Memo: Tariff Drama and Law Firm expansions

Happy Saturday. And congrats on making it through another week. Here's the news you need to know this week:

• 💸 Business: More tariff drama, Visa-Revolut claim, AI vs Art
• ⚖️ Law: Ropes & Gray and Travers expand, Trump vs Big Law
• 🗳️ Politics: Carney's Canada, Greenland vote
• 👀 Worth Knowing: Apple AI drama, Starlink's in India

Trade Wars and Tariffs

Tariffs are like pop-up ads—annoying, but we just can't avoid them. So here's this week Tariff update in short:

• Trump took another U-turn by pausing the implementation of 50 per cent tariffs on Canadian steel and metal. However, the 25% tariff has still been implemented.
• Trump also threatened the EU with a potential 200 per cent tariff on alcohol imports like wine. He has made such remarks in response to the EU’s 50 per cent tariffs on American whiskey imports.
• China plans to impose 100 per cent tariffs on Canadian imports of rapeseed oil and peas and a 25 per cent levy on pork and seafood. China is Canada’s second-largest market for rapeseed after the US. This is in retaliation to Canada’s 100% tariff on Chinese EVs and 25% on steel and aluminium. China has also filed a complaint against this measure with the WTO. 

Why does this matter: Tariffs are bad for business. They drive up costs for businesses, leading to higher prices for consumers and disruptions in global supply chains. Companies often pass these costs on, making everyday goods more expensive while also facing uncertainty in trade relationships. Retaliatory tariffs spark trade wars, hurting exporters and slowing economic growth. Markets dislike unpredictability, and businesses hesitate to invest when trade policies constantly shift. In the end, tariffs create more problems than they solve, making industries less competitive and economies more volatile.

💸 3 things In Business

• Payments Fight: Visa and Revolut have filed for a judicial review of the UK’s Payment Systems Regulator (PSR) proposal to cap fees on international digital transactions. The PSR claims the cap will protect UK businesses from overpaying, while Visa and Mastercard argue it will force them to operate at a loss per transaction due to higher costs exceeding the capped fees.
• Soft Drinks Probe: The European Commission has raided soft drink manufacturers in the EU over suspected competition law breaches, following a previous inquiry into the sector. The investigation focuses on potential cartels and abuse of dominance. If found guilty, companies face heavy fines but can apply for leniency by self-reporting or cooperating with authorities.
• AI’s Threat to Art: Amid the UK government’s consultation on AI and copyright laws, Sony Music has removed over 75,000 AI-generated materials featuring artists like Harry Styles. Sony opposes an opt-out system, arguing it would raise administrative costs and weaken copyright protections. The system would let tech firms use copyrighted work without consent, requiring artists to actively opt out—sparking major industry backlash.

⚖️ 3 things In Law