The New York Budgets

Tag: United States

  • Trump’s 200% Tariff Threat Leaves Pharma Firms Scrambling for Contingency Plans

    Trump’s 200% Tariff Threat Leaves Pharma Firms Scrambling for Contingency Plans

    Novartis AG NOVN –.–%
    Sanofi SA SAN –.–%
    Roche Holding AG ROG –.–%
    Eli Lilly and Co LLY –.–%
    Johnson & Johnson JNJ –.–%

    U.S. pharmaceutical companies are racing to assess the fallout from President Donald Trump’s proposal of a 200% tariff on imported pharmaceutical products, a policy that has sent shockwaves through the global drug industry and sparked intense scenario planning among manufacturers and investors.

    Speaking on Tuesday, Trump reiterated that long-delayed, industry-wide tariffs are imminent, following the launch of a Section 232 national security investigation into pharmaceutical supply chains in April. While he hinted that the tariffs wouldn’t take effect immediately — instead offering a grace period of 12 to 18 months — industry analysts and executives warn the impact could be both disruptive and long-lasting.

    “This kind of tariff would inflate production costs, compress profit margins, and risk severe supply chain disruptions, leading to drug shortages and higher prices for U.S. consumers,” analysts at Barclays warned in a research note Wednesday.

    Even with a grace period, the pressure is building. UBS called the delay “insufficient time” for pharmaceutical manufacturers to shift operations back to the U.S., noting that relocating commercial-scale production typically takes four to five years.

    According to Pharmaceutical Research and Manufacturers of America (PhRMA), a mere 25% tariff would already drive up U.S. drug prices by $51 billion annually, translating to as much as a 12.9% increase in consumer prices. The group blasted the proposed 200% levy as “counterproductive” to public health, especially given rising inflation and mounting healthcare costs.

    “A 100% or 200% tariff would be potentially disastrous for every person because we need those pharmaceuticals, and it takes those companies a long time to produce them here in the U.S.,” said Afsaneh Beschloss, founder and CEO of RockCreek Group, speaking on CNBC’s Closing Bell.

    Many of the world’s leading drugmakers — including Roche, Novartis, Sanofi, Bayer, and AstraZeneca — manufacture much of their product outside the U.S., particularly in Europe, India, and Asia, where costs are lower and supply chains more mature.

    In anticipation of potential fallout, global firms are exploring relocation strategies and cost restructuring. Roche, for instance, stated it is “monitoring the situation closely” and advocating for policies that reduce barriers to patient access while continuing to expand its U.S. manufacturing footprint.

    Bayer said it is focused on “securing supply chains and minimizing any potential impact,” while Novartis confirmed no changes to its current U.S. investment strategy but emphasized ongoing collaboration with the U.S. administration and trade associations.

    Other firms — such as Sanofi, AstraZeneca, and Novo Nordisk — have remained largely silent, either declining comment or citing pre-earnings quiet periods.

    Trump’s administration argues that reshoring pharmaceutical production is a national security imperative, especially after the COVID-19 pandemic exposed vulnerabilities in the global medical supply chain. Historically, pharmaceuticals have been exempt from trade tariffs due to their essential nature. But Trump has long criticized the industry for “offshoring profits” while “overcharging American patients.”

    The president’s remarks on Tuesday reinforced this stance, describing the move as a necessary step toward bringing “American-made medicine” back to domestic shelves. Critics, however, argue that such sweeping tariffs could drive up drug costs while placing undue stress on an industry already grappling with R&D inflation, regulatory pressures, and price transparency reforms.

    The pharmaceutical industry had hoped for a carve-out from broad tariffs — a strategy that appears increasingly unlikely. Some optimism has shifted toward future trade negotiations that might soften the blow.

    The recently signed U.S.-U.K. trade agreement, while thin on specifics, includes a provision to negotiate preferential treatment for British pharmaceutical products and ingredients, contingent on the outcome of the Section 232 probe.

    Swiss and EU pharmaceutical exporters may be pursuing similar carve-outs, but progress has been slow. With the final Section 232 report due by the end of July, drugmakers are bracing for a pivotal policy moment — one that could redefine their long-term U.S. market strategy.

  • Real Estate Inquiries by Wealthy New Yorkers into Florida Properties Jump 50% After Mamdani Primary Win

    Real Estate Inquiries by Wealthy New Yorkers into Florida Properties Jump 50% After Mamdani Primary Win

    The Sunshine State is once again capturing the attention—and investment—of New York’s wealthiest. In the wake of Zohran Mamdani’s surprise victory in New York City’s mayoral primary, real estate firms in Florida are reporting a 50% surge in inquiries from high-net-worth individuals and investors in the New York area.

