3M rides market rally, affirms earnings guidance in face of tariffs

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3M Co. stood by its full-year financial guidance while acknowledging new risks from the unfolding trade war, compounding the challenges for Chief Executive Officer William Brown as he tries to turn around the sprawling Maplewood-based manufacturer.

Tariffs will have a negative impact of as much as 40 cents a share on full-year earnings, the company said Tuesday in a statement as it reported first-quarter results. Still, 3M reaffirmed guidance for 2025 adjusted profit of $7.60 to $7.90 a share.

Shares rose 8.1% Tuesday and contributed to Tuesday’s broad market rally.

The caveat on its outlook highlights how President Donald Trump’s trade war is rippling across the economy and cutting into growth expectations. 3M as recently as March reiterated its full-year guidance that called for a bigger profit and organic sales growth of 2% to 3%.

3M is considered an economic bellwether because its portfolio of thousands of consumer and industrial products give it broad exposure to a wide swath of the economy. The company derives about 11% of its sales in China, according to RBC Capital Markets, putting it at risk from the growing trade conflict between Washington and Beijing, which have imposed blanket tariffs of 100% or more on each country’s goods.

3M is looking at measures to mitigate tariffs, including shifting production to optimize its network and possible surcharges on certain customers.

The company’s expected tariff impact, “suggests a bigger hit especially at the high end than our analysis,” wrote Bloomberg Intelligence analyst Karen Ubelhart.

3M’s above-consensus adjusted operating margin signals “improving operations, but that might not last if demand declines,” she added.

Sales for the first-quarter fell 1% to $6 billion and adjusted earnings per share from continuing operations were $1.88, both ahead of analyst expectations. Adjusted operating margin of 23.5% also beat estimates.

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Keith Ellison sues Trump administration over orders on transgender people

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Minnesota Attorney General Keith Ellison is suing the administration of President Donald Trump to challenge recent executive orders he says violate the civil rights of transgender children.

Two Trump orders — one banning transgender athletes in women’s and girls’ sports and another aimed at removing recognition of transgender people in federal policy — are aimed at “bullying” transgender youth, Ellison said at a Tuesday news conference announcing the lawsuit.

Ellison took action this week amid ongoing legal threats from the federal government against Minnesota and other states for defying Trump’s order on transgender athletes.

Ellison has maintained that following the order violates Minnesota’s human rights law and the U.S. Constitution, and he decided to preemptively sue as the Department of Justice continued threats to take legal action and cut off federal funding to the state.

“I’m not going to sit around waiting for the Trump administration to sue Minnesota,” Ellison told reporters at his office in the Minnesota Capitol on Tuesday. “One, they’re wrong about the law — both federal and state law. Two, we will not let a small group of vulnerable children who are only trying to be healthy and to live their lives be demonized.”

Title IX

The Trump Administration asserts that allowing those born male who identify as female to participate in women’s school sports violates Title IX, a federal law banning sex discrimination in education.

The president’s Feb. 5 executive order on transgender athletes allows federal agencies to enforce the administration’s interpretation of Title IX, though some states and high school sports groups have said they would not comply.

The Trump Administration sued Maine last week after the state refused to comply with the transgender athletics order.

U.S. Attorney General Pam Bondi threatened to sue Minnesota in February after Ellison issued an official opinion that complying with Trump’s order would violate state law. He issued the opinion after the Minnesota State High School League, the governing body for state school athletics, had sought his advice on the matter.

Earlier that month, the U.S. Department of Education started investigating Minnesota and California high school sports organizations because they planned to go against the federal government’s new policy.

Minnesota State High School League

Athletic associations had 60 days from the executive order to take action on transgender athletes, according to the Minnesota State High School League, which has said its rules allowing transgender student participation currently remain in place.

The Justice Department continued to push on Minnesota after the initial threats. In an April 8 letter to Ellison, Assistant U.S. Attorney General for Civil Rights Harmeet Dhillon demanded that Ellison clarify his legal opinion or face legal action. Dhillon also threatened to withhold federal funding from the state.

In his lawsuit filed in Minnesota U.S. District Court, Ellison argues Trump’s executive orders violate the separation of powers in the U.S. Constitution by effectively legislating from the executive branch — a right reserved for Congress — and by violating the 10th Amendment limits to federal power over the states.

Further, the lawsuit disputes the administration’s interpretation of Title IX, arguing it instead preserves protections for gender identity.

Legislative action

Minnesota House Speaker Lisa Demuth, R-Cold Spring, said Ellison should drop the issue and called his lawsuit a waste of state resources.

“It’s extremely disappointing that Attorney General Ellison would rather risk federal funding and file yet another taxpayer funded lawsuit against the Trump administration than simply do the right thing and keep boys out of girls sports,” Demuth said. “It’s a waste of taxpayer money to further a political agenda that makes girls less safe and makes sports less fair.”

The Minnesota Legislature earlier this year considered a bill to ban transgender athletes in school sports, though it failed on a party-line vote in a closely divided House of Representatives.

The measure sponsored by Rep. Peggy Scott, R-Andover, called for restricting participation in girls sports at the elementary and secondary school levels to biological females as determined by genetics and reproductive organs.

Republicans called the bill the “Preserving Girls’ Sports Act” and say it will keep a level playing field in school athletics.

Democratic-Farmer-Labor lawmakers and LGBT activists called the bill a “hateful” attack on the rights of transgender people and a distraction from issues that affect significantly broader swaths of the public.

The MSHSL has allowed students to decide whether to participate in boys or girls sports based on their gender identity since 2014.

