Good morning, CFOs. General Motors says tariffs are hitting its bottom line; Musk allies to raise up to $12 billion for xAI chips; plus, a new Coke with cane sugar?

General Motors said Tuesday that new tariffs on imported cars and auto parts took a $1.1 billion bite out of its bottom line.

Here are the details: The company reported net income shrank 35% in the second quarter as President Trump’s automotive tariffs weighed on the company. GM, the largest automaker in the U.S. by sales, had already lowered its earlier profit guidance for 2025. Now the company says greater impacts from tariffs are expected to hit the carmaker in the third quarter, though it is maintaining its profit guidance for the full year.

• U.S. Reaches New Trade Pacts
• U.S. and Japan Reach Trade Deal
• Indonesia to Remove Numerous Trade Barriers
• Trump Looking at Removing Capital Gains on House Sales

📆 Earnings

Alphabet, Boston Scientific, AT&T, Chipotle Mexican Grill, CME Group, Crown Castle, CSX, Fiserv, Freeport-McMoRan, General Dynamics, GE Vernova, Hasbro, Hilton Worldwide Holdings, IBM, Las Vegas Sands, Lennox International, Moody’s, NextEra Energy, Northern Trust, Otis Worldwide, ServiceNow, Tesla and T-Mobile US

📈 Economic Indicators

The National Association of Realtors reports existing-home sales for June.

Coca-Cola is giving President Trump what he wants—Coke sweetened with cane sugar.

The soda company plans to add a line of cane sugar-sweetened Coke, its chief executive said, after Trump last week said Coca-Cola had agreed to use “REAL Cane Sugar” in the soda. Cane sugar-sweetened Coke will be a new product and isn’t replacing standard Coca-Cola, which is sweetened with high-fructose corn syrup, like many other sodas and drinks in the U.S.
 

📰 Other headlines

• Exclusive: Musk Allies to Raise Up to $12 Billion for xAI Chips as Startup Burns Through Cash
• Fight Over Epstein Disclosures Brings House to a Standstill
• Mike Lynch’s Estate Hit by $900 Million-Plus Court Order
• Health-Ade Kombucha Sells for $500 Million
• 📈 Heard on the Street: Why Are Stocks Up? Nobody Knows
• Trump Expects $20 Million More in Ad Dollars From ‘60 Minutes’ Settlement
• Italy’s UniCredit Withdraws Offer to Buy Banco BPM
• Private Credit Legal Hiring Strong Amid Deal and Compliance Complexity
• U.S. Says Government Employee Blocked from Leaving China
• Bosses Should Never Speak First, or Even Second, in a Meeting
• Will Buffett’s Successor Get the Same Free Pass From Investors?

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