    Mamdani, a far-left assembly member from Queens and a prominent figure in New York’s progressive movement, ran a campaign centered on bold reforms such as a citywide rent freeze, taxpayer-funded childcare, and “fast and free” public buses. His populist agenda garnered 565,639 votes, signaling a significant political shift—but also sparking unease among the city’s wealthiest residents and business community.

    “We’ve seen a clear uptick in demand across our portfolio since the primary,” said Daniel de la Vega, president of ONE Sotheby’s International Realty. “Website traffic from the New York area jumped 50% in just one week after the results came in. Our agents are fielding calls daily from buyers reassessing their long-term presence in the city.”

    According to de la Vega, the increased activity is not limited to individuals—institutional investors, family offices, and entrepreneurs are among those exploring relocation options. Many are drawn by Florida’s well-known tax advantages, including no state income tax, coupled with perceptions of greater political and financial stability, public safety, and quality of life.

    “These are not just second-home buyers. We’re seeing families and executives who want to move their operations and lives permanently,” de la Vega explained. “This is the beginning of what could become a second major wave of migration if Mamdani wins the general election.”

    This shift mirrors a trend seen between 2018 and 2022, when over 125,000 New Yorkers moved to Florida, bringing with them nearly $14 billion in adjusted gross income. That migration reshaped the South Florida real estate market, creating what de la Vega described as a “major surge” in demand and price increases across luxury developments.

    With high-end buyers showing renewed interest, Florida markets like Miami, Palm Beach, and Naples are already seeing more activity. Developers are preparing for an influx of capital should political uncertainty in New York continue.

    While Florida real estate professionals brace for a potential boom, some New York agents are already seeing the first ripples of disruption.

    Frances Katzen, a top agent at Douglas Elliman, said one of her long-time Manhattan clients recently chose to list a condo unit after a decade of ownership, citing rising operating costs, regulatory concerns, and the threat of increased taxation and rent control under a Mamdani-led administration.

    “Some investors are concerned about what’s coming next,” Katzen acknowledged. “But many still believe in New York’s resilience.”

    Indeed, Katzen remains bullish on the city’s long-term prospects. “New York is still one of the most dynamic, connected, and culturally vibrant cities in the world. No matter how the election plays out, this city has always adapted and bounced back.”

    Mamdani’s win in the Democratic primary has not yet sealed his role as the city’s next mayor—but it has already introduced uncertainty into high-end real estate markets. Buyers with means are exploring options, and real estate professionals in both New York and Florida are preparing for potential market shifts.

    De la Vega emphasized that while his firm is still watching how the general election unfolds, early indicators suggest that more New Yorkers are getting spooked by the direction of local policy. “We’re seeing the first wave of reaction—not panic, but preparation.”

    If Mamdani secures the mayor’s office in November, it may trigger a fresh wave of ultra-wealthy migration—and with it, billions in investment capital leaving New York for the warmer, lower-tax haven of Florida.

  • U.S. Tariffs Dominate Headlines, but EU-China Trade Tensions Quietly Escalate

    U.S. Tariffs Dominate Headlines, but EU-China Trade Tensions Quietly Escalate

    While the United States’ aggressive tariff strategies continue to dominate global trade headlines, a quieter but increasingly tense economic confrontation is unfolding between China and the European Union — one that could have lasting implications for global markets, supply chains, and industrial policy.

    Behind the scenes, tit-for-tat measures between Brussels and Beijing have intensified in recent months, exposing a fractured relationship marred by accusations of unfair trade practices, overcapacity, and geopolitical divergence.

    The European Union recently restricted Chinese companies from participating in public tenders for medical devices, citing concerns over procurement transparency and national security. China quickly retaliated by imposing import curbs on European medical products, marking a fresh escalation in the long-simmering standoff.

    Simultaneously, China made good on its long-threatened tariffs on EU-made brandy, a move widely interpreted as a retaliatory response to the EU’s 2024 imposition of anti-subsidy duties on Chinese electric vehicles (EVs).

    Both sides have since ramped up their criticism and countermeasures, with diplomatic language growing sharper and economic cooperation increasingly fraught.

    “EU-China trade relations are now quite poor,” said Marc Julienne, director of the Center of Asian Studies at the French Institute of International Relations (Ifri), speaking to CNBC earlier this week. “What was once a domain of great opportunity and enthusiasm has now become more about managing risk.”

    This sentiment is echoed across European policy circles. Grzegorz Stec, a senior analyst at the Mercator Institute for China Studies, noted that the two economies are increasingly on a collision course, especially on issues like industrial policy, trade diversion, and market access.

    “Beijing’s increasingly urgent need to export contradicts the EU’s desire to protect its own industrial base,” Stec said, referencing China’s ongoing struggle with overcapacity and sluggish domestic demand. These structural issues have compelled Chinese exporters to look outward, often at prices and volumes that European officials say distort competition and threaten homegrown industries.