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RFK Jr. plans to phase out artificial dyes from the US food supply

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WASHINGTON — U.S. health officials on Tuesday said they would phase out petroleum-based artificial colors in the nation’s food supply, potentially triggering an ingredients overhaul for scores of brightly hued products on American store shelves.

The federal Food and Drug Administration will take steps to eliminate the synthetic dyes by the end of 2026, FDA Commissioner Marty Makary said at a news conference. The agency will establish a standard and timeline for industry to switch to natural alternatives, revoke authorization for dyes not in production within coming weeks and take steps to remove remaining dyes on the market.

Makary said that removing artificial dyes would boost children’s health.

“For the last 50 years we have been running one of the largest uncontrolled scientific experiments in the world on our nation’s children without their consent,” Makary said.

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Health advocates have long called for the removal of artificial dyes from foods, citing mixed studies indicating they can cause neurobehavioral problems, including hyperactivity and attention issues, in some children. The FDA has maintained that the approved dyes are safe and that “the totality of scientific evidence shows that most children have no adverse effects when consuming foods containing color additives.”

The FDA currently allows 36 food color additives, including eight synthetic dyes. In January, the agency announced that the dye known as Red 3 — used in candies, cakes and some medications — would be banned in food by 2027 because it caused cancer in laboratory rats.

Artificial dyes are used widely in U.S. foods. In Canada and in Europe — where artificial colors are required to carry warning labels — manufacturers mostly use natural substitutes. Several states, including California and West Virginia, have passed laws restricting the use of artificial colors in foods.

The announcement drew praise from advocates who say the dyes carry health risks and serve no purpose beyond the cosmetic.

“Their only purpose is to make food companies money,” said Dr. Peter Lurie, president of the Center for Science in the Public Interest and a former FDA official. “Food dyes help make ultraprocessed foods more attractive, especially to children, often by masking the absence of a colorful ingredient, like fruit.”

Removing artificial dyes from foods has long been a goal of so-called MAHA moms, key supporters of Health Secretary Robert F. Kennedy Jr. and his “Make America Healthy Again” initiatives. They were among protesters who signed petitions and rallied outside the Michigan headquarters of WK Kellogg Co. last year, demanding that the company remove artificial dyes from its breakfast cereals in the U.S.

The group included Vani Hari, a popular food activist known as the Food Babe, who previously pressured the Kraft Heinz company to remove artificial dyes from its macaroni and cheese. Hari spoke at Tuesday’s event.

She said the action marks “a new era” in safe food for children.

However, food manufacturers said the action would unfairly target highly regulated color additives long confirmed to be safe.

“There are not enough alternatives available to replace these products,” the International Association of Color Manufacturers said in a statement. “Supply chains will take an estimated five to 10 years to catch up and require importing more expensive ingredients grown in China, India and Mexico.”

A spokesperson for the National Confectioners Association, a trade group for makers of candy, gum and mints, said the industry “needs time to find safe and viable alternatives.”

Removing dyes from the food supply will not address the chief health problems that plague Americans, said Susan Mayne, a Yale University chronic disease expert and former director of the FDA’s food center.

“With every one of their announcements, they’re focusing in on something that’s not going to accomplish what they say it is,” Mayne said of Kennedy’s initiatives. “Most of these food dyes have been in our food supply for 100 years. … So why aren’t they driving toward reductions in things that do drive chronic disease rates?”

In the past, FDA officials said the threat of legal action from the food industry required the government to have significant scientific evidence before banning additives. Red 3 was banned from cosmetics more than three decades before it was stripped from food and medicine. It took five decades for the FDA to ban brominated vegetable oil because of health concerns.

But Lurie said industry officials might not challenge the Trump administration.

“They don’t want to get on the wrong side of a vindictive president,” he said.

Hours before the announcement, the International Dairy Foods Association said its members would voluntarily eliminate artificial colors in milk, cheese and yogurt products sold to U.S. school meal programs by July 2026. Most dairy products for schools don’t contain artificial colors, as most dairy processors have chosen not to use them or have already removed or replaced them, officials at the dairy trade group noted.

Some of the state laws banning synthetic dyes in school meals have aggressive timelines. West Virginia’s ban, for example, prohibits red, yellow, blue and green artificial dyes in school meals starting Aug. 1. A broader ban will extend the restrictions to all foods sold in the state on Jan. 1, 2028.

Many U.S. food companies are already reformulating their foods, according to Sensient Colors, one of the world’s largest producers of food dyes and flavorings. In place of synthetic dyes, food makers can use natural hues made from beets, algae and crushed insects and pigments from purple sweet potatoes, radishes and red cabbage.

Aleccia reported from California.

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group and the Robert Wood Johnson Foundation. The AP is solely responsible for all content.

Wisconsin: Trollhaugen’s Adventure Park feature closing permanently

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Trollhaugen Ski area’s Adventure Park was a place where visitors could sail through the tree canopy on zip lines or climb among platforms and swaying bridges 30 feet in the air.

Not anymore.

After 12 years in operation, the owners of Trollhaugen announced Tuesday that they would permanently close the park effective immediately.

“Many factors and possible solutions were considered, but ultimately, rising operating costs like insurance and equipment replacement will not allow us to continue without significantly raising ticket prices, and that is not something we believe in doing,” the owners wrote in a post on social media.

The closing of the Adventure Park will not affect the ski season.

“This is an emotional decision for our team, and we want to give a big thank you to all of our amazing staff and visitors that joined us at the Adventure Park since its creation in 2012,” the post stated. “We will continue to celebrate the wonderful memories that we made with each and every one of you Troll-loving humans. We hope you enjoy new adventures this summer, and we look forward to seeing you in the fall for our 76th winter season on snow together.”

Trollhaugen is located in Dresser, Wis.

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