Hello, my most cherished subscribers!

Happy Monday, fine people of the Cheddarverse. Our poll result today is truly revolutionary, I must say you surprised me there. Meanwhile, Pride events are seeing a bunch of their corporate sponsors pull out because they’re scared of backlash from the Trump administration. Also meanwhile, companies are scared of doing business in Russia, where there are no Pride festivals.

News you Need2Know

• Spike in steel tariffs will also spike grocery cos …

• Corporations pull support from Pride events

• Why businesses won’t rush back to Russia

• Judge: How do we break up Google’s monopoly? (No, …

• Not all states are rolling out red carpets for AI

Me, I’m just scared.

—Matt Davis, Need2Know Chedditor

Companies mentioned in today’s newsletter

$BUD ( ▼ 0.8% )  $SBUX ( ▲ 1.77% )  $WFC ( ▲ 1.29% )  $GILD ( ▲ 0.06% )  $MCD ( ▼ 0.05% )  $SHEL ( ▲ 0.63% )  $BP ( ▼ 0.07% )  $GOOGL ( ▼ 1.31% )  $AAPL ( ▲ 0.7% )  $META ( ▼ 0.28% )  

Spike in steel tariffs will also spike grocery costs

Just when we thought—hoped, prayed—we wouldn’t see another tariff story, President Donald Trump’s Friday threat to double tariffs on foreign steel and aluminum to 50% could have far-reaching consequences, hitting Americans in an unexpected place: grocery store prices. While the move is aimed at bolstering domestic steel production, experts warn the policy could undercut Trump’s earlier promise to lower food costs, as steel and aluminum are critical for food packaging.

“Rising grocery prices would be part of the ripple effects,” noted Usha Haley, a trade expert and professor at Wichita State University. She added that the tariffs may also harm international relations while failing to deliver a long-term revival in U.S. manufacturing. So, it’s a win-win? Cans used for storing soup, tomato paste, and even pet food rely on imported tin mill steel, and increased costs will likely pass along to consumers.

Robert Budway, president of the Can Manufacturers Institute, which is an actual thing, expressed concern that the tariffs could benefit foreign competitors while hurting American consumers. “Doubling the steel tariff will further increase the cost of canned goods at the grocery store,” he warned, pointing out that many manufacturers can’t rely solely on domestic steel due to limited supply. Budway emphasized, “The cost is levied upon millions of American families.”

While the steel industry might gain a few jobs, the broader economic losses and job destruction are concerning. Andreas Waldkirch, an economist at Colby College, summarized: “You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere.”

Corporations pull support from Pride events

Pride events across the U.S. are grappling with significant budget shortfalls as corporate sponsorships decline and operational costs escalate. The moves come as President Donald Trump has shown antipathy for trans protections and has attempted to roll back some LGBTQ+ friendly federal policies. Experts also note that a growing slice of the public has grown tired of companies taking a stance on social and political issues.

Kert Richards, CEO of The Center Orlando, which provides LGBTQ people with services, pinpoints the multifaceted issue: “It’s a perfect storm of rising costs due to inflation, increased security needs because of the political climate, and then a pullback from some corporate sponsors who are either facing their own economic uncertainties or are scared of the backlash,” he said.

This corporate pullback is a critical factor. Tiffany Freisberg, director of Denver Pride, notes the trend: "We're seeing some corporations that are a little bit more hesitant to be as vocal or as visible in their support, potentially due to the political climate and fear of backlash similar to what we saw with Bud Light $BUD ( ▼ 0.8% )," she said.

Starbucks $SBUX ( ▲ 1.77% )  has also been in the spotlight, with some workers alleging the company discouraged Pride decorations in some stores, a claim the company denies. In contrast to the general trend, Wells Fargo $WFC ( ▲ 1.29% )  has continued its support. As has Gilead Sciences $GILD ( ▲ 0.06% ) .

Cathy Renna, communications director for the National LGBTQ Task Force, emphasizes the urgency: "This is precisely the time when our rights are under attack, when our community is under attack, we need our allies to show up even more."

And yet…

Organizers are now urgently seeking diverse funding sources, relying heavily on community donations, and calling for corporations to demonstrate genuine, year-round allyship, moving beyond performative gestures to ensure the survival of these vital celebrations of identity and resistance. In other words: Dogecoin.

