Morning Brew Daily – Episode Summary: "Trump’s Universal Tariffs Begin & Apple Reports Best Revenue Since 2021"
Release Date: August 1, 2025
In this engaging episode of Morning Brew Daily, hosts Neal Freyman and Toby Howell delve into significant developments in U.S. economic policy, corporate earnings, and legislative proposals. The episode is meticulously structured to inform listeners about the reinstatement of the Presidential Fitness Test, the commencement of President Trump's universal tariffs, Apple's robust financial performance, and potential legislative changes affecting stock trading among lawmakers. Additionally, the hosts share their picks for the Stock of the Week and Dog of the Week, providing insightful analysis into market movements.
1. Presidential Fitness Test Reinstatement
The episode opens with a discussion on the revival of the Presidential Fitness Test, a standardized fitness assessment for schoolchildren, reinstated by President Trump.
Neal Freyman introduces the topic:
"The Presidential Fitness Test is coming back. Flanked by pro athletes at the White House, President Trump signed an order that reinstates a standardized fitness test for school kids, calling it an important step in our mission to make America healthy again." (00:25)
Toby Howell provides historical context:
"Back in the 1950s, these two rock climbing fitness gurus administered a fitness test they designed to 4,000 U.S. kids and 3,000 kids across Europe. 58% of U.S. kids failed, while just 8% of Europeans did. So they brought those results to Eisenhower, which led to the institution of the Presidential Fitness Test." (01:06)
The hosts reflect on the test's evolution and its impact on students, with Howell sharing personal anecdotes about the challenges posed by the physical requirements.
2. Trump's Universal Tariffs Commence
A significant portion of the episode is dedicated to the announcement of President Trump's universal tariffs, which mark a pivotal shift in U.S. trade policy.
Neal Freyman outlines the development:
"The White House announced higher import taxes against virtually all the US's major trading partners, raising America's trade barriers to heights not seen in nearly a century and reshaping trade flows around the world." (04:30)
Toby Howell analyzes the implications:
"If you look at where which countries got some of the highest tariff rates, it's countries like Laos and Myanmar which don't seem like massive trading partners. But part of the reason for those high tariff rates is this idea of trans shipped goods... thinking Trump randomly has it out for Switzerland." (05:50)
Key points discussed include:
- Tariff Rates: Ranging from 10% to 41% targeting 68 countries and the European Union.
- Impact on Trade Partners: Specific mentions of Canada facing a 35% tariff and Switzerland at 39%, raising questions about the rationale behind certain rates.
- Economic Consequences: Potential burdens on companies, consumers, and the global economy due to elevated tariffs acting as taxes.
- Future Negotiations: Possibility of further deals within the one-week implementation window, leaving room for adjustments based on diplomatic negotiations.
Neal Freyman summarizes the economic outlook:
"Tariff revenue is soaring. Effective tariff rates on imports of the US is at the highest level in nearly a century. Financial markets have taken most of it in stride as well." (05:50)
Toby Howell poses critical questions regarding the sustainability of these tariffs:
"The big question is, are companies going to feel stable enough to put down roots in the United States? Will they commit to building the factories that take decades to complete, or do they still think that Trump will continuously change his mind going forward?" (05:50)
3. Apple's Third Quarter Earnings Report
Transitioning to corporate news, the hosts discuss Apple's robust third-quarter earnings, highlighting the company's resilience amidst various challenges.
Neal Freyman introduces the segment:
"Apple reported its third-quarter earnings yesterday, and it turns out that people still like buying iPhones. iPhone sales grew 13% year over year, powering overall revenue growth of 10%, its biggest jump in four years." (07:00)
Key insights include:
- Revenue Growth: A 10% increase, the largest since 2021, driven primarily by a 13% surge in iPhone sales.
- Market Performance: Despite facing potential threats from Google's antitrust lawsuit and existing tariffs, Apple's core business remains strong.
- Investor Confidence: The current earnings beat supports Apple's stock performance, which had previously lagged behind other major tech companies.
