of Business, said the criticism could have been avoided if the ads showed models of various races making the “genes” pun.

“You can either say this was ignorance, or this was laziness, or say that this is intentional,” Collins said. “Either one of the three aren’t good.”

Other commenters accused detractors of reading too much into the campaign’s message.

“I love how the leftist meltdown over the Sydney Sweeney ad has only resulted in a beautiful white blonde girl with blue eyes getting 1000x the exposure for her ‘good genes,’” former Fox News host Megyn Kelly wrote Tuesday on X.

American Eagle didn’t respond to requests for comment from The Associated Press.

A snapshot of American Eagle

The ad blitz comes as the teen retailer, like many merchants, wrestles with sluggish consumer spending and higher costs from tariffs. American Eagle reported that total sales were down 5% for its February-April quarter compared to a year earlier.

A day after Sweeney was announced as the company’s latest celebrity collaborator, American Eagle’s stock closed more than 4% up. Shares were volatile this week and trading nearly 2% down Wednesday.

Like many trendy clothing brands, American Eagle has to differentiate itself from other mid-priced chains with a famous face or by saying something edgy, according to Alan Adamson, co-founder of marketing consultancy Metaforce.

Adamson said the Sweeney campaign shares a lineage with Calvin Klein jeans ads from 1980 that featured a 15-year-old Brooke Shields saying, “You want to know what comes in between me and my Calvins? Nothing.” Some TV networks declined to air the spots because of its suggestive double entendre and Shields’ age.

“It’s the same playbook: a very hot model saying provocative things shot in an interesting way,” Adamson said.

Billboards, Instagram and Snapchat

Chief Marketing Officer Craig Brommers told industry news website Retail Brew last week that “Sydney is the biggest get in the history of American Eagle,” and the company would promote the partnership in a way that matched.

The campaign features videos of Sweeney wearing slouchy jeans in various settings. She will appear on 3-D billboards in Times Square and elsewhere, speaking to users on Snapchat and Instagram, and in an AI-enabled try-on feature.

American Eagle also plans to launch a limited edition Sydney jean to raise awareness of domestic violence, with sales proceeds going to a nonprofit crisis counseling service.

In a news release, the company noted “Sweeney’s girl next door charm and main character energy – paired with her ability to not take herself too seriously – is the hallmark of this bold, playful campaign.”

Jeans, genes and their many meanings

In one video, Sweeney walks toward an American Eagle billboard of her and the tagline “Sydney Sweeney has great genes.” She crosses out “genes” and replaces it with “jeans.”

But what critics found the most troubling was a teaser video in which Sweeney says, “Genes are passed down from parents to offspring, often determining traits like hair color, personality and even eye color. My jeans are blue.”

The video appeared on American Eagle’s Facebook page and other social media channels but is not part of the campaign.

While remarking that someone has good genes is sometimes used as a compliment, the phrase also has sinister connotations. Eugenics gained popularity in early 20th century America, and Nazi Germany embraced it to carry out Adolf Hitler’s plan for an Aryan master race.

Civil rights activists have noted signs of eugenics regaining a foothold through the far right’s promotion of the “great replacement theory,” a racist ideology that alleges a conspiracy to diminish the influence of white people.

Shalini Shankar, a cultural and linguistic anthropologist at Northwestern University in Evanston, Illinois, said she had problems with American Eagle’s “genes” versus “jeans” because it exacerbates a limited concept of beauty.

“American Eagle, I guess, wants to rebrand itself for a particular kind of white privileged American,” Shankar said. “And that is the kind of aspirational image they want to circulate for people who want to wear their denim.”

A cultural shift in advertising

Many critics compared the American Eagle ad to a misstep by Pepsi in 2017, when it released a TV ad that showed model Kendall Jenner offer a can of soda to a police officer while ostensibly stepping away from a photo shoot to join a crowd of protesters.

Viewers mocked the spot for appearing to trivialize protests of police killings of Black people. Pepsi apologized and pulled the ad.

The demonstrations that followed the 2020 killing of George Floyd by a white police officer in Minneapolis pushed many U.S. companies to make their advertising better reflect consumers of all races.

