Good morning. Fed's Cook sues Trump to block her ouster. A Louisiana man’s tariff bill is an early sign of shocks to come for some US consumers. And mini Labubus are selling out fast. Listen to the day’s top stories.

— Samantha Stewart

The Federal Reserve’s Lisa Cook sued Donald Trump, portraying his attempt to fire her as a power grab that may cause “irreparable harm” to the US economy. The suit also disputed the president’s allegation of mortgage fraud, describing it as a mere pretext to seize control of the Fed. Cook’s lawyers suggested that an unintentional “clerical error” may have been behind the dispute.

The S&P 500 climbed to a fresh high after data showed the US economy expanded faster than initially estimated. Still, traders refrained from making big bets before the Fed’s favored price gauge—the personal consumption expenditures price index, excluding food and energy—which is expected to show faster inflation. 

Bitcoin darling no more. Michael Saylor’s once-celebrated experiment with the cryptocurrency is mired in a market backlash, raising questions about the sustainability of the corporate-treasury model he pioneered. At the center of the concern is the firm’s financing tactics as Strategy’s new preferred stock has drawn tepid demand. 

Big earnings coming. Alibaba’s cloud computing profits may be overshadowed by food delivery losses, a byproduct of the intense competition dominating the sector in China, which is dealing more damage than expected to the country’s e-commerce giants. BYD’s results are set to strike a more buoyant tone, with analysts expecting the automaker to report robust profit after discounting. 

Cloud control. Singapore will classify some substances used in vape pods—including etomidate, a clinical agent used to induce general anesthesia—as controlled drugs, stepping up its crackdown on the banned devices. Vapers may face fines of up to S$2,000 ($1,555), while etomidate-vape dealers risk prison and caning. The government plans to introduce new legislation in early 2026.

Deep Dive: De Minimis Down

The de minimis hit is coming for consumers—hard. Chris Pawlukiewicz, a gamer from Louisiana, received a surprise $934 tariff bill for high-end computer parts after the Trump administration ended the longstanding exemption that allowed parcels from China worth less than $800 to enter duty-free.

• Pawlukiewicz won’t be the last. Starting Friday, more American consumers are almost certain to face similar shocks as the US ends the de minimis exemption on shipments from the rest of the world.

• Chinese e-commerce giants have already been feeling the pressure. Temu’s monthly active users plummeted as much as 46% between April and June after the loophole closed, according to Bloomberg Intelligence, as the marketplace cut US ad spending amid Trump’s tariff barrage. 
• Some countries are trying to get ahead of the exemption’s end before it goes global. Taiwan’s postal service suspended deliveries of small parcels to the US, effective from Tuesday, following the administration’s decision. 

Opinion

As Singapore celebrates 60 years of independence, a play about the city-state’s past is a reminder of how adaptability has been key to its endurance, Karishma Vaswani writes. In a world turning inward, that remains an essential tool.

Before You Go

Source: Pop Mart

Hoppin’ off the shelves. Pop Mart’s new mini Labubu dolls—priced in China at 79 yuan ($11) apiece—sold out instantly online. Robust demand for the hyped toys bodes well for Friday launches in Thailand, Australia and beyond.