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Japan Today
6 hours ago
- Business
- Japan Today
Trump's tariffs could squeeze US factories and boost costs by up to 4.5%, a new analysis finds
FILE - President Donald Trump talks to workers as he tours U.S. Steel Corporation's Mon Valley Works-Irvin plant, Friday, May 30, 2025, in West Mifflin, Pa. (AP Photo/Julia Demaree Nikhinson, File) By JOSH BOAK and PAUL WISEMAN As President Donald Trump prepares to announce new tariff increases, the costs of his policies are starting to come into focus for a domestic manufacturing sector that depends on global supply chains, with a new analysis suggesting factory costs could increase by roughly 2% to 4.5%. 'There's going to be a cash squeeze for a lot of these firms,' said Chris Bangert-Drowns, the researcher at the Washington Center for Equitable Growth who conducted the analysis. Those seemingly small changes at factories with slim profit margins, Bangert-Drowns said, 'could lead to stagnation of wages, if not layoffs and closures of plants" if the costs are untenable. The analysis, released Tuesday, points to the challenges Trump might face in trying to sell his tariffs to the public as a broader political and economic win and not just as evidence his negotiating style gets other nations to back down. The success of Trump's policies ultimately depends on whether everyday Americans become wealthier and factory towns experience revivals, a goal outside economists say his Republican administration is unlikely to meet with tariffs. Trump has announced new frameworks with the European Union, Japan, the Philippines, Indonesia and Britain that would each raise the import taxes charged by the United States. He's prepared to levy tariffs against goods from dozens of other countries starting on Friday in the stated range of 15% to 50%. The U.S. stock market has shown relief the tariff rates aren't as high as Trump initially threatened in April and hope for a sense of stability going forward. Trump maintains the tariff revenues will whittle down the budget deficit and help whip up domestic factory jobs, all while playing down the risks of higher prices. 'We've wiped out inflation," Trump said last Friday before boarding Marine One while on his way to Scotland. But there's the possibility of backlash in the form of higher prices and slower growth once tariffs flow more fully through the world economy. A June survey by the Atlanta Federal Reserve suggested companies would on average pass half of their tariff costs onto U.S. consumers through higher prices. Labor Department data shows America lost 14,000 manufacturing jobs after Trump rolled out his April tariffs, putting a lot of pressure as to whether a rebound starts in the June employment report coming out Friday. The Washington Center for Equitable Growth analysis shows how Trump's devotion to tariffs carries potential economic and political costs for his agenda. In the swing states of Michigan and Wisconsin, more than 1 in 5 jobs are in the critical sectors of manufacturing, construction, mining and oil drilling and maintenance that have high exposures to his import taxes. The artificial intelligence sector Trump last week touted as the future of the economy is dependent on imports. More than 20% of the inputs for computer and electronics manufacturing are imported, so the tariffs could ultimately magnify a hefty multitrillion-dollar price tag for building out the technology in the U.S. The White House argues American businesses will access new markets because of the trade frameworks, saying companies will ultimately benefit as a result. 'The 'Made in USA' label is set to resume its global dominance under President Trump,' White House spokesman Kush Desai said. There are limits to the analysis. Trump's tariff rates have been a moving target, and the analysis looks only at additional costs, not how those costs will be absorbed among foreign producers, domestic manufacturers and consumers. Also, the legal basis of the tariffs as an 'emergency' act goes before a U.S. appeals court on Thursday. Treasury Secretary Scott Bessent said in an interview last week on Fox Business Network's 'Kudlow" show countries were essentially accepting the tariffs to maintain access to the U.S. market. 'Everyone is willing to pay a toll,' he said. But what Bessent didn't say is U.S. manufacturers are also paying much of that toll. 'We're getting squeezed from all sides,'' said Justin Johnson, president of Jordan Manufacturing Co. in Belding, Michigan, northeast of Grand Rapids. His grandfather founded the company in 1949. The company, which makes parts used by Amazon warehouses, auto companies and aerospace firms, has seen the price of a key raw material — steel coil — rise 5% to 10% this year. Trump has imposed 50% tariffs on imported steel and aluminum. Jordan Manufacturing doesn't buy foreign steel. But by crippling foreign competition, Trump's tariffs have allowed domestic U.S. steelmakers to hike prices. Johnson doesn't blame them. 