Despite reporting a negative first quarter, Etsy is crafting a message that it can stand out amid President Donald Trump’s trade war. The $4.4 billion marketplace for handmade and vintage goods fell far short of Wall Street’s expectations, losing 49 cents per share. But the company is leaning into the fact that over half of the products on its site are sourced from the U.S., and promoting tools that help buyers filter for locally made goods. Meanwhile, rivals like Temu and Shein have already raised prices due to tariffs. “Etsy’s relative value may get better particularly against sites who have a lot of their products sold made in China,” CEO Josh Silverman said on the company’s earnings call. A U.S. flag flies near containers stacked high on a cargo ship at the Port of Los Angeles. Photo by FREDERIC J. BROWN/AFP via Getty Images U.S. GDP contracted 0.3% in the first quarter, government estimates show, revealing the most comprehensive picture yet of the health of the country’s economy. It’s the weakest economic growth for the U.S. in three years, as the Bureau of Economic Analysis said the negative GDP reading “primarily reflected” an increase in imports, which surged as businesses aimed to get ahead of tariffs, and a decrease in government spending. MORE: President Donald Trump blamed the dip on former President Joe Biden, suggesting any decline in the second quarter could also be the former president’s fault. Trump has also blamed Biden for stock market losses, despite previously taking credit for gains during the last administration. Elon Musk and the chair of Tesla’s board strongly denied a report from the Wall Street Journal that said the carmaker’s board began a search for a new CEO to take over from Musk amid concerns about the company’s plunging stock price. The report claimed that Tesla’s board members had been in touch with recruitment firms to find a successor in an effort to appease “irritated” investors, but board chair Robyn Denholm dismissed the report as “absolutely false.” MORE FOR YOU Google’s Update Decision—Bad News For 50% Of Android Users ‘NYT Mini’ Clues And Answers For Thursday, May 1 Kamala Harris Blasts Trump’s ‘Narrow, Self-Serving Vision Of America’ In First Big Speech Since Leaving Office This is a published version of the Forbes Daily newsletter, you can sign-up to get Forbes Daily in your inbox here. BUSINESS + FINANCE A crucial measure of inflation slowed in March to its lowest level in years, though it remains above the Fed’s 2% goal. Most economists view tariffs as inflationary, which is expected to complicate the central bank’s efforts to bring price increases down to historically palatable levels. In the midst of a pivotal week for big tech earnings, Microsoft reported its best-ever quarterly revenue and profit totals, while fellow big tech firm Meta also exceeded expectations. Amazon and Apple will report their quarterly results later today, and tariffs remain a looming question mark. “This is a key few days ahead for the markets and tech world,” remarked Wedbush analyst Dan Ives. WEALTH + ENTREPRENEURSHIP Who is the richest person in each state? Google Maps/Forbes Who is the richest person in your state? Forbes’ latest ranking includes 54 entrepreneurs, investors and heirs worth a record $2 trillion combined, with billionaires in every state but three. Five states have a new wealthiest resident, for instance in Washington, where former Microsoft CEO Steve Ballmer beats out his old boss Bill Gates after Forbes upped its estimate of the 2021 divorce settlement secured by Gates’ ex-wife Melinda French Gates. TECH + INNOVATION Bots are flooding the internet, already making up 50% of all web traffic—a number that’s expected to surge with the adoption of AI. To combat the problem, San Francisco-based Persona is helping companies like OpenAI, LinkedIn and Reddit verify users’ identities, and on Wednesday, the company announced it had raised $200 million, bringing its valuation to $2 billion. As emerging defense companies get a major boost, Accel is leading a $275 million funding round into Chaos Industries, which sells a suite of communications and radar products. The funding, which Forbes reporting revealed values the company at $2 billion, follows a slew of funding rounds announced by Silicon Valley-backed defense tech companies this year. MONEY + POLITICS A resolution to reject President Donald Trump’s global tariffs failed in a 49-49 vote in the Senate on Wednesday, after two senators in support of the measure did not attend the vote. A spokesperson for Senator Mitch McConnell (R-Ky.), who was absent due to illness, reiterated the senator’s stance against the tariffs to Punchbowl News, saying McConnell “believes that