U.S. trade negotiations with China entered their second day on Tuesday, as U.S. officials expressed optimism on the direction of the talks aimed at ending a trade war between the two biggest global economies.

Commerce Secretary Howard Lutnick spoke to reporters outside London’s Lancaster House, the site of high-stakes negotiations with Beijing. The American negotiating team is spearheaded by Lutnick, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.

“We’ve been [talking] all day yesterday and we expect to go all day today. The talks are going well, we’re spending lots of time together,” he said.

Trade tensions between the U.S. and Beijing spiked in recent weeks. Both countries have accused each other of reneging on an interim accord struck last month in Geneva that scaled back triple-digit tariffs in the ongoing trade war.

However, Trump and other administration officials were hopeful about defusing tensions and securing a deal. “China’s not easy,” Trump said Monday after the first day of talks concluded. He added: “I’m only getting good reports.”

“The purpose of the meeting today is to make sure that they’re serious, and to get handshakes from our three lead trade negotiators and get this thing behind us,” White House National Economic Council Director Kevin Hassett told CNBC on Monday.

Trade tensions have crippled supply chains at critical points in the U.S. and China. American companies are reeling from Chinese export restrictions on rare earth magnets that are key components in autos, as well as energy and the defense sectors. China is grappling with a U.S. pause in shipments of chemicals and semiconductor chips, among other key components.

General Motors announced Tuesday a $4 billion investment in U.S. production of both gas and electric vehicles as it grapples with tariffs.

The Detroit-based auto giant said the money will make it possible to assemble more than 2 million cars, SUVs, and trucks annually in the U.S. GM will expand plants in Michigan, Tennessee, and Kansas to make its plans a reality.

Cars that will be assembled thanks to the investment include: Chevrolet Silverado EV, GMC Sierra EV, Cadillac ESCALADE IQ, and GMC HUMMER EV pickup and SUV, gas-powered Chevrolet Equinox, Chevrolet BlazeCadillac LYRIQ and VISTIQ EVs, and the Cadillac XT5.

U.S. assembly will begin in 2027, GM said.

The Chevrolet Blazer and Chevrolet Equinox are currently assembled in Mexico and face 25% tariffs implemented by President Donald Trump.

Courtesy of GM

“We believe the future of transportation will be driven by American innovation and manufacturing expertise,” GM CEO Mary Barra said in a statement. “Today’s announcement demonstrates our ongoing commitment to build vehicles in the U.S and to support American jobs. We're focused on giving customers choice and offering a broad range of vehicles they love.”

The company said this investment is in addition to the recent announcement that it will pour $888 million into the Tonawanda Propulsion plant near Buffalo, New York to help build V-8 engines.

While the company didn't reference Trump's tariffs, the announcement comes as auto companies have been grappling with trade policies that will either drastically cut into their bottom line or cause them to raise prices.

Barra warned investors in a letter this spring that tariffs could cost the company as much as $5 billion this year. Barra has tried to walk a tightrope with the president, being both realistic about the policies' impact and not getting on Trump's bad side. In the same letter, she wrote she is “grateful to President Trump for his support of the U.S. automotive industry.”

The U.S. and China wrapped up two days of trade talks in London with what Commerce Secretary Howard Lutnick called “a framework to implement the Geneva consensus” — a hopeful-sounding phrase with little immediate detail.

Still, Lutnick, recalling the May gathering in Switzerland that produced that framework, described the London talks as a continuation that puts "meat on the bones."

Chinese officials struck a similarly upbeat tone in state media, describing the talks as constructive and hinting that a path back to further, more structured negotiations is once again open.

Details of the agreement: scarce yet potent

The tentative agreement reportedly includes an acceleration of Chinese shipments of rare earth metals, a key ingredient for American tech, automotive companies, and defense contractors. In exchange, the U.S. is reportedly expected to loosen some export controls on semiconductors. But neither side offered firm commitments or timelines.

The proposals are now headed to President Donald Trump and Beijing for further rev/ew.

Trump didn’t wait long to weigh in. Posting to Truth Social on Wednesday morning, he declared a deal “DONE,” claiming that China had agreed to supply “FULL MAGNETS, AND ANY NECESSARY RARE EARTHS” up front. He also said the US would continue allowing Chinese students to study at American universities.

