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While tariffs were initially enacted to help promote domestic manufacturing, one particular industry is getting the short end of the stick: chocolate. Due to chocolate’s main ingredient, which is rarely grown in the country, US-based chocolate brands depend on cacao exports, and are now subjected to high import tarriffs. Just last month, the popular chocolate company Hershey’s announced a price increase for its products in an effort to offset rising production costs related to cacao. “[For years,] weve worked hard to absorb these costs and continue to make 75% of our product portfolio available to consumers for under $4, a Hershey representative told Fast Company at the time. The price increase followed the companies pursuit for a tariff exemption with Trump’s administration, estimating a tariff expense of upwards of $20 million in its second quarter. After speaking with 11 experts in the chocolate industry, Reuters found that tariffs are hurting American companies’s competitively amid rising costs of cacaoyet others and benefiting. Reaping the benefits Almost everyone loves chocolate, and its popularity continues to rise, with chocolate amounting to $21.4 billion in confectionery sales last year. As chocolate’s birthplace, Mexico does not rely on imported cacao, as its tropical weather can sustain the growth of beans. Due to its local harvest, Mexican brands can produce chocolate without paying for the Trump imposed 10-25% tariffs. Similarly, Canada benefits from a lack of tariffs, as it imports its cacao with zero additional duties, making production up north cheaper than in the U.S. Additionally, the United States-Mexico-Canada free trade pact (USMCA), the trade agreement that replaced NAFTA, chocolate imports from both Canada and Mexico are tariff free, regardless of cacao origin. American companies are required to pay taxes to import cacao, which cannot be nationally produced at scale, while Mexico can produce its own and Canada buys in without extra fees, setting American companies back. Still, as American companies continue to struggle, it seems a new trade deal might revert back tariffs and help those in the chocolate industry. On July 29, U.S. Commerce Secretary Howard Lutnick suggested that natural resources not found in the U.S. could be tariff exempt as soon as upcoming trade deals close. “If you grow something and we don’t grow it, that can come in for zero,” Lutnick told CNBC.
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E-Commerce
The Trump administration is pushing an initiative for millions of Americans to upload personal health data and medical records on new apps and systems run by private tech companies, promising that will make it easier to access health records and monitor wellness. President Donald Trump is expected to deliver remarks on the initiative Wednesday afternoon in the East Room. The event is expected to involve leaders from more than 60 companies, including major tech companies such as Google and Amazon, as well as prominent hospital systems like the Cleveland Clinic. The new system will focus on diabetes and weight management, conversational artificial intelligence that helps patients, and digital tools such as QR codes and apps that register patients for check-ins or track medications. The initiative, spearheaded by an administration that has already freely shared highly personal data about Americans in ways that have tested legal bounds, could put patients’ desires for more convenience at their doctors office on a collision course with their expectations that their medical information be kept private. There are enormous ethical and legal concerns, said Lawrence Gostin, a Georgetown University law professor who specializes in public health. Patients across America should be very worried that their medical records are going to be used in ways that harm them and their families. Officials at the Centers for Medicare and Medicaid Services, who will be in charge of maintaining the system, have said patients will need to opt in for the sharing of their medical records and data, which will be kept secure. Those officials said patients will benefit from a system that lets them quickly call up their own records without the hallmark difficulties, such as requiring the use of fax machines to share documents, that have prevented them from doing so in the past. We have the tools and information available now to empower patients to improve their outcomes and their healthcare experience, Dr. Mehmet Oz, the administrator for CMS, said in a statement Wednesday. Popular weight loss and fitness subscription service Noom, which has signed onto the initiative, will be able to pull medical records after the system’s expected launch early next year. That might include labs or medical tests that the app could use to develop an AI-driven analysis of what might help users lose weight, CEO Geoff Cook told The Associated Press. Apps and health systems will also have access to their competitors’ information, too. Noom would be able to access a person’s data from Apple Health, for example. Right now you have a lot of siloed data, Cook said. Patients who travel across the country for treatment at the Cleveland Clinic often have a hard time obtaining all their medical records from various providers, said the hospital system’s CEO, Tomislav Mihaljevic. He said the new system would eliminate that barrier, which sometimes delays treatment or prevents doctors from making an accurate diagnosis because they do not have a full view of a patient’s medical history. Having seamless access to health app data, such as what patients are eating or how much they are exercising, will also help doctors manage obesity and other chronic diseases, Mihaljevic said. These apps give us insight about whats happening with the patients health outside of the physician’s office, he said. CMS will also recommend a list of apps on Medicare.gov that are designed to help people manage chronic diseases, as well as help them select health care providers and insurance plans. Digital privacy advocates are skeptical that patients will be able to count on their data being stored securely. The federal government, however, has done little