    Beijing’s recent tariffs on European brandy are being described by analysts as “economic weaponization” — part of a broader strategy to pressure Brussels into scaling back scrutiny and protectionist measures. The Chinese investigation into European spirits began shortly after the EU initiated its own probe into Chinese EV subsidies.

    This pattern of retaliatory trade policy is not new in global geopolitics, but the stakes are growing. Europe’s trade deficit with China continues to widen, and concerns are mounting over the environment for foreign firms in China, which many say has become increasingly restrictive and opaque.

    Interestingly, some experts argue that U.S. tariffs under President Donald Trump could have served as a catalyst for closer EU-China cooperation. Instead, both parties have grown more entrenched in their respective trade positions.

    “If anything, the EU and China should have used the U.S. pressure as a common ground for negotiation,” Julienne said. “But instead, geopolitical divergence and mutual distrust prevailed.”

    Jean-Marc Fenet, senior fellow at the ESSEC Institute for Geopolitics & Business, believes part of the reason is that China feels it has already ‘won’ its tariff standoff with Washington, reducing the urgency to compromise with Brussels.

    “Beijing no longer sees the need for a unified front with the EU,” Fenet said. “In fact, there’s growing concern in Beijing that the EU may fall in line with Washington’s harder stance on China.”

    The China-U.S. trade framework agreement announced in June — covering contentious areas such as rare earth exports and technology regulations — only reinforced that perception. Earlier this year, Beijing had already moved to restrict exports of critical rare earth elements and magnets, leveraging its dominance in materials vital to the automotive, energy, and defense sectors.

    With an upcoming EU-China Summit scheduled for July 24 in Beijing, hopes are low for a breakthrough. Sources confirm that European Commission President Ursula von der Leyen and Chinese President Xi Jinping are expected to meet, but even senior officials are bracing for a tense and possibly unproductive dialogue.

    “The significant hardening of the European Commission’s trade stance, and the bolstering of protectionist tools in recent years, suggest more frictions ahead,” Fenet said.

    Indeed, trade experts warn of a long and bumpy road for EU-China relations. As the EU pursues greater economic autonomy and retools industrial policy to protect key sectors, Beijing is unlikely to ease its assertive stance, particularly as it looks to export its way out of structural economic stagnation.

    “The overcapacity issues, paired with China’s use of rare earths as leverage in EV tariff talks, suggest that this trade conflict has only just begun,” said Stec.

    The brewing tension between two of the world’s largest economies — the EU (GDP $19 trillion) and China (GDP $17.5 trillion) — threatens to disrupt multiple industries, from luxury goods and automobiles to healthcare and green technology.

    Companies operating across both markets may face regulatory uncertainty, new tariffs, and a rising compliance burden. Investor sentiment may also sour, particularly in sectors heavily reliant on EU-China trade flows.

    As of July 11, European stock markets remain volatile, with the Euro Stoxx 50 down 0.8% over the past week. Chinese markets, meanwhile, have been weighed down by weak domestic data and trade anxiety, with the Shanghai Composite dipping 1.2% this week.

  • Trump is defending the interests of the oil giants concerning climate regulations in EU trade discussions

    Trump is defending the interests of the oil giants concerning climate regulations in EU trade discussions

    Former U.S. President Donald Trump is intervening in current transatlantic trade negotiations to bolster American oil giants by pressuring the European Union to relax its landmark climate regulations—moves that threaten to weaken global environmental commitments.

    In recent trade discussions ahead of the July 9 deadline, Trump officials have floated proposals aimed at diluting the EU’s Corporate Sustainability Due Diligence Directive (CSDDD) and methane emissions mandates, both central to Brussels’ aggressive climate stance. These rules impose rigorous environmental and human rights oversight on companies and require verified methane caps for fossil fuel imports by 2030—a move the U.S. energy sector says could drive them out of the European market.

    Executives from ExxonMobil, including CEO Darren Woods, explicitly lobbied Trump to use trade leverage against Brussels. Private sources confirm U.S. negotiators are now urging the EU to soften or delay these regulations in exchange for tariffs relief.

    Trump has dangled a steep 50% tariff threat on EU exports if the EU doesn’t step back on its climate rules—a key tactic in forcing concessions. Meanwhile, Brussels, eager to avert a damaging tariff spike, is considering trade-off proposals such as increasing imports of U.S. LNG and adjusting methane oversight frameworks to qualify U.S. gas under equivalency schemes.

    This duel underscores a broader conflict between climate ambition and trade power: Trump’s approach aims to fuse energy dominance with economic leverage, while the EU seeks to uphold its Green Deal principles.

