What a treat it is to be dropping into this newsletter whilst Sam is off.

Over on the news newsletter (we need to come up with a better name for that), we do a trivia question on Wednesdays. So I thought I’d bring you a special finance-edition one here.

Question: What does “IPO” stand for in business?

Answer is in the titbit!

U.S. President Donald Trump’s new global tariffs have come into effect at 10% – not 15% as previously announced.

It comes after the U.S. Supreme Court ruled that the existing tariff structure was illegal.

Here’s what you need to know.

A ‘tariff’ is a tax on imports. It’s applied to foreign-made goods brought into another country, and paid by the importer.

For example, Country A and Country B make the same product. Country A wants its citizens to buy its own version of the product, not Country B’s, so it applies a tariff.

Importers in Country A now pay the tax when they bring in B’s product, and pass on the cost to consumers, making this version of the product more expensive to buy.

Since his second presidency began, Trump has announced a range of tariffs on internationally imported goods, including from Australia.

Last week, the majority of the nine Supreme Court justices determined that Trump’s use of tariffs has been unlawful. The Court determined Trump was not authorised to invoke a certain law, the International Emergency Economic Powers Act (IEEPA), to impose tariffs.

Justice Brett Kavanaugh (appointed by Trump) disagreed with the verdict and raised concerns that the U.S. “may be required to refund billions of dollars to importers who paid the IEEPA tariffs”.

Following the Supreme Court decision, Trump announced a new tariff of 10% for most goods imported to the U.S, regardless of their country or origin.

The tariff was applied under a different piece of U.S. legislation.

Two days later, Trump increased the tariff to 15%, saying countries had been “ripping the U.S. off for decades”. However, he has since backtracked, and it is now a 10% global tariff.

The tariff, which is now in effect, will apply for 150 days.

Reporting by Emily Donohoe.

Australian telehealth start-up Eucalyptus has been acquired by San Francisco-based obesity drugs giant Hims & Hers Health for more than $1.6 billion.

The deal adds to the growing list of Australian start-ups reaching unicorn status – a valuation of more than US$1 billion (AU$1.4 billion) – before going public.

Eucalyptus is an Australian telehealth company founded in 2019 that runs popular weight loss brand Juniper, which sells GLP-1 medications like Ozempic, and fertility service Kin.

Hims & Hers is a similar business, but based in the U.S.

On Thursday, Hims & Hers announced it was acquiring the Australian company in a deal worth $1.6 billion. About $340 million of that will be paid in cash up front, with the remainder paid in instalments and additional amounts contingent on meeting financial targets.

Eucalyptus co-founder Tim Doyle is set to receive $163 million by 2029 for his 10% stake in the company.

The deal will also be a major payday for employees, who have been offered equity as part of their remuneration packages. According to the Australian Financial Review, the value of employee shares is about $300 million, and the average employee will receive $420,000.

A unicorn is a company that reaches a valuation of over US$1 billion before going public.

There are over 1,300 unicorns around the world today, with 10 currently based in Australia. Close to 30 unicorns have been created in the country overall.

Once a unicorn goes public, it is considered to have exited the list.

Australian unicorns include household names, like graphic design company Canva, payments firm AfterPay, or pet supplies platform PetCircle.

Possibly the most well-known example is the software company Atlassian, co-founded by Mike Cannon-Brookes and Scott Farquhar.

Atlassian’s $6.1 billion valuation when it went public in 2015 set an Australian record and made Cannon-Brookes and Farquhar Australia’s first tech billionaires.

The most valuable unicorn in the world is OpenAI, the company behind the popular chatbot, ChatGPT, which boasts a valuation of $US500 billion (AU$707 billion).

Canva is Australia’s most valuable unicorn with a $US32 billion valuation.

Reporting by Lachlan Keller.

Your share investing options, explained

Investing in shares isn’t a one-size-fits-all. You can go hands-on with individual shares for complete control and transparency, or choose diversified options like ETFs and managed funds for a set-and-forget approach. Start locally with Australian companies, or explore international shares to access global markets.

The key? A clear strategy, consistency, and long-term thinking. Start simple, build confidence, and adjust your approach as you go.

Discover more on your investing options in Season 1, Episode 7 of CommSec Invest: The Share Market Simplified podcast. Listen now wherever you get your podcasts.

^{Disclaimer: Information is general in nature. Consider the T&C’s and other fees and charges at commsec.com.au before making a decision. Investing carries risk.}

In case you missed it, daylight saving is one idea being floated to rejuvenate Brisbane’s nightlife ahead of the upcoming 2032 Olympic Games.

Venue operators have told the Queensland government that licensing laws are too restrictive and need to be loosened to be brought in line with other Australian cities.

“A full economy, folks, doesn’t finish at six o’clock,” former Gold Coast Suns president Tony Cochrane told a Property Council event last week.

Reporting by Lachlan Keller.

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Trivia answer: IPO means Initial Public Offering. This refers to when a company goes public on the stock exchange.