Trump Sends Tariff Letters; Apple Loses Top AI Exec to Meta

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1:36Bloomberg Audio Studios, podcasts, radio, news. Good morning, I'm Nathan Hager. And I'm Karen Moscow. Here are the stories we're following today. Karen, we begin with the latest on the global trade war. President Donald Trump has unveiled a wave of letters again, threatening to impose higher tariff rates on key trading partners. They include 25 % levies on goods from Japan and South Korea, as well as tariff plans for more than a dozen other nations, including South Africa, Indonesia, Thailand and Cambodia. But in a move reminiscent of previous delays, the president also teased the possibility of further talks.

2:16I would say firm, but not 100 percent firm. If they call up and they say we'd like to do something a different way, we're going to be open to that. But essentially, that's the way it is right now. President Trump spoke shortly after signing an executive order delaying the new rates from July 9th tomorrow. to August 1st. That effectively buys countries an extra three weeks to cut a deal with the White House. Meanwhile, Nathan, a day after President Trump sent out those letters, Marco Rubio is making his first trip to Asia as the top U.S. diplomat. The Secretary of State is heading to a summit in Malaysia for a gathering at the Association of Southeast Asian Nations.

2:53Malaysia is one of the countries that received a tariff letter yesterday. Meanwhile, in Europe, Karen, the EU is trying to lock in a preliminary trade deal with the U.S. this week. Let's go to London, Get the latest with Bloomberg's Ewan Potts. Ewan, what is the latest? Nathan and Karen, Trump's tariff deadline may have been delayed, but Brussels isn't taking any chances. Bloomberg has learned the EU is seeking a preliminary trade settlement with the US this week that would allow it to lock in a 10 % tariff rate beyond August 1st. This is a negotiate a more permanent agreement. We understand the EU is also seeking an exemption for certain key products, including aircraft and aircraft parts, as well as wines and spirits.

3:33In London, I'm Ewan Potts, Bloomberg Radio. All right, Ewan, thanks. Now to the latest in the war in Ukraine. Just days after speaking with President Volodymyr Zelensky, President Trump says he will send more weapons to the country. We're going to send some more weapons. We have to. They have to be able to defend themselves. They're getting hit very hard now. They're getting hit very hard. We're going to have to send more weapons. Defensive weapons, primarily, but they're getting hit very, very hard. President Trump's decision comes after the Pentagon halted flows of some air defense missiles and artillery shells to Ukraine.

4:06And Karen, it comes as President Trump hosted Israeli Prime Minister Benjamin Netanyahu at the White House last night. The Israeli leader heaped praise on the president as he pushes for a ceasefire in Gaza. He's forging peace as we speak in one country, in one region after the other. So I want to present to you, Mr. President, the letter I sent to the Nobel Prize Committee. It's nominating you for the peace prize, which is well-deserved. And you should get it. Thank you very much. This I didn't know. Prime Minister Netanyahu presented President Trump with that Nobel Peace Prize nomination in the Oval Office.

4:42The president has long sought the Nobel. He's expressed irritation that former President Barack Obama got it before surging troops into Afghanistan. Netanyahu's visit comes weeks after the U.S. dropped bombs on Iran's nuclear sites. President Trump says the U.S. and Iran will meet soon, and he's open to lifting sanctions. Now, Nathan, let's get you an update on the disaster in Texas Hill Country. The confirmed death toll now up to 104 from the flash floods that tore through the region over the weekend. That includes 27 children and counselors from the Mystic Girls summer camp along the Guadalupe River.

5:17Kerrville, Texas Mayor Joe Herring Jr. says there may be more heartache to come. Primary search continues and we remain hopeful every foot, every mile, every bend of the river. And as the search effort continues, authorities are facing questions about why the area lacked warning sirens and whether the forecasts warned enough about the risk of catastrophic flooding. Texas Senator Ted Cruz says the focus should be on recovery. We will have a reasonable conversation about, A, are there any ways to have earlier detection and some of that, the limits of a flash flood, they're very difficult because they could arise so quickly.

