Latest news with #Bidenflation
Fox News
03-06-2025
- Business
- Fox News
Still a no: Rand Paul says $5T debt increase in 'Big, Beautiful Bill' a deal-breaker
Sen. Rand Paul, R-Ky., said the debt limit increase included in the One Big Beautiful Bill Act is still a deal-breaker for him, saying it goes against conservative values, despite discussions with President Donald Trump about his concerns. Paul told reporters on Monday that the bill will increase the debt ceiling by $5 trillion, the largest debt increase in the U.S. "We have never raised the debt ceiling without actually meeting that target," he said. "So you can say it doesn't directly add to the debt, but if you increase the ceiling $5 trillion, you'll meet that. And what it does is it puts it off the back-burner. And then we won't discuss it for a year or two." "So I think it's a terrible idea to do this," he added. Paul said he spoke with Trump about his concerns over the legislation during a "lengthy discussion," but that Trump "did most of the talking." "I've told him I can't support the bill if they're together," Paul said. "If they were to separate out and take the, debt ceiling off that I very much could consider the rest of the bill." Paul noted that Congress voted to continue spending to avert a government shutdown. "During the campaign, Republicans said they were against Bidennomics and Bidenflation and Biden spending. When March, we renewed the Biden's spending levels," Paul said. "So the spending levels we live under now are Biden-GOP spending levels. They've all come into agreement." "But come the end of September, when our fiscal year ends, the deficit is going to be $2.2 trillion. That's just not conservative," he added. "They're borrowing 5 trillion. That means they're anticipating the following year being over 2 trillion as well. So it's just not a conservative thing to do." Over the weekend, Trump warned Paul would be "playing right into the hands of the Democrats" if he votes against the bill. "If Senator Rand Paul votes against our Great, Big, Beautiful Bill, he is voting for, along with the Radical Left Democrats, a 68% Tax Increase and, perhaps even more importantly, a first time ever default on U.S. Debt," he wrote on his Truth Social platform. "Rand will be playing right into the hands of the Democrats, and the GREAT people of Kentucky will never forgive him! The GROWTH we are experiencing, plus some cost-cutting later on, will solve ALL problems. America will be greater than ever before!" he added. Next week, Senate Republicans will get their turn to go through the bill and are eying changes that could be a hard sell for House Speaker Mike Johnson, R-La.
Fox News
01-05-2025
- Business
- Fox News
Amazon Tariff Transparency Debacle
Amazon reportedly considered and then reconsidered a plan to show 'tariff transparency' on items featured on its site. I'm Tomi Lahren, more next. This week rumors swirled that Amazon was planning to add tariff price increase labels next to certain products on the website. According to an Amazon spokesperson, marking import charges on certain items was simply an idea that was 'considered' for products on the ultra low cost 'Amazon Haul' store but was never approved. Many speculate President Trump may have talked Amazon head honcho Jeff Bezos out of the idea when Trump himself commented 'Jeff Bezos is very nice. Terrific. He solved the problem very quickly. He did the right thing.' Either way. That short-lived idea would have been a rather politically selective one given products never listed the 'Bidenflation' markups during the 4 years of disastrous 'Bidenomics!' I understand why folks are concerned about prices during this tense tariff negotiation period. I would just remind you to have faith in the process and faith in the negotiator-in-chief! I'm Tomi Lahren and you watch my show 'Tomi Lahren is Fearless' at Learn more about your ad choices. Visit
Yahoo
29-04-2025
- Business
- Yahoo
Commentary: Trump's next tariff war will be with your favorite store
