Latest news with #BudgetLabatYale
Business Insider
20-05-2025
- Business
- Business Insider
Barry Diller says to let Trump's tariffs happen, though he thinks they will 'end in tears'
Barry Diller thinks that President Donald Trump's tariffs should be allowed to come to pass. "I think it's going to end in tears," the Hollywood mogul and Expedia Group chairman said of Trump's tariff during Monday's episode of the "On with Kara Swisher" podcast. "But you know what?" the 83-year-old billionaire continued. "It's a big gamble. I like big gambles. Maybe you can pull it off. Maybe manufacturing can come back. Maybe it can end taxes for people where you just simply get money from others." "Don't be in this derangement syndrome, and let's see giving it a little good spirit rather than a violent negative spirit — and that's my attitude right now," Diller added. Trump's broad-reaching tariffs have met challenges thus far, and he has paused some of the highest levies. Business leaders, even those who have openly supported him, have expressed concerns about their economic impacts, and stocks tumbled when the tariffs were announced. The Budget Lab at Yale recently said in a report that the income reaped from tariffs won't come close to offsetting the Republicans' proposed tax cuts, which could pass given their majority in Congress and may cost the country $3.4 trillion over the next 9 years. "If we account for the likelihood that these provisions would become permanent, at the end of 30 years the debt-to-GDP ratio would be over 180%, even assuming substantial revenue from tariffs," the non-partisan policy research group wrote. "For context, the only countries with a higher debt-to-GDP ratio currently are Japan and the Sudan." In a separate report on May 12, the Budget Lab at Yale found that Trump's tariffs would cost the average American household a loss of $2,800 per household on average in 2024 dollars in purchasing power. Higher tariffs on 75 trading partners imposed on April 2 were suspended for 90 days starting on April 9. Tariffs on China were temporarily lifted for 90 days on May 14 to negotiate a broader trade agreement.
Yahoo
24-04-2025
- Business
- Yahoo
5 ways to tariff-proof your finances
In recent months, news of the Trump administration's aggressive and ever-evolving tariff policy has been dominating headlines. And Americans are concerned about how higher tariffs will impact their ability to afford daily essentials. A baseline 10% tariff went into effect on April 5 for all affected imports into the U.S. In response, China raised its duties on imports of U.S. goods to 125% (from 84%), and tariffs on Chinese imports have skyrocketed to "a 125% reciprocal tariff, a 20% tariff to address the fentanyl crisis, and Section 301 tariffs on specific goods, between 7.5% and 100%." These tariffs increase the cost for businesses to bring foreign products into the country. So, to maintain profit margins, companies often pass those costs along to consumers in the form of higher prices. There's no telling how much higher these tariffs will go or how long they'll be in place, but there are steps you can take to reduce the impact these policies have on your wallet. This embedded content is not available in your region. In short, tariffs are taxes imposed by the government on imported goods. They're usually charged as a percentage of the item's value and are paid by the importer when the product enters the country. According to recent estimates by the Center for American Progress, the typical American household can now expect to pay an average of $4,600 annually because of Trump's tariffs. A different analysis by the Budget Lab at Yale estimated that the annualized cost of Trump's new tariff scheme for the typical American family is $4,700. Read more: Trump's tariffs: What they mean for the economy and your wallet Tariffs can be a frightening prospect for consumers because there's no way to predict how high tariffs will get and how deeply they will impact your personal finances. However, there are still steps you can take to prepare yourself and your wallet for the potential impacts. When prices rise, it may be harder to justify setting aside cash in a savings account. However, higher costs make it more important than ever to ensure you have a solid financial safety net. 'Keep building that emergency fund,' said Matt Schulz, chief consumer finance analyst for LendingTree. Most experts recommend saving up at least six months' worth of expenses. This financial cushion can help you absorb sudden increases in the cost of essentials as well as avoid going into debt if your monthly expenses outpace your budget or if an unexpected bill hits during a period of higher inflation. Now is a good time to reevaluate your budget and see where you can cut back, especially on nonessential purchases (aka discretionary spending). For example, you can freeze memberships you aren't using, downgrade subscriptions to versions with ads, or even try a no-spend challenge. Reducing your discretionary spending — even if it's temporarily — can open up more cash flow to put toward essential bills, savings, and debt repayment. Read more: Your complete guide to budgeting for 2025 With prices on the rise, it could make sense to adjust your debt repayment strategy. 