    Following reports of these contentious trade maneuvers, European carbon credit futures slipped approximately 1.2%, signaling investor anxiety over potential dilution of climate policy. Analysts caution that even talk of loosening methane or sustainability rules could erode confidence in the EU’s green market framework—while bolstering U.S. oil and gas margins temporarily.

    Environmental groups have sounded the alarm, labeling the U.S. push “a direct attack on the Paris Agreement,” warning that any weakening of EU standards could unravel global climate governance.

    EU Commission President Ursula von der Leyen has reaffirmed the EU’s “sovereign right” to set its own environmental rules and cautioned against ceding core Green Deal elements just to avert U.S. tariffs.

    Yet internal EU divisions bite: some leaders argue for flexibility to secure broader trade benefits, while others—like France’s Stéphanie Yon-Courtin—warn that concessions risk setting a dangerous precedent on environmental sovereignty.

    EU negotiators will decide whether to carve out limited flexibilities—such as pragmatic methane measurement standards or delayed rollout of the CSDDD—to soften U.S. trade pressure. If no deal is struck, Brussels is reportedly readying retaliatory tariffs worth up to €95 billion. This clash may redefine transatlantic relations—showing whether trade imperatives outweigh climate leadership at a critical geopolitical juncture.

    Trump’s alignment with Big Oil in EU trade talks reveals more than one-off bargaining—it spotlights a strategic confrontation over whether commercial leverage can override environmental clarity. The outcome will signal how far Washington and Brussels are willing to bend in balancing market access against the planet’s future.

  • Six people have been detained by police outside Palantir’s office during a protest concerning deportations and military contracts

    Six people have been detained by police outside Palantir’s office during a protest concerning deportations and military contracts

    Six people were taken into custody by police on Thursday as a group blocked the entrance to the New York office of Palantir to protest the tech company’s work for the U.S. Immigration and Customs Enforcement agency, the Israeli military and other efforts.

    More than 30 people participated in the protest, according to Planet Over Profit, the group that organized the demonstration in the Chelsea section of Manhattan.

    The New York Police Department had no immediate comment when asked if the six detained protestors were charged.

    Planet Over Profit said all six were released later in the morning.

    Planet Over Profit, in a statement, said it objected to Palantir’s “turbocharging ICE deportations, complicity in the genocide of Palestinians and plans to massively expand surveillance of every U.S. resident.”

    “Palantir’s tech programs are being used to deport our neighbors, kill civilians in Gaza, enhance oil extraction, and deny health insurance claims,” the group told CNBC.

    “If your company kills for profit, we will disrupt you,” a spokesperson added.

    Palantir did not immediately respond to CNBC’s request for comment.

    Palantir was co-founded by billionaire Peter Thiel and its current CEO Alex Karp, who donated $1 million to President Donald Trump’s inauguration fund. The firm has garnered attention for its defense and software contracts with the government.

    In April, ICE paid the company $30 million to provide the agency with “visibility” on people self-deporting, according to federal documents.

    Karp told CNBC news in March 2024 that some Palantir employees had left the company because of his public support for Israel, and that he expected more would leave for the same reason.

    During an earnings call a month earlier, Karp said he was “exceedingly proud” that Palantir was “on the ground” in Israel on the heels of the Oct. 7, 2023, attacks by Hamas. He also said Palantir was “involved in operationally crucial operations in Israel.”

    Shares of the company have rallied 500% over the past year and hit a new high for the year to date on Wednesday morning.

  • Salesforce CEO Marc Benioff states that AI is handling up to half of the company’s workload

    Salesforce CEO Marc Benioff states that AI is handling up to half of the company’s workload

    Salesforce is accelerating its use of artificial intelligence in automating workloads, according to CEO Marc Benioff.

    “All of us have to get our head around this idea that AI could do things, that before, we were doing, and we can move on to do higher-value work,” he said in an interview with Bloomberg, noting that the technology currently accounts for about 30% to 50% of the company’s work.

    Technology companies are hunting for new ways to trim costs, boost efficiencies and transform their workforce with the help of AI.

    The aftershocks have already hit the tech industry, with the software giant cutting more than 1,000 positions earlier this year as it restructured around AI.

    Other technology companies have made similar moves, including cybersecurity giant CrowdStrike.

    Klarna CEO Sebastian Siemiatkowski said the company has shrunk its headcount by 40% due in part to AI investment, while Amazon CEO Andy Jassy said the e-commerce giant will use artificial intelligence to reduce roles.

    Benioff called the rise of AI in the workforce a “digital labor revolution,” estimating that the software company has reached about 93% accuracy with the technology.

    “It’s pretty good,” he said, but it’s not “realistic” to hit 100%. He added that other vendors are at “much lower levels because they don’t have as much data and metadata” to build higher accuracy.

