Trump Floats Tariff Exemptions For Auto Parts
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Yahoo
16 minutes ago
- Yahoo
Higher U.S. tariffs will extend uncertainty for businesses, experts say
President Trump's executive order hiking tariffs on U.S. imports could drive up consumer prices and prolong uncertainty for millions of businesses, trade experts said. Materials issued by the White House on Thursday outline new tariff rates for dozens of countries, but details remain scant on how to implement the trade agreements, said Barry Appleton, co-director of the New York Law School Center for International Law. "The last thing businesses want to have are unanswered questions. They were looking for certainty, and what we have instead is a gigantic Rubik's Cube," he told CBS MoneyWatch. "Everyone has been waiting for 'Liberation Day' to be finished," he added, referring to the country-based tariff announcements Mr. Trump first made in early April. "Instead, with this announcement, we have another perpetuation of what's going on." Under the Trump administration's new import duties, most countries will face a baseline tariff of at least 15%, although other nations will faces levies of more than 40%. The U.S. effective tariff rate is now 17%, according to Fitch Ratings — the highest in decades. That could mean pricier garments from Vietnam, shoes and toys from China, chocolate from Switzerland, and coffee from Brazil, according to economists. As a result, the revised U.S. tariffs could cost Americans an average of $2,048 per year, according to a new analysis from the National Taxpayers Union, a nonpartisan advocacy organization. Mr. Trump has argued his tariff strategy is necessary to correct what he views as unfair trading practices and revive American manufacturing, and points to still-fairly-low inflation rates. But many economists warn tariffs can lead to higher inflation and more sluggish economic growth, and some of the president's early trade moves rattled financial markets. The White House has said that Mr. Trump's trade policies benefit Americans. "President Trump's trade deals have unlocked unprecedented market access for American exports to economies that in total are worth over $32 trillion with 1.2 billion people," White House spokesperson Kush Desai said in a statement to CBS MoneyWatch. "As these historic trade deals and the Administration's pro-growth domestic agenda of deregulation and The One Big Beautiful Bill's tax cuts take effect, American businesses and families alike have the certainty that the best is yet to come." On social media, U.S. Trade Representative Jamieson Greer said the tariffs are "a knockout win over the distorted global trading order that has disadvantaged American workers, farmers, and manufacturers for decades." He added that Trump's foreign trade policy has achieved "expansive new market access for U.S. exporters, increased tariffs to defend critical industries, and trillions of new manufacturing investments that will create great American jobs." Which products could get pricier? In the U.S., the products most commonly imported from abroad — and therefore most likely to see their prices rise because of sharply higher tariffs — include household appliances, furniture, cars, clothing, sports equipment, toys and cleaning products, according to an analysis from Oxford Economics. The price of such goods rose about 1% in June, or more than double the increase in May, according to the investment research firm's analysis of consumption data, a sign that tariffs are starting to seep into the cost of everyday items. "The question is really what's not going to go up in price. The costs were being eaten in the profits of companies, but that's not sustainable," Appleton said. Mr. Trump slapped some of the highest tariffs on key trade partners like Canada, a major provider of lumber to U.S. companies. That could lead to higher housing costs, according to Oxford. Some fruits and vegetables also could get pricier this winter as grocery stores leans on imports to stock store shelves, he said. U.S. automakers including Ford, GM and Stellantis have recently warned that higher U.S. tariffs will reduce their profits by billion of dollars. That is likely to increase new car prices, said Terence Lau, dean of the Syracuse University College of Law and formerly a government affairs executive at Ford. "My advice to consumers back in April was that they should wait to buy cars," said Lau, who expects dealer prices for 2026 models to rise between 4% and 6%. "In August, my advice is to buy now." Although many businesses are still selling inventory they imported earlier this year in a bid to avoid higher tariffs, subsequent imports will likely be subject to the newly announced levies when they arrive at U.S. ports, according to trade experts. "A lot of businesses front-loaded goods to get them in the door before tariffs were announced. They'll now have to increase their costs as inventories dwindle and businesses start replenishing them," Oxford Economics' senior U.S. economist Matthew Martin told CBS MoneyWatch. "We expect cost hikes to peak in the second half of the year," Along with facing potentially higher prices, U.S. consumers could face reduced product choices stemming from supply-chain delays, according to economists. That's largely because companies unable to reshore manufacturing to the U.S. are likely to stop importing low-margin goods as they move to control costs. "In many cases, tariffs will be so high that we'll create embargoes," Martin said. "That will make it more difficult for retailers and distributors to get things out to market." Rodney Manzo, a supply-chain expert and senior director at Sage, a business management software company, said higher tariffs often end up affecting businesses and consumers in ways beyond the cash register. "For the average shopper, the effects don't always show up as a big price hike on the shelf. Instead, it's subtler — fewer options, smaller quantities and less generous promotions," he said. "Companies are quietly reducing [their stockpiles], reworking product specs or stripping out expensive components to hit margin targets." Arkansas officials reveal new details about Devil's Den murders of husband and wife The A.I. Divide | America Unfiltered Defense attorneys refuse new cases in Massachusetts, citing unfair pay Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hill
17 minutes ago
- The Hill