'Money you have to put toward paying down credit card debt or other high-interest debt is money that can't go toward putting food on the table, building an emergency fund, or reaching other financial goals,' Schulz said. 'It's also money that can't be used to offset rising prices.' In other words, aggressively paying down your debts may not be the best move right now, depending on how much extra money you have in your budget. Instead, Schultz suggested using a 0% balance transfer credit card or low-interest personal loan to consolidate those debts and decrease the amount of interest you're paying. Again, this can help improve your cash flow if money is tight. When tariffs are driving prices up, being intentional about what, where, and how you buy is key. For example, you may consider stocking up on nonperishables and household staples before prices rise further. If you have a large family, it could make sense to join a warehouse club (such as Costco or Sam's Club) to save on the per-unit cost of frequently used items in your home. Additionally, avoid spending on products that are impacted more heavily by higher tariffs, such as electronics, toys, and clothing. You can also use cash-back apps such as Rakuten, Honey, or Ibotta to earn back money on essentials. If you're struggling to manage your finances and aren't sure what your priorities should be, it can help to consult a financial planner. They can help you come up with a tailored plan to pay off debt, meet your savings goals, improve the return on your investments, and create a budget with these goals in mind. 'Regardless of whether tariffs are implemented, your goals are still your goals,' Schulz said. For instance, you still need to invest in your retirement. You may also be saving money to buy a home, pay for your kid's college education, or pay for a wedding. 'These things still matter, so don't let uncertainty around tariffs keep you from focusing on them,' he said. Read more: What is a financial advisor, and what do they do?
Yahoo
12-04-2025
- Business
- Yahoo
'I can't keep up' - Trump's changing tariffs leave shoppers feeling paralysed
When his camera stopped working on his iPhone recently, New Yorker Richard Medina didn't waste any time. With the threat of tariff-fuelled price hikes on smartphones bearing down, he quickly called his phone company for a new one. "I said, 'We've got to switch this out now,'" the 43-year-old recalled. "Let's take care of it." The move was a sign of the pressure rising across the US, where households are being buffeted by what could be staggering price rises, and even possible shortages triggered by the sweeping tariffs that US President Donald Trump announced this month. Some are trying to stock up. Others say they feel paralysed by the changes, which have come quickly, or hope Trump will change his mind and reverse course - not an entirely unreasonable hope given the rapid changes in policy. Trump, facing financial market revolt over his latest tariffs, has already altered his plans repeatedly. First, he scaled back duties that had been planned on some countries, such as the European Union, in what was described as a 90-day pause. Then, as market turmoil continued, he exempted smartphones and other electronics from the duties, announcing the carve-out just a few days after Mr Medina felt pressure to make a purchase. "I can't keep up with the president. Every day is something new," said Anna Woods, 42, who recently received a message from her son's summer camp warning that the tariffs might affect pricing of standard gear such as T-shirts. The 42-year-old, who works in legal operations, says she is nervous but unclear how to proceed. "I just feel like we're living in uncertain times," she said, adding: "I do need to make some purchases .... Everything is going up." The latest tariffs include a 10% tax on the vast majority of imports - and an eye-popping 145% duty on goods from China, which is the third biggest supplier of imports to the US after the European Union and Mexico and a key source of essentials such as smartphones, shoes and umbrellas. The measures followed previous orders that added 25% levies on cars, steel, aluminium and some goods from Canada and Mexico. In all, Trump's orders have pushed the average effective tariff rate on imports in the US to the highest level in more than a century. In stores, the immediate impact has been limited, since many firms stockpiled some products in anticipation of some tariffs. But the tariffs are widely expected to lead to higher prices in the months ahead, especially for items such as clothing, leather goods, electronics and toys, many of which are made in China. The Budget Lab at Yale forecasts that prices for clothing could soar by more than 60% in the short run; basic pharmaceutical products could jump by 12%, and food prices rise by 2.6%. All told, the typical US family is facing a