  • Andrew Cuomo has conceded the New York City Democratic Mayoral Primary to socialist Zohran Mamdani

    Andrew Cuomo has conceded the New York City Democratic Mayoral Primary to socialist Zohran Mamdani

    Cuomo Concedes to Mamdani in NY
    Andrew Cuomo Concedes to Socialist Zohran Mamdani in NYC Democratic Mayoral Primary. (Michael M. Santiago, Alex Kent/Getty Images)

    Cuomo told his supporters that tonight was “not” their night and added that “tonight was Assemblyman Mamdani’s night,” according to the Hill.

    “He put together a great campaign, and he touched young people and inspired them and moved them and got them to come out and vote,” Cuomo added.

    Per the outlet, Cuomo’s concession came after “Decision Desk HQ projected the race would head to a ranked-choice count.”

    Earlier Tuesday, Decision Desk HQ projected the race would head to a ranked-choice count as Mamdani held a solid lead over the former governor. The vote counting will continue even though Cuomo has conceded in the primary.

    With 91 percent of the votes counted, Mamdani leads with 43.5 percent, or 428,995 votes, while Cuomo received 36.4 percent, or 358,740 votes, according to the Associated Press.

    New York City Comptroller Brad Lander came in third with 11.3 percent, or 111,44 votes.

    While Mamdani leads in the election, it could take “days before the winner is determined,” as the city does ranked choice voting, CBS News reported.

    According to the NYC Board of Elections website, “all first-choice votes are counted,” and if a candidate receives more than 50 percent of the first-choice votes, they win. Votes will continue to be counted “if no candidate earns more than” 50 percent of the first-choice votes:

    All first-choice votes are counted. If a candidate receives more than 50% of first-choice votes, that candidate wins.

    If not candidate earns more than 50% of first-choice votes, then counting will continue in rounds.

    At the end of each round, the last-place candidate is eliminated and voters who chose that candidate now have their vote counted for their next choice.

    Your vote is counted for your second choice only if your first choice is eliminated. If both your first and second choices are eliminated, your vote is counted for your next choice, and so on.

    Mayoral candidate Zohran Mamdani outlined his platform on his website saying people in his city are struggling with the cost of groceries.

    The site then declared Mamdani “will create a network of city-owned grocery stores focused on keeping prices low, not making a profit. Without having to pay rent or property taxes, they will reduce overhead and pass on savings to shoppers. They will buy and sell at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods on products and sourcing. With New York City already spending millions of dollars to subsidize private grocery store operators (which are not even required to take SNAP/WIC!), we should redirect public money to a real ‘public option.’”

    Several Hollywood celebrities, such as Sex and City star Cynthia Nixon, Harold and Kumar star Kal Penn, and pop superstar Lourde have supported Mamdani in his race to be the next mayor of New York City.

  • Bitcoin’s price is going up because a ceasefire between Israel and Iran has started, and the Senate has revealed a major new cryptocurrency bill

    Bitcoin’s price is going up because a ceasefire between Israel and Iran has started, and the Senate has revealed a major new cryptocurrency bill

    Crypto prices, including bitcoin, rose on Tuesday after President Trump announced a ceasefire between Iran and Israel.

    By midday Tuesday, bitcoin had passed the $105,000 level, ether jumped back above the $2,400 mark, and XRP climbed to $2.19. 

    The risk-on action in the markets, which also saw stocks rally on the Mideast de-escalation, wasn’t the only source of momentum, as Republican senators unveiled a major bill to set the rules of the road for crypto. Specifically, the legislation would define when crypto is a commodity or a security, allow crypto exchanges to register with the Commodity Futures Trading Commission, and reduce the Securities and Exchange Commission’s regulation of digital assets — a big reversal from the plans of President Biden’s SEC Chair Gary Gensler to closely regulate the crypto industry.

    The new framework was introduced by Senate Banking Committee Chairman Tim Scott of South Carolina and Senator Cynthia Lummis of Wyoming, who heads the panel’s Digital Assets Committee. Robinhood CEO Vlad Tenev said on CNBC’s “Squawk Box” that the regulatory development was important for the U.S. to regain the lead in the crypto industry, where he said it has fallen behind other markets, including Europe.

    Last week, the senate passed a stablecoin bill, marking the first major legislative win for the crypto industry, which now heads to the House for consideration of its version of the bill. Both bills prohibit yield-bearing consumer stablecoins — but differ on agency regulatory oversight. Visa CEO Ryan McInerney weighed in on the advancement of the Senate version, the Genius Act, telling CNBC’s “Squawk on the Street” that the credit card giant has been embracing stablecoins. 

