The U.S. and China have been trading jabs and flexing ahead of this weekend's trade talks.

• But with the fates of businesses hanging in the balance, the two global superpowers are locked in the world's most expensive game of chicken.

Catch up quick: President Trump today suggested cutting the U.S. tariff rate on China to 80% ahead of the talks. It's a number that was unimaginable just a few months ago and is still untenable for scores of American businesses.

• And if the post was meant as an olive branch, China didn't seem moved, with its Commerce Ministry reportedly issuing a statement this morning condemning U.S. "abuse" of tariffs, Axios' Ben Berkowitz reports.

State of play: In the meantime, companies are considering layoffs and rethinking business plans.

• Goods are stuck on either side of the ocean as trades screeches to a halt. Official Chinese data released today showed exports to the U.S. fell 21% in April, CNBC noted.
• Prices are going up. Chinese e-commerce companies Temu and Shein have already hiked up theirs. And prices for strollers and car seats in the U.S. are rising, with almost all of those products being made in China.

The bottom line: The pain that has already reverberated from the sky-high tariff rates between the world's two largest economies won't fade quickly — even if they broker a deal this weekend.

Go deeper

DraftKings CEO Jason Robins told investors on an earnings call today that live betting — wagers placed on a game while it's happening — represented more than 50% of the amount bet on the sportsbook in the first quarter.

• It's the first time it's been a majority. Added Robins, "We think there's even more upside from there."

The big picture: Live betting is generally believed to drive deeper viewer engagement, and many broadcasts have jumped in by catering to the demographic with in-game graphics on betting lines.

🪫 Panasonic, a key Tesla battery supplier, is cutting 10,000 jobs from its global workforce of more than 230,000. But the company still expects its EV battery business to grow in 2025. (AP)

🇨🇦 Air Canada said bookings from Canada to the U.S. show a percentage decline in the "low teens" for the next six months. Trade tensions and the weaker Canadian dollar are driving forces. (Reuters)

🍫 Nestlé USA is hiking prices on some chocolate items, citing rising commodity costs. Cocoa futures recently hit a record. (Bloomberg)

Nutella is debuting its first new flavor in six decades, CNBC reports.

Between the lines: The brand, owned by European confectioner Ferrero Group, will introduce Nutella Peanut in the U.S. in spring 2026.

• "The spread mixes the taste of classic Nutella's cocoa and hazelnut with roasted peanuts," according to CNBC.

💭 Nathan's thought bubble: I don't love the hazelnut flavor of Nutella, so the move in a peanut direction sounds more enticing.