Trump's Gaza idea

Good morning. Donald Trump proposes that the US takes over Gaza. China pulls Apple into the US trade dispute. And not even Barbie Land can escape the impact of tariffs. Listen to the day’s top stories.

Trump proposed the US take over Gaza, relocate Palestinians to other countries, and rebuild it as a new “Riviera.” Speaking alongside Israeli leader Benjamin Netanyahu, Trump said he’d be open to US troops securing the area in a “long-term ownership position”—a change of stance given his long-term pushback against America’s involvement in “forever wars.” It’s a contentious idea that prompted a stern rebuke from Saudi Arabia. Here’s why it’s so controversial. Whoever ends up in charge, with Gaza reduced to 42 million tons of rubble, rebuilding will be a huge job.

The US-China tariff spat escalated with the US Postal Service temporarily suspending inbound international packages from China and Hong Kong Posts. Hope you weren’t waiting on a shipment from Shein or Temu. China, meanwhile, took aim at Apple. It’s said to be laying the groundwork for a potential probe into the tech giant’s policies and the fees it charges app developers.

Back home, the US Agency for International Development said most employees will be placed on administrative leave starting Friday. Here’s our guide to what USAID is, and why Trump and Elon Musk are targeting it. As part of the planned government overhaul, the CIA offered staff buyouts to shrink the workforce and to sharpen the spy service’s focus on top priorities like, well, China.

Looks like a rough day ahead for tech stocks as Nasdaq futures slipped. It was dragged down by shares in Google’s parent company Alphabet, whose worse-than-expected results unnerved investors about the billions it’s spending on AI. Speaking of, Google removed a passage from its AI principles that pledged to avoid using the technology in potentially harmful applications, such as weapons.

Walmart is eliminating some jobs and asking workers to move to central offices in Bentonville, Arkansas, or Sunnyvale, California, as it ramps up a push to consolidate its corporate footprint. Elsewhere, a venture capital-backed startup was accused of illegally jacking up rents for furnished apartments in Los Angeles—more than 50% in one example—after last month’s wildfires.

Deep Dive: Tariff Scramble

America’s threats of punishing new tariffs are sparking a “race to the border” for US manufacturing businesses.

Trade wars, tariff threats and logistics shocks are upending businesses and spreading volatility. Understand the new order of global commerce with the Supply Lines newsletter.

The Big Take

A slump in demand for diamonds has left De Beers floundering—and threatens to frustrate its owner’s plans to sell what was once the titan of the $80 billion market.

Opinion

The market is betting that Trump and China’s President Xi Jinping will follow ancient Chinese general, strategist and philosopher of war Sun Tzu to subdue each other without fighting, John Authers writes. But with the US unable to stop consuming far more than it makes, China may now find that it’s passed the point where conflict can be avoided.

Before You Go

The Aga Khan, the spiritual leader of Ismaili Muslims and a billionaire philanthropist, has died at 88 in Portugal. Born in Switzerland, he was a UK citizen, lived in a chateau in France and was considered by his followers to be a direct descendant of the Prophet Muhammad. He became imam at age 20 while studying at Harvard.

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