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11 hours ago
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Retailers shift supply chains to reduce risks from Trump's tariffs on China
A number of retailers are working to reduce their exposure to China as President Donald Trump's trade war with the second-largest economy rages on. In recent earnings reports, executives have indicated that they are restructuring their supply chains to reduce reliance on China and mitigate the impact of tariffs. Trump sees tariffs as a way to boost domestic manufacturing, but avoiding China is challenging, and many retailers have already warned of potential price increases. China has been a significant target of Trump's levies, with the U.S. slapping tariffs of 145% in April before temporarily reducing them to 30% for about 90 days as part of a temporary agreement with China. However, Trump accused China of violating its temporary agreement, according to a Friday post on Truth Social. Trump Tariffs Face Legal Battle As Federal Appeals Court Temporarily Blocks Trade Ruling "The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!" Trump wrote, without explaining how China violated the agreement. Read On The Fox Business App As tensions escalate, Macy's CEO Tony Spring told analysts on its earnings call Wednesday, the company is continuing to diversify the countries of origin for its private and national brands. At the end of last fiscal year, Spring said about 20% of total Macy's, Inc. products originated in China. National brands, which represent the majority of its sales, sourced approximately 18% from China and its private brands, where it has more direct control of the supply chain, sourced roughly 27% from China. That's down from 32% last year and a rate of more than 50% pre-pandemic, according to Spring. Best Buy Lowers Revenue Outlook For Fiscal Year 2026 Due To Tariffs Gap CEO Richard Dickson also told analysts on its earnings call last week that while China used to be one of the top sourcing countries for its products, it represented less than 10% of its sourcing last year. He expects that number to drop to less than 3% following the close of fiscal year 2025. "Most other countries represent less than 10%. Vietnam and Indonesia represented 27% and 19% of our sourcing last year, respectively, and our goal is for no country to account for more than 25% by the end of 2026," Dickson said. Dickson said the retailer is also planning to double its vendor sourcing of American-grown cotton in 2026. "Today, we are much better equipped to handle complex headwinds because we have a stronger financial foundation, and we are operating with greater discipline, growing brand momentum, and improved platform capabilities," he added. Target Chief Commercial Officer Rick Gomez told analysts on a recent earnings call that about 60% of its products were coming out of China in 2017. Today, it's around 30%, though Gomez said "we are well on our way to be less than 25% by the end of next year." "Our teams have been working very hard to offset the vast majority of the tariffs. And we're doing that because – or are able to do that because – of Target's size and scale, our [mixed] category business, which gives us flexibility, the productive partnerships that we have built with our vendors and suppliers and then our best-in-class global sourcing team has put us in a good position to be able to navigate these tariffs." Gomez said. He added that the company is "expanding into new countries, Asia as well as the Western Hemisphere, but I think it's important to note that we're also exploring opportunities here in the U.S." Apple's Tim Cook told analysts during its May earnings call that the majority of iPhones sold in the U.S. during the June quarter will have been produced in India. Vietnam will be the country of origin for almost all iPad, Mac, Apple Watch and AirPods products sold in the U.S. for the quarter, he said. Still, Cook said China would continue to be the country of origin for the vast majority of total product sales outside the U.S. Walmart CEO Doug McMillion told analysts during its May earnings call that he believes the company is positioned well relative to competitors, given that it has been working for years "to try and make sure that we've got surety of supply, we're sourcing from the right places, create a more flexible supply chain, and we've made progress on that." Nearly two-thirds of Walmart's U.S. spending goes toward products made, assembled or grown in the U.S., but the remaining third comes from around the world, with China and Mexico being the largest contributors. The nation's largest private employer has repeatedly warned that price increases are likely, especially given the magnitude of the tariffs. Earlier this year, the chief executives of Target and Best Buy also warned that tariffs against key trading partners will put pressure on profits and could drive up prices for consumers. Meanwhile, Trump faces legal