2025-08-16 00:00:21.477

Kory Burke, a California winemaker, details how tariffs on European goods negatively impact his business. Despite the intention to boost American businesses, the tariffs hurt wine producers who rely heavily on imported materials like French oak barrels, corks, and even winemaking equipment. The tariffs increase costs, forcing price hikes that could drive customers to cheaper alternatives or away from wine altogether. The article highlights that wine consumers rarely substitute based on price, preferring specific regions and types. This is echoed by other producers, such as Paul Hoover of Still Waters Vineyards, who states that only the wine itself is made in America. The National Association of Wine Retailers criticizes the tariffs, arguing that they misunderstand the wine market and will harm the industry. The uncertainty caused by fluctuating tariffs makes planning difficult for businesses, impacting sales and potentially leading to layoffs. While some, like Hoover, see potential benefits in reduced transportation costs, the overall sentiment is negative. Past experiences with similar tariffs imposed during Trump's first term showed no benefit to domestic wine sales. The article concludes with concerns that small European producers may withdraw from the US market, impacting importers and consumers.

2025-08-01 18:00:42.395

WASHINGTON (AP) — U.S. hiring is slowing sharply as President Donald Trump’s erratic and radical trade policies paralyze businesses and raise doubts about the outlook for the world’s largest economy. U.S. employers added just 73,000 jobs last month, the Labor Department reported Friday, well short of the 115,000 expected. Worse, revisions shaved a stunning 258,000 jobs off May and June payrolls. And the unemployment rate ticked higher to 4.2% as Americans dropped out of the labor force and the ranks of the unemployed rose by 221,000. “A notable deterioration in U.S. labor market conditions appears to be underway,” said Scott Anderson, chief U.S. economist at BMO Capital Markets. “We have been forecasting this since the tariff and trade war erupted this spring and more restrictive immigration restrictions were put in place. Overall, this report highlights the risk of a harder landing for the labor market.” Economists have been warning that the rift with every U.S. trading partner will begin to appear this summer and the Friday jobs report appeared to sound the bell. “We’re finally in the eye of the hurricane,” said Daniel Zhao, chief economist at Glassdoor. “After months of warning signs, the July jobs report confirms that the slowdown isn’t just approaching—it’s here.” U.S. markets recoiled at the jobs report and the Dow tumbled more than 600 points Friday. Revelations in the new data raise questions about the health of the job market and the economy as President Donald Trump pushes forward an unorthodox overhaul of American trade policy. Trump has discarded decades of U.S. efforts to lower trade barriers globally, instead, imposing hefty import taxes — tariffs — on products from almost every country on earth. Trump believes the levies will bring manufacturing back to America and raise money to pay for the massive tax cuts he signed into law July 4. Mainstream economists warned that the cost of the tariffs will be passed along to Americans, both businesses and households. That has begun. Walmart, Procter & Gamble, Ford, Best Buy, Adidas, Nike, Mattel, Shein, Temu, Stanley Black & Decker, have all hiked prices due to U.S. tariffs. Economists at Goldman Sachs estimate that overseas exporters have absorbed just one-fifth of the rising costs from tariffs, while Americans and U.S. businesses have picked up the lion’s share of the tab. Trump has sowed uncertainty in the erratic way he’s rolled the tariffs out — announcing, then suspending them, then coming up with new ones. Overnight, Trump signed an executive order that set new tariffs on a wide swath of U.S. trading partners to that go into effect on Aug. 7, and that comes after a flurry of unexpected tariff-related actions this week. “There was a clear, significant, immediate, tariff effect on the labor market and employment growth essentially stalled, as we were dealing with so much uncertainty about the outlook for the economy and for tariffs,” said Blerina Uruci, chief U.S. economist for the brokerage T. Rowe Price. Still, Uruci said the data suggests we could be past the worst, as hiring actually did pick up a bit in July from May and June’s depressed levels. “I’m not overly pessimistic on the U.S. economy based on this morning’s data,” she said, though she does think that hiring will remain muted in the coming months as the number of available workers remains limited due to reduced immigration and an aging population. “Because of immigration policy, labor supply growth has nearly ground to a halt,” said Guy Berger, senior fellow at the Burning Glass Institute, which studies employment trends. “So we’re going to have very weak employment growth. And we look like southern Europe or Japan.” Still, with fewer workers available, the economy doesn’t need to generate many jobs to soak up the unemployed. That could keep the unemployment rate from climbing much, Berger added. Trump has sold the tariffs hikes as a way to boost American manufacturing, but factories cut 11,000 jobs last month after shedding 15,000 in June and 11,000 in May. The federal government, where employment has been targeted by the Trump administration, lost 12,000 jobs. Jobs in administration and support fell by nearly 20,000.

