‘Revenge Tax’ removed from the big bill

Plus: The tariffs will cost Nike a billion bucks, and should journalists do journalism?

Author

Matt Davis
June 30, 2025

Hello, Monday-N2K’ers!

Jeff Bezos got married in Venice this weekend (congratulations?), and I’ve chosen to ignore it here apart from this snide reference, because I think he should have stuck it out with McKenzie Scott. But there’s plenty more news you Need2Know this morning. Promise.

—Matt Davis, Need2Know Chedditor

News You Need2Know

Companies mentioned in today’s newsletter

‘Revenge Tax’ removed from the big bill

Republicans have decided to abandon their so-called "revenge tax" — a measure that would have punished countries that have the temerity to impose taxes on U.S. tech and multinational corporations. Treasury Secretary Scott Bessent swooped in with news of a "new understanding" reached in global tax negotiations, giving lawmakers the excuse they needed to drop the controversial tax and sidestep corporate lobbying backlash.

Bessent claimed the tax was unnecessary due to progress in international agreements championed by the OECD and G20. The thread is a tad…er…boring but, you know. Policy.

Republicans had designed the tax as a retaliatory strike against nations imposing "discriminatory" digital service taxes or the global 15% corporate minimum tax advocated by the Biden administration. The GOP has long grumbled about the latter, branding it a foreign assault on "American sovereignty." 

Abandoning the tax doesn’t just patch diplomatic wounds; it also lightens the load for corporations worried about dampened foreign investment. Yet, this convenient compromise blasts a $52 billion hole in the already shaky math behind the GOP’s sprawling tax, energy, defense, and immigration megabill.

With this decision coming on the heels of a Senate parliamentarian's rejection of several other cost-defraying provisions, lawmakers are scrambling to figure out how they'll pay for their wish list now.

Song of the day: All Time High

“All Time High" is a 1983 song by American singer-songwriter Rita Coolidge that serves as the theme song to the James Bond film “Octopussy” (which is terrible) and is included on its accompanying soundtrack album. In great news the S&P 500 $SPX ( ▲ 0.52% ) hit an all-time record high on Friday, extending breakneck gains achieved in recent weeks as investors shrugged off concerns about newly imposed tariffs in the Middle East.

It can only go up from here! Or down! #NotFinancialAdvice

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Prez threatens to sue journalists for journalism

It’s another glorious day in the realm of democracy — where freedom of the press thrives! Except, wait, what’s this? President Donald Trump has apparently decided that journalism is only acceptable if it involves flattering portraits of him, preferably bathed in golden light while taking credit for “obliterating” Iran’s nuclear program.

Spoiler alert: Preliminary intelligence says… not quite.

Last week the New York Times and CNN, two outlets notorious for their inconvenient habit of telling the truth, published reports based on a classified document (which the Defense Intelligence Agency later corroborated) stating that the attack succeeded in setting back Iran’s nuclear ambitions for a whopping couple of months.

In a letter to The Times, a personal lawyer for the president said the newspaper’s article had damaged Trump’s reputation and demanded that the news organization “retract and apologize for” the piece, which the letter described as “false,” “defamatory” and “unpatriotic.” And Trump, as we all know, knows from defamation.

“No retraction is needed,” the paper’s lawyer, David McCraw, wrote in a letter.

“No apology will be forthcoming,” he added. “We told the truth to the best of our ability. We will continue to do so.”

One of my favorite quotes by Napoleon Bonaparte is that you should never pick a fight with people who buy ink by the barrel-full. Or by the pixel-full, these days, eh, Bonny?

Today on the ‘gram: Behind the scenes

Post of the day: If you want a friend in politics…

Quote of the Day

❝

No apology will be forthcoming. We told the truth to the best of our ability. We will continue to do so.

—a lawyer for the New York Times

How does Wall Street bet? Let’s ask the founder of WallStreetBets



WallStreetBets founder Jaime Rogozinski maintains a staunchly bullish long-term outlook for equities. His favorite saying is: "When in doubt, buy the dip, meme the recovery, trust the hopium."

I’m thinking you might want to take everything else he says with a pinch of #NotFinancialAdvice salt.

Rogozinski sees memecoins as a "gateway drug for risk-hungry individuals" and a "funnel to more serious" market participation. He acknowledges their often-brief lifespan — "four hours is how long it lives" — but emphasizes their crucial role in attracting new participants in his marketplace — blurring the lines between traditional finance and crypto. He even likened the thrill to "going to a casino and hitting the jackpot,” which I’m sure the SEC will be pleased to hear about!

He expressed unwavering conviction in Bitcoin, labeling it the "surest bet ever" for long-term investment, despite its characteristic volatility. "If somebody says to me, what should I invest in and I don't have time, Bitcoin. It will go up," he confidently asserted. Again. #NotFinancialAdvice

“Wall Street should turn into everybody from around the world. Crypto permits that," he concluded.

Should you check your 401(k) today?

👍️ 

BUY THE “HOPIUM!”

If you can’t grow your business, buy another

Despite widespread economic uncertainty and market volatility, dealmaking in the U.S. has seen a remarkable surge. Dena Jalbert, mergers and acquisitions expert and CEO of Align Business Advisory Services, shed some light on the unexpected trend in an interview with Cheddar last week, noting that while "deal volume is down when you look at it year over year," it "is still above a 25-year average." 

M&A is increasingly viewed as a "catalyst for growth," especially when organic growth becomes challenging due to "other conditions that are preventing you from being able to grow organically." This drives both strategic buyers and financial sponsors to seek "complementary markets, products, services, anything that can help you grow market share."

Looking ahead, Jalbert anticipates a strong finish to the year. She believes easing trade tensions signal that current volatility is a short-term issue, not "something that, you know, you have to bake into your pricing when you're trying to do a deal for 2026 and beyond." Coupled with potential interest rate cuts, she foresees a "really, really strong finish to the year. A lot of deals are going to be announced in Q3 and Q4 for sure."

Tariffs will cost Nike a billion bucks

Nike’s stock $NKE ( ▲ 15.19% ) jumped 15% at Friday’s opening bell after announcing plans to shift production away from China, but the company is far from out of the woods. The company warned that Trump administration tariffs could hit its bottom line by $1 billion before internal changes take effect.

Naturally, Nike plans to pass some of this burden onto consumers through "surgical" price increases starting this fall, right in time for back-to-school shopping.

Families on tighter budgets already stretched by the current economic climate are preparing for impact, especially as Walmart $WMT ( ▲ 1.3% ) recently echoed similar warnings of tariff-related price hikes during back-to-school shopping.

Adding insult to injury, retail analysts like Neil Saunders of GlobalData told the Associated Press Nike might be struggling with a “boredom factor” among consumers, coupled with “anti-U.S. brand sentiment” in markets like China. Higher prices probably won’t help quash either issue.

Poll of the Day: Just do what, now?

Are you more or less likely to buy Nike products now than you were five years ago?

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Poll Results: “Thatsh correct…”

We asked: Who was the best James Bond actor?

You answered:

🟩🟩🟩🟩🟩🟩 Sean Connery (448 votes)

⬜️⬜️⬜️⬜️⬜️⬜️ Literally any other actor who played the character, ever (33)

Exshellent.

481 Votes via @beehiiv polls

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