roughly $4,700 jump in costs due to the new taxes, if purchase patterns remain the same, it estimates. "I'm extremely worried about it," said 38-year-old mother Jamie Casey, one of more than a dozen people shopping at a Target in Brooklyn on a recent afternoon who shared their thoughts with the BBC about the tariffs. She was in the store picking up formula - and some onesies and outfits for her daughter, who has yet to turn one. "I wouldn't say I'm panic-buying yet, but I am interested in how it plays out." Major retailers experienced a jump in visits in the weeks leading up to Trump's tariff announcement, according to research firm while purchases at the likes of Walmart and Target increased markedly in the immediate aftermath, according to data tracked by ConsumerEdge. There has also been an uptick in US purchases on Amazon's e-commerce platform, where Chinese sellers dominate, CEO Andy Jassy told CNBC recently. "I don't know if we can necessarily conclude it's panic-buying but there seems to be broad stock-up behaviour," said Michael Gunther, head of insights at ConsumerEdge, noting that two separate data sets used by the firm showed a pick-up. The dynamic has added to the tariff turmoil. Last week, as the measures came into effect, some businesses started introducing tariff surcharges, while others abruptly cancelled shipments from China, unwilling to risk being unable to recoup the cost of the duties. The disruption has the potential to cause near-term shortages in the US of items where China dominates the supply, such as baby carriages, colouring books and umbrellas, analysts at Macquarie noted this week. Analysts say the pickup in consumer purchases is likely to prove temporary, or an acceleration of transactions that would have happened anyway. If price rises start to hit, many economists expect Americans to opt for cheaper substitutes, delay purchases, or simply do without - a pullback with major consequences for an economy driven by consumer spending. Kathy Bostjancic, chief economist at Nationwide, is predicting the US economy will grow just 0.5% this year, and the unemployment rate will rise to 5% - the highest level since 2021 amid Covid. Other firms, such as JP Morgan, are forecasting an outright recession. "In terms of the consumer, it does get a little tricky," Ms Bostjancic said. "We could see consumer spending actually be strong in March and April but it's just because of this surge ahead of the tariff increases," she added. "Going forward, consumer spending is going to be weaker." On surveys, fears about both the economy and price rises are flaring, even though hiring has been solid and inflation cooled to 2.4% in March, down from 2.8% in February. Some people shopping in New York said it felt like a whole way of life could be coming to an end. Louis Lopez, an elevator mechanic in New York City, said he was so worried about the economy he had started to squirrel away cash under the mattress. But he was also holding shopping bags with new work clothes and a pair of Nike trainers for the summer. "You might as well buy it now ... while you have it good," the 56-year-old said. "It's going to change everything for everybody." Cristina Montoya said she had been buying extra canned food and frozen fruit, a little at a time for a few months, anxious about possible price increases, especially as a pensioner reliant on a fixed income. "You never used to do your shopping nervous," the 74-year-old said. "I feel like you have to buy a lot of things because you don't know what's going to happen." Trump exempts smartphones and computers from new tariffs What are tariffs and why is Trump using them?
Yahoo
12-04-2025
- Business
- Yahoo
'I can't keep up' - Trump's changing tariffs leave shoppers feeling paralysed
When his camera stopped working on his iPhone recently, New Yorker Richard Medina didn't waste any time. With the threat of tariff-fuelled price hikes on smartphones bearing down, he quickly called his phone company for a new one. "I said, 'We've got to switch this out now,'" the 43-year-old recalled. "Let's take care of it." The move was a sign of the pressure rising across the US, where households are being buffeted by what could be staggering price rises, and even possible shortages triggered by the sweeping tariffs that US President Donald Trump announced this month. Some are trying to stock up. Others say they feel paralysed by the changes, which have come quickly, or hope Trump will change his mind and reverse course - not an entirely unreasonable hope given the rapid changes in policy. Trump, facing financial market revolt over his latest tariffs, has already altered his plans repeatedly. First, he scaled back duties that had been planned on some countries, such as the European Union, in what was described as a 90-day pause. Then, as market turmoil continued, he exempted smartphones and other electronics from the duties, announcing the carve-out just a few days after Mr Medina felt pressure to make a purchase. "I can't keep up with the president. Every day is something new," said Anna Woods, 42, who recently