WSJ What’s News: Why Markets Seem Unfazed by Tariff News
Release Date: July 11, 2025
Host: Kate Bullivant (Filling in for Luke Vargas)

1. President Trump's Tariff Threats and Market Response

Overview:
President Donald Trump has announced intentions to impose a 35% tariff on certain Canadian goods starting August 1. Despite the severity of these threats, markets appear largely indifferent, maintaining stability amidst the uncertainty.

Key Points:

• Tariff Details:
  Trump indicated that an exemption exists for goods complying with the US-Mexico-Canada Agreement (USMCA), but this could be renegotiated. He warned that tariffs might increase if Canada retaliates but could decrease if Canada curbs fentanyl imports.

  "The tariffs could climb higher if Ottawa retaliates, but that could lower if Canada stops fentanyl from crossing the border."
  — Kate Bullivant (00:56)

• Market Reaction:
  Initially, the Canadian dollar weakened sharply against the US dollar following the announcement but later regained some of its losses. Alex Frangos, Journal Finance Editor, notes that the market's reaction has stabilized compared to the volatility seen in March and April.

  "We have indexes in the US hitting records. Bitcoin's at a record. I mean, there's just not that kind of fear about these trade threats."
  — Alex Frangos (03:05)

• Historical Context:
  Frangos attributes the subdued market response to increased resilience in companies and economies, as well as Trump's tendency to negotiate compromises despite initial aggressive rhetoric.

  "Trump always chickens out this feeling that like he talks big, but in the end they'll make some sort of compromise that everyone can live with."
  — Alex Frangos (03:05)

2. Investigation into Last Month's Air India Crash

Overview:
An investigation into the Air India crash, which resulted in 260 fatalities, is currently focusing on pilot actions rather than any potential aircraft design flaws. Preliminary findings suggest that critical fuel control switches were turned off, leading to engine thrust loss shortly after takeoff.

Key Points:

• Preliminary Findings:
  The investigation has identified that two fuel control switches were deactivated, an unusual occurrence that points towards pilot error rather than mechanical failure.

  "Two fuel control switches, which controls fuel to the engines, were switched off at the time of the crash, which is highly unusual."
  — Shan Li (00:46)

• Impact on Boeing:
  With Boeing previously facing issues with the 737 Max fleet, any indication of a design flaw in the 787 Dreamliner could have severe repercussions for the company. However, early reports do not suggest any mechanical defects.

  "If it turns out that there was some sort of design flaw in a 787 Dreamliner, it would be a huge, huge problem for the company."
  — Shan Li (04:24)

• Investigation Progress:
  The Indian Aircraft Accident Investigation Bureau is expected to release a preliminary report, although delays and limited public information have caused frustration among U.S. officials.

3. Harvard’s Potential Conservative Scholarship Center Amid Political Tensions

Overview:
Harvard University is contemplating the establishment of a new conservative scholarship center, akin to Stanford's Hoover Institution. This move comes amid accusations from the Trump administration that Harvard is overly liberal and following significant disruptions from pro-Palestinian protests.

Key Points:

• Motivation and Timing:
  The initiative gains traction following increased campus protests in late 2023, intensifying the long-standing debate over Harvard's federal funding and autonomy.

• Trump Administration’s Stance:
  Officials view the creation of a conservative institute as superficial and not a substantive solution to their concerns about Harvard's political leanings.

  "The creation of a new institute would be considered window dressing and not a meaningful part of their negotiations."
  — Kate Bullivant (05:10)

4. Escalating Rift Between Unilever and Ben & Jerry’s

Overview:
Unilever has appointed Johannes Senf as the new CEO for Ben & Jerry’s, exacerbating the ongoing conflict between the parent company and Ben & Jerry’s independent board. The dispute centers around the brand's social activism and public positions on contentious issues.

Key Points:

• Leadership Change:
  Senf, formerly managing director of Ben & Jerry’s Europe, will assume his role next month, signaling a strategic shift that may further strain relations.

• Underlying Issues:
  The conflict has been fueled by disagreements over Ben & Jerry’s stances on matters such as Israel and the Palestinian territories, leading to legal battles over executive appointments and company direction.

• Future Implications:
  The ongoing legal fight reflects broader tensions between corporate governance and the autonomy of subsidiary brands engaging in social activism.

5. President Trump's Engagement with African Leaders: Immigration and Critical Minerals

Overview:
In a significant diplomatic effort, President Trump met with five West African heads of state at the White House. The discussions focused on securing immigration agreements and access to critical minerals essential for various industries.

Key Points:

• Immigration Negotiations:
  The Trump administration is pushing for West African nations to accept migrants, especially in light of the Supreme Court's recent decision permitting the deportation of migrants to third countries. This move is intertwined with broader security and economic cooperation.

  "Immigration deportation seems to be in the background of almost every foreign policy conversation that the Trump administration is having right now."
  — Robbie Grammer (08:00)

• Critical Minerals Strategy:
  The U.S. aims to secure access to Africa's vast reserves of critical minerals required for manufacturing batteries, solar panels, and other technologies. Africa is also striving to retain more value by processing and refining these minerals domestically.

  "Nearly half of the continent's 54 countries have restricted or banned raw material exports in the last two years."
  — Nicholas Barillo (10:24)

• Chinese Influence and Challenges:
  Chinese state-owned companies are actively investing in Africa's mineral processing infrastructure. However, the success of these endeavors is uncertain due to infrastructural challenges, potential political risks, and local labor issues.

  "Some of the unintended consequences we've seen in the case of Zimbabwe is these rules created a situation where small scale miners had nowhere to keep these minerals, have them processed, so they were forced to smuggle them in large quantities across borders."
  — Nicholas Barillo (12:26)

• Economic Development vs. Local Impact:
  While the localization of mineral processing promises economic growth and job creation, there are concerns about the actual distribution of benefits and the potential for increased illicit activities.

Conclusion

In this episode of WSJ What’s News, host Kate Bullivant navigates through a spectrum of pressing global issues, from trade tensions between the U.S. and Canada to critical investigations affecting major aviation companies, and the intricate dynamics of international diplomacy and corporate governance. Notably, despite significant geopolitical moves, markets exhibit a surprising steadiness, suggesting a matured resilience in the face of ongoing trade uncertainties.

Produced by Daniel Bark | Supervising Producer: Sandra Kilhoff