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GM’s $1 billion tariff hit is evidence of American companies, consumers eating import tax costs

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General Motors is the latest U.S. auto giant to say tariffs have taken a chunk from their earnings. The company beat earnings expectations on Tuesday, but reported a decline in second-quarter profits, including a $1.1 billion hit as a result of hefty import taxes.

GM reported a 2% dip in sales to $47 billion, as well as $1.9 billion in quarterly profits, compared to $2.9 billion in the same period last year.

Anticipating the impact of President Donald Trump’s auto tariff policy—which outlined a 25% levy for many imported vehicles—GM withdrew its annual guidance last quarter, predicting an up to $5 billion pummelling from the levies. The company announced last month plans to invest $4 billion in domestic manufacturing plants in order to offset the cost of imports, as well as increase production capacity. Still, GM’s reliance on compact cars made in South Korea has made it vulnerable to the levies.

“In addition to our strong underlying operating performance, we are positioning the business for a profitable, long-term future as we adapt to new trade and tax policies, and a rapidly evolving tech landscape,” CEO Mary Barra wrote in a letter to shareholders on Tuesday.

GM’s rival Stellantis, which owns Jeep and Ram Trucks among other brands, announced on Monday $2.7 billion in net losses for the first half of the year as North American sales continued to slump. Those struggles were exacerbated by the “early effects of U.S. tariffs,” according to Stellantis, which had a more than $350 million negative impact on the company.

America is eating tariff costs

The auto companies’ tariff hit reinforced concerns—and emerging evidence—that Americans are the ones footing the bill for Trump’s sweeping tariff policy. 

Despite the U.S. Treasury collecting a record-setting $100 billion in customs duties so far this year, there has not been a meaningful reduction in the price of imported goods indicating exporters absorbing increased costs on their ends, according to a Deutsche Bank analyst note published on Monday. Instead, import prices have remained steady through June.

“The top-down macroevidence seems clear: Americans are mostly paying for the tariffs,” Deutsche Bank analyst George Saravelos said in the note.

Saravelos posited that because the Consumer Price Index has so far indicated only modest levels of inflation, “it follows that American importers are mostly absorbing the tariffs into their profit margins.”

The phenomenon is exemplified by Stellantis and GM eating billions in tariff costs.

Auto tariffs are no exception

Bernstein senior analyst Daniel Roeska said auto companies have started to exhaust their strategy of absorbing tariff costs into their own margins as car prices are poised to skyrocket later this year.

“There are only two people who can pay for [tariffs]: either the shareholders or the consumer,” Roeska told Fortune. “And in the end, there’s going to be some sharing between those two halves. And so our view has been and continues to be that prices for cars are going to push up in the second half.”

There’s already indications American consumers will be the next to take the tariff punch. Car companies are beginning to roll back discounts and incentives implemented months earlier to boost sales, as evidenced by Ford Motors switching away from its employee discount plan for prospective buyers in favor of a $0 down and 0% interest or financing plan. While GM’s plan to move some manufacturing to the U.S. will help the company save on tariff and transport costs, it will also incur steeper labor costs. The strategic move is a good one, according to Roeska, but it illustrates that companies will largely encounter trade offs when it comes to managing the inevitable impacts of tariffs.

“There’s not much you can do,” Roeska said. “If the policy is to put tariffs on cars, then that will increase the cost of cars, and ultimately, that will likely increase the price of cars.”



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Jim Carrey nearly quit ‘Grinch’ — Then the founder of SEAL Team Six came to the rescue

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For his role in the movie How the Grinch Stole Christmas, which came out in 2000, Jim Carrey’s tortuous costume and makeup had him on the verge of walking away from a $20 million paycheck.

In an interview with Vulture, the actor said the first day of makeup took eight hours. He nearly quit and suffered from panic attacks after having to wear painful green contacts, makeup that made him breathe through his mouth the whole time, and a full body suit made of itchy yak hair. But before he walked away, producer Brian Grazer hired the founder of SEAL Team Six to help Carrey suck it up.

“Richard Marcinko was a gentleman that trained CIA officers and special-ops people how to endure torture. He gave me a litany of things that I could do when I began to spiral. Like punch myself in the leg as hard as I can. Have a friend that I trust and punch him in the arm. Eat everything in sight. Changing patterns in the room,” Carrey told Vulture in the interview, which was published on Friday.

“If there’s a TV on when you start to spiral, turn it off and turn the radio on. Smoke cigarettes as much as possible. There are pictures of me as the Grinch sitting in a director’s chair with a long cigarette holder. I had to have the holder, because the yak hair would catch on fire if it got too close,” he added.