to regulate health apps or telehealth programs, said Jeffrey Chester at the Center for Digital Democracy. Health and Human Services Secretary Robert F. Kennedy Jr. and those within his circle have pushed for more technology in health care, advocating for wearable devices that monitor wellness and telehealth. Kennedy also sought to collect more data from Americans medical records, which he has previously said he wants to use to study autism and vaccine safety. Kennedy has filled the agency with staffers who have a history of working at or running health technology startups and businesses. CMS already has troves of information on more than 140 million Americans who enroll in Medicare and Medicaid. Earlier this month, the federal agency agreed to hand over its massive database, including home addresses, to deportation officials. The new initiative would deepen the pool of information on patients for the federal government and tech companies. Medical records typically contain far more sensitive information, such as doctors’ notes about conversations with patients and substance abuse or mental health history. This scheme is an open door for the further use and monetization of sensitive and personal health information, Chester said. Amanda Seitz, Associated Press
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E-Commerce
Google is indexing conversations with ChatGPT that users have sent to friends, families, or colleaguesturning private exchanges intended for small groups into search results visible to millions. A basic Google site search using part of the link created when someone proactively clicks Share on ChatGPT can uncover conversations where people reveal deeply personal details, including struggles with addiction, experiences of physical abuse, or serious mental health issuessometimes even fears that AI models are spying on them. While the users identities arent shown by ChatGPT, some potentially identify themselves by sharing highly specific personal information during the chats. A user might click Share to send their conversation to a close friend over WhatsApp or to save the URL for future reference. It’s unlikely they would expect that doing so could make it appear in Google search results, accessible to anyone. Its unclear whether those affected realize their conversations with the bot are now publicly accessible after they click the Share button, presumably thinking theyre doing so to a small audience. Nearly 4,500 conversations come up in results for the Google site search, though many dont include personal details or identifying information. This is likely not the full count, as Google may not index all conversations. (Because of the personal nature of the conversations, some of which divulge highly personal information including users names, locations, and personal circumstances, Fast Company is choosing not to link to, or describe in significant detail, the conversations with the chatbot.) The finding is particularly concerning given that nearly half of Americans in a survey say theyve used large language models for psychological support in the last year. Three-quarters of respondends sought help with anxiety, two in three looked for advice on personal issues, and nearly six in 10 wanted help with depression. But unlike the conversations between you and your real-life therapist, transcripts of conversations with the likes of ChatGPT can turn up in a simple Google search. Google indexes any content available on the open web and site owners are able to remove pages from search results. ChatGPT’s shared links are not intended to appear in search by default and must be manually made discoverable by users, who are also warned not to share sensitive information and can delete shared links at any time. (Both Google and OpenAI declined Fast Companys requests for comment.) One user described in detail their sex life and unhappiness living in a foreign country, claiming they were suffering from post-traumatic stress disorder (PTSD) and seeking support. They went into precise details about their family history and interpersonal relationships with friends and family members. Another conversation discusses the prevalence of psychopathic behaviors in children and at what age they can show, while another user discloses they are a survivor of psychological programming and are looking to deprogram themselves to mitigate the trauma they felt. I’m just shocked, says Carissa Veliz, an AI ethicist at the University of Oxford. As a privacy scholar, I’m very aware that that data is not private, but of course, not private can mean many things, and that Google is logging in these extremely sensitive conversations is just astonishing. Similar concerns have been raised with competing chatbots, including those run by Meta, which began sharing user queries with its AI systems in a public feed visible within its AI apps. Critics then said user literacy was not high enough to recognize the dangers of sharing private information publiclysomething that later proved to be correct as personal details surfaced on the social feed. At the time, online safety experts highlighted worries about the disparity between how users think app functionalities work, and how the companies running the apps actually make them work. Veliz fears that this is an indication of the approach were going to see big tech taking when it comes to privacy. It’s also further confirmation that this company, OpenAI, is not trustworthy, that they don’t take privacy seriously, no matter what they say, she says. What matters is what they do. OpenAI CEO Sam Altman warned earlier this month that users shouldnt share their most personal details with ChatGPT because OpenAI could be required to produce that if compelled legally to do so by a court. I think thats very screwed up, he added. The conversation, with podcaster Theo Von, didnt discuss users conversations being willingly opened up for indexing by OpenAI. People expect they can use tools like ChatGPT completely privately, says Rachel Tobac, a cybersecurity analyst and CEO of SocialProof Security, but the reality is that many users arent fully grasping that these platforms have features that could unintentionally leak their most private questions, stories, and fears.
