DOJ confirms it will not prosecute Boeing for role in deadly 737 Max crashes
It said it would ask a federal court to dismiss the case by no later than the end of next week. The development confirms what families had said they were told by prosecutors in a private videoconference last week. The deal marks a reversal after the company agreed last year to plead guilty to one count of fraud.
Government prosecutors made Friday's disclosure in a status update to Judge Reed O'Connor of the Northern District of Texas, who must approve the deal. They called the agreement 'a fair and just resolution that serves the public interest.' Boeing declined to comment.
Under the terms of the two-year, non-prosecution agreement, Boeing would admit to 'conspiracy to obstruct and impede the lawful operation of the FAA Aircraft Evaluation group.' It also would be required to pay $444.5 million into a crash victims' fund that would go to relatives, in addition to other previously agreed up payments and penalties. Rather than being subject to oversight by an independent monitor, as Boeing agreed to last year under the previous agreement, the company would be required to hire a compliance consultant.
'The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,' prosecutors wrote Friday.
They said they finalized terms after presenting an outline of the new agreement to the families of the victims last week.
In their filing, Justice Department officials said that some families approved of the agreement, saying they were eager to bring a close to the long-running case. But they acknowledge that some are sharply critical about the decision not to take the company to trial. The Justice Department has said Boeing deceived federal regulators about a software system installed on the 737 Max jets that was implicated in the two crashes — one in 2018 in Indonesia and the other five months later in 2019 in Ethiopia.
If O'Connor accepts the deal and dismisses the case, it would mark the end of a legal saga related to criminal culpability in the crashes. Civil lawsuits brought by families would continue.
During the first Trump administration, Boeing reached a three-year deferred prosecution agreement. Under the terms, Boeing was required to pay a fine and meet certain conditions, including strengthening internal programs aimed at detecting and preventing future incidents of fraud. If it met the requirements after three years, the criminal charge would be dropped.
But just two days before the agreement was set to expire, opening up a six-month review period, a door panel blew off another 737 Max jet. After a review, federal prosecutors under the Biden administration determined that Boeing was in breach of the deferred prosecution agreement. The company disagreed but agreed last summer to plead guilty to one count of fraud.
Court proceedings delayed the final resolution of the case for months, and a new presidential administration took over the Justice Department in January.
The dismissal of the criminal case will mean that Boeing, which has myriad defense and space contracts, will not need to seek waivers to do business with the government. Companies convicted of certain felonies are barred from doing business with the government and must seek waivers.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
a minute ago
- Yahoo
Three dead, nine wounded in mass shooting at Brooklyn lounge
A gang-related gunfight inside a crowded Brooklyn lounge early Sunday left three men dead and nine people, including innocent bystanders, wounded, cops said. The mass shooting erupted inside the crowded Taste of the City Lounge on Franklin Avenue near Carroll Street in Crown Heights just before 3:30 a.m., cops said. 'We believe that there were up to four shooters involved in this incident. Our crime scene investigators have now recovered shell casings from multiple guns,' NYPD Commissioner Jessica Tisch said at a press briefing at City Hall. 'The shell casings appear to be from 9-mm and .45-caliber weapons.' 'We was just in there,' said clubgoer Marie Desir, a 40-year-old mother of two who fled the shooting. 'I heard a few gunshots and then … People on the floor, running, trying to save their life just like I did.' She said she hit the floor when the shots started. 'I ducked down and after that I found a way to get out,' she said. 'I laid down on the floor first and when I found a way to get out, I just got out because I was right there close to the door.' She returned to the club hours later because one of her friends, Guerby Tida, 32, went missing in the mayhem. He showed up at the curb, where his car was parked, midday Sunday, leading to an emotional reunion after Desir worried he was among the dead. 'I'm OK,' he told her. 'Thank god everything's good.' The shooting is believed to be gang related but Tisch declined to provide further details on motive, citing the ongoing investigation. An argument inside the crowded club led to the shooting, she said. Some of the victims are believed to have been involved in the clash while others are likely innocent bystanders. 