2025-05-12 18:01:21.167

US stocks skyrocketed on Monday following a surprising de-escalation of trade tensions with China. President Trump's top trade officials brokered a deal over the weekend, significantly lowering tariffs. The Dow surged approximately 1000 points (2.3%), the S&P 500 rose 2.7%, and the Nasdaq Composite gained 3.5%. This rally erased losses incurred since Trump's April 2nd trade announcement, which had imposed substantial tariffs on various countries, including a 145% levy on most Chinese imports. China had retaliated with its own tariffs. The agreement involved a reduction of tariffs by 115 percentage points, although levies remain higher than pre-Trump levels. A key aspect of the deal is a mechanism designed to prevent future tariff increases. Treasury Secretary Scott Bessent emphasized that the US negotiated from a position of strength due to China's economic vulnerabilities, including a housing crisis and falling consumer spending. The de-escalation eased global recession fears, boosting investor confidence and impacting various asset classes. The US dollar strengthened, oil prices surged, while safe-haven assets like gold and US Treasuries fell. Tech stocks, particularly impacted by the trade war, saw significant gains. Luxury goods and automaker stocks also rebounded sharply. Experts viewed the deal as a positive surprise, although some, like Bessent, characterized it as a temporary pause, with future negotiations focusing on supply chain diversification and fairer international business practices. The agreement was hailed as a significant win for the US economy and consumers, potentially preventing supply chain disruptions from China.

2025-04-08 00:00:16.624

Extreme volatility rocked global stock markets on Monday, triggered by Donald Trump's controversial new tariffs. The sell-off began in Asia, spread to Europe, and hit the US hard, with the S&P 500 briefly entering bear market territory before a dramatic reversal. While a potential 90-day tariff pause on all countries except China offered fleeting relief, Trump later threatened further tariffs on China, intensifying market pressure. The S&P 500 closed down 0.2%, and the Dow Jones fell 0.9%. London's FTSE 100 plummeted 4.38%, its lowest close in over a year, while Tokyo's Nikkei 225 slumped 7.8%. Other major European indices also suffered significant losses. Trump defended his actions, comparing the tariffs to 'medicine' needed to fix the economy, while ignoring the widespread concerns. High-profile figures like Larry Fink (BlackRock CEO), Jamie Dimon (JPMorgan Chase CEO), Bill Ackman, and even Elon Musk expressed alarm, with Dimon warning of increased inflation and slower growth. The technology-focused Nasdaq Composite experienced similar volatility, ending the day nearly flat. Oil prices also dropped to four-year lows. Amidst the turmoil, criticism mounted, with Sir Richard Branson calling the situation a 'colossal mistake' with potentially catastrophic consequences.

2025-04-04 00:00:21.501

Donald Trump's announcement of widespread new tariffs on US trading partners has created turmoil in global markets and raised concerns about a potential global trade war and US recession. His plan, hinted at during his election campaign, was even more extensive than anticipated: a 10% tariff on all imports, with higher rates for key partners like China and the EU. Although the tariffs won't take effect immediately, global markets reacted strongly to the announcement. Trump's tariffs are two-pronged. A 10% tariff will apply to all imported goods starting April 5th. Then, on April 9th, select countries will face higher tariffs, described by Trump as "reciprocal tariffs" in response to tariffs imposed on American exports. It's important to note that these tariffs are paid by American companies importing goods. Some of the highest tariffs target Asian countries (China, India, South Korea, Japan), while EU exports face a 20% tariff. The White House's calculation of "reciprocal tariffs" is based on the US trade deficit with each country, expressed as a percentage. They halved this percentage to determine the new US levy. Canada and Mexico are excluded due to existing trade agreements. Trump and his advisors maintain that these tariffs will strengthen US manufacturing and reduce barriers faced by American goods. However, economists argue that the tariffs' aggressiveness and uncertainty could hinder domestic investment, leading companies to pass the costs onto consumers. Wall Street reacted negatively, with markets plummeting following the announcement. The slump follows a month of similar tariff announcements. Global stock markets also fell sharply. World leaders expressed alarm, with Ursula von der Leyen calling the tariffs a "major blow" to the global economy. The US dollar also weakened against other major currencies, reflecting investor concerns about US economic instability.

2025-04-04 00:00:21.498

US stock markets experienced a dramatic downturn on Thursday following Donald Trump's announcement of widespread tariffs on numerous trading partners. The Nasdaq fell 6%, the S&P 500 dropped 4.8%, and the Dow lost 3.9%, marking the worst day for US markets since June 2020. Major companies like Apple and Nvidia saw massive losses. The US dollar also fell to a six-month low, and oil prices sank due to global slowdown concerns. The tariffs, ranging from 10% to over 20% for several countries, including China, the EU, Japan, and Taiwan, will take effect in early April. Despite the market turmoil and warnings from economists about the negative impact on consumers and the US economy, Trump remained defiant, claiming the tariffs would lead to a "golden age" for America. Major business groups, including the Business Roundtable and the National Retail Federation, strongly criticized the tariffs, predicting economic harm and job losses. A recent poll showed that only 28% of Americans believe tariffs benefit the economy.