Some marketers say they’ve observed another shift since President Donald Trump returned to office and moved to abolish all federal DEI programs and policies.

Jazmin Burrell, founder of brand consulting agency Lizzie Della Creative Strategies, said she’s noticed while shopping with her cousin more ads and signs that prominently feature white models.

“I can see us going back to a world where diversity is not really the standard expectation in advertising,” Burrell said.

American Eagle’s past and future

American Eagle has been praised for diverse marketing in the past, including creating a denim hijab in 2017 and offering its Aerie lingerie brand in a wide range of sizes. A year ago, the company released a limited edition denim collection with tennis star Coco Gauff.

The retailer has an ongoing diversity, equity and inclusion program that is primarily geared toward employees. Two days before announcing the Sweeney campaign, American Eagle named the latest recipients of its scholarship award for employees who are driving anti-racism, equality and social justice initiatives.

Marketing experts offer mixed opinions on whether the attention surrounding “good jeans” will be good for business.

“They were probably thinking that this is going to be their moment,” Myles Worthington, the founder and CEO of marketing and creative agency WORTHI. “But this is doing the opposite and deeply distorting their brand.”

Melissa Murphy, a marketing professor at Carnegie Mellon University’s Tepper School of Business, said she liked certain parts of the campaign but hoped it would be expanded to showcase people besides Sweeney for the “sake of the brand.”

Other experts say the buzz is good even if it’s not uniformly positive.

“If you try to follow all the rules, you’ll make lots of people happy, but you’ll fail,” Adamson said. “The rocket won’t take off. ”

This story was originally featured on Fortune.com

© Scott A Garfitt/Invision/AP, File

Treasury Secretary Scott Bessent said Wednesday that the Trump administration was committed to protecting Social Security hours after he said in an interview that a new children’s savings program President Donald Trump signed into law “is a back door for privatizing Social Security.”

Bessent said Wednesday evening that the accounts created under Trump’s tax break-and-spending cut law “will supplement the sanctity of Social Security’s guaranteed payments.”

“This is not an either-or question: our Administration is committed to protecting Social Security and to making sure seniors have more money,” Bessent said in a post on X.

Bessent’s remarks about privatizing Social Security, which he made at a forum hosted by Breitbart News, were striking after Trump’s repeated promises on the campaign trail and in office that he would not touch Social Security. It also reignited an issue that has dogged Republicans for years.

The White House did not respond to a request for comment.

Democrats quickly seized on the comment as a sign the GOP wants to revive a dormant but unpopular push to privatize the long-running retirement program.

“A stunning admission,” Senate Democratic leader Chuck Schumer said in a Senate speech. “Bessent actually slipped, told the truth: Donald Trump and government want to privatize Social Security.”

The idea of privatizing Social Security has been raised by Republicans before, but quickly abandoned. Millions of Americans have come to rely on the certainty of the federal program in which they pay into the system during their working years and then receive guaranteed monthly checks in their older age.

Privatization proposals would shift the responsibility for the retirement savings system away from the government and onto Americans themselves. Through personal savings accounts, people would need to manage their own funds, which may or may not be enough to live on as they age.

Under the GOP’s “big, beautiful bill,” as the law is called, Republicans launched a new children’s savings program, Trump Accounts, which can be created for babies born in the U.S. and come with a potential $1,000 deposit from the Treasury.

Much like an individual retirement account, the Trump Accounts can grow over time, with a post-tax contribution limit of $5,000 a year, and are expected to be treated similarly to the rules for an IRA, and can eventually be tapped for distribution in adulthood.

But Bessent on Wednesday allowed for another rationale for the accounts, suggesting they could eventually be the way Americans save for retirement.

“In a way, it is a back door for privatizing Social Security,” Bessent said while speaking about the program.

The Treasury Department later issued a statement that said, “Trump Accounts are an additive government program that work in conjunction with Social Security to broaden and increase the savings and wealth of Americans. Social Security is a critical safety net for Americans and always will be.”