'What happened in Crown Heights this morning was a tragic senseless act of violence,' Tisch said. 'The club did have bouncers, and we are working now to identify those bouncers and interview them.' Cops recovered a firearm close by the lounge near Bedford Avenue and Eastern Parkway that may be connected to the shooting, she said. Investigators are reviewing surveillance video and no arrests have been made so far. Rajawn Philips, 40, who works in the smoke shop next door, said he heard the shots and checked the camera feed from outside his store. 'I saw people running,' he said. 'I looked out the door. I saw the intensity of the running.' A 35-year-old man and a 27-year-old man died at area hospitals while a 19-year-old man died at the scene, Tisch said. Six men and three women were wounded but survived, the oldest 61 and the youngest 27, according to police sources. They were all hospitalized and are expected to recover. 'As you get to the door, you see shot victims,' said Philips, who left his smoke shop to check on the scene. 'A girl was shot in the face. This guy shot in the leg. Another guy out here this morning shot in the a–.' He saw medics doing CPR and chest compressions on patrons. It's the second shooting at the club in less than a year. A 28-year-old man survived being shot in the back and arm in front of the club about 4 a.m. Nov. 17, according to police. The victim told cops he was standing outside the lounge when two men he didn't know approached him and started arguing with him, cop sources said. One of them whipped out a gun and opened fire. In February, cops released surveillance footage of a suspect they were still looking for in that shooting and asked the public's help identifying him. Taste of the City Lounge serves Caribbean fusion cuisine and has a full bar with hookahs, DJs and live music. Philips said security at the lounge is tight but that's not enough to stop it from being a 'problematic place.' 'Every night it's some type of altercation so I'm surprised that three people died there but I'm also not surprised at the same time,' he said. 'This is not new. It's the normal.' 'Every single victim of violence, particularly gun violence, is one too many and last night's mass shooting reminds us all the work that we must continue to do,' Mayor Eric Adams said Sunday. 'This is the second (mass shooting) within weeks, and we don't want this to turn into a normal course of doing business.' On June 28, Shane Tamura opened fire with an assault rifle in a Midtown Manhattan skyscraper, murdering an NYPD officer and three others before killing himself. The violence comes as the city has seen significant drops in violent crimes through Aug. 10 compared to the same period last year, including a 24% drop in murders and a 21% drop in shootings. 'We have the lowest number of shooting incidents and shooting victims seven months into the year that we've seen on record in the city of New York,' Tisch said. 'Something like this is, of course, thank God, an anomaly. And it's a terrible thing that happened this morning, but we're going to investigate and get to the bottom of what went down.' _____
Yahoo
a minute ago
- Yahoo
Trump tariffs live updates: Retail earnings to put tariffs' impact in focus; Trump says semiconductor tariffs coming soon
Several major retailers will report earnings in the coming week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). During Walmart's first-quarter earnings call, CEO Doug McMillon said the tariffs would result in higher prices, but didn't elaborate. A few days later, Trump posted to Truth Social that the company should "eat the tariffs" and not blame them for raising prices. This week's earnings reports should show how much Walmart and the other retailers have fared. On Friday, Trump said he would unveil tariffs on semiconductor imports over the next couple of weeks as he prepares to expand his tariff agenda to different sectors. "I'll be setting tariffs next week and the week after on ... chips — chips and semiconductors," he told reporters. Trump has already suggested he could set tariffs on chip imports around 100%. On Friday, he floated an even bigger number. "I'm going to have a rate that is going to be 200%, 300%," he said. The president has also promised duties on pharmaceutical imports in the near future. Tariffs have starting to show up in economic data for the first time in a significant way. Wholesale inflation surged in July, rising by its fastest pace in around three years and stunning market observers. So far, inflation data has shown little impact since Trump began rolling out sweeping duties in the spring. But as the tariffs become more engrained in the US economy, economists expect more data points to align with the Producer Price Index report — perhaps most notably in next month's Consumer Price Index. Earlier this month, Trump unveiled "reciprocal" tariffs on dozens of US trade partners (which you can see in the graphic below). The next negotiations to watch are Canada, Mexico, and China in the coming months. The tariffs are also facing legal limbo. Multiple challenges to Trump's tariffs are pending in US federal courts. The one garnering the most attention is a case heard by an appeals court in July. The Court could nullify or uphold the duties at any time. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Candidates at Iowa State Fair hear from voters about Trump tariffs (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. Tariffs' impact on Walmart, other retailers' earnings about to come into focus Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Trump's trade war not likely to cause recession, Moody's economist says Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Commerce department applies 50% steel, aluminum tariffs to more products (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. Consumers' inflation expectations rise amid Trump tariffs Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. US import prices rebound in July on higher consumer goods costs US import prices rebounded in July in the latest sign that inflation is set to pick up because of tariffs. Reuters reports: Read more here. Trump says semiconductor tariffs could reach 300% President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%. From Bloomberg: Read more here. Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. China's economy lags in July under pressure from tariffs and a weak property market China's economy lagged in July as factory output and retails sales slowed and house prices dropped, according to data released on Friday. President Trump's tariffs have added to uncertainty on exports and are looming over the world's second-largest economy. Concerns linger despite Trump extending a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May. AP reports: Read more here. Taiwan lifts 2025 growth forecast, defying US tariff worries Bloomberg News reports: Read more here. These tariffs are bananas An interesting spot from this week's inflation data: Prices for the reliable, potassium-heavy banana have jumped to their highest price ever recorded. Banana prices peaked around $0.64 per pound in the post-COVID inflation wave and then went on a slow downward trajectory. That is, until April 2025, when President Trump announced his first wave of sweeping tariffs. Prices are now hovering near $0.66 per pound. As the Yale Budget Lab chief Ernie Tedeschi noted on X, the average tariff rate on banana imports went from virtually nothing to very much something as Trump imposed tariffs on most US trading partners. That's nuts! Tapestry forecasts annual profit below estimates on tariff pain Tapestry (TPR) stock fell 8% before the bell on Thursday after the Coach handbag maker forecast annual profit below estimates. The company cited higher costs due to tariffs that have hit its margins. Reuters reports: Read more here. Tariff confusion drives record volume at Los Angeles Port (Bloomberg) — The Port of Los Angeles said it handled the highest container volume in its 117-year history last month, as uncertainty over President Donald Trump's tariffs drives shippers to front-load cargoes. Already the busiest port in the country, LA moved more than 1 million twenty-foot equivalent units (TEUs) in July, an 8.5% increase from a year ago, the operator said on Wednesday. That includes containers entering and exiting its terminals, with loaded imports rising by a similar percentage to nearly 544,000 TEUs. The total volume handled was 14.2% higher than in June. Read more here. Pharma tariffs are likely weeks away, Reuters reports US tariffs on pharmaceutical imports are coming but not imminent, Reuters reported Wednesday, citing unnamed sources. Trump has previously warned duties on the drug industry could reach as much as 250%. Reuters reports: Read more here. Brazil's Lula announces $5.5 billion in credits for exporters hit by US tariffs Brazilinan President Luiz Inácio Lula da Silva has announced a plan that includes $5 billion in credit to help local exporters handle tariffs . Associated Press reports: Read more here. Swiss say tariffs could raise costs for US F-35A jets The original price of the 36 fighter jets Switzerland is buying from the United States could go up by more than $1 billion due to the impacts of tariffs. Reuters reports: Read more from Reuters here. AI boom could help manufacturers adapt to global tariff landscape Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump's tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers. Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump's trade policy is driving the technology push. "That's how it was during the financial crisis, Brexit and COVID," Howells stated. "And it's what we're seeing now." Read more here. GE Appliances to invest over $3B in US, moving from China and Mexico GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states. AP News reports: Read more here. Bessent dismisses China investing in US as part of a trade deal Treasury Secretary Scott Bessent ruled out Chinese investments as part of a US trade deal. When asked if China would offer a multi-billion dollar pleadges like Japan, South Korea and the EU, Bessent said no. Bloomberg News reports: Read more here. Tariffs bring in record $27.7 billion in July as Trump calls haul 'incredible for our country' Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Candidates at Iowa State Fair hear from voters about Trump tariffs (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. Tariffs' impact on Walmart, other retailers' earnings about to come into focus Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Trump's trade war not likely to cause recession, Moody's economist says Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Commerce department applies 50% steel, aluminum tariffs to more products (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. Consumers' inflation expectations rise amid Trump tariffs Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. US import prices rebound in July on higher consumer goods costs US import prices rebounded in July in the latest sign that inflation is set to pick up because of tariffs. Reuters reports: Read more here. US import prices rebounded in July in the latest sign that inflation is set to pick up because of tariffs. Reuters reports: Read more here. Trump says semiconductor tariffs could reach 300% President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%. From Bloomberg: Read more here. President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%. From Bloomberg: Read more here. Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. China's economy lags in July under pressure from tariffs and a weak property market China's economy lagged in July as factory output and retails sales slowed and house prices dropped, according to data released on Friday. President Trump's tariffs have added to uncertainty on exports and are looming over the world's second-largest economy. Concerns linger despite Trump extending a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May. AP reports: Read more here. China's economy lagged in July as factory output and retails sales slowed and house prices dropped, according to data released on Friday. President Trump's tariffs have added to uncertainty on exports and are looming over the world's second-largest economy. Concerns linger despite Trump extending a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May. AP reports: Read more here. Taiwan lifts 2025 growth forecast, defying US tariff worries Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. These tariffs are bananas An interesting spot from this week's inflation data: Prices for the reliable, potassium-heavy banana have jumped to their highest price ever recorded. Banana prices peaked around $0.64 per pound in the post-COVID inflation wave and then went on a slow downward trajectory. That is, until April 2025, when President Trump announced his first wave of sweeping tariffs. Prices are now hovering near $0.66 per pound. As the Yale Budget Lab chief Ernie Tedeschi noted on X, the average tariff rate on banana imports went from virtually nothing to very much something as Trump imposed tariffs on most US trading partners. That's nuts! An interesting spot from this week's inflation data: Prices for the reliable, potassium-heavy banana have jumped to their highest price ever recorded. Banana prices peaked around $0.64 per pound in the post-COVID inflation wave and then went on a slow downward trajectory. That is, until April 2025, when President Trump announced his first wave of sweeping tariffs. Prices are now hovering near $0.66 per pound. As the Yale Budget Lab chief Ernie Tedeschi noted on X, the average tariff rate on banana imports went from virtually nothing to very much something as Trump imposed tariffs on most US trading partners. That's nuts! Tapestry forecasts annual profit below estimates on tariff pain Tapestry (TPR) stock fell 8% before the bell on Thursday after the Coach handbag maker forecast annual profit below estimates. The company cited higher costs due to tariffs that have hit its margins. Reuters reports: Read more here. Tapestry (TPR) stock fell 8% before the bell on Thursday after the Coach handbag maker forecast annual profit below estimates. The company cited higher costs due to tariffs that have hit its margins. Reuters reports: Read more here. Tariff confusion drives record volume at Los Angeles Port (Bloomberg) — The Port of Los Angeles said it handled the highest container volume in its 117-year history last month, as uncertainty over President Donald Trump's tariffs drives shippers to front-load cargoes. Already the busiest port in the country, LA moved more than 1 million twenty-foot equivalent units (TEUs) in July, an 8.5% increase from a year ago, the operator said on Wednesday. That includes containers entering and exiting its terminals, with loaded imports rising by a similar percentage to nearly 544,000 