New tariffs expected to have pros and cons in western Massachusetts
CHICOPEE, Mass. (WWLP) – As the trade war unfolds, China strikes back with 34% tariffs on U.S. imports.
For the last decade, the U.S. has been trying to increase global trade, lower trade barriers, and lower tariffs, but investors told 22News that this is a step in a different direction.
Some items like toys that are in the U.S. right now are not taxed, but by the end of the summer, they are expected to be.
'There's always a debate about who pays a tariff, is it the consumer, is it the company that's exporting it, is the country that's importing it, here in the U.S?' said Matt Farkas, Senior Vice President, Head of Fixed Income at St. Germain Investment Management.
President Trump has claimed that foreign countries pay tariffs, however, some tariffs are paid by U.S. importers that pass down the cost to consumers.
If the tariffs stick, investment professional, Matt Farkas said some prices on items like TVs, auto parts, and toys may increase.
That's why PlayNow! Owner Ray Vigneault is filling up his stores now. He doesn't want to charge his customers a 50% increase now.
All the items on the shelves at PlayNow! were not made in the U.S., they were made in China, Vietnam, and Mexico.
The tariffs will raise prices on items that are $5 to $7.50.
'What we expect is that the companies are going to raise prices, which they already started to announce, but then again {they} may hold off on ordering more products themselves, so there could be shortages coming out over the summer,' Ray Vigneault, Owner of PlayNow!
This is something Vigneault and other importers are hoping isn't similar to the shipping price hikes, during the COVID-19 pandemic.
'Now it's really hard to say anything with a lot of certainty. Because some think that these tariffs are a starting point for negotiation and they may not be here at this level for very long and they may be reduced pretty quickly,' said Farkas.
While this may be a one-time bump up in prices for everyday goods, investors told 22News it could also bring more jobs.
WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on WWLP.com.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
14 minutes ago
- Yahoo
Swiss deflation fuels talks of negative interest rates: Is SNB ready?
Remember negative interest rates? Back in early 2020, as the world grappled with the COVID-19 pandemic, central banks across advanced economies rushed to slash interest rates, offering cheaper borrowing to cushion the economic blow alongside unprecedented fiscal support. In many countries, rates tumbled to near or even below zero — an extraordinary policy shift reflecting the urgency of avoiding a prolonged recession. Fast forward five years, and no major economy currently operates with rates at or below zero. But Switzerland could soon change that. Switzerland could soon become the first advanced economy to re-enter the era of negative interest rates. A confluence of weakening price pressures and a subdued economic outlook has sparked growing expectations that the Swiss National Bank (SNB) will resume ultra-loose monetary policy, potentially cutting interest rates below zero in the coming months. Last week, the Swiss Federal Statistical Office reported that consumer prices fell by 0.1% in May 2025 compared to a year earlier, marking the first deflationary print since March 2021. The decline was broad-based, with notable year-on-year contractions in transport costs (-3.7%), food and non-alcoholic beverages (-0.3%), healthcare (-0.2%), and household goods and services (-2.6%). While a modest bout of deflation is not in itself alarming, it underscores the fragility of domestic demand and presents a challenge for the SNB's inflation target. The central bank defines price stability as annual inflation between 0% and 2%. "Swiss inflation could remain close to 0%, which represents the lower end of the SNB's price stability range," said Niklas Garnadt, economist at Goldman Sachs. The expert identified declining inflation expectations, falling energy prices, and potential trade frictions as downside pressures on the price outlook going forward. The SNB, which currently holds its policy rate at 0.25%, meets on 19 June, and economists are expecting another rate cut of 25 basis points. According to Goldman Sachs' base case, the SNB will lower its policy rate to -0.25% by September, in two successive cuts. Yet, there is a 40% chance, the bank noted, that policymakers may opt for more aggressive easing, with two 50 basis point cuts taking the rate back to -0.75% — the lowest in its history. Although the SNB also has foreign exchange operations at its disposal, economists expect interest rate cuts to take precedence