Carrey said he later learned that Marcinko was the founding officer of SEAL Team Six, the famed special-operations unit. Marcinko passed away at age 81 in December 2021.

Director Ron Howard and Grazer, who were also part of the Vulture interview, recalled Carrey struggling onset because of his Grinch costume.

Howard said the pain he endured was less physical than mental as the makeup was “destroying” Carrey’s skin. It was determined by medical professionals that Carrey couldn’t work in the makeup five days in a row, so he would have a day off or only be off-camera feeding dialogue on Wednesdays, he added.

“Jim started having panic attacks. I would see him lying down on the floor in between setups with a brown paper bag. Literally on the floor. He was miserable,” Howard said.

Carrey even offered to return his entire $20 million paycheck, with interest, Grazer said. But, instead Grazer found Marcinko. 

“I said, ‘Listen, you can quit on Monday, but just spend time with this guy on the weekend,’” Grazer said.



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A NIMBY revolt is turning voters in Republican strongholds against the AI data-center boom

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Silicon Valley and Washington sees data centers as the backbone of America’s AI future. Residents who live next to them see giant, humming boxes that throw diesel exhaust into the air, drive up energy costs, and steamroll the look and feel of their neighborhoods—“a plague,” as Virginian anti-data center activist Elena Schlossberg put it.

“If you live near a data center that’s being powered by these gas turbines, you simply cannot imagine living there,” she said. You can “hear the noise” in your home, added Schlossberg—who got into the fight a decade ago while trying, unsuccessfully, to stop Facebook from putting a data center next to her property. 

Virginia has long been the biggest data center hub of not just the country but the world, with northern Virginia alone hosting 13% of the globe’s data centers in 2023, according to a government report. And for just as long, residents have been locked into battles over what that footprint means for their communities.

Now, Schlossberg is leading a Virginia nonprofit group, Save Prince William County, to fight against the encroachment of even more data centers to power the AI boom. Data center power demand is expected to rise five-fold over the next decade, Deloitteprojects; reaching 176 gigawatts, the same amount as Australia and the United Kingdom’s entire power grids combined.

AI infrastructure builders, and the tech giants that plan to rely on the future data centers, argue that they’re essential to unlocking AI’s economic benefits. But in some of the states slated to house these projects, many of them politically purple-ish or even red—Virginia, Indiana, Ohio, Pennsylvania—voters are revolting, often successfully keeping them out of their neighborhoods. Indeed, in elections held last month, opposition to data centers helped tip elections in Democrats’ favor in Virginia and Republican-leaning Georgia.

“Folks realize they’re getting duped,” said Kerwin Olson, executive director of the Citizens Action Coalition, an environmental advocacy coalition based in Indiana. “It’s not just something they hear on Fox News or MSNBC anymore. It’s happening in their own backyard.”

Big Tech companies, Olson added, are showing up at local planning commissions and drainage boards asking for “huge giveaways”— tax abatements, zoning variances, special exceptions —”all to build a $3 billion box that creates maybe 30 jobs.”

“So they’re like, what’s in it for us?” Olson asked. 

Upcoming political battles

The first signs of what could be a broader political reckoning are appearing at the county level. In Prince William County—home to the fight over a proposed 2,000-acre “Digital Gateway” development near the Manassas battlefield—data centers have already forced recalls, resignations, and primary defeats of elected officials, Schlossberg said. The issue has become so radioactive that candidates in both parties now treat opposition to data-center expansion as a prerequisite for running, she added.

“It’s never been red versus blue,” Schlossberg said. “It’s people who live here versus people who want to industrialize where we live.”

That county could be a canary in the coalmine for what comes next, as Democrats and Republicans approach critical midterm congressional elections in 2026. Across key swing states, activists say the next wave of AI-driven projects will collide with a public that is far more organized and hostile than it was even two years ago. 

That tension is beginning to creep into politics. In Indiana, legislators publicly tout the state’s new data-center incentives while privately warning counties that the projects are not without tradeoffs. In Virginia, candidates now get asked—at libraries, at farmer’s markets, even at high school football games—whether they would support a temporary moratorium.

Olson said his group has been “buried” in calls from Hoosiers in every corner of the state—red, blue, rural, suburban—asking for help deciphering tax abatements and utility filings. “I’ve worked on energy issues for decades,” he said. “I have never seen anything like the scale of anger over this.”

When voters see those consequences firsthand, Olson said, they stop caring about geopolitical talking points. “You can tell people this is about beating China,” he said. But when their bill goes up, and their kids are sleeping in basements with headphones on because of the noise, they’re not thinking about China. 

