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CNBC
9 hours ago
- Business
- CNBC
The Home Depot parking lot labor economy at heart of Trump's ICE immigration battle
Home improvement store parking lots were once teeming with aspiring laborers looking for a day's work. Contractors needing temporary help would swing by and scoop up a few workers for the day, and a symbiotic ecosystem thrived. Workers could snag a day's pay, and contractors could get cheap, temporary help without all the paperwork. Since President Trump was reelected, labor experts have warned of unpredictable outcomes for sectors dependent on immigrant labor, including construction and residential housing. The recent Immigration and Customs Enforcement raids in Los Angeles area Home Depot store parking lots sparked protests and put a nationwide pall over the day laborer community. But beyond the deployment of troops and political finger-pointing, labor experts say that the Home Depot parking lot sweeps could have wide-ranging effects on whether critical work in the U.S. gets done. George Carrillo, CEO of the Hispanic Construction Council, estimates there are tens of thousands of "parking lot day laborers" across the country and that the recent ICE raids will have a chilling effect that ripples through the entire economy. "We have members reaching out to us seeing what they should do; they are scared," Carrillo said. The practice of workers gathering in home improvement store parking lots to seek employment is a longstanding part of the labor landscape and many of these workers come from Latin American countries, including Mexico, Guatemala, Honduras, and El Salvador, which are among the countries targeted by the Trump administration's tightening immigration policies. "They are trying to earn a living and have a tough decision to make: pop my head out and get deported or don't and can't support my family," Carrillo said. Carrillo says he is hearing more and more reports of ICE raids targeting construction sites where whole groups of workers are rounded up. The day laborer crackdown will exacerbate an already tenuous labor market in the U.S. The Hispanic Construction Council estimates a nationwide construction workforce shortage of 500,000 workers. Carrillo says that construction projects were 14% behind schedule when Trump took office, but that has now risen to 22% as deportations and immigration enforcement have thinned out the construction labor market. "We are getting farther behind on projects, and we are seeing across the country wherever there is a crackdown, people are not showing up for work," Carrillo said. Day laborers are not the workers on massive construction projects, more likely to be picked up by subcontractors who need help painting or reframing closets. But he added, "If the smaller subcontractor can't get those jobs done, it has a ripple effect throughout the construction industry." Jason Greer, a labor consultant and founder and CEO of Greer consulting, says that the crackdown is causing a slowdown in construction due to a shortage in labor. "Day laborers are scared to death to show up at places like Lowes, Home Depot, etc. because they do not want to be arrested by ICE," he said. While ICE has not commented directly on the Home Depot raids, they told the Los Angeles NBC affiliate "U.S. Immigration and Customs Enforcement officers and agents are on the streets every day, prioritizing public safety by locating, arresting, and removing criminal alien offenders and immigration violators from our neighborhoods," ICE's statement read. "All aliens in violation of U.S. immigration law may be subject to arrest, detention and if found removable by final order, removed from the U.S. Home Depot tells CNBC while it does not allow laborers to sell their services on the premises, they are also not involved in any ICE operations. "Like many businesses, we have a longstanding no-solicitation policy, which prohibits anybody from selling goods or services on our property," said a Home Depot spokesperson. "I'd also add that we aren't notified when ICE activity is going to happen, and we aren't involved in the operations. We instruct associates to report the incident immediately and not to engage in the activity for their safety. If associates feel uncomfortable after witnessing ICE activity, we offer them the option to go home for the rest of the day, with pay," the Home Depot spokesperson said. Lowe's and Menards did not respond to requests for comment. Rick Hermanns, CEO of staffing agency HireQuest, which places 70,000 workers from the C-suite all the way down to day workers, says the upstream effects from crackdowns on day laborers are complicated and enormous, and neither political party has solved the problem. Lax enforcement, Hermanns said, incentivizes people to directly or indirectly hire unauthorized workers, creating a two-tiered system where some workers are paid under the table while companies like HireQuest and others pay the requisite workers' compensation and social security. Hermanns says those mandated expenses make up at least 20% of the wages paid, so under-the-table day laborers create a competitive disadvantage. However, Hermanns said a crackdown like the one happening now also creates complications because it reduces an already thin labor pool, which forces wages higher and then spreads throughout the economy in the form of inflation. "The ripple effects are much deeper and broader than what anyone understands," Hermanns said. "Candidly