Author: Marketplace

Under the new agreement, American consumers will now face a 15% tax on Japanese imports — a major jump from the 1.5% rate set back in 2019. The White House says making imports more expensive will encourage more domestic production. But these tariffs could have the opposite effect when it comes to getting manufacturing back on American shores. Also on the show: AI infiltrates the perfume industry. But first, how a weak U.S. dollar is boosting earnings, and why companies are quiet about it.

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President Trump announced a trade deal with Japan that will impose 15% tariffs on imports. Wall Street is happy, but it could put the United States in an awkward position as the Trump administration continues to seek other deals. Sabri Ben-Achour explains. Also, the federal government is leading a major deregulatory crusade. And they want your input. Plus, quilts and blooming plants make us smile.

Here’s everything we talked about today:

• "Trump's Labor Department proposes more than 60 rule changes in a push to deregulate workplaces" from AP News
• "Trump Strikes Deal With Ally Japan Setting Tariff Rate at 15%" from Bloomberg

• Listener Jen’s quilting Instagram

  
  

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Later today, we'll get sales, profits, losses, and hints of the road ahead from Tesla. But its boss, Elon Musk, has had a lot to juggle as of late: Tesla, government cost-cutting, X, SpaceX, xAI, and now maybe even a new political party. We'll discuss what all of these various priorities mean for Musk, Tesla, and Tesla's shareholders. And later on the program: Could prefab homes help alleviate the housing crisis?

At an artificial intelligence summit in Washington today, we'll learn more about the Trump administration's plans for guardrails to keep a potentially dangerous technology in line. Other topics likely to be addressed include the federal government's use of AI, energy-hungry data centers, loosened export controls on AI chips, and what the administration perceives as anti-conservative bias in tech. Also: what to make of Trump's trade deal with Japan, and what to expect from Tesla's Q2 results.

From the BBC World Service: President Donald Trump has announced a deal with the world's fourth-largest economy. After weeks of tense negotiations, the U.S. will cut its import tax on Japanese cars and parts from 25% to 15%. The U.S., in return, will get $550 billion of investment from Japan. Plus, two former bank traders in the U.K. who allegedly manipulated interest rates have had their convictions overturned, and locals in Spain's Andalusia region are celebrating Sherry with a special competition.

ProPublica has recently discovered blueprints for an automated computer program that could potentially share millions of IRS taxpayer records with ICE, as the Trump administration continues to step up deportations and criminal investigations. When Marketplace asked for comment about the system uncovered by ProPublica, a senior DHS official cited a recent memorandum of understanding that allowed for the sharing of specific taxpayer info with appropriate safeguards and said descriptions of this system as "surveillance" were "absurd."

Marketplace’s Meghan McCarty Carino spoke with William Turton, one of the reporters on the ProPublica investigation, about how exactly this program would work.

"Marketplace" host Kai Ryssdal speaks with Greg Ip at the Wall Street Journal about growing threats to the Federal Reserve's independence — and why it matters not just for the U.S. economy, but for financial markets around the world. Plus, why investors are chasing riskier bets, how Subway plans to revive flagging sales and what one city is doing to help robotaxis navigate around emergency vehicles.

Every story has an economic angle. Want some in your inbox? Subscribe to our daily or weekly newsletter.

Marketplace is more than a radio show. Check out our original reporting and financial literacy content at marketplace.org — and consider making an investment in our future.

Lately, tech companies like Meta have been putting hundreds of billions toward building new data centers to power their AI ambitions. Some communities have been pushing back, however, arguing these facilities strain local resources. But demand for data centers isn’t expected to slow down anytime soon. On the show today, Landon Marston, professor of civil and environmental engineering at Virginia Tech, explains what data centers actually are, why they require so much energy and water to operate, and how they can affect nearby communities. Plus, how can data centers become more sustainable?

Later, reflections on Medicaid cuts and the power of journaling. And, a listener makes us smarter about “100-year floods.”

Here’s everything we talked about today:

• "Their Water Taps Ran Dry When Meta Built Next Door" from The New York Times
• "Coreweave stock pops after company announces $6 billion AI data center in Pennsylvania" from CNBC
• "Meta's Zuckerberg pledges hundreds of billions for AI data centers in superintelligence push" from Reuters 
• "How A.I. Is Changing the Way the World Builds Computers" from The New York Times
• "China Is Putting Data Centers in the Ocean to Keep Them Cool" from Scientific American 

• ”The 100-Year Flood” from the U.S. Geological Survey

  
  

  We love hearing from you. Leave us a voicemail at 508-U-B-SMART or email makemesmart@marketplace.org.
  

Since the mid-’90s, employers have been using an online system to verify the legal right of employees to work in the U.S. That system often falls short, and now employers have been encouraged to recheck workers' legal status as the Trump administration has canceled work authorizations for hundreds of thousands of immigrants. But first: Universal Music Group is closer to selling shares on a U.S. stock exchange. And, how long will the housing market remain stagnant?