    Meanwhile, investors increased their bets on crypto company Digital Asset, which raised $135 million in funding from several big names in banking and finance, including Goldman Sachs, BNP Paribas and hedge fund billionaire Ken Griffin’s Citadel Securities. The firm, which touts itself as a regulated crypto player, said it will use the funding to advance adoption of its Canton network, which is a blockchain for financial institutions, another sign of how major financial institutions are embedding themselves into the once obscure crypto world. 

  • Debate Over Clean Energy Tax Policy Will Help Shape America’s Economic Future

    Debate Over Clean Energy Tax Policy Will Help Shape America’s Economic Future

    As Republicans look to broker a sweeping budget deal, top GOP leadership in the House of Representatives unveiled a series of cuts this week to the provisions of the Inflation Reduction Act (IRA) aimed at tackling climate change. This includes proposing to curtail tax credits for clean electricity generation and domestic clean technology manufacturing. To enact the proposed language would deal a swift blow to U.S. efforts to cut emissions and transition to cleaner energy sources. It would also stifle a surge in manufacturing investment that has swept much of the country.

    “It will come to a screeching halt without the credits,” says George Strobel, co-CEO at Monarch Private Capital, which finances solar projects. “That’s just the way it is.”

    Since the language was announced on May 12, many Senate Republicans, who would need to approve the measure before it becomes law, have balked, fearing that such a pullback would kill jobs in their home states and harm American businesses. For that reason, they say, the language should represent a starting point, certain to be revised in the lengthy negotiations necessary to approve the changes. “Anything that comes over from the House, almost by law, we’ve got to redo,” Alaska GOP Senator Lisa Murkowski told reporters.

    The debate on the fate of the clean technology tax incentives is likely to center on immediate concerns: on one side jobs and the implications for American businesses and, on the other, simple number crunching to fund other priorities including a continuation of broad corporate tax cuts. But jobs in congressional districts and U.S. carbon emissions represent just the tip of the iceberg when it comes to the massive implications of a U.S. pullback from clean technology. 

    The U.S. is already behind in developing an economy around mature technologies—namely wind, solar, and electric vehicles. To nix IRA incentives without a considered replacement would effectively wave the white flag, acknowledging that the U.S. has no plausible way to catch up. Perhaps more significantly, abandoning the incentives would make it even more difficult for the U.S. to capture the market of early-stage technologies where the country can still compete—think of geothermal, advanced forms of nuclear energy, and hydrogen, to name a few. 

    All of this is of significant consequence for the shape of the global economy. China already dominates manufacturing in technologies like electric vehicles and, with an absent U.S., could do the same with future tech, too. All of which is to say: these negotiations will matter for decades to come. “To some extent, I think it’s hanging in the balance,” says Greg Bertelsen, CEO of the Climate Leadership Council, a non-profit that works at the intersection of climate and economic policy. “This is a critical period of time.”

    To understand what enacting the proposed changes to tax incentives would mean, it’s helpful to sit with some numbers. In a research note Tuesday, the Rhodium Group said that the cuts would risk “a meaningful amount” of the $522 billion clean technology manufacturing investment already in the pipeline in the U.S. It could result in a greater than 70% decline in domestic clean energy deployment through 2035—and higher electricity prices for consumers and industry alike. 

    The clean technologies in question are part of a global market expected to total more than $100 trillion by 2050, according to a 2022 report from the Boston Consulting Group. And the ripples extend beyond clean tech: higher energy prices would make the U.S. a less attractive place for AI and manufacturing investments.        

    In the past, a U.S. pullback might have been enough to derail this global clean tech momentum. The U.S. is, after all, the world’s largest economy. But, in 2025, the rest of the world is less likely to shift gears in response to one administration. 

    A big reason for that is China. The country has become a manufacturing hub for a wide range of clean technologies and has facilitated their export around the world. And, in many cases, the clean technologies manufactured there have simply become better than traditional alternatives. Chinese electric vehicles, for example, are widely thought to offer a better experience at a lower price point than anything coming out of the U.S. or Europe. (Indeed, they’re quickly expanding not just in China but around the world.) More broadly, in parts of the developing world, solar power has become cheap enough that it’s the fastest and simplest way to rapidly electrify. 

    Since President Trump took office, I’ve spent much of my time outside of Washington, talking to policymakers and business leaders from around the world. As shocked as many have been by the Trump Administration’s assault on climate policy, few have expressed interest in following suit and instead continue to see opportunity in green investments. 

    And so the question for members of Congress is how much, if any, of that $100 trillion market they want to capture. The text proposed by GOP House leadership is just the start of the discussion and unlikely to become law in its current form, but for those looking to capture a share of the future of energy technologies it isn’t an encouraging one.

  • U.S. Officials Tour Alcatraz as Trump Pushes Plan to Reopen Island Prison

    U.S. Officials Tour Alcatraz as Trump Pushes Plan to Reopen Island Prison

    Federal prison officials visited Alcatraz last week after Donald Trump’s announcement earlier this month of plans to rebuild and reopen the infamous island prison, which has been closed for over 60 years.