received a message from her son's summer camp warning that the tariffs might affect pricing of standard gear such as T-shirts. The 42-year-old, who works in legal operations, says she is nervous but unclear how to proceed. "I just feel like we're living in uncertain times," she said, adding: "I do need to make some purchases .... Everything is going up." The latest tariffs include a 10% tax on the vast majority of imports - and an eye-popping 145% duty on goods from China, which is the third biggest supplier of imports to the US after the European Union and Mexico and a key source of essentials such as smartphones, shoes and umbrellas. The measures followed previous orders that added 25% levies on cars, steel, aluminium and some goods from Canada and Mexico. In all, Trump's orders have pushed the average effective tariff rate on imports in the US to the highest level in more than a century. In stores, the immediate impact has been limited, since many firms stockpiled some products in anticipation of some tariffs. But the tariffs are widely expected to lead to higher prices in the months ahead, especially for items such as clothing, leather goods, electronics and toys, many of which are made in China. The Budget Lab at Yale forecasts that prices for clothing could soar by more than 60% in the short run; basic pharmaceutical products could jump by 12%, and food prices rise by 2.6%. All told, the typical US family is facing a roughly $4,700 jump in costs due to the new taxes, if purchase patterns remain the same, it estimates. "I'm extremely worried about it," said 38-year-old mother Jamie Casey, one of more than a dozen people shopping at a Target in Brooklyn on a recent afternoon who shared their thoughts with the BBC about the tariffs. She was in the store picking up formula - and some onesies and outfits for her daughter, who has yet to turn one. "I wouldn't say I'm panic-buying yet, but I am interested in how it plays out." Major retailers experienced a jump in visits in the weeks leading up to Trump's tariff announcement, according to research firm while purchases at the likes of Walmart and Target increased markedly in the immediate aftermath, according to data tracked by ConsumerEdge. There has also been an uptick in US purchases on Amazon's e-commerce platform, where Chinese sellers dominate, CEO Andy Jassy told CNBC recently. "I don't know if we can necessarily conclude it's panic-buying but there seems to be broad stock-up behaviour," said Michael Gunther, head of insights at ConsumerEdge, noting that two separate data sets used by the firm showed a pick-up. The dynamic has added to the tariff turmoil. Last week, as the measures came into effect, some businesses started introducing tariff surcharges, while others abruptly cancelled shipments from China, unwilling to risk being unable to recoup the cost of the duties. The disruption has the potential to cause near-term shortages in the US of items where China dominates the supply, such as baby carriages, colouring books and umbrellas, analysts at Macquarie noted this week. Analysts say the pickup in consumer purchases is likely to prove temporary, or an acceleration of transactions that would have happened anyway. If price rises start to hit, many economists expect Americans to opt for cheaper substitutes, delay purchases, or simply do without - a pullback with major consequences for an economy driven by consumer spending. Kathy Bostjancic, chief economist at Nationwide, is predicting the US economy will grow just 0.5% this year, and the unemployment rate will rise to 5% - the highest level since 2021 amid Covid. Other firms, such as JP Morgan, are forecasting an outright recession. "In terms of the consumer, it does get a little tricky," Ms Bostjancic said. "We could see consumer spending actually be strong in March and April but it's just because of this surge ahead of the tariff increases," she added. "Going forward, consumer spending is going to be weaker." On surveys, fears about both the economy and price rises are flaring, even though hiring has been solid and inflation cooled to 2.4% in March, down from 2.8% in February. Some people shopping in New York said it felt like a whole way of life could be coming to an end. Louis Lopez, an elevator mechanic in New York City, said he was so worried about the economy he had started to squirrel away cash under the mattress. But he was also holding shopping bags with new work clothes and a pair of Nike trainers for the summer. "You might as well buy it now ... while you have it good," the 56-year-old said. "It's going to change everything for everybody." Cristina Montoya said she had been buying extra canned food and frozen fruit, a little at a time for a few months, anxious about possible price increases, especially as a pensioner reliant on a fixed income. "You never used to do your shopping nervous," the 74-year-old said. "I feel like you have to buy a lot of things because you don't know what's going to happen." Trump exempts smartphones and computers from new tariffs What are tariffs and why is Trump using them?