President Trump's tariffs on thousands of imported products will basically be an unnecessary surcharge making a lot of stuff more expensive. But Trump doesn't want you to know that. As the Trump tariffs snarl global supply chains, an inevitable brawl is brewing over how to explain the coming chaos to millions of American consumers. Retailers anticipate higher prices and product shortages by summer. The CEOs of Walmart, Target, and Home Depot told Trump as much during a recent meeting at the White House. Trump, apparently, wants retailers to keep the source of the chaos a secret. Amazon has reportedly been developing a plan to show the added cost of the Trump tariffs for affected products. After that news broke on April 29, the White House immediately attacked Amazon's plan as a "hostile and political act," as White House press secretary Karoline Leavitt called it. She pointed out that Amazon didn't attribute higher prices to President Biden when inflation hit 9% in 2022. Amazon said it was considering tariff disclaimers on its low-budget Haul app but not its main site. The online giant will doubtless desist now that Trump has taken notice. But the problem isn't going away, and the Amazon spat is a preview of a huge tariff blame game sure to erupt as the Trump tariffs do their dirty work. Tariffs are inflationary by definition. They're a consumption tax added to the cost of imports, and in some cases the price hikes will be dramatic. There's currently a 145% tariff on most products from China, which will bring sharply higher prices for clothing, appliances, electronics, toys, and many other things. In some cases, the tariffs will be so high that importers will refuse to pay them, which means some inventories will simply run out. Read more: The latest news and updates on Trump's tariffs An unmistakable lesson of the Biden-era inflation is that voters hate high prices and eventually punish whoever they think is responsible. Retailers don't want the blame, which is why they routinely say they're only passing on higher costs from their suppliers. Airlines list all the taxes applied to a ticket because they want you to know the government is responsible for a big part of the cost. The Trump tariffs are unique in that they will be a sole-source cause of higher prices. Bidenflation, by contrast, was a confluence of several factors, such as COVID-era shortages and supply chain disruptions, along with overaggressive government stimulus. Maybe Biden and his team should have seen it coming, but they didn't deliberately cause higher inflation and then stick with a failing policy while most economists told them it would fail. When Trumpflation arrives in a few months, retailers will want their customers to know it isn't their fault. But Trump has now signaled he'll go after them if they blame higher prices on his tariffs. And Trump has shown he'll use the full power of the federal government to punish to an extreme, Trump could seek to punish CEOs for criticizing his tariffs in earnings calls and reports to shareholders. That would be ridiculous, given that public companies are obligated to be transparent about factors affecting costs and profitability. Yet it's not beyond Trump to threaten and intimidate despite weak legal standing. The tariff blame game will probably go something like this: Once price hikes become notable and consumers begin to balk, retailers will begin posting bland notices that lack the word "Trump" but point out that recent government policy changes have led to higher import costs. If retailers do this en masse, it will make it harder for Trump to target any particular chain for retribution. Small businesses integrated into communities will do the same through word of mouth and informal notices — the way many restaurants have added an egg surcharge to their menus. Read more: $6 eggs and other inflation pain points: Here's where prices are rising It won't take a lot of effort to explain to shoppers why prices are suddenly higher. Many surveys show that Americans are already highly aware of Trump's tariffs and their likely effects. The University of Michigan's monthly sentiment survey, as one example, recently found that consumers now have the highest inflation expectations since 1981. That is entirely because they expect Trump's tariffs to raise prices. Virtually all the other inflationary pressures of the past three years have dissipated, and inflation expectations were falling until Trump took office. Trump has one huge advantage Biden didn't: He can simply cancel his tariffs, end the inflationary threat, and forego a battle with retailers over who's to blame for consumer pain. Biden could have only wished for such an easy inflation exit ramp. But Trump relishes a fight more than Biden did, and yet another one is almost certainly on the way. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices.
