Hello, my most beloved subscribers!

It’s Tuesday. Check your 401(k). Seriously. It’s been a while and you’re going to enjoy this one. Then quit your job. #NotFinancialAdvice

Also:

Today's news you Need2Know

• U.S. & China agree to 90-day tariff truce

• Businesses that rely on Chinese imports express re …

• Trump turns his attention to big pharma

• At Walgreens, more robots will give you drugs

• ‘Sinners’ surpasses $200M at box office

Did you check your 401(k) yet? Just do it, already — before something changes!

—Matt Davis, Need2Know Chedditor

P.S. Did you know we offer paid subscriptions that mean you never have to see an ad in this newsletter?

Companies mentioned in today’s newsletter

$WBA ( ▲ 0.31% )  $DIS ( ▼ 1.05% )  $WBD ( ▼ 0.38% )  

U.S. & China agree to 90-day tariff truce

In a significant move to cool tensions in their ongoing trade war, the U.S. and China—one of which you probably live in—have agreed to temporarily reduce tariffs. The agreement, announced Monday, marks a shift from the, let’s say, rash policies of recent months, offering a 90-day window for further negotiations. “We’re not looking to hurt China,” President Trump remarked. Both nations emphasized halting the escalation of an economic feud that has deeply affected global trade.

The S&P 500 $SPX ( ▲ 0.38% ) added more than 3% yesterday, which is $15,000 on a half-million-dollar 401(k). Of course, one could argue that this entire ordeal would have been avoidable had we never imposed sky-high tariffs on China in the first place. But what kind of fool argues with someone who’s absolutely correct?

Under the agreement, the U.S. will scale back its tariff on Chinese imports from 145% to 30%, while China will cut its tariffs on American goods from 125% to 10%. This brings trade conditions closer to pre–April 2025 levels but leaves critical issues unresolved — such as, what happens 90 days from now? One Chinese economist called the deal a “necessary step to avoid the worst-case scenario.”

Dani Rodrik, an economist at Harvard University, said that the two countries had stepped back “from a needless trade war” but that U.S. tariffs on China remain high at 30% “and will mainly hurt U.S. consumers.“

However, some experts remain skeptical. The 90-day truce offers no guarantees for a lasting resolution. Treasury Secretary Scott Bessent confirmed the need for additional talks to avoid "decoupling" between the world’s largest economies.

Businesses that rely on Chinese imports express relief/anxiety

American businesses are cautiously optimistic yet anxious following the announcement of a 90-day truce between the U.S. and China, and the Associated Press went and found plenty of them to interview.

Jonathan Silva, owner of WS Game Company, which produces deluxe versions of classic board games like Monopoly and Scrabble, expressed frustration over the timing of the tariff changes. He noted, “The timing couldn’t have been any worse with regard to placing orders, so turning on a dime to pick back up with customers and our factories will put us severely behind schedule.”

The frustration echoed across various sectors. Marc Rosenberg, CEO of The Edge Desk, has invested significantly in developing ergonomic chairs but had to delay production in China due to the, let’s say, uncomfortable tariffs. While he acknowledged that ongoing trade talks are positive, he pointed out that the 90-day window is “beyond dangerous,” worrying that shipping delays could result in products still being en route when the temporary deal expires.

Jeremy Rice, co-owner of a Lexington, Kentucky–based home décor shop specializing in artificial flower arrangements, described the atmosphere of uncertainty and its impact on pricing decisions. “Our vendors are still kind of running around juggling, not knowing what they’re gonna do,” he said.

Before President Trump initiated the latest round of tariffs, Miami-based game company All Things Equal planned to launch its first electronic—and ironic—board game, "And the Good News Is." Founder Eric Poses had already invested $120,000 into the development when faced with the 145% tariff. Now, with a 30% tariff, he still faces challenges. "It’s very hard to plan because if you want to go back to production in a couple of months, then you’re worried about what the tariff rate will be when it hits the U.S. ports after that 90-day period," Poses said.

Jim Umlauf, whose Oklahoma City business 4Knines imports raw materials for vehicle accessories, also feels the pinch. Even with reduced tariffs, he noted, “When tariffs exceed 50%, there’s virtually no profit left unless we dramatically raise prices — an option that risks alienating customers.”

Chinese exporter Zou Guoqing, who provides parts for U.S. retailers, also expressed concern over the 30% tariff still in place. He plans to cautiously wait until the end of May to decide on resuming shipments.

As businesses continue to navigate this turbulent landscape, the real hope lies in a more stable and predictable trade environment in the future. Like, in 2028.

