Forbes Daily: General Motors Takes A More Than $1 Billion Tariff Hit

Forbes

6 days ago

The housing market may be tipping back toward buyers, but a new proposal endorsed by President Donald Trump Tuesday could give sellers a financial boost.
Trump suggested he supports legislation that would eliminate taxes on capital gains from home sales. Currently, single filers are exempt from the taxes on gains of $250,000 or less if they sell their primary residence, or up to $500,000 for married couples filing jointly. But those caps haven't been updated in more than two decades, and proponents of the policy argue the exemptions haven't kept up with rising costs.
More than a third of homeowners, or 29 million, own enough equity in their home that they could exceed the $250,000 cap, the National Association of Realtors recently found.
President Donald Trump with Japanese Prime Minister Shigeru Ishiba AFP via Getty Images
The U.S. and Japan reached a trade agreement under which the U.S. trading partner will face a 15% tariff—down from a previously threatened 25%—President Donald Trump announced on Tuesday. Japanese Prime Minister Shigeru Ishiba called the deal a 'new golden era' in the relationship between the two countries, and Japanese automakers and U.S. stock futures rose after the announcement.
General Motors took a more than $1 billion tariff-induced hit to its profits last quarter, the company said in its latest earnings report, following similar losses reported by Stellantis, which produces Chrysler and Jeep vehicles. GM projects to lose between $4 to $5 billion from the import taxes for the year, and expects that the third quarter will see a greater impact due to 'indirect tariff costs.' This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here.
Assembly of glass Coca-Cola bottles at a site near Paris AFP via Getty Images
After pressure from President Donald Trump, Coca-Cola said it would make a version of its signature drink with cane sugar rather than corn syrup, as the 'Make America Healthy Again' movement has criticized the use of artificial ingredients. But the soda giant isn't fully replacing corn syrup in its products, a move that would have had a major impact on U.S. agriculture as the country produces 7.3 million tons of corn syrup each year, according to Reuters.
The Trump Administration's trade deal with China that lowered the tariff rates on most Chinese goods will likely be extended past its August 12 deadline, Treasury Secretary Scott Bessent said Tuesday, but higher levies on other countries are still expected to take effect on August 1. The China trade deal reduced the combined 145% tariff rate down to 30%, a rate Bessent suggested the administration will likely keep. WEALTH + ENTREPRENEURSHIP
Before Jeffrey Epstein's second arrest and death in prison, the convicted sex offender owned a property empire stretching from Paris to New Mexico, where many of the alleged crimes took place. Between 2021 and 2023, those properties were all sold for roughly $160 million, with Epstein's estate seeming to have kept roughly $50 million, and the rest being paid out to a fund set up to financially compensate his victims.
Controversial crypto businessman Justin Sun will be the next billionaire to launch into space, as one of six crew members on a Blue Origin mission after paying $28 million for a seat. Sun, who helped finance the Trump family's crypto venture World Liberty Financial, is facing civil charges in the U.S. for fraud and market manipulation, but his SEC lawsuit was halted earlier this year. TECH + INNOVATION
Forbes Under 30 alum Neil Parikh turned mattress company Casper into a billion-dollar business, and now, his new startup Slingshot AI is building a chatbot designed to replicate the experience of talking to a therapist. As many people face limited access to mental health care, Slingshot officially launched its AI-powered therapy bot called Ash Tuesday, and announced a fundraising round that brings its total funding to $93 million. MONEY + POLITICS
As the Trump Administration faces continued pressure to release information about Jeffrey Epstein, House Speaker Mike Johnson is sending the chamber to summer recess early, canceling Thursday's votes before Democrats could force another on releasing the remaining files on the disgraced financier. Johnson accused Democrats of playing 'political games,' but he still faces a new bipartisan proposal that could force a vote when the House returns from recess in September. SPORTS + ENTERTAINMENT
Ozzy Osbourne performs during half-time of the game between the Los Angeles Rams and the Buffalo Bills in September 2022. Getty Images
Legendary Black Sabbath frontman and solo artist Ozzy Osbourne died at 76, his family confirmed, just weeks after his final performance with his old heavy metal band. The family didn't share the cause of his death, but Osbourne revealed he had been diagnosed with Parkinson's disease in 2020. DAILY COVER STORY Vibe Coding Turned This Swedish AI Unicorn Into The Fastest Growing Software Startup Ever
Lovable CEO Anton Osika (right) and CTO Fabian Hedin Sebastian Nevols for Forbes
Lovable, Sweden's new AI unicorn, has become the world's fastest-growing software startup by using AI to enable millions of non-coders to instantly turn their ideas into websites, apps and online side hustles.
In June alone, around 750,000 projects—apps, websites, entire businesses—were built, hosted and launched with a handful of descriptive sentences and a few clicks on Lovable. This isn't like the clunky website builders of yesteryear, responsible for zillions of personal sites; nor are they sketches or wireframes that might look cool but aren't functional. Lovable projects, spun up in minutes thanks to generative AI, are actual working products with features ranging from email newsletters to payments via Stripe.
The company hit $100 million in subscription revenue (on an annualized basis) in just eight months since its launch last November, eclipsing other rocketships like Israeli cloud security startup Wiz and San Francisco-based HR platform Deel.
Now, a $200 million fundraising round that values the 45-person firm at $1.8 billion should help Lovable fend off competition in the so-called 'vibe coding' market from well-funded startup rivals and AI giants like OpenAI and Google alike.
WHY IT MATTERS Cofounder and CEO Anton Osika, who started Lovable in September 2023, can't do much about this competition other than to stick to building products that humans love and hop between AI models for the best and cheapest. 'Humans understand humans,' he says, 'and Lovable is this enabling tool to make ideas come to life in minutes.'
MORE AI 'Vibe Coder' Lovable Is Sweden's Latest Unicorn FACTS + COMMENTS
A 'heat dome' is already affecting tens of millions of people across the South and Midwest, and it's expected to linger for weeks. The phenomenon could cause temperatures to surpass triple digits in a number of cities:
More than 60 million: The number of people under hot weather advisories
19: The number of states with heat advisories, with more intense extreme heat watches in Wisconsin, Iowa and Illinois
More than 2,300: How many people died of causes tied to heat in 2023 STRATEGY + SUCCESS
If you're anxious about switching to a new industry in your career, the transition might be less intimidating than you think. Take time to reflect on what you truly want, and focus on building connections with people in that industry. Think about which of your skills could be considered transferable—such as problem solving and collaboration—and be sure to highlight them on your résumé. VIDEO
The U.S. continued to slide in the rankings of the world's most powerful passports, falling to No. 10. Which country ranks first?
A. Japan
B. Singapore
C. Germany
D. Norway
Check your answer.
Thanks for reading! This edition of Forbes Daily was edited by Sarah Whitmire and Chris Dobstaff.