'There's no red-blooded capitalist who isn't going to raise his prices'' under those circumstances, he said. The Trump White House insists inflation is not surfacing in the economy, issuing a report through the Council of Economic Advisers this month saying the price of imported goods fell between December of last year and this past May. 'These findings contradict claims that tariffs or tariff-fears would lead to an acceleration of inflation,' the report concludes. Ernie Tedeschi, director of economics at the Budget Lab at Yale University, said that the more accurate measure would be to compare the trends in import prices with themselves in the past and that the CEA's own numbers show 'import prices have accelerated in recent months.' The latest estimate from the Budget Lab at Yale is the tariffs would cause the average household to have $2,400 less than it would otherwise have. Josh Smith, founder and president of Montana Knife Co., called himself a Trump voter but said he sees the tariffs on foreign steel and other goods as threatening his business. For instance, Smith just ordered a $515,000 machine from Germany that grinds his knife blades to a sharp edge. Trump had imposed a 10% tax on products from the EU that is set to rise to 15% under the trade framework he announced Sunday. So Trump's tax on the machine comes to $77,250 — about enough for Smith to hire an entry-level worker. Smith would happily buy the bevel-grinding machines from an American supplier. But there aren't any. 'There's only two companies in the world that make them, and they're both in Germany,'' Smith said. Then there's imported steel, which Trump is taxing at 50%. Until this year, Montana Knife bought the powdered steel it needs from Crucible Industries in Syracuse, New York. But Crucible declared bankruptcy last December, and its assets were purchased by a Swedish firm, Erasteel, which moved production to Sweden. Smith beat the tariffs by buying a year's worth of the steel in advance. But starting in 2026, the specialty steel he'll be importing from Sweden is set to be hit with a 50% duty. 'The average American is not sitting in the position I am, looking at the numbers I am and making the decisions each day, like, 'Hey, we cannot hire those extra few people because we might have to pay this tariff on this steel or this tariff on this grinder,''' he said. 'I want to buy more equipment and hire more people. That's what I want to do.' © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.
Business Insider
8 hours ago
- Automotive
- Business Insider
Photos show 'Golf Force One,' the Secret Service golf cart that accompanied Trump around his Scotland resort
A black Secret Service vehicle accompanied President Donald Trump on his golf course in Scotland. The vehicle appeared to be an armored Polaris Ranger XP utility task vehicle, or UTV. Nicknamed "Golf Force One," it's not the first time a president has customized a golf cart. A new vehicle has joined the Secret Service's presidential fleet. During a golf outing at his Trump Turnberry resort in Scotland on Saturday, President Donald Trump was accompanied by a golf cart that appeared to be plated in black armor. The vehicle, nicknamed "Golf Force One," is one of many modes of transportation the Secret Service uses to protect the commander in chief. Here's what we know about the presidential golf cart. President Donald Trump's visit to Scotland included golf outings at two of his properties. Trump embarked on a five-day trip to Scotland from July 25 to 29, mixing business and leisure in what the White House called a "working visit." The president played golf at Trump Turnberry, his resort in Ayrshire, and opened a new 18-hole course at Trump International Golf Links in Aberdeenshire. He also met with UK Prime Minister Keir Starmer and European Union chief Ursula von der Leyen and announced a new trade deal with the EU. Trump was joined by Eric and Lara Trump, Donald Trump Jr. and Bettina Anderson, and two of his grandchildren. A new Secret Service golf cart joined the entourage of vehicles following the president around the course at Trump Turnberry. The black vehicle, which appeared fully enclosed in black panels and tinted windows, stood out among the regular golf carts. Media outlets began referring to the cart as "Golf Force One," a play on other presidential vehicles such as Air Force One and Marine One. The vehicle appeared to be a customized Polaris Ranger XP utility task vehicle, or UTV, plated in armor. Retail prices for Polaris Ranger XP models start at $20,999, according to Polaris' website. Armor kits for Polaris Ranger XP vehicles come with a much steeper price tag. The War Zone reported that the US General Services Administration 's website lists a Polaris XP 1000 Ranger UTV armor kit manufactured by Scaletta Armoring for $188,922.92 that appears similar to the one accompanying Trump. A Polaris spokesperson told The War Zone that the vehicle was manufactured by Polaris, but customized elsewhere. Representatives for Polaris and Scaletta Armoring did