Latest news with #BenBerkowitz
Business Insider
29-05-2025
- Business
- Business Insider
Court rules Trump doesn't have authority to place global tariffs, Axios says
The U.S. Court of International Trade has determined that President Trump does not have the authority under economic emergency legislation to impose sweeping tariffs worldwide, Axios' Ben Berkowitz reports. The court's ruling could bring the White House's trade war to a halt, the author notes. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
Axios
25-05-2025
- Business
- Axios
Walmart, Subaru, Mattel: These are the brands raising prices due to Trump's tariffs
What do luxury apparel fans and little kids have in common? Their favorite brands may have to hike prices due to tariff strain. The big picture: From Ralph Lauren to Barbie maker Mattel, several household names have recently announced they're looking at higher prices in an effort to offset tariffs. Driving the news: Even after a temporary deal this month reduced tariffs on China, the economic hangover persists — and uncertainty lingers even as the administration says more trade deals are coming. Last month, CEOs from some of the nation's biggest retailers warned President Trump that his trade policies could disrupt supply chains, raise prices and empty shelves, Axios' Marc Caputo and Ben Berkowitz reported. Between the lines: But the administration's steadfast position is that U.S. consumers don't bear the burden of tariffs and that foreign countries and producers do. Commerce Secretary Howard Lutnick called claims to the contrary "silly arguments" — and then four days later, Walmart warned it would raise prices. Even after that, the White House continued to insist its position was correct, with the president demanding Walmart "STOP trying to blame Tariffs as the reason for raising prices throughout the chain." Thought bubble, from Axios' Ben Berkowitz: Higher prices are inevitable now, even if the trade war somehow ended today — supply chains are under stress, manufacturers are struggling with input costs, and retailers' warehouses are emptying out. Inflation data doesn't show it yet, but consumers see it coming and expect it to be severe. Here are the companies that said they will or may raise prices: Walmart Walmart officials said in mid-May that the company expects to raise some prices because of Trump's tariffs, Axios' Kelly Tyko reported. Even with the China deal, Walmart CEO Doug McMillon said during a quarterly earnings call that "we aren't able to absorb all the pressure given the reality of narrow retail margins." Consumers could see higher prices as soon as the end of May, Walmart's chief financial officer, John David Rainey, told CNBC. Friction point: The company's announcement drew Trump's ire — and Treasury Secretary Scott Bessent said on NBC's "Meet the Press" that Walmart would in fact "eat some of the tariffs." Ralph Lauren Ralph Lauren said in May that it will raise prices more than previously planned to offset tariffs, the Wall Street Journal reported. Some price increases were already expected for the fall — but now, the hikes will likely be even higher in the fall and following spring, per the WSJ. Mattel After Trump predicted his tariffs could mean dolls will cost "a couple" bucks more in the U.S., Mattel seemingly confirmed that. The toy manufacturer said in early May that it would have to raise prices for some products sold in the U.S. Roughly 80% of toys sold in the U.S. are made in China, Bloomberg reported. Mattel also paused its financial guidance for the year, "given the volatile macro-economic environment and evolving U.S. tariff situation." What they're saying: Chief Executive Officer Ynon Kreiz told investors that he still expects 40% to 50% of products to remain priced at $20 or less, CNN reported. Trump also took aim at Mattel after it warned of price hikes, threatening to impose a 100% tariff on its products and saying "he won't sell one toy in the United States." Volvo Trump in a May 23 Truth Social post said he was recommending a 50% tariff on imports from the European Union starting on June 1. If that were the case, Volvo Cars CEO Håkan Samuelsson told Reuters that the Swedish car company's customers would have to pay a large part of tariff-related cost increases. Subaru Subaru of America told Reuters in mid-May it would begin increasing prices on several vehicle models. It said the changes were made in response to "current market conditions" but did not specifically cite tariffs. Ford Ford is also hiking sticker prices on three Mexico-produced models, Reuters first reported. The changes were "usual mid-year pricing actions combined with some tariffs we are facing," a spokesperson told CNN, which reported the price increase would apply to cars built after May 2. Nike, Adidas In a statement late last month on the company's first quarter results, Adidas CEO Bjørn Gulden said higher tariffs would "eventually cause higher costs for all our products for the US market." Nike plans to increase prices starting June 1, according to multiple reports. While the athletic-wear giant did not cite Trump's tariffs as the reason for the price hikes, the change coincided with many other brands raising prices as a result of the trade war. ABC reported that adult clothing and equipment prices could increase between $2 and $10, shoes and sneakers between $100 and $150 will increase by $5, while footwear over $150 will increase by up to $10.
