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Epoch Times
30-04-2025
- Business
- Epoch Times
US Consumer Confidence Drops for Fifth Consecutive Month
The Conference Board Consumer Confidence Index declined by 7.9 points, to 86, in April from March, the fifth straight monthly decline, the think tank said in an April 29 The index has fallen to 'levels not seen since the onset of the COVID pandemic,' said Stephanie Guichard, senior economist of global indicators at The Conference Board. 'The decline was largely driven by consumers' expectations. The three expectation components—business conditions, employment prospects, and future income—all deteriorated sharply, reflecting pervasive pessimism about the future.' The share of consumers who expect fewer jobs over the next six months was at a level near the high in April 2009 amid the Great Recession. Moreover, expectations of future income prospects turned 'clearly negative' for the first time in five years. On the plus side, consumer views about the present situation held up in April, which contributed to limiting the fall in the index. Tariffs imposed by the Trump administration were found to be 'on top of consumers' minds,' the think tank said. Related Stories 4/29/2025 4/28/2025 On April 2, the administration 'Consumers explicitly mentioned concerns about tariffs increasing prices and having negative impacts on the economy,' said The Conference Board statement. 'Inflation and high prices remained important for consumers' views about the economy: while the majority complained about the high cost of living, there were also some references to declines in the prices of gas and some food items.' Gas prices have declined over the past year. According to While tariffs have raised concerns about rising prices, these measures are expected to eventually benefit the United States, according to the Coalition for a Prosperous America (CPA), a nonprofit organization representing domestic producers from various industries. A July 2024 'The tariff would generate an estimated $263 billion, which could be used to provide a substantial $1200 tax refund to lower-income households and refunds of 3–4 percent of income for middle-income households,' it said. 'Real household incomes rise by 5.7 percent, equivalent to $4,252, making workers better off and which more than offsets a small, initial price impact of half a percentage point per year.' Some of these effects are already visible. An April 24 statement from the Treasury showed that the United States' revenues from customs and certain excise taxes hit $15.9 billion for the month, which is up 105 percent from a year back and is an all-time high. In March, the United States added 228,000 new jobs, according to Recession Risks According to The Conference Board, the Expectations Index, which measures consumers' short-term outlook for business, income, and labor market conditions, dipped to 54.4 in April, which is its lowest level since October 2011. This is 'well below the threshold of 80 that usually signals a recession ahead,' it said. 'The proportion of consumers anticipating a recession over the next 12 months rose to a two-year high.' In a March 30 report, Goldman Sachs had The higher probability reflects 'our lower growth baseline,' Goldman analysts wrote. They cited a recent downward trend in household and business confidence, as well as a 'greater willingness to tolerate near-term economic weakness' by the White House in the pursuit of its economic agenda, as reasons for higher recession risk. Some experts have dismissed the possibility of a recession in the United States. In an April 16 In such a situation, as long as the earned tariff revenue is quickly cycled back into the American economy, 'a recession should be avoided,' the report said. However, it expects GDP growth to be weaker at 1.7 percent this year. Last year, the U.S economy had An April 28 The committee said the survey was taken before the 90-day pause on tariffs was announced, adding that the poll also does not take into account factors such as the rebound in financial markets and developments regarding trade negotiations. 'Further, the U.S. economy has proven its resilience over recent years—when recession probability assessments were last this high in 2023, real GDP rose a robust 3.2 percent year over year,' the committee said.
Yahoo
30-04-2025
- Business
- Yahoo
Tariffs threaten a pharmaceuticals shortage, as 95% of ibuprofen comes from China
The U.S. gets the vast majority of common, generic medications from China, meaning President Donald Trump's steep tariffs on Chinese imports could cause a shortage of key drugs. Generic drugs are affordable because of manufacturers' razor-thin margins. Increased costs as a result of tariffs could disincentivize them from producing certain pain-relief meds. Tariffs already have many Americans concerned about the state of the economy, but the incoming taxes on pharmaceutical goods from China could present a more literal headache. The U.S. gets nearly all of its supply of common over-the-counter pain medications from China, meaning President Donald Trump's 145% tariffs on the country could have an outsized impact on the U.S.'s method of sourcing key drugs, Apollo chief economist Torsten Sløk said in a Wednesday blog post. About 95% of the U.S.'s ibuprofen comes from China, Sløk noted, citing data from trade-protectionist advocacy organization Coalition for a Prosperous America and the National Institutes of Health's National Center for Biotechnology Information. More than 90% of the supply of anti-inflammation steroid hydrocortisone also comes from China, as well as 70% of acetaminophen and 45% of the U.S.'s penicillin imports. The U.S. is particularly reliant on China for more affordable, generic drugs, and generic drugs make up 90% of prescriptions filled in the U.S., according to the Food and Drug Administration. Tariffs have already more broadly threatened the availability of consumer products in the U.S. as American companies stockpiled goods before the tariffs went into effect, only to pull back once those products became more expensive. 