in the near term. There are some reasons for this preference, according to Goldman Sachs. "The SNB has prior experience managing the impact of negative rates," Garnadt said. Moreover, domestic inflation is more responsive to interest rates than currency movements. And finally, Switzerland remains on the US Treasury's watchlist for currency manipulation, potentially constraining foreign-exchange intervention activity. That said, foreign exchange interventions have not been ruled out entirely. During the post-2008 low-inflation years, the SNB frequently bought foreign currency to stem franc appreciation. The SNB is again navigating familiar territory, balancing the need to support inflation against the risks of overreliance on unconventional measures. While Switzerland's economic fundamentals remain relatively strong, the renewed threat of deflation could push the central bank to breach interest-rate lower bounds again. 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
Yahoo
an hour ago
- Yahoo
Jim Cramer on Home Depot (HD): 'I Think We're in Good Shape'
We recently published a list of . In this article, we are going to take a look at where The Home Depot, Inc. (NYSE:HD) stands against other stocks that Jim Cramer discusses. A caller asked how Cramer thinks The Home Depot, Inc. (NYSE:HD) would perform in the long term. He replied: 'Oh man, I was making calls on Home Depot today because it's starting to roll, and then wouldn't you know it, it pulled back right at the end. I think we're in good shape. I think when rates just stay stable, we'll be fine. I think that the gardening season's coming along fine, but let me just say, people just look at housing starts and they say, let's sell Home Depot. Don't be constrained by that. I think they're going to have a great year. Let's think seven years, not seven days. Thank you, Larry Fink for that. I love that. It was in the FT yesterday.' Home Depot (NYSE:HD) is a retailer specializing in home improvement products, including building materials, home décor, and garden supplies. The company provides installation services for home projects and rents out tools and equipment. Earlier in May, Cramer said: 'Now, not that long ago, we dropped in on a monster Home Depot store management meeting in Vegas where we heard about some great ideas for spring gardening season, which by the way, kicks into overdrive this weekend. Unfortunately, these big weeks for lawn and garden have been overshadowed by stubbornly high interest rates and no rate cuts from the Fed, not to mention tariff worries. Now I've watched this stock since it came public, and there are plenty of times that Home Depot doesn't actually march to the tune of interest rates, but instead is levered to repair and renovation. An insurance broker discussing policy options with a homeowner. As so many people are stuck in their homes, I'm willing to trade up because that would force them to give up that low mortgage rate that they may have gotten during the COVID period. Now we own the despot for the Charitable Trust, and while I'm not expecting a blowout by any means, I have to tell you I like it long term, and it's down 2% for the year, well, off its highs… Home Depot stock is a great one to own because, like Walmart, these guys have the scale to cope with the tariffs that are going to be put on so many foreign-made goods that they sell at Home Depot. The little guys we know, they don't have that kind of flexibility.' Overall, HD ranks 10th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
an hour ago
- Yahoo
Kamari B. Williams Scholarship presented to 9 local students
SPRINGFIELD, Mass. (WWLP) – Several students received a scholarship named in honor of an educator and coach who passed away several years ago. Price Rite Marketplace marks 30 years, supplies local families with food, supplies, and support State Representative Bud Williams and Springfield Public Schools educator Dr. Gloria Williams presented scholarships to 9 outstanding Springfield public school students. It was all part of the 4th annual Kamari B. Williams scholarship awards ceremony. Kamari passed away in 2020 and is the son of Representative Williams and Dr. Williams. The family told 22News about some of the requirements for students to receive the scholarship. State Rep. and father of Kamari, Bud Williams, told 22News, 'We try to give away 8 to 10 scholarships, really portrayed as a young man, and we're so proud of him.' Kamari was a Springfield Public Schools teacher and counselor as well as a basketball coach at the High School of Science & Technology. Each recipient earned $1,000 as a result of their leadership, character, humility, and drive. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