not immediately respond to a request for comment from Business Insider. Jim McGuffey, an expert witness and global security consultant accredited by the Department of Homeland Security and certified by ASIS International, told BI that it's safe to assume that the vehicle has some protective value, such as armor and bulletproof glass. "It is armored, or it's material that looks like it's armored, and I would go with it's armored," he said. "To what level? I have no idea, nor do I think anybody else would by just looking at it." A Secret Service spokesperson confirmed to BI that the golf cart is "part of our presidential fleet of specialty vehicles," but declined to elaborate. "The US Secret Service employs a variety of tools and resources to safeguard our protectees," a Secret Service spokesperson told BI. "This vehicle is part of our presidential fleet of specialty vehicles. In order to maintain operational security, the Secret Service does not discuss the specific means and methods used to conduct our protective operations." Trump also drove his own separate golf cart, which featured a sign with the presidential seal. Other golf carts, such as one driven by Eric Trump, featured signs reading "Honored Guest," designating them for use by VIPs. Past presidential golf carts have featured more whimsical touches, such as President George W. Bush's "Golf Cart One" decal at Camp David.
Gulf Today
9 hours ago
- Business
- Gulf Today
Trump sets new deadline of 10 or 12 days for Russia to act on Ukraine
US President Donald Trump set a new deadline on Monday of 10 or 12 days for Russia to make progress toward ending the war in Ukraine or face consequences, underscoring frustration with Russian President Vladimir Putin for the 3-1/2-year-old conflict. Trump has threatened both sanctions on Russia and buyers of its exports unless progress is made. The fresh deadline suggests the US president is prepared to move forward on those threats after previous hesitation to do so. Speaking in Scotland, where he is holding meetings with European leaders and playing golf, Trump said he was disappointed in Putin and shortening a 50-day deadline he had set on the issue earlier this month. "I'm going to make a new deadline of about ... 10 or 12 days from today," Trump told reporters during a meeting with British Prime Minister Keir Starmer. "There's no reason in waiting... We just don't see any progress being made." There was no immediate comment from the Kremlin. In a post on X, former Russian president Dmitry Medvedev, a close ally of Putin, said Trump was playing "a game of ultimatums" that could lead to a war involving the US. People hold placards as they attend a memorial event to mark the third anniversary of the Olenivka prison attack, at Independence Square in Kyiv. AFP Medvedev wrote: "Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with (Trump's) own country." Ukraine welcomed Trump's statement. Andriy Yermak, President Volodymyr Zelenskiy's chief of staff, thanked Trump in a social media post for "standing firm and delivering a clear message of peace through strength." Trump, who has expressed annoyance also with Zelenskiy, has not always followed tough talk about Putin with action, citing what he deems a good relationship that the two men have had previously. Donald Trump Jr and his partner Bettina Anderson, right, stand on the tarmac as Donald Trump and Keir Starmer prepare to board Marine One. AP On Monday, Trump indicated he was not interested in more talks with Putin. He said sanctions and tariffs would be used as penalties for Moscow if it did not meet Trump's demands. "There's no reason to wait. If you know what the answer is going to be, why wait? And it would be sanctions and maybe tariffs, secondary tariffs," Trump said. "I don't want to do that to Russia. I love the Russian people." Ukraine had proposed a summit between Putin and Zelenskiy before the end of August, but the Kremlin has said that timeline was unlikely and that a meeting could only happen as a final step to clinch peace. Russia's foreign ministry said on Saturday that if the West wanted real peace with Ukraine, it would stop supplying Kyiv with weapons. Trump has repeatedly voiced exasperation with Putin for pursuing attacks on Ukraine despite US efforts to end the war. Trump has played up successes in other parts of the world where the United States has helped to broker peace agreements and has been flattered by some leaders who suggest he should be given the Nobel Peace Prize. "I'm disappointed in President Putin," Trump said on Monday. "I'm going to reduce that 50 days that I gave him to a lesser number because I think I already know the answer what's going to happen." Trump, who is also struggling to achieve a peace deal in Gaza, has touted his role in ending conflicts between India and Pakistan as well as Rwanda and Congo. Before returning to the White House in January, Trump campaigned on a promise to end Russia's conflict with Ukraine in a day. "We thought we had that settled numerous times, and then President Putin goes out and starts launching rockets into some city like Kyiv and kills a lot of people in a nursing home or whatever," Trump said. "And I say that's not the way to do it." Reuters