BBC News
12-04-2025
- Business
- BBC News
Trump's changing tariffs causes panic buying and paralysis
When his camera stopped working on his iPhone recently, New Yorker Richard Medina didn't waste any time. With the threat of tariff-fuelled price hikes on smartphones bearing down, he quickly called his phone company for a new one. "I said, 'We've got to switch this out now,'" the 43-year-old recalled. "Let's take care of it."The move was a sign of the pressure rising across the US, where households are being buffeted by what could be staggering price rises, and even possible shortages triggered by the sweeping tariffs that US President Donald Trump announced this month. Some are trying to stock up. Others say they feel paralysed by the changes, which have come quickly, or hope Trump will change his mind and reverse course - not an entirely unreasonable hope given the rapid changes in policy. Trump, facing financial market revolt over his latest tariffs, has already altered his plans repeatedly. First, he scaled back duties that had been planned on some countries, such as the European Union, in what was described as a 90-day pause. Then, as market turmoil continued, he exempted smartphones and other electronics from the duties, announcing the carve-out just a few days after Mr Medina felt pressure to make a purchase. "I can't keep up with the president. Every day is something new," said Anna Woods, 42, who recently received a message from her son's summer camp warning that the tariffs might affect pricing of standard gear such as T-shirts. The 42-year-old, who works in legal operations, says she is nervous but unclear how to proceed. "I just feel like we're living in uncertain times," she said, adding: "I do need to make some purchases .... Everything is going up." The latest tariffs include a 10% tax on the vast majority of imports - and an eye-popping 145% duty on goods from China, which is the third biggest supplier of imports to the US after the European Union and Mexico and a key source of essentials such as smartphones, shoes and measures followed previous orders that added 25% levies on cars, steel, aluminium and some goods from Canada and Mexico. In all, Trump's orders have pushed the average effective tariff rate on imports in the US to the highest level in more than a century. In stores, the immediate impact has been limited, since many firms stockpiled some products in anticipation of some tariffs. But the tariffs are widely expected to lead to higher prices in the months ahead, especially for items such as clothing, leather goods, electronics and toys, many of which are made in Budget Lab at Yale forecasts that prices for clothing could soar by more than 60% in the short run; basic pharmaceutical products could jump by 12%, and food prices rise by 2.6%.All told, the typical US family is facing a roughly $4,700 jump in costs due to the new taxes, if purchase patterns remain the same, it estimates. "I'm extremely worried about it," said 38-year-old mother Jamie Casey, one of more than a dozen people shopping at a Target in Brooklyn on a recent afternoon who shared their thoughts with the BBC about the tariffs. She was in the store picking up formula - and some onesies and outfits for her daughter, who has yet to turn one. "I wouldn't say I'm panic-buying yet, but I am interested in how it plays out." Major retailers experienced a jump in visits in the weeks leading up to Trump's tariff announcement, according to research firm while purchases at the likes of Walmart and Target increased markedly in the immediate aftermath, according to data tracked by ConsumerEdge. There has also been an uptick in US purchases on Amazon's e-commerce platform, where Chinese sellers dominate, CEO Andy Jassy told CNBC recently. "I don't know if we can necessarily conclude it's panic-buying but there seems to be broad stock-up behaviour," said Michael Gunther, head of insights at ConsumerEdge, noting that two separate data sets used by the firm showed a pick-up. The dynamic has added to the tariff week, as the measures came into effect, some businesses started introducing tariff surcharges, while others abruptly cancelled shipments from China, unwilling to risk being unable to recoup the cost of the disruption has the potential to cause near-term shortages in the US of items where China dominates the supply, such as baby carriages, colouring books and umbrellas, analysts at Macquarie noted this week. Analysts say the pickup in consumer purchases is likely to prove temporary, or an acceleration of transactions that would have happened price rises start to hit, many economists expect Americans to opt for cheaper substitutes, delay purchases, or simply do without - a pullback with major consequences for an economy driven by consumer Bostjancic, chief economist at Nationwide, is predicting the US economy will grow just 0.5% this year, and the unemployment rate will rise to 5% - the highest level since 2021 amid Covid. Other firms, such as JP Morgan, are forecasting an outright recession. "In terms of the consumer, it does get a little tricky," Ms Bostjancic said."We could see consumer spending actually be strong in March and April but it's just because of this surge ahead of the tariff increases," she added. "Going forward, consumer spending is going to be weaker." On surveys, fears about both the economy and price rises are flaring, even though hiring has been solid and inflation cooled to 2.4% in March, down from 2.8% in people shopping in New York said it felt like a whole way of life could be coming to an end. Louis Lopez, an elevator mechanic in New York City, said he was so worried about the economy he had started to squirrel away cash under the mattress. But he was also holding shopping bags with new work clothes and a pair of Nike trainers for the summer."You might as well buy it now ... while you have it good," the 56-year-old said. "It's going to change everything for everybody." Cristina Montoya said she had been buying extra canned food and frozen fruit, a little at a time for a few months, anxious about possible price increases, especially as a pensioner reliant on a fixed income."You never used to do your shopping nervous," the 74-year-old said. "I feel like you have to buy a lot of things because you don't know what's going to happen."
