Trump's Tariffs Are Illegal. He's Got a Plan B.

Anthropic is feuding with the U.S. military, despite their massive $200 million contract. The company says that its AI model, Claude, cannot be used for weapons development or surveillance. The Pentagon is pushing back against those limitations. WSJ's Amrith Ramkumar joins Jessica Mendoza to explain why the Department of Defense is now threatening to label Anthropic a supply chain risk.  Further Listening: - AI Bots Have Social Media Now. It Got Weird Fast. - Vibe Coding Could Change Everything - Her Client Was Deepfaked. She Says xAI Is to Blame. Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

In a 6-3 decision, the Supreme Court ruled that President Trump’s global tariffs are illegal. It is the first time the Supreme Court has definitively struck down one of Trump’s second-term policies, saying the president went too far in enacting his most sweeping tariffs without clear authorization from Congress. WSJ’s Gavin Bade unpacks the ruling and discusses Trump’s next steps. Ryan Knutson hosts. Further Listening: - Trump's Tariffs Force a New Era in Global Trade - How Tariffs Could End Italian Pasta in the U.S. - The Tariff Trade Off: Jobs vs. Higher Prices Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Yesterday, Meta CEO Mark Zuckerberg testified in a first-of-its-kind trial with one central question: Are social media platforms causing mental health disorders among young people? The plaintiff argues that platforms like Instagram are designed to keep children addicted, potentially bypassing long-standing legal shields that have protected tech companies in the past. WSJ’s Meghan Bobrowsky takes us inside the courtroom for Mark Zuckerberg’s testimony and explains why this trial could impact thousands of other cases. Ryan Knutson hosts. Further Listening: - The Battle Within Meta Over Chatbot Safety  - “The Facebook Files’ from The Journal. Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Food and Drug Administration agreed to begin a review of biotech company Moderna’s application to make a new seasonal flu shot available. The decision comes after the FDA initially refused to review the company's application. It's a back and forth that reveals increased turmoil within the agency. WSJ’s Liz Essley Whyte takes us inside the FDA’s unexpected reversals and explores what’s next for the mRNA flu vaccine. Jessica Mendoza hosts.  Further Listening: - The FDA Commissioner on Vaccines and Public Trust - Breakfast Battle: The Cereal Industry vs MAHA Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Prediction markets like Polymarket and Kalshi are booming, but they’re facing questions about users betting on information that is not publicly available, from Super Bowl performances to geopolitical crises. Advocates for the platforms say they are "truth machines" but critics say they’re a new vehicle for insider trading. WSJ’s Caitlin Ostroff explains how users are making fortunes, and why regulators are starting to take notice. Ryan Knutson hosts. Further Listening: - How ‘The Joker’ Rigged the Texas Lottery - How Parlays Became the Biggest Bet in SportsSign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Boy Throb is a new boy band going viral on social media, but member Darshan Magdum is stuck in India. To get him to the U.S., the band needs to convince the United States government that Darshan qualifies for an "extraordinary ability" visa, the type of thing that’s often reserved for Olympians and scientists. WSJ’s Michelle Hackman explains the visa process and Boy Throb tells Jessica Mendoza about their unconventional quest to get their fourth member stateside. Further Listening: - Are Waymos Driving More Like Humans? - Lady Gaga, Low-Rise Jeans, and the Next Recession Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

The Justice Department recently released millions of additional documents related to Jeffrey Epstein. These files detailed Epstein’s expansive social and business network and reveal how the disgraced financier maintained ties with the global elite. WSJ’s Khadeeja Safdar discusses the new revelations, the fallout for those named in the documents, and the impact of unredacted victim information. Jessica Mendoza hosts. Further Listening: - Trump’s Letter to Jeffrey Epstein- How Jeffrey Epstein Made His MoneySign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

An influential California labor union is gathering signatures for a proposed asset tax on billionaires. But some of California’s ultra-wealthy are threatening to pack their bags — leaving the state’s tax revenue in the balance. WSJ’s Laura J. Nelson explains what’s potentially at stake and why a billionaire exodus is harder than simply renting a truck. Jessica Mendoza hosts.   Further Listening: - The Healthcare Costs of Trump’s Big Beautiful Bill  - Kathy Hochul on Mamdani, Trump and Where Democrats Went Wrong Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

President Xi Jinping has solidified control over China's military after firing his top general Zhang Youxia in an unprecedented military purge that has sent shockwaves through the country. The allegations against Zhang include corruption and a nuclear secrets leak. WSJ’s Lingling Wei explains how this move potentially gives Xi more room to pursue his long-standing goal of reunifying with Taiwan. Jessica Mendoza hosts. Further Listening: - China's Cheap Goods Are Europe's Problem Now - China and the U.S. Are in a Race for AI Supremacy Sign up for WSJ’s free What’s News newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Doug McMillon was Walmart's CEO for more than ten years, overseeing the company's return to retail success. WSJ's Sarah Nassauer sat down with him to talk about Walmart's turnaround, its future and a CEO's role in politics. Ryan Knutson hosts. Further Listening: - The Battle to Be the King of Retail: Walmart vs. Amazon - The 20000 Steps to a Walmart Manager's Six-Figure Salary Learn more about your ad choices. Visit megaphone.fm/adchoices