    David Smith, the superintendent of the Golden Gate national recreation area (GGNRA), told the San Francisco Chronicle that officials with the Federal Bureau of Prisons are planning to return for further structural assessments.

    “They have been out here. They’ll be coming out again to do assessments of the structure,” Smith told the news outlet.

    The island facility has been closed since 1963, when then attorney general Robert F Kennedy ordered its shutdown amid high operating costs, limited space and multiple escape attempts.

    BOP director William Marshall told Fox News that engineering teams are already surveying the site. “We’ve got engineering teams out there now that are doing some assessments, and so I’m just really excited about the opportunity and possibilities,” he said.

    In recent months, the US government has moved to reopen at least five previously closed detention centers and prisons.

    Although California lawmakers have dismissed the Alcatraz proposal as a “distraction” and not a serious plan, the Trump administration is actively working – with the help of private prison companies – to reopen other facilities, some of which are already back in operation.

    Smith said he was skeptical about reopening Alcatraz, pointing to the large financial investment and legal challenges it would require.

    He said it’s “just not well-situated” for the Bureau of Prisons.

    But Marshall called the proposal “exciting” and feasible. He suggested that modern, lightweight materials could solve some of the island’s logistical challenges.

    “When you think of Alcatraz, you think of Fenway Park, Wrigley Field, Lambeau Field, those types of facilities … you just get that kind of feeling about Alcatraz when you think of those historical venues,” Marshall told Fox News’s My View with Lara Trump, Trump’s daughter-in-law.

    “And so, yeah, we absolutely think we can get it done.”

    Meanwhile, the GGNRA is undertaking seismic retrofitting projects on the island, including reinforcing the pier and stabilizing the aging cellhouse to prevent further deterioration.

  • Trump to Speak at West Point Graduation as He Seeks to Shape Military

    Trump to Speak at West Point Graduation as He Seeks to Shape Military

    Donald Trump will address graduates of West Point on Saturday, as his administration moves to implement a rightwing agenda at military service academies that has prompted the disbandment of student clubs, the removal of certain books and at least one faculty resignation.

    It will be the second time Trump has spoken to graduates of the United States Military Academy in upstate New York where the next generation of army leaders is educated, and offers the president an opportunity to stump for his defense policy.

    This week, Trump announced plans to spend $540bn over 20 years on the “Golden Dome”, a missile defense system intended to protect the United States from ground- and space-based weapon strikes. The project received an initial dose of funding from the “big beautiful bill”, a comprehensive piece of tax-and-spending legislation Republicans in the House of Representatives passed on Thursday after weeks of negotiations.

    The army is also gearing up for a parade through the streets of Washington DC, something Trump tried unsuccessfully to hold during his first term that is now billed as commemorating the force’s 250th birthday. Its 14 June date also happens to be the day Trump turns 79.

    The military and its elite service academies have been affected by the wave of executive orders Trump has signed since taking office, as well as by the policies of Pete Hegseth, the former Fox News host he appointed to lead the defense department.

    Trump’s sprawling order targeting diversity, equity and inclusion (DEI) programs across the federal government led West Point to disband some student clubs, including the Society of Women Engineers, the Latin Cultural Club and a third group serving the LGBTQ+ community. The defense department has told West Point and other schools to comb their library stacks and remove any books or materials that may fall afoul of the DEI-related policy.

    Earlier this month, Graham Parsons, a philosophy professor at West Point, resigned after 13 years on the faculty, saying: “I am ashamed to be associated with the academy in its current form.”

    The Times Herald-Record of Middletown, New York, reports that several protests are planned outside the campus for the president’s appearance, including one to take place on boats in the adjacent Hudson River.

    Trump last addressed West Point graduates during the Covid-19 pandemic in 2020, when they wore masks and were spaced out in an effort to prevent transmission of the virus.

    Earlier this month, he delivered the commencement speech at the University of Alabama in Tuscaloosa, where he alternated between offering the life advice typical of such speeches and harping on preferred talking points such as his baseless insistence that the 2020 election was rigged and his opposition to transgender athletes.

  • How America’s Hydration Obsession Turned Into a $1.5 Billion Industry

    How America’s Hydration Obsession Turned Into a $1.5 Billion Industry

    “A majority of consumers, Americans and people around the world are chronically dehydrated,” he told CNN News. “They just don’t know it.”

    Even if consumers don’t know if they’re actually suffering from a lack of fluids, they’re still buying electrolyte-filled products like they are. Liquid I.V. has become one of the biggest brands to capitalize on hydration, part of the overall “better for you” wellness trend that’s been percolating within the food and beverage industry over the past several years.