At the heart of the backlash is a basic economic question that data-center backers haven’t convincingly answered: Why should the public subsidize infrastructure that serves some of the world’s richest companies?

Indiana’s first filing under its new “80/20” law—touted as a safeguard to make data centers pay most of the costs—still leaves ratepayers actually footing nearly 40% of the bill, Olson said. The organization he runs, Citizens Action Coalition, did an analysis that revealed that Hoosier households paid 17.5% more in utility bills in 2025 than the previous year. In Virginia, residents fear they will ultimately finance the transmission lines and new generation needed to serve hyperscale facilities.

“The public utility model was always a social contract,” Schlossberg said. “The data-center industry blew that up.”

In many ways, the backlash boils down to a trust problem. Residents don’t trust Big Tech, seeing the hyperscalers as being like “robber barons at the turn of the century” but with unprecedented demands for land, water, and power. Olson pointed to NDAs, closed-door negotiations, and local officials dining with tech consultants as signs that decisions are being made over communities’ heads and without local voters’ input. Layered onto that is a broader skepticism of AI itself: Many voters aren’t convinced they should remake their towns for what still feels like an unproven or overhyped technology.

“It’s like the Gilded Age, part two,” Olson said. “Only bigger.”



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The job market is so bad, people in their 40s are resorting to going back to school instead of looking for work

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This year’s job market has been bleak, to say the least. Layoffs hit the highest level in 14 years, job openings are barely budging, and quits figures are plummeting. It’s no wonder people feel stuck and discouraged—especially as many candidates have been on the job hunt for a year.

But some mid-career professionals are working with the cards they’ve been dealt by going back to school. Many are turning to data analytics, cybersecurity, AI-focused courses, health care, MBA programs, or trade certifications for an “immediate impact on their careers,” Metaintro CEO Lacey Kaelani told Fortune.

Metaintro is a job-search engine with 2 million active users that runs on open-source data processing more than 600 million jobs in real time.

“We absolutely see this trend [of adults going back to school] accelerating,” Kaelani said. “In combination with layoffs over the recent years plus the rise of required AI skills, experience is no longer enough.”

Kelsey Szamet, an employment attorney with Kingsley Szamet Employment Lawyers, said she’s noticed people over the age of 40 to go back to grad school or earn certifications.

While it’s not necessarily a completely new phenomenon, it’s becoming more frequently now that the job market is the pits. 

Still, Szamet he sees “very consistent” reasons for people considering higher education at a later stage in life. Some believe they’ve “plateaued” in their career and education is the only option. Others have been affected by layoffs, and there are some “who have simply become burned out with work and want a meaningful profession,” she told Fortune

“Then, too, come life circumstances. Some people have fewer responsibilities, better financial security, or a sense they will never make a change if they put it off now,” she said, adding she’s seeing more people pivot out of “dying industries,” those whose salaries have stagnated, or those who have job-security fears.  

According to Hanover Research, the top master’s degrees on the rise include artificial intelligence, mechatronics, robotics, automation engineering, research methodology, quantitative methods, as well as construction engineering technology. 

The cost of going back to school

Sometimes going back to school can also just feel like delaying the inevitable: student loans and other living costs. 

While grad school can certainly offer the opportunity to level-up your career once you’ve completed a program, it comes with financial and personal sacrifices, like time. According to the National Center for Education Statistics, one year of grad school, on average, costs about $43,000 in tuition. That’s nearly 70% the average salary in the U.S.

“Going to school can be very beneficial, but it can be very costly too,” Szamet said. And, when people are older and going back to school, they should consider “the cost of education and how stressful it can be to juggle work and family responsibilities with education.” Overall, “one ought to assess if it will be a good investment,” she added. 

That’s why it’s important to do your homework. Some degree programs have a better return-on-investment than others. According to an ROI analysis by the Foundation for Research on Equal Opportunity, the median master’s degree increases lifetime earnings by $83,000, but some master’s degrees are worth more than $1 million. Computer science, engineering, and nursing are some of the highest-ROI master’s programs, with average ROIs of about $500,000, according to the Foundation for Research on Equal Opportunity analysis. 

Still, 40% of master’s degrees actually “have no net financial value at all,” according to the report.  

“In today’s job market, going back to school only works when it’s strategic and targeted [like a] specific technical certification in a high-demand field), but fails when it’s vague,” Kaelani emphasized. “It’s no longer ‘more education equals a better job.’”

This story was originally featured on Fortune.com



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