The Guardian
10 hours ago
- Business
- The Guardian
Trump's tariffs could squeeze US factories and boost costs by up to 4.5%
As Donald Trump prepares to announce new tariff increases, the costs of his policies are starting to come into focus for a domestic manufacturing sector that depends on global supply chains, with a new analysis suggesting factory costs could increase by roughly 2% to 4.5%. 'There's going to be a cash squeeze for a lot of these firms,' said Chris Bangert-Drowns, the researcher at the Washington Center for Equitable Growth who conducted the analysis. Those seemingly small changes at factories with slim profit margins, Bangert-Drowns said, 'could lead to stagnation of wages, if not layoffs and closures of plants' if the costs are untenable. The analysis, released on Tuesday, points to the challenges Trump might face in trying to sell his tariffs to the public as a broader political and economic win and not just as evidence his negotiating style gets other nations to back down. The success of Trump's policies ultimately depends on whether everyday Americans become wealthier and factory towns experience revivals, a goal outside economists say his Republican administration is unlikely to meet with tariffs. Trump has announced new frameworks with the European Union, Japan, the Philippines, Indonesia and Britain that would each raise the import taxes charged by the United States. He is prepared to levy tariffs against goods from dozens of other countries starting on Friday in the stated range of 15% to 50%. The US stock market has shown relief the tariff rates are not as high as Trump initially threatened in April and hope for a sense of stability going forward. Trump maintains the tariff revenues will whittle down the budget deficit and help whip up domestic factory jobs, all while playing down the risks of higher prices. 'We've wiped out inflation,' Trump said last Friday before boarding Marine One while on his way to Scotland. But there is the possibility of backlash in the form of higher prices and slower growth once tariffs flow more fully through the world economy. A June survey by the Atlanta Federal Reserve suggested companies would on average pass half of their tariff costs on to US consumers through higher prices. Labor department data shows America lost 14,000 manufacturing jobs after Trump rolled out his April tariffs, putting a lot of pressure as to whether a rebound starts in the June employment report coming out on Friday. The Washington Center for Equitable Growth analysis shows how Trump's devotion to tariffs carries potential economic and political costs for his agenda. In the swing states of Michigan and Wisconsin, more than one in five jobs are in the critical sectors of manufacturing, construction, mining and oil drilling and maintenance that have high exposures to his import taxes. The artificial intelligence sector Trump last week touted as the future of the economy is dependent on imports. More than 20% of the inputs for computer and electronics manufacturing are imported, so the tariffs could ultimately magnify a hefty multitrillion-dollar price tag for building out the technology in the US. The White House argues American businesses will access new markets because of the trade frameworks, saying companies will ultimately benefit as a result. 'The 'Made in USA' label is set to resume its global dominance under President Trump,' a White House spokesman, Kush Desai, said. There are limits to the analysis. Trump's tariff rates have been a moving target, and the analysis looks only at additional costs, not how those costs will be absorbed among foreign producers, domestic manufacturers and consumers. Also, the legal basis of the tariffs as an 'emergency' act goes before a US appeals court on Thursday. The treasury secretary, Scott Bessent, said in an interview last week on Fox Business Network's Kudlow show countries were essentially accepting the tariffs to maintain access to the US market. 'Everyone is willing to pay a toll,' he said. But what Bessent did not say is US manufacturers are also paying much of that toll. 'We're getting squeezed from all sides,'' said Justin Johnson, president of Jordan manufacturing company in Belding, Michigan, north-east of Grand Rapids. His grandfather founded the company in 1949. The company, which makes parts used by Amazon warehouses, auto companies and aerospace firms, has seen the price of a key raw material – steel coil – rise 5% to 10% this year. Trump has imposed 50% tariffs on imported steel and aluminum. Jordan manufacturing does not buy foreign steel. But by crippling foreign competition, Trump's tariffs have allowed domestic US steelmakers to hike prices. Johnson doesn't blame them. 'There's no red-blooded capitalist who isn't going to raise his prices'' under those circumstances, he said.