Ever since the George W. Bush administration considered proposals to privatize Social Security more than 20 years ago, Republicans have publicly moved away from talking about the issue that proved politically unpopular and was swiftly abandoned.

In the run-up to the 2006 midterms, Democrats capitalized on GOP plans to privatize Social Security, warning it would decimate the program that millions of Americans have come to rely on in older age. They won back control of both the House and the Senate in Congress.

The Democrats warned Wednesday that Bessent’s comments showed that Republicans want to shift the government-run program to a private one and are again trying to dismantle the retirement program that millions of Americans depend on.

“Donald Trump’s Treasury Secretary Scott Bessent just said the quiet part out loud: The administration is scheming to privatize Social Security,” Tim Hogan, a spokesperson for the Democratic National Committee, said in a statement.

“It wasn’t enough to kick millions of people off their health care and take food away from hungry kids. Trump is now coming after American seniors with a ‘backdoor’ scam to take away the benefits they earned,” Hogan said.

The Social Security program has faced dire financial projections for decades, but changes have long been politically unpopular.

Social Security’s trust funds, which cover old age and disability recipients, will be unable to pay full benefits beginning in 2034, according to the most recent report from the program’s trustees.

Those officials have said those findings underline the urgency of making changes to programs.

Trump, attuned to Social Security’s popularity, has repeatedly said he would protect it.

Throughout his 2024 presidential campaign, Trump repeatedly said he would “always protect Social Security” and said his Democratic opponents, President Joe Biden and Vice President Kamala Harris, would destroy the program.

During the 2024 primary, he accused other Republicans who have expressed support for raising the age for Social Security of being threats to the program.

Trump said in an interview with NBC’s “Meet the Press” in December after he won the presidential election that “we’re not touching Social Security, other than we might make it more efficient.”

His White House this year said Trump “will always protect Social Security.”

Social Security Administration Commissioner Frank Bisignano, a Wall Street veteran, was asked at his confirmation hearing in March about whether Social Security should be privatized. He said he’d “never heard a word of it” and “never thought about it.”

This story was originally featured on Fortune.com

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A federal judge on Monday ruled Planned Parenthood clinics nationwide must continue to be reimbursed for Medicaid funding as the nation’s largest abortion provider fights President Donald Trump’s administration over efforts to defund the organization in his signature tax legislation.

The new order replaces a previous edict handed down by U.S. District Judge Indira Talwani in Boston last week. Talwani initially granted a preliminary injunction specifically blocking the government from cutting Medicaid payments to Planned Parenthood members that didn’t provide abortion care or didn’t meet a threshold of at least $800,000 in Medicaid reimbursements in a given year.

“Patients are likely to suffer adverse health consequences where care is disrupted or unavailable,” Talwani wrote in her Monday order. “In particular, restricting Members’ ability to provide healthcare services threatens an increase in unintended pregnancies and attendant complications because of reduced access to effective contraceptives, and an increase in undiagnosed and untreated STIs.”

A provision in Trump’s tax bill instructed the federal government to end Medicaid payments for one year to abortion providers that received more than $800,000 from Medicaid in 2023, even to those like Planned Parenthood that also offer medical services like contraception, pregnancy tests and STD testing.

Although Planned Parenthood is not specifically named in the statute, which went into effect July 4, the organization’s leaders say it was meant to affect their nearly 600 centers in 48 states. However, a major medical provider in Maine and likely others have also been hit.

In her Monday order, Talwani said that the court was “not enjoining the federal government from regulating abortion and is not directing the federal government to fund elective abortions or any healthcare service not otherwise eligible for Medicaid coverage.” Instead, Talwani said that her decision would block the federal government from excluding groups like Planned Parenthood from Medicaid reimbursements when they have demonstrated a substantial likelihood of success in their legal challenge.

In its lawsuit, Planned Parenthood had argued that they would be at risk of closing nearly 200 clinics in 24 states if they are cut off from Medicaid funds. They estimated this would result in more than 1 million patients losing care.

