Tariff Economy – The Next Big Thing

Price Tag on Panic

In a twist that feels like a lesson in supply chain strategy, Ford is now offering employee pricing for everyone. And as generous as this may seem, we think this is more about timing. With trade war tariffs looming—25% on any car (or car part) that crosses the border—Ford is skipping the price hike and heading straight for the clearance sale.

However, the effect of U.S. tariffs runs a little deeper than the average consumer may realize. Here’s the real issue: Even U.S.-assembled cars rely on global parts. So, whether it’s a Range Rover or a Ram, sticker prices are about to skyrocket. Companies like Jaguar and Land Rover have already pulled shipments. Stellantis is hitting the pause button in Mexico and Canada. And Ford? It’s trying to get ahead of the curve by getting cars off the lot fast.

But why the need for speed? Consumers are nervous. Over the past few weeks, consumer confidence has hit a pandemic-era low, and from the COVID-19 experience, economists know that anxiety and capital expenditure don’t go together. So Ford isn’t slashing prices for love of country—it’s doing it for love of inventory space. And its Big Three buddies( Jeep, Dodge, Chrysler) may follow suit shortly.

So here is our takeaway:

In this round of inflation, your grocery prices aren’t likely to take the hardest hit. This time, you’ll feel the pinch hardest with capital expenses like your patio furniture, your lawn mower, and your new car. So take advantage of ALL discounts that matter to you right now. These might be the last deals you see for a while.

Shopify’s New Business Casual.

While everyone else has been navigating the effects of U.S. tariffs, Shopify CEO Tobi Lütke announced in a decisive internal memo that artificial intelligence is now a core expectation for every employee at the company. From entry-level roles to senior leadership, daily use of AI is no longer optional—it is embedded into performance reviews, hiring processes, and day-to-day operations.

The manifesto, which quickly reached X (formerly Twitter), outlines six clear principles. The most shocking of them all was this: Before asking to hire someone, managers must prove that AI can’t do the job.

This mandate signals a profound cultural shift—not just within Shopify, but potentially for tech. Unlike companies that are AI-agnostic or even AI-averse, Shopify has planted its flag in the “AI-mandatory” camp. Lütke sees AI as fundamental to future-proofing the business, comparing it to touch typing in the 2000s: a non-negotiable workplace skill.

But why so soon? Shopify is betting that the companies who win the AI arms race won’t be the ones with the flashiest tools—but those with teams who know how to use them. In short, we imagine that not long from now, AI will shift from being just a resource to a requirement because at Shopify, it’s officially part of the dress code.

Italy’s Power Merger

In a high-stakes strategy move, the high-fashion brand Prada acquired Versace for $1.375 billion, bringing the boldest name in baroque back under Italian ownership. This isn’t just a flashy power play; it’s a turning point for Italy’s luxury sector, positioning Prada to stand toe-to-toe with French juggernauts like LVMH and Kering.

Once synonymous with opulence and red-carpet drama, Versace has faced some not-so-glamorous financial challenges. Revenue dipped, losses mounted, and in a surprising twist, the brand started slipping into final-sale territory. One major misstep for Versace was shutting down entry-level products. In doing so, Versace accidentally closed the door on aspirational shoppers—the ones who buy the $500 dress at 25 and come back for couture at 35.

Meanwhile, Prada played the long game. Known for quiet luxury and operational discipline, the house bided its time while Versace’s value eroded—ultimately scoring the brand for half of what Michael Kors paid back in 2018. And as if the price wasn’t dramatic enough, Donatella herself exited just last month, calling time on her chapter with Versace.

But beyond the Milanese headlines and leather handbags, there’s a deeper issue at play: delay can be deadly. In fashion and in business, time kills all deals. For Prada, this deal isn’t only about acquiring Versace; it’s one step closer to assembling a blueprint for an Italian luxury empire that will be built one smart, stylish acquisition at a time.