Today on the ‘gram: We talked Buffett at the NYSE

Post of the day: Gift or grift?

Quote of the Day: Chinese burn

Trump turns his attention to big pharma

President Trump is now targeting U.S. drug prices, signing an executive order aimed at leveling costs with those paid for drugs by other nations. While the announcement has sparked hope for affordable medications, the details of how the policy would work remain, let’s say, murky. And the announcement is also timed to coincide with news that Trump’s Republican colleagues want to slash Medicaid in the upcoming budget. That’s not a policy that’s going to be popular with the 72 million Americans who rely on it.

Trump promised that drugmakers would need to voluntarily slash prices to match international benchmarks — or face consequences. If companies resist, the administration plans to tie drug prices, particularly those paid by government programs like Medicare, directly to those negotiated by other countries. Questions, let’s say, remain over the administration’s legal authority to enforce “price mandates.”

Essentially yesterday’s executive order amounts to President Trump asking drug companies nicely if they’d like to drop their prices. Critics aren’t completely sold on the plan. As lofty as the promises sound, one has to wonder: Will Americans finally see lower drug costs? What do you think? Let us know in today’s poll!

Should you check your 401(k) today?

👍️ 

Hell to the yes. It should be back around where it was in early April now. Before, you know…

At Walgreens, more robots will give you drugs

Here’s another way to lower drug prices increase the profits of a major pharmaceutical provider. Walgreens $WBA ( ▲ 0.31% ) is using robotic systems in micro-fulfillment centers, aiming to improve efficiency, cut costs, and redirect its pharmacists’ efforts towards patient care. The system utilizes sophisticated and, we presume, un-unionizable robotics and conveyor belt systems to handle routine prescription fills, enabling pharmacists to provide more personalized services, such as health screenings and vaccinations.

According to Kayla Heffington with Walgreens, the automation initiative is already yielding financial benefits, with the centers generating approximately $500 million in savings. She also noted that stores using these facilities administer 40% more vaccines than those that don't.

These micro-fulfillment centers are poised to serve over 5,000 stores by the year’s end, freeing pharmacy staff from their jobs repetitive tasks and allowing them to engage more directly with customers, the company said.

‘Sinners’ surpasses $200M at box office

Who says the film industry is all CGI and Marvel $DIS ( ▼ 1.05% ) movies?

Warner Bros.’ Sinners, Ryan Coogler’s musical vampire horror film, has achieved what no original movie has in eight years — it crossed the $200 million mark at the U.S. and Canadian box office. As of its fourth weekend in theaters, the film has grossed a remarkable $216 million domestically, surpassed only by Pixar’s Coco (2017) as the highest-grossing domestic original film since then.

Even the arrival of Marvel’s Thunderbolts in Imax theaters hasn’t slowed Sinners’ momentum, with a strong fourth-weekend total of $23 million. According to Warner Bros., the $90 million-budgeted film was a significant risk, but one that has paid off handsomely.

Global performance tells a slightly different story, with overseas grosses at a modest $69 million. However, the film is still on track to pass $300 million worldwide. Its success is further bolstered by early Oscar buzz, which is expected to drive post-theatrical revenue through premium on-demand, Blu-Ray sales, and streaming on MAX $WBD ( ▼ 0.38% ) .

Poll of the Day: Expecting lower drug prices?

President Trump on Monday signed an executive order asking drugmakers to voluntarily reduce the prices of key medicines in the United States. The question is…

Poll Results: You’re not buying it. A house, that is.

We asked: Is now a ‘great time to buy’ a house, as a leading homebuilder CEO said. You answered:

🟩🟩🟩🟩🟩🟩 No, it isn't. (478 votes)

 🟨⬜️⬜️⬜️⬜️⬜️ Yes, it is. (89 votes)

So that’s that then. You guys know better than a CEO!

567 Votes via @beehiiv polls

Coming soon: The Business of Beauty

Airing on Thursday, May 22nd at 8pm ET wherever you watch Cheddar, dive into our new show, "The Business of Beauty" where one celebrity dentist reveals the secrets behind Kylie Jenner and J.Lo's dazzling smiles, showcasing his unique, custom-made veneers process. Then, witness the revolutionary tech behind painless tattoo removal, promising a chance to erase at least some of your regrets. Finally, explore one firm’s bold claims about unlocking the "Fountain of Youth" through supplements, backed by scientific research. Discover how these innovations are reshaping beauty standards and empowering personal transformation!