Crypto News: Trump delays Canada tariffs

Good morning. Trump hits pause on his Canada tariffs. Florida delivers a win for the progressive left. And Big Tech goes courting as opposition to AI data centers grows. Listen to the day’s top stories.

— Hellmuth Tromm

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Yet another last-minute tariff reprieve. Donald Trump delayed 50% levies on Canadian products for three days, saying the two sides had reached a tentative deal. Canadian Prime Minister Mark Carney, walking a political tightrope, said more work remained, and neither side revealed whether sticking points such as autos and lumber had been resolved. Trump’s shadow over Canada extends beyond trade: Quebec separatists say they won’t hold an independence referendum until he leaves the White House.

Florida, meanwhile, delivered an upset. Democratic Socialist Angie Nixon stormed to a surprise win over Alex Vindman in the Sunshine State’s Senate primary, energizing progressives while potentially complicating Democrats’ broader push to claw back support from a dominant GOP. Trump-endorsed Republican Byron Donalds cruised to victory in his gubernatorial contest. In another Florida race, Democratic heavyweight Debbie Wasserman Schultz won a contentious House primary. In Alaska, Democrat Mary Peltola and Republican incumbent Dan Sullivan advanced, setting up a fiercely contested Senate race.

Heidi at the helm. Trump selected White House policy aide Heidi Overton to lead the Food and Drug Administration, people familiar said. She is set to inherit an agency in turmoil: Former Commissioner Marty Makary resigned in May after clashes with staff and biotech companies, followed by a wave of other senior departures. She’ll also face a potentially tricky Senate confirmation led by Republican Bill Cassidy, who has repeatedly clashed with Trump.

Some calm, for now, in markets. Stocks steadied and bonds caught a breather after days of turmoil pushed long-term yields to levels not seen in decades. Oil remained on edge, rising for a fourth day with no end in sight to the US-Iran war. The UAE, meanwhile, cut all economic ties with Iran after accusing Tehran of firing missiles at its territory.

Illustration: Anuj Shrestha for Bloomberg Businessweek

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Deep Dive: The Charm Offensive

The construction site of Project Jupiter in Santa Teresa, New Mexico.

Work that charm. As the battle over AI data centers intensifies across the US and abroad, tech firms are emerging from behind the scenes to try to win over an increasingly skeptical public.

The latest pushback came yesterday, when Pennsylvania Governor Josh Shapiro imposed strict new guardrails on data centers, following similar moves by New York and Texas to pause new projects.
So it’s hardly surprising that Meta is flooding TV and podcasts with ads touting the local benefits of its data centers. Microsoft is forgoing local tax breaks to respond to community backlash, and vowing its facilities won’t drive up consumer power bills.
OpenAI, meanwhile, is courting residents near its planned $30 billion Georgia data center, pledging to conserve water and cover its own power infrastructure costs.
Winning over locals is one thing, finding the power is another: More than two-thirds of the electricity sought for the AI boom may never materialize, reflecting a glut of “phantom” projects and long-shot pitches.

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Opinion

The Marriner S. Eccles Federal Reserve building in Washington.

Central banks’ massive holdings of government bonds have been a fixture of markets for almost two decades, and shrinking the pile requires nuance, not dogma, Jonathan Levin writes. The balance sheet is far too important for risk mitigation and policy triage to jettison completely.

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Before You Go

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A tiny slice of Italy is rolling into America’s golf-cart market. Fiat’s $15,000 Topolino, Italian for “little mouse,” is drawing early demand from affluent buyers looking for an alternative to traditional carts.

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