France 24
10 hours ago
- Business
- France 24
Trump opens Scottish golf course and vows 'peaceful world'
US President Donald Trump cuts the ribbon on the first tee to officially open the Trump International Golf Links course in Balmedie, Aberdeenshire To the sound of bagpipes, secret agents and golfers criss-crossed the sprawling complex on the Aberdeenshire coast, waiting for the president to tee off. "We started with a beautiful piece of land, but we made it much more beautiful, and the area has ... really, really welcomed us," Trump said before cutting a red ribbon. "We'll play it very quickly, and then I go back to (Washington) DC and we put out fires all over the world," he added. "We have a world that's got some conflict, but we've ironed out a lot of it. We're gonna have a great and peaceful world." Marine One carrying US President Donald Trump and UK Prime Minister Keir Starmer arrives at MacLeod House on the Trump International Estate in Balmedie, Aberdeenshire © Jane Barlow / POOL/AFP Trump's campaign song, the Village People's "YMCA", blared out after the ribbon cutting, as fireworks exploded in the background. The president then teed off with son Eric, who led the project. "This will be a tremendously successful place and a place where people can come and enjoy life," the US leader said, highlighting how his trip has again blurred the lines between his presidency and his business interests. "We wanted this to be the greatest 36 holes anywhere on Earth. And there's no question that that's been achieved," said Eric Trump. "This was his Mona Lisa," he said of his father's crafting of the course. "Sculpting the dunes, sculpting the land, that was always his painting," he added. Trade deal Trump also held talks with Scotland's leader First Minister John Swinney discussing tariffs on Scottish whisky as well as the situation in Gaza. Trump boards Air Force One at RAF Lossiemouth, north-east Scotland, heading back to the United States © Brendan SMIALOWSKI / AFP Then later Tuesday, Trump departed Scotland heading back to the United States. His new course in Scotland features the world's largest natural bunker, dunes and greens overlooking the sea, with a "focus on environmental sensitivity", said a press release. Visible out to sea were the offshore wind turbines that Trump unsuccessfully tried to block. The president again spoke out against wind power as he hosted European Commission president Ursula von der Leyen on Sunday and UK Prime Minister Keir Starmer on Monday. It was one of the many issues Trump addressed during free-wheeling press conferences at his other golf complex in Turnberry, western Scotland where he played golf on Saturday and Sunday and juggled diplomacy. A wind turbine is seen in the sea behind the Trump International Golf Links course in Balmedie, Aberdeenshire © Jane Barlow / POOL/AFP With Von der Leyen, he announced a trade agreement in which the EU resigned itself to 15 percent tariffs on goods entering the United States, a deal heavily criticised across the continent. At a press conference Monday with Starmer, Trump promised more aid for Gaza and gave Russian President Vladimir Putin a "10 or 12 day" ultimatum to cease hostilities in Ukraine. "I really felt it was going to end. But every time I think it's going to end he kills people," Trump said of the Russian leader. "I'm not so interested in talking (to him) anymore," he added. Trump also criticised London mayor Sadiq Khan at the press conference and waded back into UK politics on Tuesday when he took to his Truth Social platform to urge the government to cut taxes and incentivise oil drilling in the North Sea, denouncing wind turbines as "ugly monsters". "Incentivize the drillers, FAST. A VAST FORTUNE TO BE MADE for the UK, and far lower energy costs for the people," he wrote. © 2025 AFP