'The consequence will be empty shelves in U.S. stores in a few weeks and Covid-like shortages for consumers and for firms using Chinese products as intermediate goods,' Sløk said in an April 25 post. These shortages are imminent, according to Gene Soroka, executive director of the Port of Los Angeles, the U.S.'s largest port, which receives about 45% of its imports from China. Seroka has begun to see a 'precipitous drop' in shipments from China that will result in only five to seven more weeks of full inventories on retail shelves, he predicted. The White House did not immediately respond to Fortune's inquiry on plans to exempt medications from tariffs. For America's drug supply, tariffs could make a bad problem worse. The U.S. has contended with stubborn drug shortages in the past three quarters, with 270 active shortages as of March 2025, but down from the all-time high of 323 shortages in early 2024, according to trade organization American Society of Health-System Pharmacists. These shortages can be caused by natural disasters temporarily halting production or regulatory challenges. Key players in the pharmaceutical industry fear tariffs will pile onto the factors driving the scarcity. Profit margins for generic drugs are incredibly thin to keep them affordable, meaning some manufacturers could stop producing drugs that are too expensive to make as a result of the increased cost of raw materials, according to John Murphy, president and CEO of trade group Association of Accessible Medicines (AAM). To make matters worse, Murphy said, any hiccups in the supply chain will also likely mean an increase in drug prices for consumers. 'AAM is concerned…that any duties on pharmaceutical products, particularly inputs, will lead to increased costs of manufacturing generics and biosimilars in the United States and, thus, result in higher prescription drug prices and decreased access for patients in our country,' Murphy said in a March letter to U.S. trade representative Jamieson Greer. Despite Trump's intention with tariffs as encouraging domestic production, American pharmaceutical companies may be hesitant to take a chance on increasing their own manufacturing capabilities, Marta Wosińska, health economist and senior fellow at the Brookings Institution, told USA Today. The future of tariffs—with Trump now considering 'substantially' cutting the levies—creates too much unpredictability for drug companies to take meaningful steps to address them. "Making a billion-dollar investment in the United States when I don't even know whether tariffs are going to be there a month from now makes it a really difficult calculus for companies," Wosińska said. This story was originally featured on
Miami Herald
30-04-2025
- Automotive
- Miami Herald
American car company takes drastic action in response to tariffs
President Donald Trump's plan to use tariffs to rightsize trade deficits, onshore manufacturing, and bring in extra revenue to reduce the federal deficit certainly has its defenders. The Coalition for a Prosperous America is an advocacy group founded in 2007 by farmers, ranchers, manufacturers, and labor representatives. Don't miss the move: Subscribe to TheStreet's free daily newsletter The group penned a defense of Trump's tariff plans in February 2024 after the taxes started getting scrutiny on the business news networks. The CPA said the tariffs "led to significant reshoring" during the first Trump administration. The group, which sits on the advisory board for Project 2025, said President Trump's approach provides "an escape from the rigid 'trade is always good' dogma that U.S. economists have preached since the start of hyperglobalization 30 years ago." Related: Car buyers rejoice - you just got great news about tariffs The attractiveness of this approach doesn't appeal ony to the right side of the political aisle, either. United Auto Workers union leader Shawn Fain was completely in the tank for Trump's 2024 election rival Kamala Harris, even appearing with her at a rally in Michigan weeks before the election. However, since Trump's election, Fain's stance has changed. "We're in a triage situation," Fain told ABC News in March. "Tariffs are an attempt to stop the bleeding from the hemorrhaging of jobs in America for the last 33 years." But while there is a case to be made for tariffs, business leaders worldwide know that volatility is bad for business. General Motors (GM) is one of the first automotive dominoes to fall due to tariff-related volatility. General Motors had a busy Tuesday after reporting its first-quarter financial results. The Detroit automaker announced that it is pulling its guidance for 2025 and pausing $4 billion in share buybacks until it gains more visibility on U.S. tariffs. It also pushed a conference call with analysts scheduled for Tuesday to May 1. "Because the original guidance didn't include impact from tariffs, prior guidance can't be relied upon," Paul Jacobson, the company's chief financial officer, said. "We will update when we have more information on tariffs." The company had previously expected to earn between $11 and $12 per share this year. In January, it announced plans for $6 billion in new share buybacks, including $2 billion in the second quarter. During a March 5 press conference, White House press secretary Karoline Leavitt said that the president notified the respective auto CEOs "to start investing, start moving -shift production here to the United States of America, where they will pay no tariff." However, to make their cars in the United States, automakers have to import products from around the world. On Tuesday, the White House provided a little more clarity. Related: Donald Trump gives car buyers a lifeline with latest decision The White House is keeping the 25% tax on finished imported vehicles but preventing other levies from "stacking" on top of it. Thus, carmakers won't have to pay separate tariffs for imported steel and aluminum. The move is retroactive, so any company that paid tariffs on these items in recent weeks will be reimbursed. A separate group of 25% tariffs on imported auto parts is scheduled to go into effect May 3, but the administration is also modifying these taxes. Automakers can be reimbursed for those tariffs up to 3.75% of the value of a U.S.