President Donald Trump wants India and Pakistan to cease fighting and is open to helping both countries broker a peace agreement, following strikes from India against Pakistan early Wednesday.
India launched missiles against at least nine sites ‘where terrorist attacks against India have been planned,’ according to India’s Defense Ministry. Meanwhile, Pakistan’s military reported that the strikes killed at least 26 people — including women and children — and claimed the strikes amounted to an ‘act of war.’
‘Oh, it’s so terrible. My position is, I get along with both,’ Trump told reporters Wednesday. ‘I know both very well, and I want to see them work it out. I want to see them stop. And hopefully they can stop now. They’ve got a tit for tat, so hopefully they can stop now. But I know both. We get along with both countries very well. Good relationships with both. And I want to see it stop. And if I can do anything to help I will. I will be there as well.’
Tension between India and Pakistan escalated in April after a gunman killed 26 people who were primarily Indian Hindi tourists in the India-controlled portion of Kashmir. India pinned the blame on Pakistan, and a militant group India claims is affiliated with a Pakistani militant group ultimately claimed responsibility for the attack.
After India’s Wednesday strikes, Pakistan said it shot down five Indian fighter jets, claiming that the move was justified given India’s actions.
‘Pakistan has every right to give a robust response to this act of war imposed by India, and a strong response is indeed being given,’ Pakistani Prime Minister Shehbaz Sharif said.
The Associated Press, Fox News’ Greg Wehner and Nick Kalman contributed to this report.
India’s equity markets experienced a volatile but ultimately resilient session on Wednesday following the announcement of significant military action against Pakistan.
While benchmark indices opened sharply lower in immediate reaction to news of India’s retaliatory strikes, known as ‘Operation Sindoor’, they quickly pared losses, suggesting investors, while watchful, were not panicking about the escalation.
The trading day began under the shadow of heightened geopolitical tensions.
India confirmed early Wednesday that its Armed Forces had launched precision missile strikes targeting nine terrorist sites located in Pakistan and Pakistan-occupied Kashmir (PoK).
This action, codenamed ‘Operation Sindoor’, was explicitly positioned by India as a “precise and restrained response” to the recent deadly terror attack in Pahalgam, designed to be “non-escalatory” and focused solely on “known terror camps” while avoiding civilian or Pakistani military targets – a characterization disputed by Pakistan.
The immediate market reaction was negative, with the Sensex opening 692 points lower at 79,948.80. However, this initial dip proved short-lived.
The index quickly erased these losses and even pushed into positive territory, rising over 200 points to touch 80,845 before settling back into a more volatile, range-bound pattern.
Around 10 AM, the Sensex was down just 32 points (0.04%) at 80,609, while the Nifty 50 was hovering near the flatline, down 19 points (0.08%) at 24,361.
The BSE Midcap index was flat, while the Smallcap index remained down 0.33%, indicating slightly more pressure on smaller stocks.
Market experts attributed the relatively contained market reaction, despite the significant military action, to the perceived nature of the strikes.
The focus on terrorist infrastructure, rather than broader military or economic targets, was seen as a key factor in preventing widespread panic.
“What stands out in ‘Operation Sindoor’ from the market perspective is its focused and non-escalatory nature,” VK Vijayakumar, Chief Investment Strategist at Geojit Investments, told Live Mint.
We have to wait and watch how the enemy reacts to these precision strikes by India. The market is unlikely to be impacted by the retaliatory strike by India since that was known and discounted by the market.
The clear messaging that India sought retaliation against terror camps, not broader escalation, appeared to reassure investors.
However, experts acknowledge the potential for further developments.
“There could be some reaction from Pakistan, as it may feel the need to save face,” Vijayakumar added, though he also noted, “Pakistan does not have the economic muscle to sustain a prolonged conflict.”
Historical context: market resilience during past conflicts
History offers some perspective on the Indian market’s behavior during periods of conflict with Pakistan.
Generally, the market has shown remarkable resilience, often supported by the underlying strength of the domestic economy.
During the 1999 Kargil War (May 3 – July 26), the market experienced only a minor decline of 0.8%.