5:56Senator Ted Cruz says President Trump has promised to provide any resources the state needs for its response. The president says he'll visit Texas on Friday. Well, Karen, a big change may be coming soon to airport security. Bloomberg News has learned the Transportation Security Administration is planning to update its policies so travelers no longer have to remove their shoes at standard screening checkpoints. The move would extend a benefit that's already available for those who pay for TSA pre-check, the U.S. would join other global aviation hubs like the European Union, Dubai, and Singapore that do not require travelers to remove their shoes.

6:30Nathan, let's turn to company news now. And Apple may be facing an exodus of top talent. Let's get the details with Bloomberg's John Tucker. And John, where are they going? Well, Karen, a lot of them are going to meta platforms. One of the first out the door, Ru Ming Pang, a distinguished engineer and a manager in charge of the Apple Foundation models team, AFM. Meta dangled tens of millions of dollars a year in front of this engineer. He's going to work for Meta's new superintelligence group. Pang's departure could be the start of a string of exits from AFM, with several engineers telling colleagues they're planning to leave in the near future.

7:05Tom Gunter, a top deputy to Pang, left Apple last month. A pang's departure, the most significant in Apple's AI ranks since the company started working on Apple intelligence a few years ago. Now, it's not going to help Apple's push into AI, which has been described as flailing. A Meta CEO, Mark Zuckerberg, has on a hiring spree bringing on major AI leaders who are going to work directly with him. In New York, I'm John Tucker, Bloomberg Radio. All right, John, thank you. Novartis has won regulatory approval for the first medicine specifically designed to treat malaria in babies. The drugmaker says until now, infants with malaria were typically treated with tablets meant for older children, but adjusted for weight.

7:47In 2023, the World Health Organization said there were nearly 600 ,000 malaria-related deaths. Children under five accounted for three in four of them.

8:00It's time now for a look at some of the other stories making news in New York and around the world. And for that, we're joined by Bloomberg's Michael Barr. Michael, good morning. Good morning, Karen. A federal judge is ordering a Homeland Security official to appear in court on Thursday and map out the government's plans for Kilmar Abrego Garcia. It comes after federal prosecutors said they would initiate deportation proceedings against him if he is released from jail before trial on human smuggling charges. Attorneys for Abrego Garcia requested he be returned to Maryland from Tennessee, where he's being detained.

8:34Attorney Simon Sandoval Motionberg says Thursday's hearing is a sign the judge is notably tired of hearing from prosecutors who claim to not have information. If they want to deport him to a third country, they need to name that country, and they need to describe the process by which they're going going to give him due process. Attorney Motionberg says Abrego Garcia was mistakenly deported to El Salvador. He was living in Maryland with his wife and child, both of whom are American citizens. The mayor of Los Angeles denies there was a hostile crowd threatening federal immigration agents at MacArthur Park in L.A.

9:13Approximately 90 armed National Guard troops were deployed to protect ICE agents. Mayor Karen Bass. It is outrageous and un-American that we have federal armed vehicles in our parks when nothing is going on in the parks. Meanwhile, an 18 state court filing led by California alleges that federal immigration agents are impeding on the Fourth Amendment protection against unreasonable search and seizure. Boston University is cutting 120 staff positions and 120 vacancies to reduce spending by 5 % for fiscal 2026 due to the Trump administration's changes to higher education funding. Boston University President Melissa Gilliam says the university is responding to a national renegotiation of how the country's higher education model will be funded.

10:07BU received$579 million in research funding last year, primarily from federal agencies. Global News, 24 hours a day and whenever you want it with Bloomberg News Now. I'm Michael Barr and this is Bloomberg. Karen. All right, Michael Barr. Thank you. This is the Bloomberg Tech Minute brought to you by ChatGPT. Now with ChatGPT work. I'm Carol Masser. Social media posts on sleep outnumber those on exercise by three to one and those on diet by 5 to 1, according to consumer researcher Ryla Global Consulting. And so it may come as no surprise that there are seemingly no limits to what we will do to get a good night's sleep.

10:49People are spending on everything from pricey sleep trackers, AI-powered scent therapy machines, to$3 ,000 body temperature-regulating Manosphere-endorsed mattress covers, and couples outfitting totally separate bedrooms. As Bloomberg's Dina Schenker reports, It all adds up to a sleep support industry that's a$300 million business, with growth coming from functional beverages and sleep powders, even as some experts warn that these products may not be effective and can even be harmful. Despite the spend, 6 out of 10 American adults still don't get the 7 to 9 hours of sleep the credible science says we need.

