Will Tariff Come Back?

Thursday, June 12th, 2025

World Events — Trump Says He’ll Set Unilateral Tariff Again in Two Weeks

Bloomberg

President Donald Trump has again announced plans to set unilateral tariff rates within the next one to two weeks, warning that letters will soon be sent to trading partners outlining the terms of new trade arrangements ahead of a July 9 deadline for reimposing higher duties on dozens of countries. Speaking at the John F. Kennedy Center for the Performing Arts, Trump framed the move as a “take it or leave it” proposition, emphasizing that negotiations with all trading partners are impractical due to the sheer number of countries involved, and that only select key economic partners—such as the UK, China, Japan, South Korea, India, and the European Union—are the focus of ongoing talks. While Trump expressed openness to extending the July deadline if necessary, he signaled confidence that such extensions might not be needed, even as his administration has so far only secured a tentative trade framework with the UK and a fragile tariff truce with China. Despite the aggressive rhetoric and looming deadlines, it remains unclear whether Trump will follow through on these pledges, as previous two-week deadlines have often been delayed or not met at all.

Tech — Can Robotaxi Put Tesla on the Right Road? 

Economists

Tesla’s pivot to robotaxis is seen as essential to its future, but the company faces steep challenges beyond just technological innovation and regulatory hurdles—its recent brand damage and the public fallout between Elon Musk and President Donald Trump have added significant uncertainty to its ambitions. While the planned June 22 launch of Tesla’s autonomous taxi service in Austin, Texas, could provide a much-needed boost and showcase the company’s AI capabilities, it arrives amid falling car sales, fierce competition, and a regulatory environment that is now less favorable due to Musk’s frayed political relationships. The robotaxi venture is a high-stakes gamble: success could restore investor confidence and open new revenue streams, but setbacks—such as safety incidents, software issues, or further regulatory pushback—could exacerbate Tesla’s struggles and leave it even more reliant on Musk’s ability to navigate both business and political headwinds. Ultimately, robotaxis may not be the quick fix Tesla needs, and while they could eventually put the company on the right road, the journey is likely to be longer and riskier than Musk’s optimistic timelines suggest.

Business — Will Starbucks’s Bet on Its Barista Pay Off? 

Starbucks is making a bold and costly bet that doubling down on its baristas—rather than relying on automation—will revive its fortunes and re-establish the personal, welcoming connection that once defined the brand, with CEO Brian Niccol promising the “biggest human capital investment in connection in the history of Starbucks” in a rallying speech to 14,000 store managers at the company’s Leadership Experience 2025 in Las Vegas. The new “Back to Starbucks” strategy, which enjoys the backing of founder Howard Schultz, aims to restore the coffeehouse as a “third place” between home and work by hiring more staff, expanding rosters starting in August, and implementing the Green Apron Service model—a blend of increased labor and smart algorithms for order sequencing—across all company-operated North American stores by summer’s end. While Wall Street is wary of the financial impact, with labor costs projected to surge by billions and margins under pressure, early signs of improved service and morale among employees are encouraging, and some investors believe the investment is necessary to win back customers and secure Starbucks’ future as a place of human connection in an increasingly digital world.

FT

Culture — China’s Booze Business Looks Smashed

Economists

Kweichow Moutai’s recent annual shareholder meeting, where its signature baijiu was conspicuously absent in favor of blueberry juice, reflects both the immediate impact of China’s latest crackdown on alcohol at official functions and the broader forces reshaping the country’s drinking culture—a culture once legendary for its lavish, deal-sealing banquets and booming sales but now facing a triple threat of government-enforced sobriety, economic sluggishness, and shifting generational tastes. As officials risk losing their positions for even a single drink, the state’s campaign to stamp out extravagance is joined by a sluggish post-pandemic economy and young people’s growing aversion to traditional workplace drinking rituals, leading to a steep decline in alcohol production and sales across all categories and forcing both domestic and foreign producers to slash prices, innovate with new products, and hope that a smaller, pickier market of genuine drinkers will keep them afloat.

The Daily Spark 

Song Recommendation — All I Want Is You 

Quote of the Day 

“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.” — Larry Ellison