Even during the two days of the Mumbai 26/11 terror attacks in 2008, the Sensex actually climbed roughly 400 points.
While the market did react negatively after the 2019 Pulwama attack (indices dropped over 1.8% between Feb 14 – Mar 1), subsequent actions like the Balakot airstrikes saw varied responses.
“Market responses may be muted during times of Indo-Pak conflict,” Vijayakumar explained.
The domestic market has never panicked during such episodes, as India holds a clear advantage in a conventional war.
Trivesh D, COO of Tradejini, echoed this, pointing out the Sensex surged 37% during the Kargil War period and saw only minor dips post-Pulwama before resuming its uptrend.
“History indicates that corrections are typically mild and quickly rebound,” Rajesh Sinha, Senior Research Analyst at Bonanza Group, told Live Mint.
Investment strategy: focus on quality, avoid panic
Given the current situation, market experts advise investors against panic selling and recommend focusing on quality, particularly in the large-cap space, which tends to offer more stability during volatile periods.
“Even as small-cap and mid-cap segments could lag as a few investors turn defensive amid border tensions, the situation offers a compelling opportunity to be overweight in quality large-cap stocks,” suggested Sinha.
A diversified portfolio approach is recommended. Sinha highlighted sectors like leading banks (with strong capital), FMCG (due to inelastic demand), and potentially defence contractors (on hopes of increased budgets) as areas that might show relative strength.
Trivesh D also suggested keeping an eye on defence and infrastructure, while noting the defensive nature of Pharma and FMCG.
He cautioned against “knee-jerk buying based on fear or news flow,” urging investors to “stay aligned with the broader trend and use any dips to enter quality names.”
Vijayakumar noted that valuations remain elevated (Nifty > 20x FY26 earnings), suggesting “no deep value in any sector.”
However, he still sees bright prospects for financials and potential in telecom, while viewing the defence sector as having received a sentimental boost but lacking deep value currently.
The key takeaway is to remain invested but exercise caution, focusing on fundamentally sound companies.
The global pharmaceutical market reached a total value of US$1.38 trillion in 2024, according to Research and Markets, up significantly from the US$888 billion seen just over a decade earlier in 2010.
Experienced and novice investors alike may want to consider pharmaceutical exchange-traded funds (ETFs) as a way to gain exposure to the top pharma companies. Like all ETFs, pharmaceutical ETFs are a good option for those who want to trade a set of assets in the pharmaceutical industry instead of focusing solely on individual pharmaceutical stocks.
The main advantage of a pharmaceutical ETF is the fact that it can provide exposure to an overarching sector, but still trades like a stock. Pharma ETFs also offer less market volatility and lower fees and expenses.
Big pharma ETFs
Many of these funds have diverse holdings across some of the most important sectors in the pharmaceutical industry, including pain therapeutics, oncology, vaccines and biotechnology. Data was gathered on May 6, 2025.
1. VanEck Pharmaceutical ETF (NASDAQ:PPH)
Total assets under management: US$653.61 million
Established in late 2011, the VanEck Pharmaceutical ETF tracks the MVIS US Listed Pharmaceutical 25 Index. It has the capacity to provide big returns, even though there are some risks attached to the ETF. An analyst report indicates that investors looking for ‘tactical exposure’ to the pharma sector might consider this ETF as an investment option.
The ETF has 25 holdings, with the top five being Eli Lilly (NYSE:LLY) at a weight of 12.17 percent, AbbVie (NYSE:ABBV) at 6.48 percent, Johnson & Johnson (NYSE:JNJ) at 6.45 percent, Novartis (NYSE:NVS) at 5.43 percent and Cencora (NYSE:COR) at 5.34 percent.
2. iShares US Pharmaceuticals ETF (ARCA:IHE)
Total assets under management: US$571.51 million
Created on May 5, 2006, this iShares ETF tracks some of the top US pharma companies. In total, the iShares US Pharmaceuticals ETF has 41 holdings, with the vast majority being large-cap stocks.
Of its holdings, Eli Lilly and Johnson & Johnson are by far the largest portions in its portfolio, coming in at weightings of 24.55 percent and 23.38 percent, respectively. The next highest are Royalty Pharma (NASDAQ:RPRX) at 4.93 percent, Zoetis (NYSE:ZTS) at 4.80 percent and Viatris (NASDAQ:VTRS) at 4.57 percent.