“We’re suing the Trump administration over this targeted attack on Planned Parenthood health centers and the patients who rely on them for care,” said Planned Parenthood’s president and CEO Alexis McGill Johnson in a statement on Monday. “This case is about making sure that patients who use Medicaid as their insurance to get birth control, cancer screenings, and STI testing and treatment can continue to do so at their local Planned Parenthood health center, and we will make that clear in court.”

The lawsuit was filed earlier this month against Health and Human Services Secretary Robert F. Kennedy Jr. by Planned Parenthood Federation of America and its member organizations in Massachusetts and Utah.

The federal department of health did not immediately respond to requests for comment.

Previously, the department said it strongly disagreed with the judge’s initial order that allowed some Planned Parenthood members to receive Medicaid funding.

“States should not be forced to fund organizations that have chosen political advocacy over patient care,” said the department’s communication director, Andrew Nixon. Doing so, he said, “undermines state flexibility” and “concerns about accountability.”

Medicaid is a government health care program that serves millions of low-income and disabled Americans. Nearly half of Planned Parenthood’s patients rely on Medicaid.

This story was originally featured on Fortune.com

© Jeff Roberson—AP Photo

SAN FRANCISCO (AP) — A pilot was arrested aboard a Delta Air Lines flight and federal agents took him into custody from the cockpit after the plane landed at San Francisco International Airport.

The pilot, whose identity wasn’t immediately released, was arrested on charges relating to child sexual abuse material, an official with the Department of Homeland Security said Monday.

Passengers aboard the flight from Minneapolis to San Francisco on Saturday posted video online showing federal agents walking through the aisle of the plane.

A message left with Delta Air Lines on Monday was not immediately returned and authorities provided no other details about the arrest.

A Delta spokesperson on Sunday deferred comment to law enforcement.

This story was originally featured on Fortune.com

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CANTON, Ohio (AP) — Vice President JD Vance is hitting his home state on Monday to continue promoting the GOP’s sweeping tax-and-border bill.

A crowd in neon green, orange, yellow and red hardhats and safety glasses gathered at the steel company Metallus Inc. in Canton, about 60 miles (96.56 kilometers) from Cleveland, to await his visit.

The visit marks Vance’s second trip this month to sell the package, filled with a hodgepodge of conservative priorities that Republicans have dubbed the “One Big, Beautiful Bill” as the vice president becomes its chief promoter on the road.

In West Pittston, Pennsylvania, Vance told attendees at an industrial machine shop that they should be able to keep more of their pay in their pockets, highlighting the law’s new tax deductions on overtime.

Vance also discussed a new children’s savings program called Trump Accounts and how the new law promotes energy extraction, while decrying Democrats for opposing the bill that keeps the current tax rates, which would have otherwise expired later this year.

The legislation cleared the GOP-controlled Congress by the narrowest of margins, with Vance breaking a tie vote in the Senate for the package that also sets aside hundreds of billions of dollars for Trump’s immigration agenda while slashing Medicaid and food stamps.

The vice president is also stepping up his public relations blitz on the bill as the White House tries to deflect attention away from the growing controversy over Jeffrey Epstein.

The disgraced financier killed himself, authorities say, in a New York jail cell in 2019 as he awaited trial on sex trafficking charges. Trump and his top allies stoked conspiracy theories about Epstein’s death before Trump returned to the White House and are now reckoning with the consequences of a Justice Department announcement earlier this month that Epstein did indeed die by suicide and that no further documents about the case would be released.

A small group of protesters assembled outside the Metallus plant brandishing signs that spelled out “JD Protects Pedophiles” and indicating that “GOP” stands for “Guardians Of Pedophiles.” Signs also called the Big Beautiful Bill “ugly” and “bulls(asterisk)(asterisk)(asterisk)t.”

Questions about the case continued to dog Trump in Scotland, where he on Sunday announced a framework trade deal with the European Union.

Asked about the timing of the trade announcement and the Epstein case and whether it was correlated, Trump responded: “You got to be kidding with that.”

“No, had nothing to do with it,” Trump told the reporter. “Only you would think that.”

The White House sees the new law as a clear political boon, sending Vance to promote it in swing congressional districts that will determine whether Republicans retain their House majority next year.