Yahoo
26-04-2025
- Business
- Yahoo
This week in Trumponomics: Consumer freakout
President Trump says "tariff" is the "most beautiful word" he knows. Many Americans wish it were banned from the language. Trump's imposed and threatened tariffs on imports have pounded consumers' attitudes about the economy, as Americans brace for soaring prices, product shortages, and worse. Tariffs are an arcane throwback to old-timey economies that predate air travel and computer chips. Yet Americans get the gist, and they're increasingly alarmed. The University of Michigan consumer sentiment index for April hit its lowest level since the middle of 2022, when the inflation that vexed Joe Biden's presidency was at its peak. Back then, inflation was nearly 9% and gasoline was close to $5 per gallon. The rising cost of food, rent, and many everyday things enraged consumers and sent President Biden's approval rating to its lowest level until that point. It never recovered. Trump, inexplicably, is replaying the Biden inflation story as if he'll end up with a better outcome. Trump inherited relatively low inflation, with year-over-year price gains of 3% when he took office in January and just 2.4% in March, the latest reading. Read more: 7 ways to recession-proof your savings But those are pre-tariff numbers, and they're not what most Americans are focusing on. Instead, they're preparing for price and supply shocks that are likely to begin in a few months as Trump's import tariffs careen through the economy. Read more: The latest news and updates on Trump's tariffs Trump has raised the average tax on $3 trillion worth of imports from a low 2.5% when he took office to a hefty 27%. If import purchases stayed the same, that would be a tax hike on American businesses and consumers of more than $700 billion. But the tariffs on some imports, especially those from China, are so high that they'll distort markets and change the whole flow of products. Trump's tariff of 145% on most Chinese imports is so prohibitive that cargo ships aren't even docking because importers can't or won't pay such a high tax. If this goes on, the inevitable result will be shortages of clothing, electronics, pharmaceuticals, and many other products by summer or fall, along with higher prices for the stuff that passes through or avoids Trump's tariff haven't pulled back on spending yet. In fact, they may be stocking up in anticipation of higher prices later. But they clearly see a shock coming. In the Michigan survey, respondents said they expect the inflation rate in 12 months to be 6.5%. That's the highest inflation outlook since 1981. During the worst of Bidenflation, the one-year inflation outlook only got as high as 5.4%. Americans are expecting worse inflation under Trump than they did under Biden. Economists aren't that gloomy. They broadly think inflation could peak between 4% and 5% as the steepest Trump tariffs take their toll. But they also think there's a rising chance of a recession since the higher cost of tariffs will slow spending, economic growth, and hiring. Inflation normally falls during a recession since fewer people are employed, with money to spend. Why would Trump even risk a replay of Bidenflation? Or a recession? Or both? Trump seems to truly believe his tariffs will create a powerful incentive for renewed manufacturing in the United States, which in turn will be worth whatever the cost on consumers and businesses is now. In a recent interview with Time, Trump said that if import taxes ended up being 30% or 50% a year from now, he'd consider that "total victory." "The country will be making a fortune," Trump said. For unknown reasons, Trump doesn't acknowledge that tariffs are a consumption tax paid by Americans, with the "fortune" coming from the bank accounts of US businesses and their customers. Trump, nonetheless, has hinted that trade deals are afoot with dozens of trading partners, which might lower the Trump tariffs on imports bought by Americans in exchange for more favorable treatment of US exports sent to other countries. Whipsawed markets are buying it, for now, with stocks up by more than 5% for the week ending April 25. Consumers, however, consider "tariff" a dirty word, and they won't feel relief until Trump stops using it. Rick Newman is a senior columnist for Yahoo Finance. Follow him on Bluesky and X: @rickjnewman. Click here for political news related to business and money policies that will shape tomorrow's stock prices. Sign in to access your portfolio
The Hill
03-04-2025
- Business
- The Hill
Pence on Trump tariffs: ‘Largest peacetime tax hike in U.S. history'
Former Vice President Pence warned about the economic and political risks of the Trump administration's sweeping reciprocal tariffs on other nations, calling them the 'largest peacetime tax hike in U.S. history.' Pence, who served alongside Trump during his first term, posted on the social platform X following Wednesday's announcement that the tariffs 'are nearly 10x the size of those imposed during the Trump-Pence Administration and will cost American families over $3,500 per year.' The former vice president cited data from his advocacy group, Advancing American Freedom, which made the case that tariffs and uncertainty around the economy contribute to layoffs. Pence's advocacy group also noted that a recent YouGov/Yahoo poll found Trump's approval rating on the economy was just 39 percent. 'American families are still reeling from 20% Bidenflation. An equally large Trump Tariff Tax will hurt families and make them look elsewhere come the next election,' Advancing American Freedom stated in a memo on the tariffs. Trump's announcement on Wednesday of severe tariffs against more than 100 countries has spurred fears of a global trade war and sent financial markets plummeting. Pence, who ran unsuccessfully in the 2024 GOP presidential primary, has broken with Trump on matters of foreign policy and tariffs while supporting the president's agenda in other areas. The former vice president is one of just a handful of prominent Republicans who have publicly criticized Trump's aggressive use of tariffs and argued they are a departure from his more targeted use of the policy during his first term. Most in the party have backed Trump's approach and argued any short-term economic pain will be worth it.