3. Invesco Pharmaceuticals ETF (ARCA:PJP)
Total assets under management: US$240.1 million
The Invesco Pharmaceuticals ETF is primarily focused on providing exposure to US-based pharma companies. An analyst report states that this ETF chooses individual securities based on certain investment criteria, namely stock valuation and risk factors. Invesco changed the fund’s name from the Invesco Dynamic Pharmaceuticals ETF in August 2023.
This ETF was started on June 23, 2005, and currently tracks 31 companies. Its top holdings are Abbott Laboratories (NYSE:ABT) with a weight of 5.2 percent, AbbVie at 5.17 percent, Johnson & Johnson at 5 percent, Gilead Sciences (NASDAQ:GILD) at 4.94 percent and Eli Lilly at 4.86 percent.
4. SPDR S&P Pharmaceuticals ETF (ARCA:XPH)
Total assets under management: US$139.14 million
The SPDR S&P Pharmaceuticals ETF came into the market on June 19, 2006, and represents the pharmaceutical sub-industry sector of the S&P Total Markets Index. An analyst report for the ETF suggests that due to its narrow focus — which includes pharma giants that post ‘big returns’ during times of consolidation — it should not be considered for a long-term portfolio.
This pharma ETF tracks 43 holdings, with relatively close weighting among its holdings. XPH’s top five holdings are Corcept Therapeutics (NASDAQ:CORT) with a weight of 5.26 percent, Eli Lilly at 3.99 percent, Royalty Pharma (NASDAQ:RPRX) at 3.98 percent, Zoetis at 3.87 percent and Johnson & Johnson at 3.81 percent.
5. KraneShares MSCI All China Health Care Index ETF (ARCA:KURE)
Total assets under management: US$82.86 million
The KraneShares MSCI All China Health Care Index ETF was launched in February 2018 and tracks an index of large- and mid-cap Chinese stocks in the healthcare sector, all weighted by market capitalization. According to an analyst report, the fund provides investors with ‘exposure to a relatively small slice of the Chinese economy.’
The ETF tracks 46 holdings, and its top five are Jiangsu Hengrui Medicine (SHA:600276) at 8.33 percent, BeiGene (OTC Pink:BEIGF,HKEX:6160) at 7.88 percent, Shenzhen Mindray Bio-Medical Electronics (SZSE:300760) at 6.79 percent, Wuxi Biologics (OTC Pink:WXIBF,HKEX:2269) at 6.67 percent and Innovent Biologics (OTC Pink:IVBXF,HKEX:1801) at 5.51 percent .
Securities Disclosure: I, Melissa Pistilli, hold no investment interest in any of the companies mentioned in this article.
U.S. pharmacy chain Rite Aid on Monday filed for bankruptcy protection for the second time in as many years, according to a court filing.
Pharmacy chains, such as Rite Aid, Walgreens and CVS, have been under pressure as falling drug margins and competition from Walmart and Amazon have led to a closure of hundreds of stores.
Walgreens, facing significant losses, recently agreed to a $10 billion buyout by private equity firm Sycamore Partners — a dramatic decline from its $100 billion valuation a decade ago, underscoring the severe challenges facing traditional pharmacy retailers.
Rite Aid used its previous bankruptcy in 2023 to cut $2 billion in debt, close hundreds of stores, sell its pharmacy benefit company, Elixir, and negotiate settlements with its lenders, drug distribution partner McKesson and other creditors.
The previous bankruptcy also resolved hundreds of lawsuits alleging that Rite Aid ignored red flags when filling suspicious prescriptions for addictive opioid pain drugs.
But despite those settlements, Rite Aid still had $2.5 billion in debt when it emerged from bankruptcy as a private company owned by its lenders in 2024.
According to Monday’s court filing, the company has estimated assets and liabilities in the range of $1 billion to $10 billion.
The company was unable to secure additional capital from lenders, which it needed to continue operating the business, Bloomberg News reported earlier in the day, citing an internal letter from CEO Matthew Schroeder to the company’s employees.
