Cabot Phillips

Yeah, that's an important note. In February, President Trump implemented an additional 20% tariff on Chinese imports as retaliation for their involvement in the production and distribution of fentanyl. The White House says that Beijing knows the drug is being made there and that it's then being shipped to cartels who bring it to the U.S., but that they've done nothing to stop it.

Yeah, that's an important note. In February, President Trump implemented an additional 20% tariff on Chinese imports as retaliation for their involvement in the production and distribution of fentanyl. The White House says that Beijing knows the drug is being made there and that it's then being shipped to cartels who bring it to the U.S., but that they've done nothing to stop it.

To illustrate that point, during negotiations, Secretary Besant reportedly held up a grain of sugar, telling his Chinese counterparts, quote, this could kill a person if it were fentanyl. He then picked up a cube and said this is enough to kill people across the entire city.

To illustrate that point, during negotiations, Secretary Besant reportedly held up a grain of sugar, telling his Chinese counterparts, quote, this could kill a person if it were fentanyl. He then picked up a cube and said this is enough to kill people across the entire city.

The Trump administration says that until China proves that it's actually cracking down on the drug's production, that additional 20% tariff will remain in place. So that means that right now, the effective rate for Chinese imports is actually 30%, not 10%.

The Trump administration says that until China proves that it's actually cracking down on the drug's production, that additional 20% tariff will remain in place. So that means that right now, the effective rate for Chinese imports is actually 30%, not 10%.

And in a similar vein, the Trump administration has made clear that while they are willing to open up the flow of certain Chinese goods to the U.S., they want to break our reliance on essential imports like weapons, technology, and importantly, pharmaceuticals. Here's Besant to that point Monday.

And in a similar vein, the Trump administration has made clear that while they are willing to open up the flow of certain Chinese goods to the U.S., they want to break our reliance on essential imports like weapons, technology, and importantly, pharmaceuticals. Here's Besant to that point Monday.

Yeah, we've talked quite a bit in the last month about how markets have been up and down. On Monday, there was only one direction, and that was up. The Dow shot up more than 1,000 points. The S&P 500 rose more than 3%, erasing all of its gains from the last month. And the Nasdaq shot up more than 4%, marking a 20% increase from its recent low in April.

Yeah, we've talked quite a bit in the last month about how markets have been up and down. On Monday, there was only one direction, and that was up. The Dow shot up more than 1,000 points. The S&P 500 rose more than 3%, erasing all of its gains from the last month. And the Nasdaq shot up more than 4%, marking a 20% increase from its recent low in April.

And we also saw similar massive gains across Asia and across Europe as well.

And we also saw similar massive gains across Asia and across Europe as well.

Yeah, it's important to remember the context here. India and Pakistan are bitter rivals. For decades, the two have feuded over religion, border disputes, and politics. Their shared border has been a tinderbox, and last week, a terror attack by Pakistani Islamists sparked the most significant conflict between the two countries that we've seen in decades.

Yeah, it's important to remember the context here. India and Pakistan are bitter rivals. For decades, the two have feuded over religion, border disputes, and politics. Their shared border has been a tinderbox, and last week, a terror attack by Pakistani Islamists sparked the most significant conflict between the two countries that we've seen in decades.

India responded with air and missile strikes on what they called terrorist camps, but a number of civilians were reportedly killed, and two mosques were hit in those strikes. Pakistan responded with strikes of their own, and within 48 hours, the two sides, both of which, remember, are nuclear powers, were deploying kamikaze drones, fighter jets, and even conventional artillery.

India responded with air and missile strikes on what they called terrorist camps, but a number of civilians were reportedly killed, and two mosques were hit in those strikes. Pakistan responded with strikes of their own, and within 48 hours, the two sides, both of which, remember, are nuclear powers, were deploying kamikaze drones, fighter jets, and even conventional artillery.

They were targeting each other's air defense systems, but again, a number of civilians were killed in that back and forth. By Friday, both sides had begun to evacuate towns along the border. Dozens of airports and schools were shut down, and thousands of troops were mobilized on both sides towards the border. So it looked like an all-out war was imminent.

They were targeting each other's air defense systems, but again, a number of civilians were killed in that back and forth. By Friday, both sides had begun to evacuate towns along the border. Dozens of airports and schools were shut down, and thousands of troops were mobilized on both sides towards the border. So it looked like an all-out war was imminent.

Right. From the very start of this conflict, the Trump administration gave the impression that they had no interest in getting involved. At least publicly, they were saying that. Here's Vice President Vance, for example, on Fox News, saying the conflict was, quote, "...none of our business."

Right. From the very start of this conflict, the Trump administration gave the impression that they had no interest in getting involved. At least publicly, they were saying that. Here's Vice President Vance, for example, on Fox News, saying the conflict was, quote, "...none of our business."