What’s going on here?

JPMorgan and Morgan Stanley super-smashed last quarter, but the big banks think tariffs might be the economy’s final boss.

What does this mean?

Morgan Stanley made $4 billion in profit last quarter – that’s way more than predicted, up 26% from the same time last year. JPMorgan’s $14 billion profit was better than expected, too. Both big banks credited their stock trading divisions for much of their success. But the celebrations might’ve been ruined by, you know, the pressing weight of existing in today’s world: JPMorgan’s CEO said stubborn inflation, high debt, and trade wars are creating “considerable turbulence” for the economy.

Why should I care?

Zooming out: The US is acting like an emerging market.

Investors are concerned that the US government will fall further behind on its debt, with still-high interest rates keeping payments raised. So they’ve been demanding higher returns to loan the government money via bonds, which is why yields have risen. Although, many investors have just ditched the assets altogether. Now, higher bond yields usually attract investors – and that, in turn, bolsters a country’s currency. But this week, the US dollar fell against other currencies – by 6% versus the Swiss franc and 4% against the euro. That’s unusual: the combination of a fading currency and rising bond yields is more common in emerging markets – usually when there’s a crisis in confidence.

For you personally: From US exceptionalism to US sensationalism.

If you spend your time stateside, you won’t notice the weakening dollar until you travel abroad. But if you’re a foreign investor, you’ll see a difference from home. Not only does a strong dollar indicate economic stability, but it also usually means higher returns when you convert takings back to your local currency. So with the greenback looking a little red while stocks and bonds look shaky, you can see why international investors are growing more skeptical of US investments.

What’s going on here?

Shein’s rising prices led to falling sales – and not even Tyra Banks could train this fast-fashion model for a public appearance after that faux pas.

What does this mean?

Shein churns out cheap versions of trending styles, using real-time data to identify (and then produce) exactly what shoppers want. The key to that business model is Shein’s international supply chain, with production sites in countries where labor and materials costs are lower – like China.

Enter, tariffs. Increasingly lofty levies between the US and China have forced the company to raise its prices. (It hasn’t helped that America scrapped the “de minimis” rule for Chinese imports, which allowed retailers to send packages worth less than $800 to US shoppers without customs fees.) As a result, Shein saw stateside sales of several product groups fall by 20% to 50% between January and March. The timing is horrible: Shein’s plans for a British public listing were recently approved, but small sales and thinner margins don’t bode well for a debut.

Why should I care?

For markets: A competitive disadvantage.

Shein’s one of many brands built on being cheaper than the rest. Ecommerce platform Temu – China’s answer to Amazon, selling everything from skincare to TVs – relies on the same advantage. And with levies threatening it, Goldman Sachs slashed its forecast for the firm. Speaking of Amazon, the giant has canceled many imports from Asia and forced its vendors to pick up much of the tariff tabs.

Zooming out: It’s U-S-A and me against the world.

Tariffs were designed to bolster American industries, enticing foreign companies to move production sites to the US and creating more jobs. That may still happen, but there’s a lot on the line in the meantime. Governments are openly considering hitting the States where it hurts: with levies on tech. And investors, increasingly skeptical about America’s future, are playing chicken with a full-on exodus from stateside assets.