The letter also states that the drug store chain intends to reduce its workforce at its corporate offices in Pennsylvania.
Rite Aid operated about 2,000 pharmacies in 2023 but now has only 1,250 stores across the U.S., with recent closures significantly reducing its presence in markets such as Ohio and Michigan.
Secretary of State Marco Rubio is planning to merge the responsibilities of the Palestinian Affairs Office into the U.S. Embassy in Jerusalem in an effort to continue a diplomatic mission in Israel’s capital that was put in place by President Donald Trump during his first term in office.
State Department spokesperson Tammy Bruce announced Rubio’s decision during a press briefing Tuesday.
‘Secretary Rubio has decided to merge the responsibilities of the office of the Palestinian Affairs Office fully into other sections of the United States Embassy in Jerusalem,’ Bruce said. ‘This decision will restore the first Trump-term framework of a unified U.S. diplomatic mission in Israel’s capital that reports to the U.S. ambassador to Israel.’
She added that U.S. Ambassador to Israel Mike Huckabee will begin to make the necessary changes to implement the merger over the coming weeks.
‘The United States remains committed to its historic relationship with Israel, bolstering Israel’s security and securing peace to create a better life for the entire region,’ Bruce said.
The Biden administration established the U.S. Office of Palestinian Affairs in 2022 after reversing Trump’s closure of the consulate to the Palestinians in Jerusalem during his first administration.
Biden’s move was viewed by some as rewarding the Palestinian leadership after a wave of terrorism during which two Palestinians wielding an ax and knife murdered three Israelis in the town of Elad in May 2022.
The first Trump administration helped to negotiate groundbreaking agreements, called the Abraham Accords, in 2020 to normalize diplomatic relations between Israel and the United Arab Emirates, Bahrain, Sudan and Morocco.
The Israeli government vehemently opposed a reopening of the Palestinian consulate in Jerusalem because it would undercut the holy city as the undivided capital of Israel.
The U.S. Jerusalem Embassy Act of 1995 recognizes Jerusalem as the capital of Israel and calls for it to remain an undivided city.
Trump, in 2017, recognized Jerusalem as Israel’s capital in 2017 and moved the U.S. Embassy from Tel Aviv to Jerusalem the following year.
Fox News’ Benjamin Weinthal contributed to this report.
Warner Bros. Discovery stock price has crashed and is hovering near its all-time low of $6.68 after plunging to a high of $16.14 in 2023.
The WBD share price continued its sell-off this week after Donald Trump announced new tariffs on all foreign-made movies that could affect some of its titles like Dune, A Minecraft Movie, Supergirl, and JJ Abrams’ Next Feature.
This article explores what to expect ahead of Warner Bros. Discovery earnings scheduled for later this week.
Warner Bro. Discovery is facing challenges
The WBD stock price has retreated in the past few years as the company has started facing many challenges. Like other Hollywood studio company, it went through a prolonged strike that affected its slated productions and caused substantial losses.
It is also one of the most indebted companies in the media industry with over $36 billion in long-term debt, $6.9 billion in deferred tax liability, and $3 billion in capital leases. On top of this, the company has over $6.5 billion in other non-current liabilities.
Most importantly, Warner Bros. Discovery is one of the top companies in the television industry, where it owns companies like CNN, Discovery Channel, and OWN. All these brands are struggling to gain market share as demand for television content wanes and cable cutting continues.
WBD earnings ahead
The next important catalyst for the WDD stock price will be the upcoming quarterly earnings, which will provide more color about the state of its business.
The most recent financial results showed that most of its business continued struggling in the last quarter.
Its total revenue dropped by 2% in the quarter to $10.0 billion as its advertising business plunged by 12%. This segment may continue struggling as companies lower their marketing budget because of Donald Trump’s tariffs.
The distribution business was flat, with its revenue remaining at $4.91 billion, while the content revenue fell by 2% to $2.90 billion.
Warner Bros. Discovery also reported a net loss of $200 million, which happened because of a $1.9 billion acquisition-related amortization and restructuring costs.