Axios
12-05-2025
- Business
- Axios
Trump says European Union is "nastier than China"
President Trump said the "European Union is, in many ways, nastier than China," during a news conference on Monday. Why it matters: The stakes of a prolonged U.S.-EU standoff over Trump's tariffs are high. With nearly a trillion dollars worth of trade last year, U.S. companies exported more than twice to the EU what they sent to China. Driving the news: During the news conference, Trump announced an executive order aimed at cutting prescription drugs and pharmaceutical prices. He said that Europeans should have to pay more for drugs and take on financial burdens. Trump said the U.S. has "all the cards" in trade deals with the EU. By the numbers: Trump, in his remarks Monday, insisted Europe sells the U.S. 13 million cars a year and the U.S. sells none in return. The European Automobile Manufacturers Association has said it's not quite that stark, according to a March fact sheet. About 750,000 cars were exported from the EU to the U.S. last year, against about 170,000 cars exported from the U.S. to Europe. Our thought bubble, from Axios' Ben Berkowitz: Trump's tough talk with Europe may go farther than it did with China, which responded to his tariffs almost instantly with their own tit-for-tat retaliation. The EU, on the other hand, recently launched a public review of a proposed list of $100 billion in possible tariff targets, which will last a month and be followed by more political negotiations, before any possible implementation in mid-summer. Any trade talks may also be colored by the administration's well-known skepticism about America's relationship with Europe.
Axios
03-04-2025
- Business
- Axios
EU, China and Canada warn U.S. of counter-tariffs, as trade war heats up
Officials in the European Union, China and North American neighbor Canada say they're preparing countermeasures in response to President Trump's announcement of sweeping tariffs on U.S. imports. Why it matters: A global trade war is heating up following Trump's announcement of a baseline 10% tariff on U.S. imports, with higher levies hitting China, the EU and elsewhere, which threatens to trigger stagflation with profound consequences for global economies, per Axios' Ben Berkowitz. Driving the news: European Commission President Ursula von der Leyen announced on Thursday plans for new measures in response to Trump's tariffs announcement a day earlier that would see an additional 20% tariffs imposed on EU imports, which he hailed as " Liberation Day" for the U.S. The levies are due to take effect next Wednesday. Representatives for the Trump administration did not immediately respond to Axios' requests for comment in the evening. What they're saying: "We are already finalizing a first package of countermeasures in response to tariffs on steel," von der Leyen said during a visit to Samarkand, Uzbekistan. "And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail," she said. "There seems to be no order in the disorder, no clear path to the complexity and chaos that is being created." China's Commerce Ministry said in a statement carried by state media earlier Thursday Chinese officials "will resolutely adopt countermeasures to safeguard its rights and interests." Canadian Prime Minister Mark Carney on Wednesday said Wednesday: "We are going to fight these tariffs with countermeasures." Context: U.S. officials said the 25% tariffs applied on Canadian and Mexican imports that don't comply with the USMCA trade agreement will go into effect until the nations impose tighter border controls, per Axios' Courtenay Brown.
Axios
06-03-2025
- Business
- Axios
Republicans favor Trump tariffs despite anticipated price hikes: poll
Republicans overwhelmingly support President Trump's tariffs in spite of the higher costs they're likely to face as a result of them, according to a new Economist/YouGov poll out this week. Why it matters: After promising to lower prices if elected, Trump's tariffs targeting the U.S.'s biggest trade partners will cost the average American household at least $830 per year, economists have warned. Trump eased some tariffs on the U.S.' North American neighbors with temporary carve-outs for the auto sector, an industry that relies on free trade with Canada and Mexico. The White House is also reportedly considering exemptions for some agricultural goods from the tariffs on Canada and Mexico, Bloomberg reported. Driving the news: Republicans expressed the strongest support for a 10% tariff on goods from China, with 78% approving of it. Trump has since increased the levy to 20%. Just 23% of Democrats and 42% of Independents said they supported a tariff on goods from China. The GOP support for 25% tariffs on Canada (57%) and Mexico (68%) was lower, but far outpaced the number of Democrats and Independents who approved of them. Between the lines: Over half of Republican respondents (56%) acknowledged that increasing tariffs generally increases prices. 13% said they thought there would be no effect on prices, while 9% said tariffs would decrease prices and 22% weren't sure. 40% of Republicans said that mostly companies and people in the country exporting products would ultimately bear the cost of tariffs. Meanwhile, 39% agreed that mostly companies and people in the U.S. would bear the brunt, while 20% said they weren't sure. The other side: Three-quarters of Democrats said U.S. companies and consumers would mostly feel the cost, with only 10% saying companies and people in the exporting country would. 82% of Democrats said that tariffs would increase prices. State of play: Trump on the campaign trail floated tariffs as "the greatest thing ever invented" and cast them as an economic cure-all. Tariffs can raise revenues for imposing governments, but they can also hurt domestic companies and consumers. Soybean farmers are one such case study: They've yet to recover the market share in China lost during the Trump 1.0 trade war and now face renewed uncertainty. Thought bubble, from Axios' Managing Editor for Business & Markets Ben Berkowitz: The results make clear most Americans simply don't believe Trump's long-lived argument that tariffs don't raise prices, and that it's the tariffed countries who really pay. Whether they support the tariffs or not may not be relevant in the end, if the mere belief that prices will rise is enough to keep eroding consumer sentiment and holding people back from making big purchases. That may be why Trump's language has shifted subtly in recent months, from prices will go down (campaign trail) to prices won't rise as fast (transition) to "a little disturbance" in prices (now). Methodology: The poll of 1,638 U.S. adults was conducted on March 1-4 and has a margin of error of +/- 3.7% percentage points. Go deeper: New tariffs hit, but there's a $100 billion hole in the data