Tariff figures debated, more talks expected this summer

In characteristic fashion, Trump also asserted that the U.S. is imposing "a total of 55% tariffs." According to White House aides, that figure is a composite made up of existing 10% baseline tariffs, 20% drug-related tariffs, and a grab bag of sector-specific numbers.

Hard data suggests a different picture, however. Analysts at Yale’s budget lab put the effective U.S. tariff rate on Chinese imports closer to 30%, averaged across goods.

More talks are expected in August, though details are scarce on that front, too. And the U.S. market’s reaction was muted. At Wednesday’s opening bell, the S&P 500, Nasdaq, and Dow Jones Industrial Average ticked up slightly. After months of policy whiplash and gyrating stock prices, it appears analysts and traders aren’t assigning much value to the new, tentative deal — or that such an agreement was already baked in, with the major indexes already posting positive gains in 2025.

Elon Musk is walking back “some” of his recent broadsides against President Donald Trump, in an apparent attempt to play nice after the Tesla CEO brutally attacked Trump's signature domestic policy bill — and the president personally.

“I regret some of my posts about President @realDonaldTrump last week," Musk posted on X early Monday morning. "They went too far.” One such post might be the one in which Musk alleged Trump was in the Epstein files, which set X ablaze.

Musk had been signaling recently that he wanted to get back in Trump’s good graces. The Tesla CEO has indicated that he’s on board with the president’s response to the anti-ICE protests in Los Angeles; Musk responded to a social media post from Vice President JD Vance with two American flags and reposted some of Trump’s comments that have been critical of California Governor Gavin Newsom.

And the president seems to be taking Musk’s groveling to heart. Trump on Monday said he wished Musk well (“We had a great relationship, and I wish him well — very well, actually,” the president told White House reporters) and said he’d be willing to speak with the Tesla CEO. Musk responded with a heart emoji to a video showing Trump’s remarks.

For the most part, the root of the rift between the once-proclaimed “first buddies” centers on Musk’s criticism of Trump’s “One Big Beautiful Bill.” Musk called it a “disgusting abomination” and said the bill would grow the national debt by $3.8 trillion. The Tesla CEO also said he shouldn’t be blamed for all of Trump’s policies. The president responded by calling Musk “the man who has lost his mind.”

Musk’s attempt to cool the feud comes as his long-awaited robotaxis get ready to launch in Austin, Texas — “tentatively,” Musk wrote — on June 22 (Bloomberg previously reported the launch date as June 12). The Tesla CEO posted a short clip of a robotaxi on the city’s street, which has gotten plenty of buzz, and said the first self-driving Tesla trip would be from the factory to a customer’s house on June 28 (Musk’s 54th birthday).

Wedbush Securities analyst Dan Ives wrote in a Wednesday note that Musk is starting his “apology tour” with Trump, calling it a “smart move with robotaxi launch on deck.”

He wrote: “Watching the former BFFs turn against each other has been an overhang on shares of Tesla as investors are looking ahead and fearful that Trump in revenge mode will make it more difficult for an autonomous future with Tesla front and center.” Tesla’s shares crated 14% in a single day last week (Thursday) after some of Musk’s posts on X.

Since then, Tesla’s stock price has slowly started climbing — up about 3.42% now over the past five days. A previous analyst note from Wedbush said the company’s shares had been “way oversold” amid the feud.

Ives wrote Wednesday: “While we do not expect Trump and Musk to be back to their Mar-a-Lago connected at the hip days, it would not be a surprise to see Trump and Musk slowly mend the fences (with the help of intermediaries behind closed doors) over the coming months as at the end of the day Trump needs Musk to stay close to the Republican party and Musk needs Trump for many reasons including a green light on a federal framework for autonomous. 

“This is a big first step and a positive for the Tesla story.”

Ark Invest CEO Cathie Wood said recently that the feud between Musk and Trump really showed how deeply Musk’s companies (namely: Tesla, SpaceX, and Neuralink) rely on the U.S. government. She noted that SpaceX has $22 billion in government contracts, and regulatory decisions on everything from Tesla’s robotaxis to Neurolink’s FDA approval can make or break Musk’s ventures. Regulation of Tesla’s autonomous vehicles, for example, could accelerate dramatically if federal rules replace a state-by-state patchwork.

