China urges Canada to drop steel import curbs and threatens countermeasures
Ottawa this week introduced a tariff rate quota for countries with which it has free trade agreements, excluding the U.S., and imposed additional tariffs on steel imports from all countries containing steel melted and poured in China before the end of July.
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Trump's Interest Rate Obstacle Is Bigger Than Powell
Economics The Big Take Higher rates are the result of far more than Fed decisions. Debt, demographics, and deglobalization are all driving the price of money up. By President Donald Trump wants lower interest rates. Achieving that objective will require overcoming bigger obstacles than Fed Chair Jerome Powell. There are structural forces that drive the cost of borrowing, and right now they're pointing up. Governments and businesses are piling on debt to pay for tax cuts, military spending, and AI investments — which means more demand for credit. As the Baby Boomers retire and China decouples from the US, the pool of saving to finance those loans is drying up.
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Starbucks' problems may be too big to fix
Starbucks' problems may be too big to fix originally appeared on TheStreet. In its early days, Starbucks' approach was unique. Unlike rivals like Dunkin', Tim Hortons, and breakfast diners, its mission wasn't to provide one coffee for everyone as fast as possible. Instead, it treated making coffee like a craftsman makes fine furniture, focusing on the highest-quality product, regardless of how long it takes. That approach helped Starbucks grow from a single store in Seattle, Washington, to a coffee powerhouse with 32,000 stores located in just about every nook and cranny of the globe, including: Over 18,000 stores in North America. About 2,800 stores in Europe. More than 6,500 stores in China. Roughly 1,300 stores in the Middle East and North Africa. 1,800 locations in Latin America, including more than 70 in Colombia, putting Starbucks about as close to the coffee's origins as possible. With that kind of growth, and plenty of shareholders eager for ever-increasing profits, it's pretty unsurprising that Starbucks has dealt with growing pains. The company has faced controversies over worker pay (and what they wear), as well as customer complaints over inconsistent drink tastes, food freshness, and, more generally, the rise of a less-relaxed cafe vibe, too focused on boosting transactions and profit margin. The situation has left many scratching their heads, wondering if Starbucks' new CEO, Brian Niccol, can get things back on track. Longtime hedge fund manager Doug Kass is among the doubters. He recently sent a particularly harsh message about Starbucks, suggesting Niccol's strategy to get Starbucks back to its roots is unlikely to pan out. Starbucks comes under fire from Wall Street Starbucks' () stock price financed a good chunk of the company's global expansion. Investors eagerly bought shares early in the company's growth phase to profit from the opportunity for its customer-first approach to dislodge market share from rivals like Tim Hortons and Dunkin'. Longtime shareholders have been handsomely rewarded, given that Starbucks shares have surged since its IPO in 1992. A $10,000 investment then would be worth over $3 million many investors' love affair with Starbucks has faded since the company has mostly saturated major U.S. markets like New York and California, reducing chances for sales growth. Its share price is up just 15% over the past five years, while the S&P 500 has climbed 89%. In 2025, Starbucks' stock price has fallen nearly 5%. With Starbucks stores seemingly everywhere, longtime hedge fund manager Doug Kass suggests the company's strategy nowadays is less about reimagining coffee houses and more about milking as much money out of existing locations as possible. Such an approach can boost earnings in the short term, but it poses a significant long-term risk to Starbucks' brand. '[Starbucks] morphed into overpriced purveyors of food/coffee — while the quality of their product offering has deteriorated and the selling cost of the product has risen,' wrote Doug Kass in a post to investors on TheStreet Pro. It's not just the coffee, either. While many may think Starbucks bakes its treats on site, many are previously frozen. 'I couldn't create a danish as unappealing,' said Kass, who has managed money professionally for about 50 years. Starbucks' worker relationship has soured over time Some Starbucks employees agree that the company's mission has lost its way. It was once highly recognized as a pioneer in employee pay, offering solid wages and a 'partner' approach to its workers. Employees, however, have increasingly explored unionization in recent years, saying the faster-paced environment is taking a heavy toll on its once-lauded baristas, and pay hasn't kept pace. Starbucks' response to unionization has drawn fire from worker advocates who suggest management has engaged in union-busting decisions. For example, the National Labor Relations Board (NLRB) has accused the company of firing or disciplining workers, including the high-profile case involving the 'Memphis 7,' seven workers terminated after advocating unionization. That case went to the Supreme Court, where an earlier court decision to grant an injunction supporting the workers was reversed in Starbucks' favor, and the case was sent back to the lower courts. The first corporate Starbucks location to unionize was in Buffalo in 2021, led by Starbucks Workers United. As of August 2025, workers at over 600 Starbucks stores across the U.S. have voted to unionize, according to Workers United. Starbucks turnaround plan faces uphill battle The company's frayed relationship with some employees isn't the only problem CEO Brian Niccol is trying to fix. Niccol joined Starbucks as CEO in 2024 after over six years at the helm of Chipotle. Shortly after Niccol took over as Starbucks' CEO, he acknowledged 'a shared sense that we have drifted from our core' and announced his 'Back To Starbucks" plan to get the company back on track, focusing on a 'welcoming coffeehouse where people gather and where we serve the finest coffee, handcrafted by our skilled baristas.' However, those comments and Niccol's plans sound hollow to Kass. 