Good morning. First came President Trump’s announcements of sweeping tariffs. Next up, lawyers say, is the cheating.

• More at stake: Trade lawyers say that as tariffs skyrocket, so too do the incentives not to pay them. Clients are inundating them with questions about the line between lawful loopholes and fraud.
   
• Shifting DOJ priorities: At the same time, the Justice Department’s shifting white-collar priorities to pursue tariff and customs-related cases more aggressively have helped create a perfect storm for more trade enforcement. And lawyers say they have seen a sharp increase in calls from whistleblowers looking to file their own cases about alleged wrongdoing.
   
• How they do it: There are several ways importers typically seek to evade tariffs illegally. Companies can misclassify a product, for instance, by claiming that nightstands are living-room furniture. An importer could lie about a product’s value, claiming an item worth $100 is worth just $10. And a company could lie about what country a product is coming from to pay a smaller tariff.
   
• Concerns linger: Gregory Husisian, a partner at firm Foley & Lardner, said high-level company officials are now paying attention in a way they hadn’t previously. “I’ll have CEOs sit in on phone calls on tariff risk management,” he said.

Starbucks tells white-collar workers to come to the office more—or take a buyout.

Starbucks is requiring its corporate workers to come in the office a minimum of four days a week, up from three, as the coffee chain pushes ahead on its turnaround plan.

The four-day requirement will begin in the new fiscal year, which starts in October, Chief Executive Brian Niccol said Monday. The move is part of Niccol’s cost-saving turnaround plan called Back to Starbucks. In February, the company laid off 1,100 corporate workers.

Post-crisis rules to keep banks safe are on the way out.

At a banquet in a gilded palace here on Tuesday night, U.K. Treasury chief Rachel Reeves will outline plans to kick the country’s huge financial industry into a higher gear.

The planned address reflects a new willingness in both the U.S. and the U.K. to rethink tough banking regulations—rules put in place to stop the kind of financial crisis that enveloped the world nearly two decades ago.

• Malaysia has tightened rules around the movement of artificial-intelligence chips from the U.S., a hot-button issue for the Trump administration’s trade policy.
   
• A federal appeals court has ruled against Morgan Stanley in a yearslong legal battle over tens of millions of dollars’ worth of deferred compensation with financial advisers, reports Barron’s.
   
• A group of investor-advocacy lawyers is blasting a decision by Finra to issue $50 million in rebates to member firms rather than to use that money to repay investors who lost money at the hands of unscrupulous firms.
   
• An Italian court lifted two conditions imposed by officials on UniCredit’s bid for Banco BPM, while upholding others, marking the latest development in a takeover battle set to reshape the country’s banking sector.
   
• U.S. authorities arrested an Iranian national with residency in the U.S. on charges of violating U.S. sanctions by illegally exporting sophisticated railway signaling and telecommunications equipment to Iran through front companies in the United Arab Emirates.
   
• A federal judge ruled that U.S. authorities can legally sanction adult children of designated individuals under emergency powers legislation, rejecting a challenge from the family of sanctioned Cypriot businessman Christodoulos Vassiliades.
   
• The U.K. hasn’t designated Iran’s Islamic Revolutionary Guard Corps as a terrorist organization due to complex legal and diplomatic challenges surrounding the proscription of a state entity, the U.K. Intelligence and Security Committee said.

Trump raises pressure on Russia with tariff threat, Ukraine weapons deal.

President Trump threatened Monday to increase economic pressure on Moscow if there is no peace deal with Ukraine in 50 days, underscoring his growing anger with Russian President Vladimir Putin as he outlined a deal to send weapons to Ukraine.

The U.S. will impose “very severe tariffs if we don’t have a deal in 50 days,” Trump said.

Commerce Secretary Howard Lutnick later said Trump could choose to impose either tariffs or sanctions on countries that do business with Russia. “Those are both tools in his toolbox,” Lutnick said.

• Trump Bets Constantly Shifting Tariff Strategy Can Remake Global Trade
• Higher Tariffs Would Likely Spur ECB to Further Cut Rates
• The Race Is On to Build U.S. Copper Mines After Trump Pledges Higher Tariffs
• Europe Draws Up Retaliatory Tariffs for U.S. Goods in Case No Trade Deal Is Reached

Crypto assets rally ahead of possible U.S. legislation.

Crypto is continuing its bull run at the start of what has been dubbed “Crypto Week” in Washington, where the House of Representatives will consider three bills with the potential to overhaul U.S. crypto policy.

The bills set to be considered are the Clarity Act, the Genius Act and the Anti-CBDC Surveillance State Act. The keystone of Crypto Week is the Clarity Act, which Benchmark analyst Mark Palmer said aims to transform crypto from a gray-area asset into a regulated, investible class.

• 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 leader Vladimir Putin.
   
• Israel said its military struck several tanks in southern Syria on Monday, as clashes between Bedouin gunmen and Druze militias left dozens dead and injured in the latest eruption of sectarian violence in the country.
   
• China on Tuesday tightened its grip on the global electric-vehicle battery industry, introducing new export licensing for crucial component manufacturing technologies.

• The Supreme Court on Monday allowed the Trump administration to begin mass layoffs at the Education Department, halting a lower-court ruling that had blocked the White House’s plans.
   
• Air India’s chief executive urged staff to avoid drawing premature conclusions about what caused one of the airline’s Boeing jets to crash last month, after a preliminary investigation ruled out mechanical or maintenance issues, turning attention to the pilots’ actions.
   
• Andrew Cuomo isn’t giving up yet on his political comeback.
   
• American tourists have grown accustomed to their dollars traveling well, too. This summer, they are getting a wake-up call.

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