The northeastern Pennsylvania stop is in the district represented by Republican Rep. Rob Bresnahan, a first-term lawmaker who knocked off a six-time Democratic incumbent last fall.

On Monday, Vance will be in the district of Democratic Rep. Emilia Sykes, who is a top target for the National Republican Congressional Committee this cycle.

A spokesperson for the Democratic Congressional Campaign Committee called it “another desperate attempt to lie to Ohioans about the devastating impact the Big, Ugly Law will have on working families.” in a statement.

In the statement, Katie Smith said Sykes “fought tooth and nail against this disastrous law.”

Polls before the bill’s passage showed that it largely remained unpopular, although the public approves of some individual provisions such as increasing the child tax credit and allowing workers to deduct more of their tips on taxes.

This story was originally featured on Fortune.com

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Lawyers seeking a temporary restraining order against an immigration detention center in the Florida Everglades say that “Alligator Alcatraz” detainees have been barred from meeting attorneys, are being held without any charges and that a federal immigration court has canceled bond hearings.

A virtual hearing in federal court in Miami was being held Monday on a lawsuit that was filed July 16. A new motion on the case was filed Friday.

Lawyers who have shown up for bond hearings for “Alligator Alcatraz” detainees have been told that the immigration court doesn’t have jurisdiction over their clients, the attorneys wrote in court papers. The immigration attorneys demanded that federal and state officials identify an immigration court that has jurisdiction over the detainees and start accepting petitions for bond, claiming the detainees constitutional rights to due process are being violated.

“This is an unprecedented situation where hundreds of detainees are held incommunicado, with no ability to access the courts, under legal authority that has never been explained and may not exist,” the immigration attorneys wrote. “This is an unprecedented and disturbing situation.”

The lawsuit is the second one challenging “Alligator Alcatraz.” Environmental groups last month sued federal and state officials asking that the project built on an airstrip in the heart of the Florida Everglades be halted because the process didn’t follow state and federal environmental laws.

Critics have condemned the facility as a cruel and inhumane threat to the ecologically sensitive wetlands, while Florida Gov. Ron DeSantis and other Republican state officials have defended it as part of the state’s aggressive push to support President Donald Trump’s crackdown on illegal immigration.

U.S. Homeland Security Secretary Kristi Noem has praised Florida for coming forward with the idea, as the department looks to significantly expand its immigration detention capacity.

This story was originally featured on Fortune.com

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Boeing Co. expects more than 3,200 union workers at three St. Louis-area plants that produce U.S. fighter jets to strike after they rejected a proposed contract Sunday that included a 20% wage increase over four years.

The International Machinists and Aerospace Workers union said the vote by District 837 members was overwhelmingly against the proposed contract. The existing contract was to expire at 11:59 p.m. Central time Sunday, but the union said a “cooling off” period would keep a strike from beginning for another week, until Aug. 4.

Union leaders had recommended approving the offer, calling it a “landmark” agreement when it was announced last week. Organizers said then that the offer would improve medical, pension and overtime benefits in addition to pay.

The vote came two days before Boeing planned to announce its second quarter earnings, after saying earlier this month that it had delivered 150 commercial airliners and 36 military aircraft and helicopters during the quarter, up from 130 and 26 during the first quarter. Its stock closed Friday at $233.06 a share, up $1.79.

The union did not say specifically why members rejected the contract, only that it “fell short of addressing the priorities and sacrifices” of the union’s workers. Last fall, Boeing offered a general wage increase of 38% over four years to end a 53-day strike by 33,000 aircraft workers producing passenger aircraft.

“Our members are standing together to demand a contract that respects their work and ensures a secure future,” the union said in a statement.

Dan Gillan, general manager and senior Boeing executive in St. Louis, said in a statement that the company is “focused on preparing for a strike.” He described the proposal as “the richest contract offer” ever presented to the St. Louis union.

“No talks are scheduled with the union,” said Gillan, who is also vice president for Boeing Air Dominance, the division for the production of several military jets, including the U.S. Navy’s Super Hornet, as well as the Air Force’s Red Hawk training aircraft.