2025-04-03 06:00:55.867

President Donald Trump declared a US economic emergency and announced tariffs of at least 10% across all countries, with rates even higher for 60 countries or trading blocs with high trade deficits with the US. Auto tariffs are now in effect. China, the second top exporter to the US, will face a 54% tariff and has threatened countermeasures. Canada and the EU are also preparing countermeasures. Global markets fell sharply after the announcement, and gold hit a record high. Economists fear the tariffs could lead to a global recession. The tariffs impact various countries differently. Australia, for example, will see its beef exports affected, while Taiwan's semiconductor industry is exempted from the 32% tariff imposed on other Taiwanese goods. South Korea faces a 25% tariff, adding to its political turmoil. The EU called the tariffs a "major blow to the world economy" and is preparing countermeasures. Japan expressed regret but did not announce immediate retaliation, citing its reliance on US security guarantees. New Zealand ruled out reciprocal tariffs but is disputing the US's claim of 20% tariffs on US goods. Asian markets tumbled, with Japan's Nikkei 225 index falling nearly 4%. The calculation of the tariff rate is questioned, with analysts suggesting a simple calculation was used rather than a true reciprocal measure. The tariffs are expected to significantly impact American consumers, with car prices potentially rising substantially. JPMorgan analysts predict a US and global recession in 2025 if the tariffs remain. Several countries, including China, South Korea, and Australia, have responded to the tariffs, with China vowing countermeasures and South Korea holding an emergency meeting. Treasury Secretary Scott Bessent compared tariff policy to a "shrinking ice cube," suggesting that tariff revenue will decrease as domestic production increases. Economists express concerns about the potential for recession, with some describing the tariffs as "very wrongheaded" and "self-harm." The Business Roundtable warned of potential harm to American manufacturers, workers, and exporters. The American Petroleum Institute welcomed the exclusion of oil and natural gas from the tariffs, which saw oil prices drop 3%. Australian Prime Minister Anthony Albanese condemned the tariffs as "totally unwarranted" and announced emergency funding support for affected industries.

2025-04-02 18:01:53.825

President Donald Trump is set to announce a sweeping new tariff plan, dubbed "Liberation Day," that will redraw economic agreements with US trading partners. Details remain unclear, but potential targets include reciprocal tariffs on all countries, delayed 25% tariffs on Mexico and Canada, and new tariffs on lumber, copper, pharmaceuticals, and microchips. This has already created significant market volatility and uncertainty for businesses and consumers. Economists and business owners express serious concerns. Goldman Sachs estimates a 35% chance of recession within the next year, citing the deterioration of household and business confidence. Business owners warn of increased production costs and price hikes affecting various sectors, from brewing to farming. The impact on the auto industry is particularly concerning, with potential price increases of $5,000 to $15,000 per vehicle. While some, like the United Auto Workers union, support the tariffs as a way to protect domestic jobs, many Republicans and Democrats express concern about the potential short-term economic consequences. Senators warn of rising inflation, interest rates, and a potential recession. Even some Republican senators, while supporting Trump's long-term vision, express reservations about the immediate impact. The potential for retaliatory tariffs from other countries is also a major concern. Canada has already promised a strong response, while the UK plans a measured approach. Retaliation could exacerbate inflation and further harm the US economy. Despite the widespread concern, the Trump administration maintains that the tariffs are a necessary tool to gain leverage over other countries, increase revenue, and revitalize American industry. However, economists argue that these goals are mutually exclusive and that the tariffs will ultimately act as a regressive tax, disproportionately affecting lower-income consumers. The long-term consequences remain uncertain, but the short-term impact is likely to be significant and potentially damaging to the US economy.

2025-03-04 22:36:21.947

The Trump administration's new tariffs on goods from China, Mexico, and Canada are already causing significant price increases for American consumers. Target is raising prices on fruits and vegetables due to increased costs from Mexican imports, while Best Buy anticipates price hikes on electronics in the coming months due to tariffs on Chinese goods. Gas prices in the Northeast are expected to jump by as much as 40 cents a gallon, and toy prices are also on the rise, with Basic Fun increasing the price of its new Tonka trucks and Stretch Armstrong dolls. Even everyday items are affected; California egg prices have surged to $9 per dozen due to bird flu outbreaks. Many companies, including Mattel and Hasbro, are considering further price increases later in the year.