-made car for one year. That reimbursement falls to 2.5% of the car's value in the second year and is phased out completely after that, the Journal reported. All things considered, GM had a strong quarter. The company reported adjusted earnings of $2.78 per share on revenue that rose 2.3% year over year to $44 billion. Analysts polled by Yahoo Finance were expecting earnings of $2.66 per share. However, cracks are already starting to show in the company's balance sheet. More Automotive news: General Motors delivers surprising business updateFord reports surprising news amid Tesla turmoilApple creates clever way to stop car thieves Despite the increase in revenue, GM's net income fell 6.6% year over year, with automotive operating cash flow dropping 33.2% and profit margins falling 12.2%. On Monday, the company announced that it was raising its quarterly dividend to 15 cents per share from 12 cents per share. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
07-04-2025
- Business
- Yahoo
China retaliates against US with new tariffs and rare earth export controls
China has announced a series of retaliatory measures against the tariffs imposed by the US, marking an escalation in the ongoing trade war between the world's two largest economies. The Chinese countermeasures include the imposition of an additional tariff of 34% on all US goods, effective from 10 April, and export restrictions on certain rare earth elements, reported Reuters. The Chinese Finance Ministry has criticised the US move as a "typical unilateral bullying practice" and not in accordance with international trade rules, stating that it "seriously undermines China's legitimate and lawful rights and interests". This comes after US President Donald Trump increased tariffs on Chinese goods by 34%, raising the total new tariffs on China this year to 54%. The new Chinese tariffs are in addition to the 10–15% levies imposed on select US agricultural and energy products earlier this year. China has also placed export controls on certain medium and heavy rare earths including dysprosium, gadolinium, lutetium, samarium, scandium, terbium and yttrium, which are crucial for various industries including defence and technology. The export controls took effect on 4 April. China added 16 US entities to its export control list, blocking the export of dual-use items to those companies. This includes 15 companies from the defence and aerospace sectors, as well as the Coalition for a Prosperous America, a group that previously supported US economic decoupling from China. An additional 11 US companies were placed on China's 'unreliable entity' list, giving Beijing the right to impose penalties such as bans and fines. The targeted companies include Skydio and BRINC Drones for supplying arms to Taiwan, which China considers part of its territory. The Chinese yuan has weakened to its lowest level in seven weeks, and stock markets have fallen following the announcement of Trump's reciprocal tariffs, reported the news agency. The US President had also tasked the US Trade Representative to review China's adherence to the 2020 "phase 1" US-China trade agreement by 1 April. The deal, which China has not fully met due to the Covid-19 pandemic, required Beijing to increase its purchases of US exports by $200bn over two years. Last month, President Trump invoked emergency powers to boost domestic output of critical minerals, aiming to cut reliance on foreign sources, especially China. "China retaliates against US with new tariffs and rare earth export controls" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
New York Times
02-04-2025
- Business
- New York Times
Americans' Reaction to Trump's Tariffs Vary From Worried to Enthused
President Trump's announcement of sweeping universal and so-called reciprocal tariffs on countries around the world drew a swift rebuke on Wednesday from business groups, trade experts, Democratic lawmakers and many economists who warned that they would raise prices for American consumers and slow economic growth. 'This is catastrophic for American families,' said Matt Priest, president and chief executive of the Footwear Distributors and Retailers of America. 'We had hoped the president would take a more targeted approach, but these broad tariffs will only drive-up costs, reduce product quality and weaken consumer confidence.' Other reactions were more muted, and some positive, saying the move was long overdue. 'Today is arguably the single greatest trade and economic policy action in the history of the country, and it absolutely cements President Trump's legacy that he is trying to usher in a new golden age of economy production and prosperity,' said Nick Iacovella, executive vice president at the Coalition for a Prosperous America, a group that supports tariffs. He said the tariffs would contribute to 'broadly re-industrializing the United States and creating working class jobs.' Mr. Trump insisted on Wednesday that experts had been wrong all along about his tariffs and that the anxiety about them now were misplaced. But those who will be forced to pay the tariffs were quick to raise concerns about the move, which will increase import taxes on products from some of America's biggest trading partners including China, the European Union, Japan and India. The National Retail Federation said in a statement that the tariffs would 'equal more anxiety and uncertainty for American businesses and consumers.' Tariffs are not paid for by foreign countries or suppliers but by U.S. importers, they said. They also added that 'the immediate implementation of these tariffs is a massive undertaking and requires both advance notice and substantial preparation by the millions of U.S. businesses that will be directly impacted.' The National Association of Manufacturers said it was still parsing the details and exact implications of the president's tariffs. But the group's president, Jay Timmons, said in a statement that the high costs of new tariffs threatened investment, jobs, supply chains and, in turn, America's ability to outcompete other nations and lead as the pre-eminent manufacturing superpower.' Want all of The Times? Subscribe.