Analysts will be watching the upcoming financial results, which will come out on May 8. The expectation is that its revenue dropped by 3.65% in the first quarter to $9.59 billion.
Its loss-per-share are expected to come in at 13 cents, an improvement from the 40 cents it lost last year. Still, there is a likelihood that the earnings will be lower than expected since it has missed in two of the last two earning.
The 25 analysts tracked by Yahoo Finance expect that its annual revenue will be $38 billion, down by 1.47% from last year.
Analysts are largely bullish on WBD stock, pointing to its cheap valuation, potential for spinning off its television business, and its debt reduction measures. Some of the most bullish analysts are from companies like Wells Fargo, Keybanc, Barclays and Raymond James.
The average WBD stock price forecast by analysts is $13, up from the current $8.37.
Warner Bros stock price analysis
The weekly chart shows that the WBD share price has remained under pressure in the past few years as it became one of the worst-performing companies in the media industry.
It has formed a descending triangle pattern whose lower side is at $6.97. This triangle is one of the most bearish patterns in the market.
WBD stock has formed below all moving averages. Therefore, the most likely scenario is where it crashes to the psychological point at $5, down by about 40% below the current level. A move above the upper side of the descending trendline will invalidate the bullish outlook.
Investing in rare earth minerals can seem tricky, but there are a variety of rare earth stocks and exchange-traded funds (ETFs) available for metals investors.
The rare earth sector may seem daunting, as many elements fall under the umbrella, and the 17 rare earth elements (REEs) are as diverse as they are challenging to pronounce.
The group is made up of 15 lanthanides, plus yttrium and scandium, and each element has different applications, pricing and supply and demand dynamics. Sound complicated? While the REE space is undeniably complex, many investors find it compelling and are interested in finding ways to get a foot in the door.
Read on for a more in-depth look at the rare earth metals market and the many different types of rare earth minerals, plus rare earth stocks and ETFs you can invest in.
In this article
What are the types of rare earth minerals?
There are a number of ways to categorize and better understand rare earths, which will help you know which companies to invest in based on what they’re targeting.
For example, they are often divided into “heavy” and “light” categories based on atomic weight. Heavy rare earths are generally more sought after, but light REEs are important too.
Rare earths can also be grouped together according to how they are used. Rare earth magnets include praseodymium, neodymium, samarium and dysprosium, while phosphor rare earths — those used in lighting — include europium, terbium and yttrium. Cerium, lanthanum and gadolinium are sometimes included in the phosphor category as well. For a detailed breakdown of rare earth uses, check out our guide.
One aspect that is common to all the rare earths is that price information is not readily available — like other critical metals, rare earth materials are not traded on a public exchange. That said, some research firms do make pricing details available, usually for a fee, including Strategic Metals Invest, Fastmarkets and SMM.
What factors affect supply and demand for rare earths?
As mentioned, each REE has different pricing and supply and demand dynamics.
However, there are definitely overarching supply and demand trends in the sector. Most notably, China accounts for the vast majority of the world’s supply of rare earth metals. As the world’s leading producer, the Asian nation accounted for roughly 70 percent of rare earths production in 2024, or 270,000 metric tons (MT), with the US coming in a very distant second at 45,000 MT. After the US, Myanmar is the third largest rare earths producer with total output of 31,000 MT last year. On top of that, China is also responsible for 90 percent of refined rare earths output.
The strong Chinese monopoly on rare earths production has created problems in the sector in the past. For instance, prices in the global market spiked in 2010 and 2011 when the country imposed export quotas.
The move sparked a boom in global rare earth metals exploration outside of China, but many companies that entered the space at that time fell off the radar when rare earths prices eventually sank again. Molycorp, once North America’s only producer of rare earths, is a notable example of how hard it is for companies to set up shop outside China. It filed for bankruptcy in 2015. But the story didn’t end there — MP Materials (NYSE:MP), the company that now owns Molycorp’s assets, went public in mid-2020 in a US$1.47 billion deal, and a year later was a US$6 billion company.
MP Materials is now the western hemisphere’s largest rare earths miner, putting out high-purity separated neodymium and praseodymium oxide; a heavy rare earths concentrate; and lanthanum and cerium oxides and carbonates.