TEUs. The total volume handled was 14.2% higher than in June. Read more here. (Bloomberg) — The Port of Los Angeles said it handled the highest container volume in its 117-year history last month, as uncertainty over President Donald Trump's tariffs drives shippers to front-load cargoes. Already the busiest port in the country, LA moved more than 1 million twenty-foot equivalent units (TEUs) in July, an 8.5% increase from a year ago, the operator said on Wednesday. That includes containers entering and exiting its terminals, with loaded imports rising by a similar percentage to nearly 544,000 TEUs. The total volume handled was 14.2% higher than in June. Read more here. Pharma tariffs are likely weeks away, Reuters reports US tariffs on pharmaceutical imports are coming but not imminent, Reuters reported Wednesday, citing unnamed sources. Trump has previously warned duties on the drug industry could reach as much as 250%. Reuters reports: Read more here. US tariffs on pharmaceutical imports are coming but not imminent, Reuters reported Wednesday, citing unnamed sources. Trump has previously warned duties on the drug industry could reach as much as 250%. Reuters reports: Read more here. Brazil's Lula announces $5.5 billion in credits for exporters hit by US tariffs Brazilinan President Luiz Inácio Lula da Silva has announced a plan that includes $5 billion in credit to help local exporters handle tariffs . Associated Press reports: Read more here. Brazilinan President Luiz Inácio Lula da Silva has announced a plan that includes $5 billion in credit to help local exporters handle tariffs . Associated Press reports: Read more here. Swiss say tariffs could raise costs for US F-35A jets The original price of the 36 fighter jets Switzerland is buying from the United States could go up by more than $1 billion due to the impacts of tariffs. Reuters reports: Read more from Reuters here. The original price of the 36 fighter jets Switzerland is buying from the United States could go up by more than $1 billion due to the impacts of tariffs. Reuters reports: Read more from Reuters here. AI boom could help manufacturers adapt to global tariff landscape Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump's tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers. Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump's trade policy is driving the technology push. "That's how it was during the financial crisis, Brexit and COVID," Howells stated. "And it's what we're seeing now." Read more here. Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump's tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers. Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump's trade policy is driving the technology push. "That's how it was during the financial crisis, Brexit and COVID," Howells stated. "And it's what we're seeing now." Read more here. GE Appliances to invest over $3B in US, moving from China and Mexico GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states. AP News reports: Read more here. GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states. AP News reports: Read more here. Bessent dismisses China investing in US as part of a trade deal Treasury Secretary Scott Bessent ruled out Chinese investments as part of a US trade deal. When asked if China would offer a multi-billion dollar pleadges like Japan, South Korea and the EU, Bessent said no. Bloomberg News reports: Read more here. Treasury Secretary Scott Bessent ruled out Chinese investments as part of a US trade deal. When asked if China would offer a multi-billion dollar pleadges like Japan, South Korea and the EU, Bessent said no. Bloomberg News reports: Read more here. Tariffs bring in record $27.7 billion in July as Trump calls haul 'incredible for our country' Yahoo Finance's Brett LoGiurato and Ben Werschkul report: Yahoo Finance's Brett LoGiurato and Ben Werschkul report: 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
a minute ago
- Yahoo
4 Things to know about the Air Canada labour dispute
After months of stalled negotiations, 10,000 Air Canada flight attendants walked off the job early Saturday morning. The federal government stepped in hours later to order binding arbitration, forcing an end to the strike — or so they thought. The union representing Air Canada flight attendants said Sunday it would defy the back-to-work order and remain on strike. Here's everything you need to know: 1. Government intervention The federal government used a contentious section of labour law to intervene and stop the strike, which began at 12:58 a.m. ET Saturday. Jobs Minister Patty Hajdu invoked Section 107 of the Canada Labour Code, which gives the minister the power to order the end of a work stoppage to "maintain or secure industrial peace." Hajdu used her powers to direct the Canada Industrial Relations Board (CIRB) to order both the airline and the striking workers back to work. Air Canada said Sunday it had been directed by CIRB to resume operations and have flight attendants