Reuters US Domestic News Summary

Following is a summary of current US domestic news briefs.

US FDA approves Teva's Ajovy for migraine prevention in children

The U.S. Food and Drug Administration on Tuesday approved Ajovy, an injection made by Israeli drugmaker Teva Pharma, to help prevent migraines in children aged six and older who weigh 45 kilograms or more. This is the first time a drug has been approved for preventing migraines in children.

Analysis-Autopilot verdict deals Tesla a 'black eye', threatens Musk's robotaxi ambitions

A court verdict against Tesla last week, stemming from a fatal 2019 crash of an Autopilot-equipped Model S, could hurt its plans to expand its nascent robotaxi network and intensify concerns over the safety of its autonomous vehicle technology. A Florida jury ordered Musk's electric vehicle company on Friday to pay about $243 million to victims of the crash, finding its Autopilot driver-assistance software defective. Tesla said the driver was solely at fault and vowed to appeal.

US trade gap skids to 2-year low; tariffs exert pressure on service sector

The U.S. trade deficit narrowed in June on a sharp drop in consumer goods imports, and the trade gap with China shrank to its lowest in more than 21 years, the latest evidence of the imprint on global commerce President Donald Trump is making with sweeping tariffs on imported goods. Trump's tariffs are leaving their mark on the U.S. economy beyond trade, as a measure of activity in the vast services sector hit stall-speed in July, with businesses saying the swarm of new import taxes is driving up costs and making business planning more difficult.

US to initially impose 'small tariff' on pharma imports, Trump says

President Donald Trump said on Tuesday that the United States would initially place a "small tariff" on pharmaceutical imports before hiking it to 150% within 18 months and eventually to 250% in an effort to boost domestic production. "In one year, one and a half years maximum, it's going to go to 150% and then it's going to go to 250% because we want pharmaceuticals made in our country," Trump told CNBC in an interview.

Sean 'Diddy' Combs loses bid to get out of jail prior to sentencing

Sean "Diddy" Combs on Monday lost his bid to be released from jail ahead of his October 3 sentencing, despite a jury having found the hip-hop mogul not guilty of the most serious charges at his sex crimes trial. Combs' lawyers had asked U.S. District Judge Arun Subramanian on July 29 to release Combs on $50 million bond, saying conditions at the Metropolitan Detention Center in Brooklyn were dangerous and other defendants convicted of prostitution-related charges similar to Combs' were usually released before sentencing.

US criticizes use of AI to personalize airline ticket prices, would investigate

U.S. Transportation Secretary Sean Duffy said Tuesday the department has concerns about the use of AI to set personalized airline ticket prices and will investigate if anyone does so. Last week, Delta Air Lines told lawmakers it will not and has not used AI to set prices for individual consumers. "To try to individualize pricing on seats based on how much you make or don't make or who you are, I can guarantee you that we will investigate if anyone does that," Duffy said. "We would engage very strongly if any company tries to use AI to individually price their seating."

Analysis-Easy to lose, hard to restore: US data trust on the line

Donald Trump's move to fire the head of the U.S. Bureau of Labor Statistics has put trust in U.S. data reporting mechanisms on the line just as demand for reliable diagnoses of the health of the world's largest economy is bigger than ever. Examples from elsewhere show credibility is easily lost and hard to restore. A first test will be the choice to replace Erika McEntarfer, accused without evidence by Trump of manipulating U.S. job numbers after weaker-than-expected growth and large downward revisions were reported last week.

US proposes new drone rules that could lead to Starbucks, Amazon deliveries

The U.S. Transportation Department is proposing new rules to speed deployment of drones beyond the visual line of sight of operators, a key change needed to advance commercial uses like package deliveries. "We are going to unleash American drone dominance," Transportation Secretary Sean Duffy said at a press conference on Tuesday.

Music teacher who rejected transgender students' chosen names can sue Indiana school

A divided U.S. appeals court revived a lawsuit against an Indiana school district by a former high school music teacher who objected to being required to call transgender students by their chosen names. The 7th U.S. Circuit Court of Appeals said the Brownsburg school district near Indianapolis did not show that letting John Kluge refer to the students only by last name impeded its mission to create a safe and inclusive learning environment.

Titan sub disaster was preventable, US finds in scathing report

The catastrophic implosion of the Titan submersible that killed five people in 2023 could have been prevented, a U.S. Coast Guard investigative board found on Tuesday, calling the vessel's safety culture and operational practices "critically flawed." The Titan vanished during a descent to the Titanic wreck on a tourist expedition, losing contact with its support ship.

US will not seek death penalty for alleged Mexican drug lords Caro Quintero, Zambada

The U.S. Justice Department said on Tuesday it will not seek the death penalty for accused Mexican drug traffickers Rafael Caro Quintero and Ismael Zambada despite allegations of deep ties to cartel violence. Caro Quintero was extradited to the U.S. in February alongside 28 other suspected cartel members as part of the biggest handover by Mexico of drug trafficking suspects in 10 years.

NY Fed flags rise in student loan borrowing troubles in second quarter

Total household debt levels rose during the second quarter as a growing number of student loan borrowers and some newer home borrowers faced rising credit challenges. The Federal Reserve Bank of New York said on Tuesday as part of its latest Quarterly Report on Household Debt and Credit that overall borrowing during the second quarter increased $185 billion, or 1%, from the first quarter to $18.39 trillion. Housing-related credit, which makes up the bulk of borrowing in the U.S. economy, ticked up $131 billion to $12.94 trillion.

Tesla, Elon Musk sued by shareholders over Robotaxi claims

Elon Musk and Tesla were sued by shareholders who accused them of securities fraud for concealing the significant risk that the company's self-driving vehicles, including the Robotaxi, were dangerous. The proposed class action was filed on Monday night, following Tesla's first public test of its robotaxis in late June in the company's Austin, Texas, hometown.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)