For Musk, a federal green light might be more valuable than a blue check. The billionaire’s pseudo apology may be personal, but the road ahead is business: Tesla’s future could depend on whether Musk can steer his relationship with Trump back on course.

Inflation cooled slightly in May, according to new data released Wednesday, bucking analysts' expectations and offering a modest reprieve for American consumers.

Data from the Bureau of Labor Statistics showed that headline inflation rose 2.4% annually — up slightly from April’s 2.3%, but still below expectations. Month-over-month, prices climbed 0.1%, down from April’s 0.2% pace. Core inflation, a measure that excludes more volatile food and energy prices, also came in softer than expected.

Which prices rose, which prices fell

While the overall numbers showed mild relief, the details still offered a mixed bag for consumers. Gasoline prices dropped in May, helping to drag down headline inflation. Airfares and used cars also continued to get cheaper.

But shelter costs — often the most painful part of the inflation picture — rose 0.3% on the month and 3.9% from a year earlier, accounting for the majority of May’s total price increase. The price of medical care, car insurance, furniture, and education all rose, too.

Tariffs in focus amid suggestions of a new China trade deal

May’s Consumer Price Index report is the first to reflect, at least partially, the shifting landscape following President Donald Trump’s April “Liberation Day” tariff blitz. While many of the most sweeping tariffs were paused for 90 days pending trade negotiations, baseline 10% duties remain in effect for most partners, and some industry-specific tariffs, including those on steel and aluminum, doubled to 50% as of early June.

Just before the CPI data was released Wednesday morning, Trump announced a trade deal with China was “done,” pending approval from Beijing. “We are getting a total of 55% tariffs, China is getting 10%,” Trump posted on Truth Social, adding that China had agreed to supply “full magnets” and rare earths. The U.S., in turn, will continue allowing Chinese students to study in American universities.

The agreement, which some analysts have already labeled "tiny," may ease tensions around key industrial inputs, but much remains uncertain. A recent federal appeals court ruling allowed Trump’s tariffs to temporarily proceed despite lower-court objections. Meanwhile, analysts say the actual pricing impact on consumers may materialize over the summer as importers work through pre-stocked inventory and adjust to new rules — whatever they may be.

Wall Street isn't impressed with Apple this week. As the tech giant holds its annual Worldwide Developers Conference (WWDC), one analyst called the event "a yawner". Shares fell more than 1% Monday before inching back a bit Tuesday as investors were disappointed by AI announcements another analyst called "incremental at best."

Apple's annual developer showcase failed to deliver the splashy announcements that have defined previous WWDCs — no Vision Pro-style hardware debut, no Apple Intelligence reveal.

Instead, Apple spent most of its keynote unveiling "Liquid Glass," a new design language that makes iOS look, well, more glass-like. As with many Apple announcements, reactions spanned from really liking it to calling it a “bad” copy of the Windows Vista aesthetic from 2007.

But buried beneath the surface-level disappointment was a quieter announcement that could prove far more consequential for Apple's AI ambitions: the Foundation Models framework.

For the first time, Apple is giving third-party developers direct access to the on-device large language models that power Apple Intelligence — with as little as three lines of code. This represents a fundamental shift for a company that has historically guarded its core technologies like state secrets.

The framework enables developers to build AI features that run entirely offline, protecting user privacy while eliminating the cloud API costs that can make AI prohibitively expensive for smaller developers. Examples showcased included the quiz platform Kahoot creating personalized study questions from user notes and the hiking app AllTrails suggesting routes based on natural language descriptions — all without an internet connection.

What makes this significant isn't the current capabilities of Apple's 3 billion parameter model, which pales compared to frontier models like GPT-4 which is rumored to be more than a trillion. It's the strategic positioning.

Apple has never been first to market with transformative technologies. The company didn't invent smartphones, tablets, or smartwatches — it perfected them. The Foundation Models framework suggests Apple is applying this same playbook to AI.

Consider the math: Apple has over 1 billion active iPhone users and millions of developers in its App Store ecosystem. Even if Apple's current AI models are inferior to OpenAI's or Google's, enabling millions of developers to experiment with free, on-device AI could generate the breakthrough applications that Apple hasn't been able to create internally.