This story was originally featured on Fortune.com

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KANSAS CITY, Mo. (AP) — Part of the roof and front facade of a Family Dollar store in Kansas City, Missouri, collapsed Sunday, killing a 68-year-old man and seriously injuring a 50-year-old woman, authorities said.

The building’s partial collapse occurred about 2:45 p.m. Sunday, the Kansas City Fire Department said. Two other people also were injured outside the building but were treated at the scene and refused further medical care, according to local television news reports.

Those television reports showed part of the roof and front facade missing at what appeared to be the main entrance of the store, with brick, stone and wood debris on the ground.

Fire Department Battalion Chief Mike Hopkins said the man who died may have been walking by the building at the time. The woman who was seriously injured remained hospitalized.

KMBC-TV reported that a public inspection record said that someone reported Friday that the building had begun “slowly tilting.” Authorities did not yet have an explanation for the collapse.

This story was originally featured on Fortune.com

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WASHINGTON (AP) — A chief architect of Project 2025, Paul Dans, is launching a Republican primary challenge to Sen. Lindsey Graham in South Carolina, joining a crowded field that will test the loyalties of President Donald Trump and his MAGA movement in next year’s midterm election.

Dans told The Associated Press the Trump administration’s federal workforce reductions and cuts to federal programs are what he had hoped for in drafting Project 2025. But he said there’s “more work to do,” particularly in the Senate.

“What we’ve done with Project 2025 is really change the game in terms of closing the door on the progressive era,” Dans said in an AP interview. ”If you look at where the chokepoint is, it’s the United States Senate. That’s the headwaters of the swamp.”

Dans, who is set to formally announce his campaign at an event Wednesday in Charleston, said Graham has spent most of his career in Washington and “it’s time to show him the door.”

Challenging the long-serving Graham, who has routinely batted back contenders over the years, is something of a political long shot in what is fast becoming a crowded field ahead of the November 2026 midterm election that will determine control of Congress.

Trump early on gave his endorsement of Graham, a political confidant and regular golfing partner of the president, despite their on-again-off-again relationship. Graham, in announcing he would seek a fifth term in the Senate, also secured the state’s leading Republicans, Sen. Tim Scott and Gov. Henry McMaster, to chair his 2026 run. He has amassed millions of dollars in his campaign account.

Other candidates, including Republican former South Carolina Lt. Gov. André Bauer, a wealthy developer, and Democratic challenger Dr. Annie Andrews, have announced their campaigns for the Senate seat in an early start to the election season, more than a year away.

Graham, in an appearance Sunday on NBC’s “Meet the Press,” did not discuss his reelection campaign but fielded questions on topics including his push to release “as much as you can” from the case files on Jeffrey Epstein, something many of Trump’s supporters want the government to do.

Dans, an attorney who worked in the first Trump administration as White House liaison to the office of personnel management, said he expects to have support from Project 2025 allies, as well as the ranks of Trump’s supporters in the state who have publicly tired of Graham.

After Trump left the White House, Dans, now a father of four, went to work at the Heritage Foundation, often commuting on weekdays to Washington as he organized Project 2025. The nearly 1,000-page policy blueprint, with chapters written by leading conservative thinkers, calls for dismantling the federal government and downsizing the federal workforce, among other right-wing proposals for the next White House.

“To be clear, I believe that there is a ‘deep state’ out there, and I’m the single one who stepped forward at the end of the first term of Trump and really started to drain the swamp,” Dans said, noting he compiled much of the book from his kitchen table in Charleston.

Among the goals, he said, was to “deconstruct the administrative state,” which he said is what the Trump administration has been doing, pointing in particular to former Trump adviser Elon Musk’s work at the Department of Government Efficiency shuttering federal offices.

Dans and Heritage parted ways in July 2024 amid blowback over Project 2025. It catapulted into political culture that summer during the presidential campaign season, as Democrats and their allies showcased the hard-right policy proposals — from mass firings to budget cuts — as a dire warning of what could come in a second Trump term.

Trump distanced himself from Project 2025, and his campaign insisted it had nothing to do with his own “Agenda 47.”

