Latest news with #importprices
Yahoo
17-07-2025
- Business
- Yahoo
US import prices rise marginally in June
WASHINGTON (Reuters) -U.S. import prices rebounded marginally in June amid cheaper energy products, but higher costs for consumer goods were consistent with a tariff-driven increase in inflation. Import prices increased 0.1% last month after a downwardly revised 0.4% decline in May, the Labor Department's Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast import prices, which exclude tariffs, would rise 0.3% after a previously reported unchanged reading in May. In the 12 months through June, import prices fell 0.2%, matching May's decrease. Data this week showed solid price increases in tariff-sensitive goods in June both at the consumer and producer level, indicating that President Donald Trump's sweeping tariffs on imports announced in April were now lifting inflation. Trump last week announced higher duties would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union. Economists expect these tariffs will keep goods prices elevated through the end of this year. Imported fuel prices fell 0.7% in June after dropping 5.0% in May. Food prices declined 0.8% after easing 0.7% in the prior month. Excluding fuels and food, import prices rose 0.2%. The so-called core import prices gained 0.1% in May. In the 12 months through June, they increased 1.0%. Prices for imported consumer goods excluding motor vehicles jumped 0.4% last month after dropping 0.3% in May. Imported capital goods prices were unchanged while those for motor vehicles, parts and engines slipped 0.1%. Though core import prices rose moderately last month, a depreciating dollar poses an upside risk to inflation. The trade-weighted dollar is down about 7.1% this year. "Since the Trump administration began imposing tariffs, the dollar has depreciated, which could lead to a larger pass-through from tariffs to consumer prices," said Michael Pearce, deputy chief U.S. economist at Oxford Economics. "A weaker dollar boosts the likelihood that firms pass on a larger share of tariffs." Sign in to access your portfolio
Yahoo
17-07-2025
- Business
- Yahoo
US import prices rise marginally in June
WASHINGTON (Reuters) -U.S. import prices rebounded marginally in June amid cheaper energy products, but higher costs for consumer goods were consistent with a tariff-driven increase in inflation. Import prices increased 0.1% last month after a downwardly revised 0.4% decline in May, the Labor Department's Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast import prices, which exclude tariffs, would rise 0.3% after a previously reported unchanged reading in May. In the 12 months through June, import prices fell 0.2%, matching May's decrease. Data this week showed solid price increases in tariff-sensitive goods in June both at the consumer and producer level, indicating that President Donald Trump's sweeping tariffs on imports announced in April were now lifting inflation. Trump last week announced higher duties would come into effect on August 1 for imports from a range of countries, including Mexico, Japan, Canada and Brazil, and the European Union. Economists expect these tariffs will keep goods prices elevated through the end of this year. Imported fuel prices fell 0.7% in June after dropping 5.0% in May. Food prices declined 0.8% after easing 0.7% in the prior month. Excluding fuels and food, import prices rose 0.2%. The so-called core import prices gained 0.1% in May. In the 12 months through June, they increased 1.0%. Prices for imported consumer goods excluding motor vehicles jumped 0.4% last month after dropping 0.3% in May. Imported capital goods prices were unchanged while those for motor vehicles, parts and engines slipped 0.1%. Though core import prices rose moderately last month, a depreciating dollar poses an upside risk to inflation. The trade-weighted dollar is down about 7.1% this year. "Since the Trump administration began imposing tariffs, the dollar has depreciated, which could lead to a larger pass-through from tariffs to consumer prices," said Michael Pearce, deputy chief U.S. economist at Oxford Economics. "A weaker dollar boosts the likelihood that firms pass on a larger share of tariffs."
News24
09-07-2025
- Business
- News24
Trade tariffs: Who really pays and at what cost?