11:25As for experts, they recommend making lifestyle changes, such as getting sunlight and limiting screen time to improve sleep. That's the Bloomberg Tech Minute brought to you by ChatGPT. Put ChatGPT to work on your most ambitious ideas and projects. Get started at ChatGPT.com today by selecting Work Mode. Available on Plus and Pro Plans. It's time to plan ahead and make sure your brand is showing up in ways that can have an impact. That's where 4imprint comes in. 4imprint have promotional products that work as hard as you do. Durable, useful, and designed to make a lasting impression. Think quality apparel your team will wear again and again, including popular and exclusive brands.

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14:09lost them both but won the match because Grigor Dimitrov suffered an injury to his pectoral muscle and had to retire incredibly. It's the fifth consecutive Grand Slam tournament where for various reasons that has happened to Dimitrov. He did not speak afterwards. Sinner on center court did. He's been so unlucky in the past you know couple of years. An incredible player. A good friend of mine also and then we understand each other very well off the court too and you know seeing him in this position it's honestly you know if there would be a chance you know that he could play you know the next round you know he would he would deserve.

14:49Sinner also dealing with an elbow injury he's had an MRI today. Knicks made an official naming Mike Brown their new coach saying in a statement that Brown brings a championship pedigree he has won four NBA titles as an assistant the Knicks season ended with that loss at Indiana Tyrese Halliburton then tore his Achilles in Game 7 of the finals, and the Pacers made official that Halliburton will not play at all next season. The Celtics have not yet said that about their star Jason Tatum had the same injury in the playoffs against the Knicks. At Fenway, Red Sox beat Colorado 9-3. Toronto won again 8-4 over the White Sox.

15:22That's nine wins in a row. The Red Hot Blue Jays lead the Yankees by three and a half games. The Yanks are home tonight to play Seattle. The Mariners are led by catcher Cal Raleigh. A 35 home run, so two more than Aaron Judge. They both have 74 RBIs. Mets start a series in Baltimore. The Nationals are in St. Louis. The Nats just fired their manager, Davey Martinez. His bench coach, Miguel Cairo, is taking over. John Stash, Bloomberg Sports. Karen Nathan. Coast to coast on Bloomberg Radio. Nationwide on Sirius XM. And around the world on Bloomberg.com and the Bloomberg Business App. This is Bloomberg Daybreak.

16:01Good morning. I'm Nathan Hager. President Donald Trump is putting a handful of countries on notice that they've got about three more weeks to reach deals or face higher tariff rates around the level of the April 2nd announcement. But the president is suggesting he may still be open to negotiation around the new August 1st deadline. I would say firm, but not 100 percent firm. If they call up and they say would like to do something a different way, we're going to be open to that. And that was the president speaking at a White House dinner last night. For more, We're joined by Bloomberg's Jill Deesis in Hong Kong.

16:34So, Jill, we've gotten a chance to digest these tariff letters. More than a dozen sent out yesterday. A lot of focus on Japan and South Korea in particular. How are those nations taking this sort of reprieve when it comes to the April 2nd tariffs? Good morning. Yes, good morning, Nathan. I think that's the right way to think about it, honestly, is that it's a bit of a reprieve. I mean, this is essentially a delay in all but name. We were, you know, the 90-day deadline coming up this week. Now, you not only have August 1st positioned as the deadline when tariffs are going to affect, but then you've also got, as we just heard from Trump himself there, saying, you know, that's not even necessarily 100%.

17:14It does seem like there's room to negotiate. When it comes to Japan and South Korea in particular, I think these have been really, really interesting countries to watch over the last several weeks, Japan especially, because there have been a lot of pretty major sticking points with that country. A lot of this does come down to automotive tariffs, so those tariffs on cars and car parts. That's one thing that Trump has kind of indicated that he's not willing to really compromise on. We did hear from the Japanese Prime Minister, Shigeru Shiba, earlier today, you know, talking about the fact that, you know, that Japan is still really interested in trying to reach a deal, although, you know, it has previously avoided making what he called easy compromises.