Dans is launching his campaign with a prayer breakfast followed by a kick-off event at a historic venue in Charleston.

This story was originally featured on Fortune.com

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NEW YORK (AP) — U.S. stocks are hanging near record highs Monday after the United States agreed to tax cars and other products coming from the European Union at a 15% rate, lower than President Donald Trump had earlier threatened. Many details are still to be worked out, however, and Wall Street is heading into a week full of potential flashpoints that could shake markets.

The S&P 500 added another 0.1% in early trading after setting an all-time high every day last week. The Dow Jones Industrial Average fell 19 points, or less than 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite is 0.3% higher, coming off its own record.

Stocks of U.S. companies that produce and move liquefied natural gas helped drive the market after the head of the European Commission said the bloc’s members would buy $750 billion of U.S. energy products over the next three years. That would help lessen Europe’s reliance on Russia for natural gas. Cheniere Energy climbed 4.2%, while NextDecade rose 3.4%.

Tesla added 0.2% after its CEO, Elon Musk, said it signed a deal with Samsung Electronics that could be worth more than $16.5 billion to provide chips for the electric-vehicle company. Samsung’s stock in South Korea jumped 6.8%.

Many more fireworks may be ahead this week. “This is about as busy as a week can get in the markets,” according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley.

Hundreds of U.S. companies are lined up and ready to report how much profit they made during the spring, with nearly a third of all the businesses in the S&P 500 index scheduled to deliver updates. That includes market heavyweights Apple, Amazon, Meta Platforms and Microsoft. Those companies have grown so huge that their stock movements can almost solely dictate what the overall S&P 500 index does. Microsoft alone is worth roughly $3.8 trillion,

On Wednesday, the Federal Reserve will announce its latest decision on interest rates.

Trump has been loudly and angrily calling for the Fed to cut interest rates, a move that could help give the economy a boost. But Fed Chair Jerome Powell has been insisting that he wants to wait for more data about how Trump’s tariffs are affecting the economy and inflation before the Fed makes its next move. Lower interest rates also can give inflation more fuel, and the economy only recently came out of its scarring run where inflation briefly topped 9%.

The widespread expectation on Wall Street is that the Fed will wait until September to resume cutting interest rates, though a couple of Trump’s appointees could dissent in the vote. The Fed has been on hold with interest rates this year since cutting them several times at the end of 2024.

This week will also feature several potentially market-moving updates about the economy. On Tuesday will come reports on how confident U.S. consumers are feeling and how many jobs openings U.S. employers were advertising. Wednesday will show the first estimate of how quickly the U.S. economy grew during the spring, and economists expect to see a slowdown from the first three months of the year.

On Thursday, the latest measure of inflation that the Federal Reserve prefers to use will arrive. A modest reading could give the Fed more leeway to cut interest rates in the short term, while a hotter-than-expected figure could make it more cautious.

And Friday will bring an update on how many more workers U.S. employers hired during June than they fired.

Treasury yields held relatively steady in the bond market ahead of all that action. The yield on the 10-year Treasury was remaining at 4.40%, where it was late Friday. The two-year Treasury yield, which more closely tracks expectations for Fed action, edged up to 3.92% from 3.91%.

In stock markets abroad, indexes were mixed in Europe amid mostly modest movements following the announcement of the trade deal’s framework.

Chinese stocks rose as officials from the world’s second-largest economy prepare to meet with a U.S. delegation in Sweden for trade talks. Stocks climbed 0.7% in Hong Kong and 0.1% in Shanghai.

Indexes were mixed across the rest of Asia, where Japan’s Nikkei 225 fell 1.1% for one of the world’s bigger losses. Doubts surfaced over what exactly last week’s trade truce between Japan and Trump entails, especially Japan’s $550 billion pledge of investment in the U.S.

Terms of the deal are still being negotiated, and nothing has been formalized in writing, said an official who insisted on anonymity to detail the terms of the talks. The official suggested the goal was for a $550 billion fund to make investments at Trump’s direction.

This story was originally featured on Fortune.com

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