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Tariffs, Grammys, and Punxsutawney Phil

Broad tariffs on America's neighbors are set to go into effect at midnight. This and more in today's digest.

 

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Good morning. It's Monday, Feb. 3, and we're covering the countdown to midnight tariffs, music's biggest night, and much more. First time reading? Join over 4 million intellectually curious readers. Sign up here.

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Need To Know
 

A New Tariff in Town

The US will apply broad 25% tariffs on all imports from Canada and Mexico and an additional 10% tariff on Chinese goods following an executive order from President Donald Trump signed Saturday. The levies kick in tonight—12:01 am ET Tuesday—with an exemption for Canadian energy products, which will see a 10% tariff. 

 

The countries are the three largest trading partners for the US, accounting for more than 40% of imports last year (see data). Canada, the largest export market for 36 US states, said it would apply a 25% tariff on more than $100B in goods in the coming weeks. Mexico said it would apply retaliatory tariffs but did not specify details. 

 

Trump has argued the tariffs are needed to force the countries to address the flow of illegal immigration and illicit drugs across borders (read executive order). Declared a national emergency, the order is the first use of the 1977 International Emergency Economic Powers Act to apply tariffs. 

 

Tariffs are typically paid by the importer, with costs often passed to the consumer. See how they work here.

 

Philadelphia Plane Crash

At least seven people died and 22 others were injured when a midsize medical transport plane crashed in a Philadelphia neighborhood shortly after takeoff Friday evening. Officials categorized the incident as an accident. 

 

The Mexico-registered Learjet 55—chartered by Jet Rescue Air Ambulance—took off from Northeast Philadelphia Airport shortly after 6 pm local time, set to return 11-year-old Valentina Guzman Murillo to Mexico after four months of care at Shriners Children’s Hospital in the city. The craft was unresponsive to air traffic control and descended steeply less than a minute after departure, immediately killing Murillo, her mother, four crew members, and a car driver and leaving a five-block debris field. Workers identified the plane's black box 8 feet deep within the impact crater late Sunday. See videos here (warning: sensitive content). 

 

The incident occurred two days after a passenger plane and Army helicopter collided over the Potomac River in Washington, DC, claiming nearly 70 lives (see profiles).

 

Music's Big Night

The 67th annual Grammy Awards were held last night, with Beyoncé taking home the show's top prize of album of the year for "Cowboy Carter." The win is Beyoncé's first in the category after she was previously nominated four times. She also nabbed an award for best country album, becoming the first Black female artist to win in the category.

 

Kendrick Lamar dominated the Grammys and won five awards, including record of the year and song of the year for "Not Like Us"—a diss track aimed at fellow rapper Drake. Other notable winners included Doechii, who became the third woman in history to win best rap album ("Alligator Bites Never Heal"); Sabrina Carpenter, who won best pop vocal album ("Short n’ Sweet"); and Chappell Roan, who won best new artist. See the full list of winners here

 

The awards were hosted by former "Daily Show" comedian Trevor Noah for the fifth year in a row. See photos from the red carpet here, along with a list of the biggest snubs and surprises

In partnership with Pacaso

Global Growth Spurs 'Unlisted' Stock Change

 

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As the leader in this $1.3T market, Pacaso’s international success highlights its scalable real estate model. Their first Paris property sold out so fast that they doubled down and immediately purchased another. Meanwhile, in Cabo, they’ve added seven homes. This expansion is truly just beginning. That’s why the company formed a new partnership with a private UK lender to foster additional growth.

 

With $100M+ in gross profits already and a proven ability to scale, it’s no wonder SoftBank already invested. Join them for just $2.70/share before February 27.*

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In The Know
 

Sports, Entertainment, & Culture

> Dallas Mavericks trade star Luka Doncic to Los Angeles Lakers for Anthony Davis in blockbuster deal also involving the Utah Jazz (More

> Fay Vincent, former MLB commissioner, dies of cancer at age 86 (More) | Dick Button, two-time Olympic gold medalist in figure skating, dies at age 95 (More)

> "Atropia" wins top prize at 2025 Sundance Film Festival; see full list of winners (More) | Beyoncé reveals concert tour for her "Cowboy Carter" album (More)

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Science & Technology

> OpenAI may reveal reasoning steps behind outputs from its AI models, will consider open source approach following success of China's DeepSeek (More) | What is DeepSeek? (More)

> Chemists develop AI model predicting the 3D structure of genetic material inside the cell; platform cuts computation time from days to minutes (More

> Scientists make first analysis of how a healthy bacterial species in the gut breaks down sugars from intestinal mucus; study may lead to new ways to prevent stomach bugs (More

 

Business & Markets

> US stock markets close down Friday (S&P 500 -0.5%, Dow -0.8%, Nasdaq -0.3%) in anticipation of tariff order (More) | Volkswagen sues India over $1.4B import tax; India alleges Volkswagen attempted to evade full levies by importing vehicles in separate components (More)

> Costco agrees to pay raises as company and Teamsters avoid a Friday night strike deadline; entry-level rate to increase to $20 per hour (More)

> X owner Elon Musk adds Lego, Shell, Nestlé, Pinterest, and others to lawsuit alleging illegal coordination of an advertising boycott against the social media network (More)

 

Politics & World Affairs

> Six Americans released from detention in Venezuela following diplomatic talks with senior Trump administration officials; President Nicolás Maduro reportedly agrees to receive unauthorized Venezuelan migrants deported from the US (More)

> Fire officials say deadly Eaton and Palisades wildfires in Los Angeles now 100% contained more than three weeks after blazes began; final death toll stands at 29, causes still under investigation (More)

> Aides to Elon Musk, head of the Department of Government Efficiency, gain access to $6T Treasury Department payment system (More) | Two US Agency for International Development security officials put on leave after reportedly refusing access to system with classified material to DOGE staff; pair say they were legally obligated to deny access, claim DOGE staff lacked appropriate credentials (More)  

In partnership with Pacaso

They’re Flipping Something Bigger Than Houses

 

Spencer Rascoff and Austin Allison saw untapped potential in the $1.3T vacation home market. So after growing Zillow to a $16B valuation, they left and created Pacaso to bring co-ownership to luxury homes. 

 

And by handing keys to 1,500+ happy homeowners, Pacaso’s earned $100m+ in gross profits. No wonder top firms like SoftBank invested. Now, with new properties in Paris, Cabo and London, and a UK lending partnership, Pacaso is expanding globally. Invest before their share price changes 2/27.*

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Etcetera
 

Punxsutawney Phil scared of shadow, predicts long winter (w/photos). 

 

... but he's also woefully inaccurate

 

Expecting mother charts the stress of growing a human.

 

The blogger who helped spark a $600B stock drop

 

Explore a hyperdetailed map of medieval trade routes.

 

Why the Super Bowl uses Roman numerals.

 

A massive underwater volcano is on the edge of eruption.

 

Why Christopher Walken has never owned a cellphone

 

Clickbait: Oregon's googly eyed bandit reveals identity.

 

Historybook: Printing press inventor Johannes Gutenberg dies (1468); American novelist Gertrude Stein born (1874); Musicians Buddy Holly, Ritchie Valens, and The Big Bopper killed in plane crash (1959); Luna 9 becomes first spacecraft to make soft landing on the moon (1966).

"In the morning there is meaning, in the evening there is feeling."

- Gertrude Stein

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*Disclosure: This is a paid advertisement for Pacaso’s Regulation A offering. Please read the offering circular at invest.pacaso.com.

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