Concerns about China’s dominance are ongoing as the US/China trade war continues and as supply chain stability grows in importance. The Asian nation has tightly controlled how much of its rare earths products make it into global markets through a quota system initiated in 2006.
US President Donald Trump’s high tariffs targeting Chinese goods has resulted in China enacting further rare earth export restrictions. In April 2025, the Government of China placed strict export controls on samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium — all crucial for the production of electric vehicles, smartphones, fighter jets, missiles and satellites.
Sharing a border with China, Myanmar is the source of at least 70 percent of its neighbor’s medium to heavy rare earths feedstock. With that in mind, it’s not surprising that a temporary halt in Myanmar’s production in late summer of 2023 sent rare earths prices to their highest level in 20 months, as per OilPrice.com.
Myanmar’s rare earths production experienced further disruptions in late 2024 as the Kachin Independence Army seized two towns in Kachin state, near China’s Yunnan province, that are critical suppliers of rare earth oxides to China.
Outside of China, one of the world’s leading rare earths producers is Australian company Lynas (ASX:LYC,OTC Pink:LYSCF), which sends mined material for refining and processing at its plant in Malaysia. In 2023, Japan Australia Rare Earths, a joint venture between the Japan Organization for Metals and Energy Security and Sojitz (TSE:2768), inked an agreement to invest AU$200 million in the production and supply of heavy rare earths from Lynas.
This has allowed the mining company to expand its light rare earths production and begin production of heavy rare earths. Lynas brought its large-scale downstream Kalgoorlie rare earths processing facility online in November 2024. According to its H1 2025 fiscal year results, the company’s neodymium and praseodymium (NdPr) production volume increased by 22 percent.
In the US, MP Materials is making good use of US$58.5 million awarded in April to support construction of the first fully integrated rare earth magnet manufacturing facility in the US. The funding is part of the Section 48C Advanced Energy Project tax credit granted by the Internal Revenue Service, Department of Treasury and Department of Energy.
The Fort Worth, Texas, magnet facility began producing the NdFeB magnets crucial for EVs, wind turbines and defense systems at the start of 2025. First commercial deliveries are expected by the end of the year.
Looking at demand, many analysts believe the need for rare earths is set to boom on accelerating growth from top end-use categories, including the electric vehicle market and other high-tech applications.
As an example, demand for dysprosium, a key material in steel manufacturing and the production of lasers, has grown as countries increase their steel standards. Aside from that, rare earths have long been used in televisions and rechargeable batteries, two industries that accounted for much demand before the proliferation of new technologies. Other rare earth metals can be found in wind turbines, aluminum production, catalytic converters and many high-tech products.
As can be seen, securing rare earths supply is an increasingly important issue. In addition to traditional rare earths mining, there has been growth in the rare earths recycling industry, which aims to recover REE raw materials from electronics and high-tech products in order to reuse them in new ways.
Exploring and extracting rare earth materials from deep-sea mud is one of the newest recovery methods, although deep sea mining of mud and nodules comes with significant environmental concerns. However, it is gaining traction as more mining companies look offshore for resources and US President Trump pushes for fast tracking of deep-sea mining permits.
How to invest in rare earth minerals
Investors are increasingly wondering how they can invest in rare earth metals as demand ramps up and the US-China trade war has caused further concerns about rare earth supply chains. The possibility of higher rare earth prices in the coming years is one of the catalysts for investors wondering how they can invest in rare earths. As it’s not possible to buy physical rare earth metals, the most direct way to invest in the rare earth market is through mining and exploration companies.
Investing in rare earth stocks
While many rare earth minerals companies are located in China and are not publicly traded, there are a variety of rare earth companies listed on US, Canadian and Australian stock exchanges.
Below is a selection of companies with rare earths assets or operations trading on the NYSE, NASDAQ, TSX and ASX; all had market caps of over $500 million as of April 22, 2025.
Small-cap REE companies are also listed on those exchanges.
Here’s a hefty list of junior rare earths stock and companies with rare earths projects. The rare earths stocks on this list had market caps between $5 million and $500 million as of April 22, 2025:
To learn more about investing in rare earths, check out our stocks lists on the 9 Biggest Rare Earth Stocks in the US, Canada and Australia, Top Canadian Rare Earths Stocks, and the 5 Biggest ASX Rare Earth Stocks.