return to their duties by 2 p.m. ET. Hajdu says she chose to intervene in the labour dispute because "the potential for immediate negative impact on Canadians and our economy is simply too great." "Now is not the time to take risks with our economy," said Hajdu at a news conference in Ottawa Saturday. "A work stoppage would cause thousands of Canadians to be stranded abroad and across this country and this is simply unacceptable." WATCH | How Hajdu intervened in the Air Canada labour dispute: Until recently, Section 107 was a relatively unknown piece of legislation. But last year, the Liberal government invoked it in several major disputes — sending unionized employees back to work at ports, rail yards and Canada Post. Unions are taking the federal government to court for its repeated use of Section 107, arguing it violates Canadians' constitutional right to strike and sours the bargaining process. 2. Union defies back-to-work order The Air Canada Component of the Canadian Union of Public Employees (CUPE) said Sunday morning it will defy the back-to-work order handed down by CIRB. Picket lines remain outside of airports in Toronto, Montreal, Vancouver and Calgary. In a statement Sunday, the union pointed to "a staggering conflict of interest" involving the chair of CIRB, Maryse Tremblay, who served as legal counsel for Air Canada for nearly seven years from 1998 to 2004, according to her LinkedIn profile. | Air Canada had been advocating in recent days for government intervention to resolve the bargaining impasse. "We will be challenging this blatantly unconstitutional order that violates the Charter rights of 10,000 flight attendants, 70 per cent of whom are women, and 100 per cent of whom are forced to do hours of unpaid work by their employer every time they come to work," the union said. Air Canada and CUPE have been negotiating a new contract for flight attendants after the previous 10-year contract expired in March. CUPE says that wages, work rules and unpaid hours are the big issues in contention. According to CUPE, many duties performed by flight attendants prior to boarding and after deplaning, including performing required safety checks and assisting passengers, go unpaid under the current pay structure. 3. Potential union penalties The federal government has invoked Section 107 a number of times in recent years. But it is unusual for a union to defy a CIRB order. "The penalties could be significant" for the union, labour law expert Adam King told CBC News in an interview. Defying a legal back-to-work order could result in fines for the union or workers being fired. It could also lead to criminal prosecution in some cases. WATCH | Picket lines remain at major Canadian airports: In 1978, members of the Canadian Union of Postal Workers were ordered back to work during a national strike. Union president Jean-Claude Parrot defied that order, with workers staying on the picket lines for a week after it was issued. Parrot was jailed for two months for refusing to comply. But King says it's also possible that CUPE's refusal to comply could work in the union's favour. He pointed to the example of Ontario Premier Doug Ford's government ordering CUPE's education workers back to work when they went on strike in 2022. "The entire labour movement in the province responded with the threat of a general strike. And the government was forced to back down and take their legislation away," said King. "If something similar happens here, we could very well see no penalties. If labour mobilizes in support of the flight attendants, they could very well be victorious in this." CBC News has reached out to Hajdu for comment on how the government will respond and will update this story with any response. 4. What does this mean for flights? Air Canada said in a statement Sunday that it will suspend plans to resume operations after CUPE indicated its intentions to remain on strike. The airline says 240 flights that were scheduled to operate beginning this afternoon have now been cancelled. The airline said it will resume flights as of Monday evening. With flight attendants refusing to return to work, it is unclear how Air Canada plans to operate these flights. CBC News has reached out to the airline for clarification. Flights by Air Canada Express, which are operated by third-party airlines Jazz and PAL, are not affected. About 130,000 customers will be affected each day the strike continues, the airline said last week. WATCH | The impact of the flight attendants' strike on travellers: The airline says customers whose flights have been cancelled will be notified and are "strongly advised" not to go to the airport unless they have confirmed flights on other airlines. Air Canada will offer those with cancelled flights other options, including a refund or credit for future travel. For customers due to travel soon, the airline said it will also offer to rebook customers on other carriers, "although capacity is currently limited due to the peak summer travel season."