By enabling millions of developers to build on Apple's AI foundation, the company could leverage its ecosystem advantages rather than trying to out-innovate OpenAI or Google directly. As tech analyst Ben Thompson noted, Apple's initial success with the Apple II was because of third-party developers, and developers were critical to making the iPhone a sustainable success with the App Store. 

"Trusting developers and relying on partners may be a retreat from Apple's increasing insistence on doing everything itself, but it is very much a welcome one," Thompson wrote.

While competitors like Google and OpenAI race to build ever-larger cloud-based models, Apple is trying a different approach: making decent AI universally accessible across its device ecosystem. What's more, it's doubling down on local processing — something other companies have largely abandoned in their rush to the cloud.

This strategy aligns with Apple's broader positioning around privacy. In an era when AI companies are scraping the internet for training data and users are increasingly concerned about data privacy, Apple's on-device approach could prove prescient.

None of this guarantees success. Apple delayed its promised "more personal" Siri features in March and provided no update on timing during Monday's keynote. The company's AI credibility remains damaged from over-promising and under-delivering on Apple Intelligence.

But if Monday's start to WWDC was indeed a "retreat," as Thompson characterized it, it might be a strategic one. Rather than continuing to overextend in a battle it is unlikely to win, Apple can return to focusing on its unique advantages while making a bet that empowering developers and partners will pay off like it has before.

The Foundation Models framework might not generate headlines like ChatGPT or Gemini. But in Apple's typical fashion, it could prove more important than the flashier announcements from its competitors. The question is whether developers can build something compelling enough with Apple's tools to keep the company in the AI race.

When Vineet Jain, the CEO of cloud management company Egnyte, decided to spend four days without using Google Search, he was “blown away” by how clean and simple AI interfaces were: no clutter at the top of his screen, no ads, just the answers. Shortly after, his 15-year-old son told him, “We don’t use Google anymore. We do everything with ChatGPT.”

That shift in user behavior comes as the U.S. Department of Justice gears up for a defining ruling in its long-running antitrust case against Google. In a decision expected by August, Judge Amit Mehta will decide whether Google must unwind its lucrative default-search deals and spin off its Chrome browser. 

“If you remember the Samson and Delilah story where Samson’s power was in his hair, [Google’s] ‘hair’ is going to be search,” Jain said. And that search business may very well be on the chopping block — even if the DOJ doesn’t win its case.

The financial engine behind Google’s empire

In the first quarter of 2025, Google’s advertising revenue reached $66.9 billion, with $50.7 billion coming from Google Search — thanks largely to its iron-clad position as the default on browsers and devices. That default status is the quiet engine behind its dominance: In 2022, Google paid Apple over $20 billion to be the preset search engine on Safari, locking in the company’s share of mobile eyeballs. Chrome, Google’s browser, adds even more gravitational pull.

For years, regulators have circled Google over its dominance in search — and the advertising empire built on it. But what if the real existential risk isn’t legal at all? What if it’s behavioral? 

Search is no longer analogous to Google. ChatGPT and other AI-native tools are starting to pull traffic and attention away from traditional search engines by answering questions directly, skipping the blue links, and ignoring the ad slots altogether. According to a recent report from Mary Meeker, ChatGPT hit a billion searches a day in less than two years; Google needed 11 years to reach that mark.

Jain said Mehta’s ruling could be a “watershed moment” for Google “in terms of how they regulate their platform power. Because they have become a behemoth — in search, display, advertising, everything related to it.”

As AI search starts to capture a larger share of the search market, Jain said the argument Google could make is, “‘Hey, we are not a monopoly anymore. We’re not as dominant as you’re making us out to be.’”

But whether the company wins or loses the antitrust case, the deeper problem remains: Google is built around an advertising model that depends on search volume, attention, and high-intent queries. Unlike pure AI chatbots, which can deliver answers free of sponsorship, Google can’t simply declutter its interface without cutting off the revenue stream that fuels its empire.

And while Google has begun integrating AI into its products — from AI overviews to Gemini — it’s trying to have it both ways: serve direct answers while keeping users scrolling and clicking long enough to monetize their attention. That’s a far harder trick than it sounds, especially as users come to expect stripped-down, ad-free experiences from tools such as ChatGPT, Perplexity, or Claude.