Investing in rare earth ETFs
Rare earth exchange-trade funds (ETFs) offer investors a diversified position in this market space, mitigating the risks of investing in specific companies.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Chinese bargain retailer Temu changed its business model in the U.S. as the Trump administration’s new rules on low-value shipments took effect Friday.
In recent days, Temu has abruptly shifted its website and app to only display listings for products shipped from U.S.-based warehouses. Items shipped directly from China, which previously blanketed the site, are now labeled as out of stock.
Temu made a name for itself in the U.S. as a destination for ultra-discounted items shipped direct from China, such as $5 sneakers and $1.50 garlic presses. It’s been able to keep prices low because of the so-called de minimis rule, which has allowed items worth $800 or less to enter the country duty-free since 2016.
The loophole expired Friday at 12:01 a.m. EDT as a result of an executive order signed by President Donald Trump in April. Trump briefly suspended the de minimis rule in February before reinstating the provision days later as customs officials struggled to process and collect tariffs on a mountain of low-value packages.
The end of de minimis, as well as Trump’s new 145% tariffs on China, has forced Temu to raise prices, suspend its aggressive online advertising push and now alter the selection of goods available to American shoppers to circumvent higher levies.
A Temu spokesperson confirmed to CNBC that all sales in the U.S. are now handled by local sellers and said they are fulfilled “from within the country.” Temu said pricing for U.S. shoppers “remains unchanged.”
“Temu has been actively recruiting U.S. sellers to join the platform,” the spokesperson said. “The move is designed to help local merchants reach more customers and grow their businesses.”
Before the change, shoppers who attempted to purchase Temu products shipped from China were confronted with “import charges” of between 130% and 150%. The fees often cost more than the individual item and more than doubled the price of many orders.
Temu advertises that local products have “no import charges” and “no extra charges upon delivery.”
The company, which is owned by Chinese e-commerce giant PDD Holdings, has gradually built up its inventory in the U.S. over the past year in anticipation of escalating trade tensions and the removal of de minimis.
Shein, which has also benefited from the loophole, moved to raise prices last week. The fast-fashion retailer added a banner at checkout that says, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”
Many third-party sellers on Amazon rely on Chinese manufacturers to source or assemble their products. The company’s Temu competitor, called Amazon Haul, has relied on de minimis to ship products priced at $20 or less directly from China to the U.S.
Amazon said Tuesday following a dustup with the White House that had it considered showing tariff-related costs on Haul products ahead of the de minimis cutoff but that it has since scrapped those plans.
Prior to Trump’s second term in office, the Biden administration had also looked to curtail the provision. Critics of the de minimis provision argue that it harms American businesses and that it facilitates shipments of fentanyl and other illicit substances because, they say, the packages are less likely to be inspected by customs agents.
Defense Secretary Pete Hegseth announced on Monday that the U.S. military will soon be seeing a dramatic reduction in the number of general officers across all branches.
He called the reduction a ‘historic’ move to fulfill President Donald Trump’s commitment to ‘achieving peace through strength.’
‘We’re going to shift resources from bloated headquarters elements to our warfighters,’ said Hegseth.
According to Hegseth, there are currently 44 four-star and flag officers across the military, making for a ratio of one general to 1,400 troops, compared to the ratio during World War II of one general to 6,000 troops.
Hegseth, who has pledged to transform the military into a ‘leaner, more lethal force,’ issued a memo to senior Pentagon personnel on Monday in which he ordered the reductions to be carried out in two phases.
In the first phase, Hegseth ordered a ‘minimum’ 20% reduction of four-star generals and flag officers in the active-duty component as well as a 20% reduction in the National Guard.
In phase two, the secretary is ordering an additional 10% reduction in general and flag officers across the military.
The secretary called the reductions part of his ‘less generals, more GIs policy.’
In a video announcing the change, he said the reductions will be done ‘carefully, but it’s going to be done expeditiously.’