Toby Howell adds depth to the analysis:
"Apple has been the laggard of the Magnificent Seven this year, down 17% due to its multiple stumbles. But its core business of slinging iPhones is looking healthy as ever." (09:26)
However, challenges persist:
- AI Strategy Concerns: Apple grapples with retaining AI talent and deciding between developing in-house models or outsourcing, potentially impacting future innovation.
- Wearables Decline: Apple's wearables revenue, including AirPods and smartwatches, has seen a significant downturn, dropping to $7.8 billion from a peak of $15 billion in 2021.
Neal Freyman highlights potential future impacts:
"While tariffs might still bite Apple down the road, for now, they've been more of a tailwind, pushing shoppers to stock up ahead of possible price hikes." (09:26)
4. Proposed Stock Trading Ban for Lawmakers
The episode also covers legislative developments aimed at increasing transparency and reducing conflicts of interest among U.S. lawmakers concerning stock trading.
Neal Freyman introduces the topic:
"A key Senate committee advanced legislation that would ban representatives of Congress, the president, and the vice president from buying and selling stocks." (07:00)
Toby Howell explains the legislative process and challenges:
"Lawmakers are very reluctant to regulate themselves when it comes to this. A lot of people who are not for this say that it's just unnecessary right now." (14:10)
Key aspects of the proposed law:
- Immediate Restrictions: Elected officials would be prohibited from buying stocks immediately and would face a 90-day window before selling existing holdings.
- Divestment Requirements: Officials would need to divest from individual stock holdings starting with their next term in office.
- Political Dynamics: Despite overwhelming public support, the bill faces bipartisan challenges, with significant opposition from within the Republican party.
Neal Freyman underscores the political hurdles:
"Josh Hawley, who is the sponsor of this bill, said he doesn't think Trump would support it if we made him sell off his investments and he needs Trump's signature in order to make this the law." (14:10)
The discussion highlights the tension between public demand for ethical governance and political resistance to increased regulation of lawmakers' financial activities.
5. Stock of the Week and Dog of the Week
Neal and Toby engage in their regular segment, analyzing notable stocks and companies with intriguing market stories.
Stock of the Week: Figma
- Overview: Figma’s recent IPO was a blockbuster success, with shares skyrocketing from an initial price of $33 to over $115, marking a 250% increase and achieving a market cap of approximately $60 billion.
- Analysis: The company is praised as a profitable tech unicorn with impressive revenue growth and net income, positioning itself as a formidable competitor to Adobe.
- Quotes:
- Neal Freyman: "Figma is a solid business, a rare profitable tech unicorn that brought in $45 million in net income last quarter." (17:03)
- Toby Howell: "Multiple funds returned their entire fund with just this one public debut, which has been a welcome sight after a couple of years of pretty dry IPOs." (19:15)
Dog of the Week: The Boring Company
- Overview: Contrasting Figma's success, The Boring Company faces significant challenges with its ambitious tunneling projects, struggling to meet its initial lofty goals.
- Analysis: The company’s valuation has plummeted, and most of its projects remain incomplete, highlighting the difficulties in executing large-scale infrastructure initiatives.
- Quotes:
6. Final Headlines
The episode concludes with a brief mention of a startup's innovative approach to AI-driven entertainment.
Neal Freyman introduces Showrunner:
"Showrunner is a service from the startup Fable that lets you type in a few words to create entire scenes or episodes of animated TV shows." (24:16)
Toby Howell elaborates on its potential:
"People already make fan edits. This is just an extension of culture. With AI video generation, you can literally type in a plot and say, hey, make me do something cool in this new Disney plus episode." (26:24)
The segment highlights the intersection of AI and creative industries, pondering the future of interactive and user-generated content in entertainment.
Conclusion:
This episode of Morning Brew Daily provides a comprehensive overview of pivotal economic and corporate developments, enriched by the hosts' insightful analysis and informative discussions. From the reinstatement of the Presidential Fitness Test and the rollout of Trump's universal tariffs to Apple's impressive earnings and the proposed stock trading ban for lawmakers, listeners are equipped with a nuanced understanding of current events shaping the business landscape. The segment on stocks offers valuable investment perspectives, while the final headlines hint at the evolving role of AI in entertainment.
Note: Advertisements and promotional segments have been excluded from this summary to maintain focus on the core content discussed in the episode.