17:53So you do get the sense that while Tokyo is very interested in trying to move something further, it's not necessarily clear what exactly that is going to look like. Although, obviously, yes, they do have some time bought. I think, you know, South Korea, you know, we have seen some optimism there. Certainly it does seem like Seoul is interested in moving forward with something. But again, I think really the big takeaway here is that it doesn't really feel like we're under this extreme immediate time pressure here. Maybe there is some time for these nations to hash out further talks with Washington.

18:23But I guess the question is whether three more weeks is enough time, given the fact that we've had more than three months up to now. Well, I mean, I would also argue, first of all, that 90 days is certainly an incredibly ambitious timescale by which to negotiate any trade deal, let alone, you know, up to dozens upon dozens of trade deals with countries all over the world. I think that one way to think about this, quite frankly, is when you've got Trump saying that not, you know, not even that three weeks out, that August 1st deadline is necessarily a 100 percent done firm commitment. That does indicate that, you know, maybe maybe the White House is sitting here thinking like, yeah, I mean, you know, some of these things actually do take time.

18:59And I would also point out that even if you do get something that's in the vein of like a preliminary deal, I look at, you know, for example, what happened with the United Kingdom a few weeks ago. That doesn't necessarily mean that that resolves all of the trade issues. I mean, first of all, remember that this is a really complicated system that the White House has really drawn up here, right? I mean, you've got what it calls these reciprocal tariffs, the Liberation Day tariffs. That was the deadline that's now been pushed off to August 1st. But then you've also got all of these sectoral tariffs.

19:26In the case of the United Kingdom, you know, maybe they reached a deal with the Trump administration on some things. But there's still this big overhang in the form of those sectoral steel tariffs, for example, that is still something that needs to be hashed out. So I would argue that even if you do have something that they're able to work out over the next few weeks, you know, as you mentioned, that's still kind of a tall task. You've still got some many things in the way of, you know, potential additional sectoral tariffs. Remember, the U.S. Commerce Department is investigating whether there's more that they'd want to implement.

19:54And those types of tariffs, I will remind you, are, I think, going to be quite a bit harder to challenge in the United States than, say, you know, Trump's executive order tariffs would be. So, you know, I realize I'm talking very quickly and I'm saying a lot, but I think this is all just to say this is still a very wonky, you know, very, very big process that needs to unfold here. I wouldn't necessarily count on all of this being wrapped up within the next three weeks. In just 30 seconds, what about the issue of the president wanting to open markets to U.S. goods? Is that something that Japan and South Korea are open to?

20:25I mean, I think that, again, really, when it comes to Japan and South Korea, their biggest concerns right now, I would argue, are really about the automotive side of this. I mean, you've got some of the world's biggest automotive companies that are based in Japan and South Korea. And so their sticking point with the United States, I think, remains trying to figure out a way around some of those sectoral tariffs. Again, I'm not really sure how much of that is actually going to be entering into the conversation over the next three weeks, because once again, those are somewhat different from the reciprocal tariffs that Trump initially announced on these two countries.

20:59But when I'm looking at them, that's really, I think, where my area of focus remains. This is Bloomberg Daybreak, your morning podcast on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed by 6 a.m. Eastern each morning on Apple, Spotify or anywhere else you listen. You can also listen live each morning starting at 5 a.m. Wall Street time on Bloomberg 1130 in New York, Bloomberg 99.1 in Washington, Bloomberg 92.9 in Boston, and nationwide on Sirius XM Channel 121. Plus, listen coast-to-coast on the Bloomberg Business app now with Apple CarPlay and Android Auto interfaces.

21:36And don't forget to subscribe to Bloomberg News Now. It's the latest news whenever you want it, in five minutes or less. Search Bloomberg News Now on your favorite podcast platform to stay informed all day long. I'm Karen Moscow. And I'm Nathan Hager. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak.

22:05If you listen to financial news, you know a lot of time is spent thinking about what's next. The next opportunity. The next investment. The next move. But sometimes what matters most is being ready for what you never saw coming. For more than 75 years, Cincinnati Insurance has worked with independent agents to help protect businesses, homes, valuables, and more. Because planning for the future isn't only about knowing what's next. It's about making sure you're ready for what you can't predict. Let Cincinnati Insurance make your bad day better. Find an independent agent at c-i-n-f-i-n dot com.

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