And the scale of the business makes any change feel like trying to turn an ocean liner. “Google Search, in terms of its contribution to the overall Google pie, is so disproportionately large it’s almost like a massive, massive, ten-times-the-size-of-the-Titanic that you’re trying to move,” Jain said. “So it’ll take time.”

How Google adjusts to the changing market is the “$10-plus-billion question,” he said.

Defaults are powerful — until they aren’t

Google’s dominance in search was never just about having the best engine. It’s also about placement — and payments. That strategy is what’s on trial. Mehta is weighing whether these default arrangements violate antitrust law by unfairly shutting out competition. A ruling that forces Google to unwind its “default” approach could dramatically shake up how users access search — and open the door for competitors to gain ground. 

“Over time, given the size and heft [Google has], there will be a gradual atrophy in the search traffic going to them,” Jain said.

He said he expects some regulatory response regardless of the outcome. “There’ll be some action. I can predict. There’ll be some action,” he said. “I don’t know what it’s gonna be, and I hope the Chrome divestiture, if it happens, it’s done in a favorable way” — where it’s not bought by a competitor, such as OpenAI, which has expressed interest.

Any erosion to Google’s core business may not grab headlines like a courtroom ruling, but it could be as consequential. Just as Microsoft missed the mobile revolution while defending its Windows monopoly, Google risks clinging to its current business model while the next paradigm quietly passes it by. This isn’t the first time Google has faced a potential disruption — mobile search, voice assistants, and vertical platforms like Amazon and TikTok have all chipped away at its dominance. 

But generative AI is different. It doesn’t just offer an alternative to search — it threatens the idea of search itself.

The irony is that Google has long known this moment was coming. In 2011, then-CEO Eric Schmidt warned that “the next Google” wouldn’t look like a search engine — “we’re trying to move from answers that are link-based to answers that are algorithmically based, where we can actually compute the right answer,” he said. That future is here, but Google’s own business incentives are pulling it in the opposite direction. The company can’t become a pure-answer engine without undercutting the ad clicks that make up the bulk of its revenue.

And that tension will only grow more painful as AI-native tools accelerate. Jain predicts search will remain Google’s biggest revenue contributor “for at least the next five to seven years,” but beyond that, the fundamentals begin to wobble.

Still, he’s not betting against the company. “People underestimate Google and the intellectual horsepower they bring to the table. And they are no slouches,” Jain said. “I would not bet against Google at this point.”

But even the smartest players can miss the moment if they’re too busy protecting the past. So while Google isn’t going anywhere — traditional search might be.

Waymo (GOOGL) cars were torched over the weekend during anti-ICE protests in Los Angeles — and the company is looking for someone to clean up the proverbial mess.

The robotaxi company currently has a job opening for a Community & Public Affairs Specialist based in Los Angeles, a role it probably wishes it had filled before its cars were set ablaze.

Footage captured of the events showed Waymo vehicles that had been vandalized and set on fire.

Waymo says the job opening has been up for months and wasn’t posted in the aftermath of the arson. Whoever gets the job would be “implementing advocacy, grassroots, and grasstops campaigns to drive acceptance and adoption of our life-saving technology,” according to the posting.

The role also includes developing and sustaining relationships with community organizations, working with leaders to build trust, helping with social media content about Waymo’s public affairs work, and advocating for the company’s values in the LA community. It comes with a generous salary between $125,000 and $157,000.

Waymo told Quartz that “we are in touch with law enforcement about recent events.” The Alphabet-owned company had to temporarily suspend service in parts of Los Angeles on Sunday following the incidents.

Waymo currently operates its driverless robotaxis in San Francisco, Los Angeles, Phoenix, and Austin. It is expanding to more cities soon, and announced in May that it is preparing to scale up its manufacturing facility in the Phoenix suburb of Mesa, Arizona. At the new plant, Waymo is transforming 2,000 Jaguar I-PACEs into robotaxis equipped with the cameras and sensors that allow it to operate without a driver.

It’s no secret that where you live can have a massive impact on how much money you make given that average salaries vary widely from state-to-state.

WalletHub set out to find the states where people make the most money, looking at the the average annual income of the top 5%, the median income for all residents, and the average income of the bottom 20%.