Tariffs boost import prices to shield domestic industries from competition. Importers bear tariff costs, ultimately increasing prices for local consumers. Tariffs disrupt global chains and reduce trade, dampening overall economic growth. Tariffs are government-imposed taxes on imported goods and services. Their primary purpose is to make foreign products more expensive than the domestic ones, thereby shielding local industries from international competition. There are two main types of tariffs: Specific tariffs, which are fixed fees per unit imported. Ad valorem tariffs which are based on a percentage of the item's value. While the concept of tariffs may seem straightforward, their ripple effects across the economy, from producers to consumers and even international relations, are anything but. Who carries the cost of tariffs? A common misunderstanding is that foreign exporters pay the tariff. In practice, it is the domestic importer, typically a local business, which pays the import duty when goods enter the country. This cost is often passed down the supply chain, resulting in higher prices for consumers. Sometimes, foreign producers may lower their prices slightly to stay competitive, sharing the cost of the tariff. However, in most cases, the consumer ends up paying more. Economic effects of trade tariffs Tariffs can have broad and sometimes unintended consequences: Higher prices for consumers: Importers usually increase retail prices to cover the cost of tariffs, which reduces consumers' purchasing power and limits product options, especially when local alternatives are not readily available. Decline in trade volumes: By making imported goods less attractive, tariffs tend to reduce overall trade. Countries affected by these measures may retaliate with their own tariffs, leading to trade disputes or even trade wars. Reduced efficiency: Tariffs may protect less competitive domestic industries, which discourages innovation and efficient use of resources. Sectors that survive because of protection rather than performance may become complacent. Mixed impact on local industries: While some industries may benefit from reduced competition, others, particularly those that rely on imported materials, face increased production costs. Manufacturers in the automotive or electronics sectors, for instance, may pass those costs on to consumers or suffer reduced profit margins. Disruption of global supply chains: Today's production processes often involve components sourced from several countries. Tariffs complicate these supply chains, introducing delays and additional costs, which can be felt across multiple industries. Impact on growth and employment: In the long term, tariffs can weigh on economic growth. While they may temporarily protect jobs in certain sectors, other parts of the economy often see job losses, resulting in a net negative effect on employment. Revenue for the state at a cost: Tariffs can raise government revenue in the short term. However, as trade volumes decrease, this income stream tends to shrink. Moreover, the broader economic fallout can offset the initial gains. US President Donald Trump's trade tariff timeline (February – July) 1 February: 25% tariffs on Mexican/Canadian goods, 10% on Chinese goods over fentanyl and immigration concerns. 3 February: Pauses Mexico/Canada tariffs for 30 days; no China deal. 7 February: Delays China's de minimis package tariffs. 10 February: Steel/aluminium tariffs raised to 25%. 3 March: Announces 25% tariffs (Mexico/Canada) and doubles fentanyl tariffs on China. 5 - 6 March: Delays vehicle tariffs and exempts North American Free Trade Agreement goods for a month. 26 March: 25% tariffs on imported cars and light trucks. 2 April: Introduces 10% global tariff; higher for key partners. 9 April: 90-day pause on country-specific tariffs; 10% global tariff remains; China tariffs raised to 145%. 13 April: Exemptions granted for electronics (for example smartphones). 22 April: Tariff probes on pharma and semiconductors launched. 4 May: 100% tariff on foreign-made movies. 9 May: US-UK trade deal: 10% tariffs remain, automotive/agriculture eased. 12 - 13 May: US–China truce: tariffs temporarily reduced. 23 May: Plans 50% EU tariffs, threatens Apple with a 25% tariff hike. 25 - 29 May: EU tariff deadline extended; courts block, then partially reinstate tariffs. 3 June: Steel/aluminium tariffs hiked to 50%. 12 June: Warns of auto tariff hikes. 3 July: 20% tariff on Vietnamese exports; 40% on trans-shipments. 6 July: BRICS-aligned nations face an extra 10% tariffs. 7-8 July: Announces implementation of new tariffs (25% to 40%) on 14 countries (including 30% on SA); 50% on copper, tariffs on pharma/semis pending from 1 August. Tariffs remain a potent policy tool, often deployed to support domestic industries or as leverage in trade negotiations. But their broader economic costs, including reduced consumer choice, inefficient resource allocation and dampened economic growth, often outweigh the benefits. In the end, it is not the foreign exporters, but local consumers and businesses that shoulder the burden.
Daily Mail
04-07-2025
- Business
- Daily Mail
Cognac giants toast China tariff exemption
China has granted tariff exemptions to major cognac producers. The firms include Remy Cointreau, Pernod Ricard and LVMH's Hennessy. They have agreed to minimum import prices in order to be excluded from hefty levies imposed on European shipments of brandy and wine-based spirits. Duties ranging between 27.7 per cent and 34.9 per cent will be imposed on shipments from July 5. They will be in place for five years, China's commerce ministry said. Beijing has claimed that European firms are 'dumping' their products on the Chinese market at lower prices. Remy Cointreau, whose Cointreau orange liqueur is endorsed by The White Lotus actress Aubrey Plaza, abandoned its sales targets earlier this year. Rivals Diageo and Pernod Ricard have also withdrawn their sales targets as the sector endures a slowdown from previous heady years for pricey liquors.
Free Malaysia Today
30-06-2025
- Business
- Free Malaysia Today
Euro zone bond yields edge down ahead of inflation data
German data showed that retail sales and import prices fell short of expectations in May. (EPA Images pic) BRUSSELS : Euro zone government bond yields edged down today as investors awaited inflation data from German and Italy later in the session. Meanwhile, German data showed that retail sales and import prices fell short of expectations in May. Trade talks are also in the spotlight after Canada scrapped its digital services tax targeting US technology firms in a bid to advance stalled trade negotiations with the US. The yield on Germany's 10-year bond, the euro area's benchmark, fell 1.5 basis points (bps) to 2.58%, after hitting 2.605% on Friday, its highest level since May 26. The 30-year yield was down 0.5 bps at 3.09%, while the yield on the 2-year, more sensitive to expectations for European Central Bank (ECB) policy rates, dropped one bps to 1.85%. The German yield curve steepened last week, with the spread between 10-year and 2-year yields recording the first weekly rise in a month. Markets have priced in an ECB terminal rate roughly unchanged at around 1.75%–1.80%, while yields on longer maturities rose on expectations of a significant increase in German fiscal spending. Italy's 10-year government bond yield fell 1.5 bps to 3.50%, with the spread between BTPs and Bund yields at 90.5 bps. The gap hit 84.20 bps earlier this month, its lowest level since March 2015.
