Good morning. For more than two decades, employers seeking to stay on the right side of immigration laws have turned to a government program to verify that their employees are authorized to work in the U.S. 

The Trump administration’s flurry of workplace immigration raids has exposed an awkward truth: The program, called E-Verify, has vulnerabilities that enable migrants in the U.S. to illegally obtain jobs at American companies.

• What E-Verify was meant to do: On its website, the government tells employers E-Verify offers “peace of mind that your employees are legally authorized to work.” Participating companies gain a safe harbor from legal penalties. But it can also provide a false sense of security, as some employers have discovered.
   
• The problems: E-Verify, which matches names to Social Security numbers, has limited access to many other official databases with personal information. It doesn’t use biometric evidence or, in many cases, a photo to verify a new hire’s identity. It can thus be circumvented with a stolen Social Security number and fake driver’s license, according to current and former officials, congressional staffers and cybersecurity experts.
   
• Background: E-Verify traces its roots to a 1986 law that legalized millions of immigrants who were in the U.S. illegally while making it unlawful for employers to knowingly hire those who aren’t authorized to work in the U.S. The system became available in all 50 states in 2003, though it is voluntary in most. Nearly 1.4 million employers participate, according to its website. Proponents say E-Verify was never designed to be airtight.

U.S. kills Chinese purchase of technology company.

The U.S. has ordered a Chinese technology group to sell a California video-wall company that lists the National Security Agency and Central Intelligence Agency as clients, reports Risk Journal’s Richard Vanderford, saying the 2020 deal poses a national security risk.

President Trump on Friday issued an order that requires a subsidiary of Beijing-based Suirui Group to unwind its purchase of Jupiter Systems. The deal closed in February 2020, according to the order.

From the order: “Cfius identified a national security risk arising from Suirui’s ownership of Jupiter relating to the potential compromise of Jupiter’s products used in military and critical infrastructure environments,” the Treasury Department said in a statement.

• China’s Commerce Ministry said the country started taking measures in May to stop the transshipment and smuggling of critical minerals.
   
• The U.K.’s financial sanctions authority has issued new guidance clarifying how it determines whether companies are classified as domiciled in sanctioned jurisdictions.
   
• Unilever has appointed a new CEO for Ben & Jerry’s, stepping up a dispute with the ice-cream brand’s independent board.
   
• A Dutch court on Thursday sentenced a semiconductor engineer to three years in prison in the first-ever prosecution for unauthorized exports of technical data under Netherlands sanctions law.

Nations find that neither anger nor appeasement deflects Trump’s tariff threats.

America’s biggest trading partners have tried tactics ranging from appeasement to retaliation to avoid higher tariffs. Most have come away bruised and empty-handed.

Mexico took President Trump’s drug-enforcement demands seriously and boosted security measures. The European Union paused retaliation plans to focus on trade talks. Canada hit back with tariffs several months ago before shifting to a more conciliatory approach.

All are faced with tariffs that have risen sharply since Trump took office. This past week he threatened most of them with further escalation.

• Trump Doubles Down on Using Tariffs as Tool of American Power
• European Union Grapples With China Trade
• EU Trade Chief to Contact U.S. Officials After 30% Tariff Threat

How China’s military is flexing its power in the Pacific.

China’s military is extending its reach deeper into the Pacific, sending ships and aircraft into new territory in a push that has spurred the U.S. to strengthen defenses and alliances in the region.

Beijing has long resented what it sees as interference by the U.S. and its allies in its traditional sphere of influence in the Asia-Pacific region. Now, it is asserting itself more aggressively in its backyard while also pushing well beyond longstanding geographical limits of its military.

• China’s Bid for ‘Global Yuan’ Finds Double-Edged Sword in Stablecoins
• Nintendo’s Use of a Rare-Earth Magnet for the Switch 2 Could Expose It to China’s Whims
• Taiwan Resists China With Military Displays and History Lessons
• China’s Exports Beat Expectations After Trade Truce With U.S.

• Elbridge Colby, the Pentagon’s top policy official, wants to refocus the U.S. military on countering China. That has put him at the center of the Trump administration’s abrupt moves on providing weapons to Ukraine.
   
• The U.S.’s Asian allies had hoped Marco Rubio’s first visit to the region as secretary of state would give them time to press their concerns on the Trump administration’s tariff threats and security demands. They got him for 36 hours.
   
• An executive order President Trump issued this week created fresh uncertainties for renewable-energy investors, only days after the passage of his tax-and-spending bill encouraged developers to start new projects within the next year.
   
• President Trump has signaled he would support a new Israeli attack if Iran moves toward having a nuclear weapon.
   
• America’s return to the office is unfolding unevenly for men and women.

• The federal government is retreating from its central role in financing higher education.
   
• Jamie Dimon says Wall Street’s hottest trend is a recipe for a financial crisis, but he’s investing billions to get in on it anyway. His plan: swoop in strategically and profit if there’s a meltdown.
   
• President Trump said Sunday the U.S. will send Patriot air-defense systems to Ukraine that will be paid for by the European Union, and he again criticized Russian President Vladimir Putin.
   
• Manufacturers from China are pushing across border into Vietnam to dodge tariffs, potentially undermining Trump’s goal of reducing U.S. dependence on Beijing.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

You can also reach us by replying to any newsletter, or by emailing our editor David Smagalla at david.smagalla@wsj.com.