“The highest-earning 10% of individuals in the United States earn over 12 times more than those in the lowest-earning 10%,” said WalletHub analyst Chip Lupo. “By measuring the income of various percentiles against a state’s median income, we can better identify where income disparities are more prevalent, which could help us better understand why residents of certain states struggle more to make ends meet.”

Continue reading to see which 10 states have the highest earners. All numbers are adjusted for the cost of living index.

#10: Massachusetts

Atlantide Phototravel / Getty Images

• Average annual income of top 5%: $486,112
• Median annual income: $133,946
• Average annual income of bottom 20%: $14,221

#9: Illinois

Allan Baxter / Getty Images

• Average annual income of top 5%: $521,989
• Median annual income: $81,549
• Average annual income of bottom 20%: $16,705

#8: Colorado

Deb Snelson / Getty Images

• Average annual income of top 5%: $483,844
• Median annual income: $102,825
• Average annual income of bottom 20%: $19,253

#7: Minnesota

Grant Faint / Getty Images

• Average annual income of top 5%: $486,764
• Median annual income: $89,434
• Average annual income of bottom 20%: $20,616

#6: Utah

Sean Pavone / Getty Images

• Average annual income of top 5%: $466,144
• Median annual income: $95,101
• Average annual income of bottom 20%: $23,531

#5: Washington

Carmen Martínez Torrón / Getty Images

• Average annual income of top 5%: $499,994
• Median annual income: $109,171
• Average annual income of bottom 20%: $18,777

#4: Connecticut

DenisTangneyJr / Getty Images

• Average annual income of top 5%: $535,578
• Median annual income: $118,346
• Average annual income of bottom 20%: $15,005

#3: New York

Barry Winiker / Getty Images

• Average annual income of top 5%: $575,505
• Median annual income: $95,033
• Average annual income of bottom 20%: $13,647

#2: New Jersey

DougSchneiderPhoto / Getty Images

• Average annual income of top 5%: $522,128
• Median annual income: $122,447
• Average annual income of bottom 20%: $17,083

#1: Virginia

L. Toshio Kishiyama / Getty Images

• Average annual income of top 5%: $533,522
• Median annual income: $93,275
• Average annual income of bottom 20%: $19,293

The World Bank has slashed its global growth forecast, warning that President Donald Trump’s tariffs and the resulting political uncertainty are dragging the world economy to its weakest non-recessionary pace since 2008.

In a detailed report released Tuesday, the Bank projected global GDP growth will slow to just 2.3% in 2025, a sharp downgrade from January’s 2.7% estimate. That suggests the ongoing trade wars are exerting a 20% drag on the global economy.

The outlook is especially bleak for emerging markets and developing economies (EMDEs), with the Bank suggesting that income gaps with richer nations will widen further. Already, foreign direct investment into these economies has fallen to less than half its 2008 peak, with little sign of recovery.

“Downside risks to the outlook predominate,” as a summary of the report dryly puts it. Trade barriers appear to be becoming more entrenched and intractable, not less, all while policy direction remains uncertain and the economic damage racks up.

The timing is poignant

Released as U.S.-China trade talks enter their second day in London, the World Bank’s report reflects an urgent hope that these global powers can contain and negotiate their economic conflicts.

“If trade restrictions escalate or policy uncertainty persists,” the authors warn, “global growth could be even weaker.”

The World Bank also flagged risks from extreme weather and inflation, especially for countries already dealing with debt distress and weakened or fragile institutions.

Slowing growth across the board, but the U.S. is hit hardest

Regional downgrades – that is, revisions to the Bank’s growth forecasts – were broad-based and sweeping. Growth is expected to slow across East Asia, South Asia, Europe, and Latin America. However, the report singles out the U.S. as the most negatively affected economy in terms of slowing growth, echoing OECD projections released last week.

In response, the Bank is urging coordinated, multilateral action to create greater policy certainty and boost investment in human capital, labor markets, and the quality of national and international institutions. “On the upside, uncertainty and trade barriers could diminish if major economies reach lasting agreements that address trade tensions,” according to the report.

But today, with the London talks so far inconclusive, it’s unclear if the World’s Bank call will be heeded – no matter how urgent it may be.