America refused to wean itself off buying goodies from abroad last year, even as bringing products into the country got more expensive. The government said yesterday that the US trade deficit—calculated as imports minus exports—declined a mere 0.2% in 2025 from the previous year, to $901.5 billion, despite President Trump jacking up tariffs.

Trump pitched his sweeping import duties as a way to reduce America’s reliance on foreign goods and get US companies to source stuff at home instead—but the trade deficit for physical products, adjusted for inflation, actually grew by almost 6% last year. Economists say this could have been partially caused by companies going on a shopping spree to stockpile imported inventory ahead of the tariffs going into full effect.

Deficit shifted, not shrank

While seemingly not moving the needle on total imports, the tariffs did appear to impact where the US was buying from:

• The deficit with China declined, while it rose with other trade partners, such as Taiwan, Mexico, and Vietnam.
• It’s a sign that companies reacted to the US–China trade war by seeking alternative origins for imports, though experts caution it might also mean that Chinese goods are being routed through other countries to avoid steep duties.

Feeling the bite

Despite trade flows barely budging, corporate coffers are feeling a deficit. US companies and consumers shouldered 90% of the tariff costs, according to a recent study by the New York Federal Reserve. Trump’s top economic advisor, Kevin Hassett, excoriated the central bank’s researchers, saying they ignored rising wages due to reshored production.

But, yesterday, JPMorgan echoed the New York Fed’s findings with a report showing that midsize US companies saw their tariff expenses triple in 2025. While importers may have absorbed some of those costs (potentially by hiring fewer workers, or taking reduced profits), research suggests US consumers are shouldering some of the tariff burden.

Whether the tariffs continue is up in the air…as the Supreme Court returns from its winter recess and could rule on the legality of many of Trump’s tariffs as early as today.—SK

Former Prince Andrew was arrested over his Epstein ties. Andrew Mountbatten-Windsor, the younger brother of King Charles III and the eighth person in line for the British throne, was arrested and held for several hours yesterday on suspicion of misconduct in public office tied to his relationship with the child sex offender Jeffrey Epstein. “The law must take its course,” Charles said, taking the unusual step of commenting publicly on the arrest of his brother. Last year, Charles stripped Andrew of his royal titles and evicted him from his estate following renewed allegations of sexual abuse against the former prince. Andrew, whose arrest was the first of a senior British royal since 1647, has denied any wrongdoing in connection with Epstein.

President Trump said the US will commit $10 billion to his “Board of Peace.” At the group’s first gathering in Washington, DC, yesterday, Trump announced a $10 billion commitment to the organization, but did not explain where the funds would come from. Established by Trump last month to oversee the Gaza peace process, the Board of Peace has drawn criticism for its presumed authority to resolve global conflicts and for whether Trump ultimately intends for it to supplant the United Nations. Many key US allies—including the UK, France, and Germany—have declined to join the board, while Trump rescinded his invitation to Canada.

Walmart posts strong sales, but gives a cautious outlook. Walmart beat Wall Street’s Q4 revenue estimates, reporting that holiday sales rose by 6%, thanks to growth in its digital and advertising businesses. But there was a big caveat: The retail giant’s fiscal 2027 projections came in below estimates, citing a volatile economic environment amid low consumer sentiment and a shaky job market. And, for the first time, Amazon surpassed Walmart in annual sales ($717 billion to $713.2 billion), but that was mostly due to the growth of its cloud-computing business, which Walmart doesn’t have.—AE

Accenture is done asking nicely. The consulting firm issued an internal memo telling senior employees that they must use the company’s AI tools on a regular basis, or they won’t be considered for promotions, the Financial Times reports.

The consulting firm has confirmed the report, saying it started collecting data on weekly AI tool logins—but it didn’t specify how long employees must use them to qualify for a promotion. It’s not the first sign that Accenture is all-in on AI. In September, it told staff members they’d need to reskill in the tech, or risk losing their jobs:

• Accenture has partnered with several major AI companies, including OpenAI for employee access to ChatGPT, Anthropic for training on Claude, and Palantir for training on its software.
• The firm reported better-than-expected earnings last quarter, attributing the results to its AI services.

You’ll use it, and you’ll like it. Despite execs everywhere demanding AI adoption from their workers, only about 2 in 5 US employees even casually use AI in their job, according to a study from Google and Ipsos.—MM

The world’s biggest food company wants to throw out its cone. As part of a bigger turnaround, Nestlé said yesterday that it was in “advanced negotiations” to sell off its ice cream brands so it can focus on its strongest businesses: coffee, petcare, food, and snacks.

The freezer treats won’t go too far. Nestlé’s intended buyer is Froneri, a joint venture set up by Nestlé in 2016 to take in its ice cream companies. In 2019, Nestlé sold its US ice cream business—including Edy’s, Drumstick, and Häagen-Dazs—to Froneri for $4 billion.

What remains of the company’s ice cream workings is valued at $1.3 billion. The division is “strong, but small and a distraction,” said Nestlé’s new CEO, Philipp Navratil. He took the reins in September, tasked with resuscitating the company from underwhelming earnings and leadership turmoil. Since then:

• He announced plans to cut 16,000 jobs and tighten up Nestlé’s brand portfolio.
• Nestlé grappled with an infant-formula recall that it expects to slightly drag on sales growth this year.

Nestlé isn’t the only ice cream dumper. Unilever shed its frozen dairy biz in December, spinning off brands worth a combined ~$9.3 billion, including Ben & Jerry’s and Magnum. The new company reported dreary earnings this month, which it blamed, in part, on the demerger.—ML

Don’t let Saul Goodman hear about what lawyers today are getting away with. Amid a competitive market for talent and increased law firm expenses, hourly rates for America’s top lawyers are skyrocketing. According to the Wall Street Journal:

• Some senior partners charge $3,400/hour—up from $2,500 about a year ago.
• Rates for partners at the 50 biggest firms spiked by 16% last year.
• One California lawyer charges $6,000/hour for consulting on compliance issues in telecom regulation.

Meanwhile, lower-level attorneys’ fees haven’t ballooned in the same way because firms are increasingly turning to AI tools to do their routine work, like reviewing documents and completing regulatory filings.—AE

The feeling of getting a 5/5 on the Brew’s Weekly News Quiz has been compared to eating gravy fries for dinner after a very tough day.

It’s that satisfying. Ace the quiz.