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E-Commerce
More than five years after launching a mobile-order and pick-up-only store format, Starbucks is abandoning the conceptand it signals a larger strategy for the coffee chain. Starbucks, which announced its sixth consecutive quarter of falling same-store sales on its earnings call Tuesday, opened its first mobile-only location in Manhattans Penn Plaza in 2019. The store concept centered on a speedy, transactional experience that required consumers to place orders and make payments in advance on their phones. These locations did not have any seating to encourage latte drinkers to stick around. In retrospect, the concept foreshadowed an era of mobile-first, quick-service restaurant designs in response to changing consumer habits due to the pandemic and the following economic inflation, and that’s often meant a de-emphasis on dining rooms. Chipotle’s digital-only restaurant and Chick-fil-A’s all-mobile pickup restaurant are two such examples. The idea behind the Starbucks mobile-only stores was well timed to the rise of contactless, takeout, and delivery fast-food options, but as Starbucks seeks to chart a comeback, the model no longer fits its strategy as it emphasizes its café experience. “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” Starbucks CEO Brian Niccol said on the earnings call. Between 80 and 90 of these locations will close by next year, while some may be converted to traditional coffeehouses with seating. That doesn’t mean Starbucks is moving away from mobile ordering, which accounts for 31% of transactions. However, where the coffee shop has a physical presence, it wants to offer a setting in which guests can feel welcome. Niccol said a forthcoming prototype of a new small-footprint café will have a drive-through, room for 32 seats, and about 30% lower building costs. As Starbucks has brought back details like handwritten notes on coffee cups and an updated barista dress code, and it plans future store uplifts, a mobile-only storefront isn’t the brand experience the company is after anymore. It’s not just about the coffee; it’s about the coffee shop.
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E-Commerce
A cryptocurrency working group formed by President Donald Trump is set to release a report on Wednesday that is expected to outline the administration’s stances on tokenization and market-defining crypto legislation, among other issues critically important to the digital asset industry. Shortly after taking office in January, Trump ordered the creation of a crypto working group tasked with proposing new regulations, making good on his campaign promise to overhaul U.S. crypto policy. Wednesday’s report is a culmination of the task force’s work so far and its first public findings. In line with Trump’s January executive order, it will lay out what rules and laws should be enacted to advance the policy goals of the pro-crypto White House. Those include making sure that the Securities and Exchange Commission has a framework in place for firms to offer blockchain-based stocks and bonds, according to one person familiar with the discussions. The report is also expected to discuss the administration’s wish list for legislation Congress is currently debating to create broad regulatory guidelines for cryptocurrency, according to a second person familiar with the report. The working group led by Trump official Bo Hines is composed of several administration officials including Treasury Secretary Scott Bessent, SEC Chair Paul Atkins and Director of the Office of Management and Budget Russell Vought. The White House, Treasury Department and the SEC did not immediately respond to requests for comment on the report. “While there have been regulatory regimes in place that have maybe been piecemeal or have allowed the industry to grow in certain ways, the recommendations that we expect to see in the report will be a good roadmap for how to build out crypto as a continued important part of the economy going forward,” said Rebecca Rettig, chief legal officer at crypto firm Jito Labs. On the campaign trail, Trump courted crypto cash by pledging to be a “crypto president” and promote the adoption of digital assets. That is in stark contrast to former President Joe Biden’s regulators which, in a bid to protect Americans from fraud and money laundering, cracked down on the industry. The Biden administration sued exchanges Coinbase, Binance and dozens more, alleging they were flouting U.S. laws. Trump’s SEC has since dropped those cases. Tokenization, stablecoins, market structure Industry participants will be looking closely at what the report says about tokenization, the process of turning financial assetssuch as bank deposits, stocks, bonds, funds and even real estateinto crypto assets. Crypto firms and others have been increasingly discussing the prospect of tokenizing securities as a new way to facilitate trading. Coinbase recently told Reuters it was seeking a U.S. green light from the SEC to offer blockchain-based stocks. The SEC has yet to weigh in publicly on that request. Wednesday’s report is expected to recognize the need for the SEC to develop a framework for tokenization, according to a source familiar with the discussions, but the details of the language were not immediately clear. The report will also lay out what the White House would like to see from market structure legislation working its way through Congress, according to a separate person with knowledge of the report. The House of Representatives passed a bill called the Clarity Act earlier this month that would create a formal regulatory regime for crypto, and the U.S. Senate is considering its own version of the measure. Earlier this month, Trump signed into law a bill to create federal rules for stablecoins, a type of cryptocurrency pegged to the U.S. dollar. That move was hailed as a major win for the digital asset industry, and the White House has said it wants Congress to pass market structure legislation next, which would have far wider repercussions for the industry. The crypto sector has for years argued that existing U.S. regulations are inappropriate for cryptocurrencies and has called for Congress and regulators to write new ones that clarify when a crypto token is a security, commodity or falls into another category, like stablecoins. The president’s support for the crypto industry has sparked conflict-of-interest concerns, which at times have threatened to derail congressional crypto legislation. Trump’s family has launched cryptocurrency meme coins, and the president also holds a stake in World Liberty Financial, a crypto platform. The White House has denied that any conflicts of interest are present. Hannah Lang, Reuters
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E-Commerce