Plus: 10 Shark Tank Companies Caught On The Front Lines Of Trump’s Trade War |
Good morning,
The era of American exceptionalism in the stock market could be over for good.President Donald Trump’s tariffs have wreaked havoc on U.S. equities, sending the S&P 500 down 6% this year. Meanwhile, the MSCI EAFE index, which covers stocks in 21 developed markets excluding the U.S. and Canada, is up 11%. The S&P has easily outperformed the MSCI EAFE index on an annualized basis for decades, but investors are hoping the gap will narrow further amid the uncertainty. If you want in on the action, Forbes spoke with experts who recommended seven European and Asian stocks showing strong potential, but are also still fairly affordable.
Let’s get into the headlines, |
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| As the Trump Administration wages a war on higher education, Congressional Republicans have floated dramatically raising, and perhaps extending, the current 1.4% tax on the net investment income of college endowments. IRS data shows 56 schools paid a total of $381 million in endowment tax for calendar year 2023, but proposed increases aren’t expected to raise meaningful revenue. “I don’t think what’s motivating this is revenue,’’ says Steven Bloom, chair of the Higher Education Association Tax Working Group. President Donald Trump urged Republican lawmakers to eject protestors from town hall meetings in their districts Sunday, after several GOP lawmakers have faced angry constituents questioning his administration’s policies in recent weeks. Trump claimed without evidence that “Radical Left Democrats” were paying disrupters to infiltrate the events, and that “Republicans are happy with what is taking place in our Country.” MORE: Less than half of voters approve of President Donald Trump’s job performance and his handling of major issues, according to a Sunday NBC News poll—the latest in a string of unfavorable surveys. More than half of respondents to a New York Times/Siena poll last week, including Republicans, said the words “chaotic” and “scary” describe the Trump presidency well. |
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|  | | Hayley Segar is the founder of onewith, a swimwear company that until recently manufactured entirely in China. CHRISTOPHER WILLARD/GETTY IMAGES |
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For years, the judges on Shark Tank, just like most private equity firms, advised entrepreneurs to move manufacturing overseas to save money. It was good advice. Lower costs overseas boosted profits and gave consumers cheaper goods. Then the Covid-19 pandemic exposed the risks of relying on distant factories as the world and global commerce temporarily shut down. Now, those risks are front and center again, self-inflicted by President Trump’s ham-handed and chaotic tariff plan. To see how small businesses are responding, Forbes reached out to 10 Shark Tank entrepreneurs across multiple industries, along with each of their celebrity sharks. Mark Cuban says he’s surveying all his portfolio companies and looking for ways to shift production back to the U.S., while fellow shark Daymond John said businesses are trying to make sense of the broader picture while “waiting and praying” for a return to normalcy.Most of the business owners say they’re in crisis mode, blindsided by rising costs and rules that can change as fast as the president can post to his Truth Social account. Several say manufacturing in China wasn’t a choice. It was the only option. And few had a plan for dealing with the tariffs, which are as high as 145% for goods coming from China. Most are just trying to hang on and hoping for a resolution sooner rather than later. Some say they’ll stop selling certain products altogether. Others are already weighing what they see as inevitable if nothing changes: shutting down and walking away from the business they built.
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“While it is easy to see the stock market react or hear big-company CEOs speak out and sometimes get what they want, small businesses don’t have the same platform,” says Forbes reporter Brandon Kochkodin. “Many are getting hit even harder by the tariffs, with no real way to adapt.” small businesses don’t have the same platformForbes “The founders interviewed here lived out the dream of building a business from scratch and landing a spot on Shark Tank. Now they are facing price hikes they cannot pass on, supply chains they cannot fix, and policies they cannot plan around. No matter what they sell, the story is the same: If things do not return to normal soon, many will not make it.”
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An EV startup backed by Jeff Bezos is coming for Tesla: Slate Auto unveiled its inaugural truck with a price tag it says could fall below $20,000 with federal tax credits, much less than competitors. The company said the first vehicles will be delivered to consumers by the end of 2026, while Tesla has yet to deliver on its long-awaited promise of a $25,000 electric car. Elissa Butterfield went from being Elon Musk’s assistant to a venture capitalist: She joined L.A.-based venture capital investor Island Green Capital Management in early 2024, and since then the firm has landed investments in xAI and SpaceX. She’s not the first person who worked closely under Musk to move into the investment industry after stepping away. |
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Former Rep. George Santos (R-N.Y.) was sentenced to seven years in prison Friday after he was expelled from the U.S. House and pleaded guilty to wire fraud and identity theft. Santos was ejected following a House Ethics Committee report on his highly fabricated background, which also produced evidence that Santos used his campaign funds to pay for a lavish lifestyle. The FBI arrested a Milwaukee judge Friday for allegedly trying to help an undocumented immigrant avoid arrest after he appeared in her courtroom, prompting concerns that the Trump Administration overstepped its authority. The arrest comes after the Justice Department warned that prosecutors would investigate state or local officials they believed “threaten to impede” the administration’s immigration efforts. |
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The Houthi militant group in Yemen alleged Monday that at least 68 migrants from Africa were killed after an overnight U.S. strike on the country hit a migrant detention center in rebel-controlled territory. While the U.S. military has not confirmed the alleged strike, a Central Command statement Sunday noted it has “intentionally limited disclosing details of our ongoing or future operations” for “operational security” reasons. President Donald Trump threatened “secondary sanctions” on Russia in a Truth Social post Saturday, and accused Vladimir Putin of prolonging Russia’s war with Ukraine. His comments came after Trump met with Ukrainian President Volodymyr Zelenskyy in the Vatican, prior to Pope Francis’ funeral. |
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President Donald Trump took aim at the agencies that accredit colleges in an executive order last week, claiming they make “unlawfully discriminatory practices a formal standard of accreditation.” But that’s false, according to Larry Schall, president of the New England Commission of Higher Education, which accredits more than 200 colleges. The agency has no standards related to DEI. Any effort to shut down an accreditor would ultimately play out in the courts. |
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The parent company of the Kentucky Derby racetrack is halting an expansion of its marquee horseracing venue, citing the economic uncertainty and risk of inflation under President Donald Trump’s tariffs. Churchill Downs’ CEO also told investors during its earnings call there’s some “hesitancy” in ticket sales: |
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$920 million
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The cost of the four-year renovation of Churchill Downs, which the company first announced in February
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9%
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The company’s increase in net revenue compared to the same period last year
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$210.7 million
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The record amount bet on the 2024 Kentucky Derby
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Many “entry-level” roles now expect candidates with real-world experience. So what do you do when you’re just starting out? Experience isn’t limited to full-time work, so be sure to include any volunteering or other practical experiences on your résumé. Try creating sample projects to show off your skills, and include a portfolio with your job application. Lastly, follow up with a hiring manager after you apply to express your willingness to go the extra mile. |
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