Trump administration revokes Biden era abortion rule for veterans
The Trump administration revoked a Biden era abortion rule on Friday that allows veterans to receive abortions under their medical package. The Department of Veteran Affairs is reversing a 2022 rule that provided access to abortion counseling and abortions to certain pregnant veterans in addition to VA beneficiaries. 'We take this action to ensure that VA provides only needed medical services to our nation's heroes and their families,' the Department wrote in a scheduled release for the Federal Register. Officials said they were seeking to ensure taxpayer dollars weren't used to provide pregnancy terminations. 'As a matter of law, it is without question that VA has the authority to bar provision of abortion services through the VA medical benefits package to veterans,' the release read. 'From 1999 until 2022 that is in fact what VA did. It was not until 2022 when the VA Secretary reversed this course,' they added. The department said they would not prohibit providing abortion care to pregnant women in life-threatening circumstances, including treatment for ectopic pregnancies or miscarriages. GOP lawmakers lauded the move slamming the Biden administration for previous changes. 'It was wrong that the Biden administration violated settled law in 2022 and began offering abortion services through VA. We pushed back hard on this disastrous policy over the last two years to hold the Biden-Harris administration accountable and protect the lives of the unborn,' House Committee on Veterans' Affairs Chairman Mike Bost (Ill.) and Reps. Mariannette Miller-Meeks (Iowa), Morgan Luttrell (Texas), Derrick Van Orden (Wis.), Keith Self (Texas), and Tom Barrett (Mich.) said in a Friday statement. 'It's simple – taxpayers do not want their hard-earned money spent on paying for abortions – and VA's sole focus should always be providing service-connected health care and benefits to the veterans they serve,' they added. However, others said the shift in policy will harm servicemembers and their families following the Supreme Court's decision to overturn Roe v. Wade in 2022, eliminating the constitutional right to abortions. Katie O'Connor, senior director of federal abortion policy at the National Women's Law Center, said the effort was a 'direct attack' on those who have served our country. 'At a time when extremist lawmakers are passing cruel abortion bans and restrictions, this move only deepens the crisis those laws have created — stripping veterans of their reproductive freedom and creating even more confusion about where they can turn for care. 'Let me be clear: abortion is health care,' O'Connor said in a Friday statement. 'Veterans already face unique challenges to their health and well-being, including experiencing PTSD, recovering from military sexual trauma, and facing an increased risk of suicide. Banning access to the full range of reproductive services, including abortion, further jeopardizes their health and safety. No one should have to travel hundreds of miles, endure financial hardship, or risk their health just to get the medical care they need. Our veterans deserve better,' she added.
New York Post
17 minutes ago
- New York Post
Columbia Sportswear sues Columbia University over merch in latest legal battle for Ivy
For decades, T-shirts, sweatshirts and other clothing under the Columbia Sportswear brand and clothing emblazoned with the Columbia University name coexisted more or less peacefully without confusion. But now, the Portland-based outdoor retailer has sued the New York-based university over alleged trademark infringement and a breach of contract, among other charges. It claims that the university's merchandise looks too similar to what's being sold at more than 800 retail locations including more than 150 of its branded stores as well as its website and third-party marketplaces. Columbia Sportswear has filed a lawsuit against Columbia University because the campus's merchandise looks identical to its brand. Columbia Sportswear In a lawsuit filed July 23 in the U.S. District Court for the District of Oregon, Columbia Sportswear, whose roots date back to 1938, alleges that the university intentionally violated an agreement the parties signed on June 13, 2023. That agreement dictated how the university could use the word 'Columbia' on its own apparel. As part of the pact, the university could feature 'Columbia' on its merchandise provided that the name included a recognizable school insignia or its mascot, the word 'university,' the name of the academic department or the founding year of the university — 1754 — or a combination. But Columbia Sportswear alleges the university breached the agreement a little more than a year later, with the company noticing several garments without any of the school logos being sold at the Columbia University online store. Many of the garments feature a bright blue color that is 'confusingly similar' to the blue color that has long been associated with Columbia Sportswear, the suit alleged. The lawsuit details that the Ivy League institution violated an agreement the parties signed on June 13, 2023. Spiroview Inc. – The lawsuit offered photos of some of the Columbia University items that say only Columbia. 'The likelihood of deception, confusion, and mistake engendered by the university's misappropriation and misuse of the Columbia name is causing irreparable harm to the brand and goodwill symbolized by Columbia Sportswear's registered mark Columbia and the reputation for quality it embodies,' the lawsuit alleged. The lawsuit comes at a time when Columbia University has been threatened with the potential loss of billions of dollars in government support. Last week, Columbia University reached a deal with the Trump administration to pay more than $220 million to the federal government to restore federal research money that was canceled in the name of combating antisemitism on campus. Under the agreement, the Ivy League school will pay a $200 million settlement over three years, the university said. Columbia Sportswear aims to stop all sales of clothing that violate the agreement, recall any products already sold and donate any remaining merchandise to charity. Columbia Sportswear is also seeking three times the amount of actual damages determined by a jury. Neither Columbia Sportswear or Columbia University couldn't be immediately reached for comment.