'When he got to Starbucks, Niccol started off by using fancy jargon to distract from the fact that Starbucks is losing to both value and premium brands/operators,' wrote Kass. 'Starbucks now faces a very expensive overhaul in its physical locations and product offerings.' Starbucks faces fierce competition from big and small rivals Starbucks' competitive advantage hasn't been lost on rivals. Big rivals like Dunkin' and McDonald's have expanded menus, including popular refreshers, while local mom-and-pop cafes have leaned hard into the artisanal coffee house back market share from those players won't be easy. As a result, Niccol's overhaul could pressure Starbucks' profits while ultimately doing little to restore Starbucks's culture, disappointing investors. 'The brand is now very weak competitively — they aren't premium (artisans, local brands, etc.) and the previous also-rans are coming in hot with smaller footprints,' said Kass. 'From a product standpoint, they sell more chemicals, sugar and ice — it's not coffee.' Undeniably, many remain loyal Starbucks fans, but there are more choices, and with less connection to the employees, the moat of loyalty isn't nearly as strong as it was in the past. 'It is the Regal Cinemas concession stand without the movies. The notion that the baristas want to hang with the customers has been lost,' said Kass. 'I suspect the turnaround in both companies will take a lot longer than the consensus expects.' To be sure, Starbucks' challenges aren't unique. Indeed, most companies experiencing the kind of success it has experienced deal with similar issues. Still, the hyper-competitive coffee market and the challenges facing Niccol leave Kass thinking that there are better alternatives for investors. 'I would not bottom fish despite the material share-price weakness,' concluded problems may be too big to fix first appeared on TheStreet on Aug 3, 2025 This story was originally reported by TheStreet on Aug 3, 2025, where it first appeared. Sign in to access your portfolio
CBS News
44 minutes ago
- CBS News
Tariff rates are "pretty much set," U.S. trade representative Jamieson Greer says
Jamieson Greer, the U.S. trade representative, said in an interview that aired Sunday that tariff rates are "pretty much set" on more than 60 trading partners after President Trump's executive order last week. "So these, these tariff rates are pretty much set," Greer said in an interview Friday with "Face the Nation with Margaret Brennan. "I expect I do have my phone blowing up. There are trade ministers who, who want to talk more and see how they can work in a different way with the United States, but I think that we have, we're seeing truly the contours of the president's tariff plan right now with these rates." Hours ahead of the Trump administration's self-imposed deadline for baseline tariffs on Friday, the White House announced tariff rates for imports from dozens of countries, including a handful that have cut trade deals with the administration and dozens that haven't reached a deal yet. All imports will have a 10% tariff rate as of Aug. 7, according to the executive order. When asked if Mr. Trump will be negotiating more deals in coming days, Greer answered, "I don't think they will be," but he added these tariff rates are "set rates pursuant to deals." "When the president is looking at this, he looks at potential deals, and we bring him potential concessions from countries and the things they might want to do," Greer said. "And he compares that to the potential tariff that might be applied to try to get that deficit down. And then talking to his advisors, he makes a call on this." Ahead of the Aug. 1 deadline, the Trump administration touted a number of deals for tariffs, including South Korea, the European Union and Britain. But other major U.S. trading partners did not reach deals, including Canada, which Mr. Trump levied a 35% tariff on goods not subject the United States-Mexico-Canada Agreement (USMCA). Canada is the U.S.' second-largest trading partner. "The President's view with with every country, whether it's Canada or Mexico, and regardless of the kind of trade agreement we have in place, is that the net result of the trading system, whether it's our WTO agreements or our existing trade agreements, the net result has been that a lot of the manufacturing has gone overseas, and when that's the net result, you can't continue with that system," Greer said. "So you know, I'm not concerned that it's going to complicate things with Canada. Our view is the President is trying to fix the terms of trade with Canada, and if there's a way to a deal, we'll find it. And if it's not, we'll have the tariff levels that we have," the trade adviser said. Bank of America CEO Brian Moynihan, who Brennan interviewed separately on "Face the Nation," said that Bank of America economists have predicted that while the economy will still continue to grow, they are predicting "less growth than they would have had six, nine months ago, and reflects the impact of the tariff war and the trade and all that." As for the economic impact that tariffs will have on the economy, Moynihan said "no one really knows, honestly, because this is a different regime than we've been in before."
