Greetings,

As the federal government works to process and pay back roughly $166 billion in unlawful tariffs, the Trump administration is pressing on with its tariff-heavy agenda. Still, importers are finding their workarounds. More on all of that below.

Also in this edition:

• KPMG to lay off 10% of audit partners in productivity push
• Spirit, US reach $500M financing deal amid bankruptcy
• White House reviewing SEC offering disclosure proposal
• Finance functions boost AI budgets despite mixed results

Goods worth about $300 billion annually are evading tariffs by rerouting through Southeast Asia and Mexico, according to analysis by Altana. This practice, which has surged by 76% in the first 10 months of 2025, highlights enforcement challenges amid a review of the US-Mexico-Canada Agreement. Altana estimates that the US government lost $40 billion in tariff revenue over the past year due to this circumvention.

The Trump administration has intensified its use of tariff escalation, shifting strategies after the Supreme Court struck down emergency tariffs. By leveraging alternative trade authorities, the administration now aims for $5.4 trillion in tariff revenue over the next decade, a significant increase from previous estimates. The Wall Street Journal editorial board writes that this escalation is occurring amid rising global commodity prices and economic uncertainty stemming from the war in Iran, compounding the challenges faced by American businesses that rely on imported materials.

KPMG plans to lay off around 10% of its US audit partners citing a partnership size that is bloated compared to the firm's business. The initiative, which comes after unsuccessful attempts to encourage early retirement among partners, aims to align the partnership size with the firm's business needs and rivals.

Spirit Aviation Holdings is in advanced discussions with the US government for a significant financing package, with the Trump administration proposing $500 million in exchange for warrants that could allow the government to own up to 90% of Spirit after bankruptcy. The talks come as Spirit faces increased fuel costs due to the war in Iran, making its existing restructuring plan unfeasible.

The White House is reviewing Securities and Exchange Commission proposals aimed at simplifying the process for companies to go public or raise capital. These changes would reduce the regulatory burden by allowing companies to provide fewer disclosures for new offerings and potentially move to a semi-annual financial reporting schedule.

A survey from Mercer shows 80% of CFOs view any annual health benefit cost increase over 6% as unsustainable over three years, and 1% say they could tolerate an increase of more than 10%. US health costs are projected to rise 6.7% this year, and respondents are considering measures such as raising deductibles to manage costs.

JPMorgan Chase is preparing a major expansion into private credit, aiming to deploy tens of billions of dollars in loans sourced by its commercial bankers as it seeks to regain ground in the $1.8 trillion market. The asset manager has begun raising several billion dollars from institutional investors, moving aggressively as private credit faces investor scrutiny and recent high-profile losses.

CFOs plan to significantly increase AI investment, with 56% expecting to boost enterprise-wide spending by more than 15% in the next year, according to a Bain & Company report. The report notes that while only 31% of CFOs rate AI outcomes as "strongly positive," this figure rises to 41% among those who have scaled AI projects to full production.