    Hydration, in particular, has been at the center of social media trends — like #WaterTok on TikTok — and buzzy viral products with analysts projecting it growing into a multibillion-dollar market in the next few years.

    “The category has benefited from changing consumption patterns. It’s no longer just about sports recovery, but about maintaining daily wellness, and managing hangovers,” Nate Rosen, a consumer packaged goods expert, told. “A lot of people simply don’t like plain water and really treat these hydration drinks as a way to flavor their water.”

    Liquid I.V. launched in 2012, initially targeted toward hardcore athletes recovering from a tough workout. The flavored powder mix is marketed as a healthier alternative to sugar-filled sports drinks, with the potion containing salt, vitamins and electrolytes that support rapid hydration.

    “The category has been really tired and dusty,” Keech said. “Before, it was a sports person who was sponsored and the idea was, ‘If it’s good enough for them, then it’s good enough for me.’”

    That was initially a successful proposition and sales soared, prompting Unilever to buy Liquid I.V. for an undisclosed price in 2020.

    Under Keech, who became CEO of Liquid I.V. following the acquisition, the brand and his team broadened its “positioning it to a much wider audience,” shifting from just sports stars to “the business person, the mom and the gym bunny.”

    From there, the brand’s distribution doubled and the product has expanded the number of flavors, including a viral firecracker blend, as well as a new sugar-free selection. Liquid I.V. is on track to becoming a $1 billion unit with Unilever labeling it a “power brand” in its most recent earnings report, which has helped its wellbeing category achieve double-digit sales growth.

    “We recognized that hydration is just not for athletes,” Keech said. “That’s where lift-off happened.”

    Powder power

    Hydration has largely been dominated for years by liquids, notably Pedialyte, which is commonly used to prevent or treat dehydration in children. But the drink grew in popularity through the mid-2010s as young people used it as a hangover cure and athletes drank it for recovery.

    Then there’s PepsiCo’s Gatorade, which holds a commanding lead in the sports drink category, plus Mexico-based Electrolit, which is investing $400 million in a new US plant to meet growing demand.

    However, powders have recently become a “success story,” according to Howard Telford, head of soft drinks for analytics company Euromonitor.

    “The big thing is convenience: It’s something that you can have on the kitchen counter, desk drawer at work or in the gym bag. There’s no bulky purchase where you have to allocate space to it in your fridge,” he told. “The flavor profiles are also pretty good for Liquid I.V. as well, which is not nothing.”

    Keech also credits the convenience factor for Liquid I.V.’s growth, pointing toward festival-goers at Coachella, which it sponsors, as an example.

    “You can’t just rock out with all sorts of water bottles,” he said. “That’s helps us hydrate people in ways others can’t.”

    Sales of powdered mixes has achieved double-digit sales growth for the past four consecutive years, most recently growing 20% in 2024, ballooning into a $1.5 billion category, according to Circana, a Chicago-based market research firm.

    The growth has sparked new entrants for portable mixes ranging from Gatorade, who’s sales of enhancers has grown 200% over the last four years, and Coca-Cola’s BodyArmor to smaller startups like diet-friendly LMNT and the Novak Djokovic-backed Waterdrop — all in hopes of emulating market leader Liquid I.V.’s popularity.

    “When one brand achieves significant traction in a space, numerous fast followers emerge, especially when the original doesn’t own anything truly proprietary beyond a great name,” said Rosen, who writes the Express Checkout newsletter. “After all, anyone can produce an electrolyte powder.”

    BodyArmor, which recently relaunched its entire line, has seen a bright spot in growth with its Flash I.V. hydration drinks and powders. Both products generated $120 million in sales in its first year.

    The space “saw a big jump in consumption during Covid because people started to realize how important hydration was. There’s also a very heightened sense for longevity as a well, immunity and also overall addition of vitamins into your body,” BodyArmor CEO Federico Muyshondt told CNN News.

    Does it work?

    Liquid I.V. is “obsessed with science,” Keech said, adding that it spends a “very significant amount of money on clinical studies to make sure that we can stand by the claims we make.”

    A page on Liquid I.V.’s website claims its product has “superior hydration” compared to simply drinking water, proclaiming that if you’re thirsty “then you already may be dehydrated.”

    However, Heidi Skolnik, a senior sports nutritionist at the Hospital for Special Surgery in New York, is skeptical that dehydration is a common problem for people with unrestricted water access and that people being “chronically dehydrated is probably an overstatement.”

    “Athletes and active people can benefit from using electrolyte powder and drinks,” she told The Budgets, but “less active people probably do not need them.”

    Although water itself is sufficient for hydrating the average person, she said flavoring it “helps people drink more, so that is a positive and it elevates their awareness of what and how much they are drinking.”