challenges over implementing tariffs. One court ruled the president overstepped his authority by implementing sweeping tariffs. A federal appeals court on Thursday allowed Trump's tariffs to remain in effect temporarily after an appeal from the administration. In the Thursday decision, the U.S. Court of Appeals for the Federal Circuit granted an immediate administrative stay to the extent that permanent injunctions entered by the Court of International Trade on Wednesday are temporarily stayed until at least June 9, when the court will hear arguments. After June 9, the court can issue an order of enforcement. If it does, the administration will likely seek relief from the Supreme Court. FOX Business' Greg Wehner and Bill Mears contributed to this report. Original article source: Retailers shift supply chains to reduce risks from Trump's tariffs on China
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3 days ago
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Trump says Pakistani officials visiting US to negotiate trade deal ahead of potential 29% tariff
Pakistani officials will be visiting the U.S. next week in an effort to reach a deal to lower tariffs imposed against the Asian country, President Donald Trump said on Friday. Pakistan faces a potential 29% tariff on its exports to America because of a $3 billion trade surplus with the U.S., following the tariffs Trump announced last month against countries around the world. Trump noted that he would have no interest in making a deal with Pakistan or its neighbor, India, if they were to reignite a war with each other. Trump Doubles Steel Tariffs To 50% In Bid To Boost Us Industry The two countries were involved in a conflict for four days earlier this month, using fighter jets, missiles, drones and artillery to conduct their worst fighting in decades. "As you know, we're very close to making a deal with India," Trump told reporters at Joint Base Andrews on Friday after departing Air Force One. Read On The Fox Business App Indian Trade Minister Piyush Goyal visited Washington recently to advance trade talks, with both sides seeking to sign an interim agreement by early July. Trump has imposed a 26% tariff on India's shipments to the U.S. Best Buy Lowers Revenue Outlook For Fiscal Year 2026 Due To Tariffs India is likely to allow U.S. firms to bid for contracts worth over $50 billion, mainly from federal entities, as it negotiates a trade deal with the Trump administration. Reuters contributed to this article source: Trump says Pakistani officials visiting US to negotiate trade deal ahead of potential 29% tariff
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3 days ago
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Mortgage rates rise for third straight week, hover near 7%
Mortgage rates increased for the third straight week and continue to hover near the 7% level, mortgage buyer Freddie Mac said Thursday. Freddie Mac's latest Primary Mortgage Market Survey, released Thursday, showed that the average rate on the benchmark 30-year fixed mortgage rose to 6.89% from last week's reading of 6.86%. It marked the highest level since Feb. 6, when the rate on a 30-year mortgage also averaged 6.89%. The average rate on a 30-year loan was 7.03% a year ago. "Aspiring buyers should remember to shop around for the best mortgage rate, as they can potentially save thousands of dollars by getting multiple quotes," said Sam Khater, Freddie Mac's chief economist. When Leaving The House To Your Heirs Backfires The average rate on the 15-year fixed mortgage climbed to 6.03% from last week's reading of 6.01%. One year ago, the rate on the 15-year fixed note averaged 6.36%. Read On The Fox Business App These States Were The Housing Market Mvps, According To Meanwhile, the National Association of Realtors on Thursday said that its Pending Home Sales Index, based on signed contracts, dropped by 6.3% to 71.3 last month. Economists polled by Reuters had forecast contracts, which become sales after a month or two, falling 1%. Pending home sales declined by 2.5% from a year earlier. "At this critical stage of the housing market, it is all about mortgage rates," said NAR chief economist Lawrence Yun. "Despite an increase in housing inventory, we are not seeing higher home sales. Lower mortgage rates are essential to bring home buyers back into the housing market." Reuters contributed to this article source: Mortgage rates rise for third straight week, hover near 7% 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
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4 days ago
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Nvidia shares rise on strong Q1 earnings, despite export control headwinds