tariffs are a tax increase on everybody.” Trump’s trade war with China threatens to make his immigration agenda costlier: Some of the biggest tech suppliers to border and immigration cops are warning about the possibility of increased prices nationwide. An increase in tariffs on China, Mexico and Canada “could have a significant impact on our business,” Axon Enterprise, which provides body cameras, Tasers and cloud-based evidence storage, wrote in an April SEC filing. After months of negotiations, the U.S. and Ukraine have signed an agreement creating the United States–Ukraine Reconstruction Investment Fund, which will reportedly allow the U.S. some access to Ukraine’s natural resources. The Treasury Department said in a statement the fund is in “recognition of the significant financial and material support that the people of the United States have provided to the defense of Ukraine since Russia’s full-scale invasion” and will help “accelerate Ukraine’s economic recovery.” DAILY COVER STORY He Made A Billion Building Houses For Florida’s “Marvelous Middle.” Now Things Aren’t So Marvelous. Guerin Blask for Forbes Florida homebuilder Pat Neal has become a billionaire by catering to the “marvelous middle”: middle- and upper-middle-class families spending between $400,000 and just over $1 million for a new home. “Our strategy is to float above the public homebuilders, to build a home of higher quality,” he says. That means marble surfaces, more landscaping, brick entryways, painted garage floors and cabinets made of solid wood. His company, Neal Communities, has a “perfection committee” that works on issues like making sure oven, microwave and refrigerator doors can open simultaneously without bumping into each other. All this attention to detail and focus on middle- and upper-middle income customers has been a winning strategy: The privately held business is now one of Southwest Florida’s biggest builders, and Forbes estimates that 76-year-old Neal, who owns 100% along with his two sons, has a net worth of $1.2 billion. But this year could test him like no other since the Great Recession. The western part of the Sunshine State, where Neal operates, has its highest housing supply in 15 years at the same time that Covid-era inward migration is dropping off. Home values there could decrease as much as 9% over the coming year, according to the real estate data platform Reventure. Macro trends don’t look favorable either, with high interest rates reducing demand for houses nationwide and the tariff war threatening to add thousands of dollars to the cost of building materials. To prepare, Neal is pivoting to a “barbell-shaped strategy,” going after folks at both the higher and lower ends. “Middle-class people in the last few years have not prospered as they previously did,” Neal says. “I’m moving to the edges for the present, hoping that the marvelous middle recovers over the course of time.” WHY IT MATTERS “Many experts think the housing market is set for one of its worst years in recent memory,” says Forbes reporter Monica Hunter-Hart. “The axe is already coming down hard in Florida, where builder Pat Neal says he’s slashing the prices of his houses by about 10% and simultaneously preparing to face rising costs due to tariffs. He’s implementing a risky plan to survive the economic turmoil; if it works, he’ll emerge stronger than ever.” MORE The Homebuilders Getting Rich Off America’s Housing Shortage FACTS + COMMENTS A House Committee advanced an educational reform package this week that would overhaul student loans and make Pell Grants less accessible. The bill would also limit how much students can borrow from the federal government: Over $330 billion: How much the legislation would save the government, according to Rep. Tim Walberg (R-Mich.) 31.6%: The share of undergraduate students who were awarded Pell Grants in the 2022-23 school year The change ‘could reduce the number of people who enroll’ Jessica Thompson, senior vice president at the Institute for College Access & Success, told The Washington Post STRATEGY + SUCCESS People often associate the term entrepreneurship with startups, but an entrepreneurial mindset can be valuable in any sector. It’s a way of thinking that prioritizes being solutions-oriented, adaptable and thriving in the face of challenges. To help cultivate it in your current role, start by stepping out of your comfort zone, brainstorming solutions to workplace challenges and scheduling time every week for career development. A country in Asia rolled out a digital nomad visa that would allow foreign remote workers to stay for up to a year. Which country is it? A. Thailand B. The Philippines D. Indonesia Editorial StandardsForbes Accolades