Today on the ‘gram: Trump gives Musk gold key

Post of the day: No need for alarm…

Quote of the Day

Why businesses won’t rush back to Russia

Complex challenges face any potential resumption of U.S.-Russia business relations if a peace deal is ever struck over Ukraine. Many U.S. companies withdrew from Russia after its 2022 invasion of its neighbor, so while both President Trump and President Putin have floated the idea of getting them back, it could be, let’s say—and apologies for the technical term—a tad tricky.

The business landscape in Russia has drastically changed with Russian laws now labeling Ukraine's allies as "unfriendly states," imposing severe restrictions on businesses from those countries, including limitations on withdrawing assets and allowing governmental control over crucial companies. Companies that exited Russia were forced to sell at substantial discounts, often losing their investments entirely. Some examples: McDonald’s $MCD ( ▼ 0.05% ) , Shell $SHEL ( ▲ 0.63% ) , BP $BP ( ▼ 0.07% ) , IKEA and Anheuser-Busch InBev $BUD ( ▼ 0.8% ) .

Chris Weafer, CEO of Macro-Advisory, also notes: "There’s no specific evidence of any one company saying that they are ready to come back. It’s all at the political narrative level.”

Moreover, President Putin's stance on foreign tech firms suggest another layer of complexity. He has said: "We need to strangle them... They are trying to strangle us," which suggests Mark Zuckerberg won’t be a guest at the Kremlin any time soon.

Should you check your 401(k) today?

👎️ 

No.

Judge: How do we break up Google’s monopoly? (No, seriously: How?)

A U.S. district judge is deliberating on remedies after Google's $GOOG ( ▼ 1.22% ) search engine was declared an illegal monopoly. The Justice Department proposes significant interventions in the tech giant's business practices to ensure fair competition. Among its key suggestions is banning Google from paying to lock its search engine as the default on devices and forcing the company to sell its Chrome browser. The DOJ argues these measures are necessary to level the playing field, while Google insists that they would “stifle innovation.”

The judge appears to be weighing the future impact of artificial intelligence as part of his decision-making process, aiming for remedies that would nurture competition rather than kneecap Google.

Prosecutor David Dahlquist opposes Google's request to delay implementing any changes by 60 days, saying, "We believe the market's waited long enough." Meanwhile, Google's attorney, John Schmidtlein, calls the DOJ's proposals “inequitable in the extreme.”

Apple $AAPL ( ▲ 0.7% ) which annually earns over $20 billion for integrating Google’s search engine as the default, contests a proposed ban, claiming it would hurt its own innovation. The judge is expected to deliver his decision by Labor Day.

Not all states are rolling out red carpets for AI

States are creating incentives such as tax breaks and relaxed regulations to attract data centers — essential for powering AI. Michigan and Kansas, for example, have passed tax exemptions that make it easier to develop and equip data centers, positioning themselves as key players in the industry.

But there is growing resistance.

For example, in South Carolina, Governor Henry McMaster signed legislation to expedite power plant construction for data centers, including Facebook’s $META ( ▼ 0.28% ) massive facility. But his Senate Majority Leader Shane Massey criticized the measures, saying, “I do not like that we’re making customers pay for two power plants when they only need one.”

Concerns also persist in states like Texas and Oregon, where lawmakers are debating bills to ensure data centers cover energy costs or reduce their reliance on public utilities.

Poll of the Day: Bullets or bitcoin?

Poll Results: You’re really outraged by CEO pay

Do you think CEO pay going up 10% in a year the stock market rose 20% is reasonable?

⬜️⬜️⬜️⬜️⬜️⬜️ Yes. God bless America. (23 votes)

 🟩🟩🟩🟩🟩🟩 No. I didn't see my pay go up by 10%. Prepare the Molotov cocktails. It's outrageous. (620 votes)

 🟨⬜️⬜️⬜️⬜️⬜️ I am somewhere between the two. (195 votes)

838 Votes via @beehiiv polls

Coming soon: The Disruptors

Airing on Tuesday Jun 3 at 8:30 p.m. ET wherever you watch Cheddar, The Disruptors dives deep into the lives and minds of visionary entrepreneurs, innovators, and change-makers who are revolutionizing industries and shaping the future. Each episode will profile a different disruptor, exploring their personal journeys, motivations, challenges, and the groundbreaking solutions they’ve brought to the world. Find out more at the Disruptors website!