Tech giant Nvidia reported its first-quarter earnings on Wednesday, beating analysts' expectations, though it projected second-quarter sales below estimates amid tightening export controls to China that cover some of its AI chips. Nvidia, a leader in the artificial intelligence (AI) space, saw shares rise 3% in after-hours trading following the announcement. The earnings report showed that first-quarter net income was up 26% from a year ago at nearly $19 billion, with revenue rising to $44 billion, up 69% from last year. The company's revenue from data centers was $39 billion in the first quarter – up 10% from the previous quarter and 73% from last year. Nvidia is also building factories in the U.S. and working to produce AI supercomputers in the U.S. with its partners. "Our breakthrough Blackwell NVL72 AI supercomputer – a 'thinking machine' designed for reasoning – is now in full-scale production across system makers and cloud service providers," said Nvidia CEO Jensen Huang. Ai Chipmaker Nvidia To Invest Billions In Us Amid Trump Onshoring Push: Ceo "Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate," he continued. Read On The Fox Business App "Countries around the world are recognizing AI as essential infrastructure – just like electricity and the internet – and Nvidia stands at the center of this profound transformation," Huang added. Nvidia's earnings release noted that on April 9, the company was informed by the U.S. government that it will require a license to export its H20 products to China, which caused the company to incur a charge of several billion dollars in the quarter. How Nvidia Became The King Chipmaker, From A Denny's To $2.3T Market Cap The U.S. has, in recent years, imposed increasingly stringent export controls on China that apply to the most advanced AI chips, as a means of denying a geopolitical adversary access to cutting-edge technology in a competitive sector of the economy. "As a result of these new requirements, Nvidia incurred a $4.5 billion charge in the first quarter of fiscal 2026 associated with H20 excess inventory and purchase obligations as the demand for H20 diminished," the company said. "Sales of H20 products were $4.6 billion for the first quarter of fiscal 2026 prior to the new export licensing requirements. Nvidia was unable to ship an additional $2.5 billion of H20 revenue in the first quarter." Nvidia added it expects to miss $8 billion in sales in the second quarter due to the export restrictions. Reuters contributed to this article source: Nvidia shares rise on strong Q1 earnings, despite export control headwinds 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
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4 days ago
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Airline passengers in Turkey who unbuckle too soon to face fines
Every airline passenger has heard the message towards the end of the flight that tells them to stay seated after landing until the seatbelt sign is turned off. Now, those who ignore it in Turkey will face fines. The Turkish Directorate General of Civil Aviation sent a notice to airlines, according to reports, telling crewmembers to report passengers who are too eager to get off planes. "Please do not unfasten your seatbelt, stand up, or open the overhead compartments until the seatbelt sign has been switched off," the notice shared by the Washington Post says. The newspaper says passengers could be fined 2,603 Turkish lira, which is about $67. "It is strictly forbidden to stand up, open overhead compartments, or be present in the aisle before the aircraft has reached its parking position and the seatbelt sign has been turned off," the notice continues. 'Aisle Lice' Is Latest Air Travel Annoyance To Spark Social Media Debate Passengers must wait until the plane is parked, the seatbelt sign is turned off and passengers in front of them have begun exiting prior to entering the aisle to deplane. Read On The Fox Business App Turkish Airlines did not immediately respond to a FOX Business inquiry about when the fines might go into effect. 'Gate Lice' Run-ins Have Flyers Demanding More Airlines 'Crack Down' On Pesky Travel Trend In the U.S., flight attendants are supposed to alert captains if passengers stand prior to the plane being parked on the tarmac, according to the New York Post. Both "gate lice" and "aisle lice" have made headlines lately as hasty travelers crowded to board and deplane. The terms refer to travelers who crowd the respective areas before it is their turn. In 2024, American Airlines rolled out a new technology used during boarding that audibly alerts gate agents when a passenger is attempting to board ahead of their designated assignment. On the "r/delta" Reddit forum earlier this year, one flyer asked, "Who do [we] hate more? Gate lice or aisle lice?" Click Here To Read More On Fox Business "Aisle lice are exponentially worse, imo. Who really cares who gets on the plane first, you're all getting on anyway. Aisle lice slow things down, delay people and cause so much more headaches," one stated. Fox News Digital's Ashley DiMella and Sydney Borchers contributed to this report. Original article source: Airline passengers in Turkey who unbuckle too soon to face fines