He said ‘this is not a slash-and-burn exercise meant to punish high-ranking officers’ but rather a ‘deliberative process, working with the joint chiefs with one goal: maximizing strategic readiness and operational effectiveness by making prudent reductions.’
‘We got to be lean and mean. And in this case, it means general officer reductions,’ said Hegseth.
Congress sets the number of general officers allowed in the military. The total number of active-duty general or flag officers is capped at 219 for the Army, 150 for the Navy, 171 for the Air Force, 64 for the Marine Corps and 21 for the Space Force.
Munger, who died in 2023, once said Abel was even better at operating businesses than Buffett himself.
Abel quietly built his reputation behind the scenes, without the media spotlight Buffett often enjoyed.
Yet Abel’s biggest challenge is that he has to win over the investors who trusted Buffett instinctively.
These are big shoes to fill, especially for someone without the legendary status of his predecessor.
What happens to Berkshire’s cash pile?
Berkshire Hathaway’s giant cash position is both an advantage and a major headache.
The company’s $348 billion cash hoard now sits mostly in short-term US government bonds, a safer bet paying reliable interest.
But safe bets rarely offer big returns.
Abel’s critical task is figuring out how to put that enormous pile of money to work more productively.
This is what current investors will be looking for.
One clear option is buying more businesses overseas.
Buffett recently invested billions in five major Japanese trading houses.
At the shareholder meeting, he said Berkshire plans to hold these investments for “50 years.”
This shows his confidence in foreign markets and suggests Abel may look beyond the US for deals.
Still, buying businesses big enough to matter is getting harder for Berkshire.
Abel might face pressure to spend faster or take bigger risks to produce returns.
How Abel handles this pressure will define his early tenure and shape investor perceptions of him.
What could go wrong?
While Abel is highly respected internally, investors are naturally skeptical about Berkshire’s future without Buffett’s intuitive style.
Buffett is not just respected for his record returns, which amount to an incredible 5,502,000% increase in Berkshire’s value since 1965, but for carefully timing major moves, especially during crises.
For example, Buffett’s well-timed investments in banks during the financial crisis helped stabilize the market and brought Berkshire enormous profits.
As of today, Abel has yet to prove himself in making such big strategic decisions.
He must show investors he can respond confidently when markets inevitably stumble again.
Buffett also warned Abel against the pitfalls that ruined once-dominant companies like General Motors, Sears, and IBM: arrogance, bureaucracy, and complacency.
Berkshire’s success has been built on a decentralized approach, trusting managers rather than issuing constant corporate directives.
Abel, however, is described as more operationally hands-on and must strike the right note to avoid undermining this proven formula.
What happens to Berkshire Hathaway now?
At the meeting, Buffett stressed that Berkshire’s unusual corporate structure, one that operates without departments like human resources, public relations, or legal, is designed specifically to avoid bureaucratic failure.
Berkshire is built on trusting its managers.
Abel has promised to maintain that culture, but his operational background might tempt him into more direct involvement.
Another immediate concern is managing Berkshire’s huge stock portfolio, worth $264 billion.
But Abel won’t do this himself.
Two existing investment managers, Todd Combs and Ted Weschler, will continue in their roles.
Still, Abel must oversee them effectively, preserving the disciplined style Buffett perfected.
In many ways, the Berkshire Hathaway that Abel inherits resembles the one Buffett ran a decade ago, but the environment around it has changed dramatically.
High inflation, costly stock valuations, and global political tensions, including recent US tariffs criticized by Buffett at the meeting, mean Abel faces a difficult backdrop from day one.
What investors should watch
Buffett will step aside formally in December, assuming Berkshire’s board approves.
He plans to remain available for advice, but emphasized clearly that Abel will have full control.
Investors should watch Abel closely, especially his initial moves to invest the cash pile and handle future market volatility.
How Abel balances the need for new investments with the caution Berkshire is known for will determine investor confidence in this new chapter.
Buffett’s success came not just from his brilliance but from his steadfast adherence to simplicity and discipline.
Abel’s greatest test is proving he can deliver on these principles without Buffett’s legendary intuition to guide him.
Buffett built Berkshire Hathaway into one of history’s greatest financial empires.