to me, our entire political establishment is unserious about looking at all of the effects," he added. Higher wages can be good because they draw people into the labor pool who might otherwise sit at home. "But moving the foundational wage 20 percent higher is incredibly bad for inflation," Hermanns said. For businesses, Hermanns says the whiplash between the administrative approaches breeds uncertainty. "I'd rather have more lax or more strict; the uncertainty is worse. What needs to be done is for people from both camps to come together and realize what we have is unsustainable," he said. Atlanta-based immigration attorney Loren Locke says that the current sweeps of home improvement store parking lots are doing nothing to solve the country's complicated immigration situation. Locke noted that while day laborers who gather at home improvement store parking lots skew heavily toward immigrants and disproportionately lack U.S. work authorization, there is no reason to think the population is a good source of dangerous criminal immigrants. "Rather, they seem more like easy pickings for ICE to hit daily arrest quotas," Locke said. She points to the complex web of immigration programs that have evolved over the years, creating an unsustainable system. "We are in such a mess right now because there are millions of workers in the U.S. who are in this gray immigration status," Locke said. "They were allowed in, and now we are going back to treating them like they are all criminals who need to be deported immediately." Locke pointed out that there are children who were bestowed DACA status and are now grandparents. "This has not been fixed for their entire adult life," Locke said. Meanwhile, contractors and subcontractors throughout the construction food chain are finding a small labor pool heading into the summer season.
Yahoo
06-06-2025
- Business
- Yahoo
Will Trump's Order on Prescription Drug Prices Be Enough To Offset Tariffs?
President Trump recently issued an executive order, aiming to lower prescription costs down for Americans by aligning prices with those paid in other wealthy nations. The policy introduces a most-favored-nation pricing model, expands Medicare's ability to negotiate costs and pushes for more domestic drug manufacturing. Trending Now: Read Next: However, while the order aims to achieve price relief, rising tariffs on pharmaceutical ingredients and equipment, particularly those sourced from China, could drive production costs higher. Will Trump's order on prescription drug prices be enough to offset tariffs? Since the U.S. is the largest buyer of prescription drugs in the world, the goal of the executive order is to ensure it gets the best deal. It instructs U.S. trade officials to prevent foreign countries from maintaining low prices through practices that ultimately lead to higher American prices. The government will also set clear price targets and inform drug companies of its expectations. Check Out: If drug companies won't offer those lower prices, the government is prepared to step in with new rules and strong actions to stop price-gouging and break up unfair practices. To help lower prices, the plan also includes a new option: patients may be able to buy medication directly from manufacturers at the lowest price those companies offer in any country (known as the 'most-favored-nation' price), thereby skipping the middlemen. Dr. Gary Mangiofico, executive professor of management and leadership at Pepperdine University's Graziadio Business School, said that while the executive order aims to cut costs, not every American will feel the impact equally. For example, the savings depend on whether a person takes prescription drugs and how their prices are currently negotiated. In addition, Mangiofico said the entire pricing system is already clouded by discounts, pharmacy benefit managers and international pricing models, making comparisons and predicted savings hard to quantify. While the executive order aims to lower drug prices, tariffs may drive them back up. That's because many active pharmaceutical ingredients (APIs) and key raw materials used to make medications are sourced from countries like China and India. Even drugs manufactured in the United States often rely on imported components to complete their supply chain. If tariffs are imposed on these chemicals, materials or medical equipment, the production cost can rise. This will leave manufacturers to decide whether to absorb the costs or pass them on to consumers. 'A potential 25% tariff on drugs could raise U.S. prices by as much as 12.9%, depending on how much of the cost gets passed on to consumers,' said George Carrillo, former director of social determinants of health for the state of Oregon and current CEO of the Hispanic Construction Council. 'This move could also complicate availability if companies decide to reduce exports to the U.S. in response. While the administration aims to boost domestic production of drugs, it's a slow process that may not offset the immediate effects of a tariff-heavy strategy,' Carrillo added. It's unclear whether President Trump's tariffs will take effect. According to Reuters, a federal court recently blocked the administration's tariff plan, ruling that it exceeded presidential authority under the International Emergency Economic Powers Act. In addition, drugmakers and investors have pushed back against both the pricing reforms and the tariffs, raising concerns about market volatility and supply chain disruption. 'If the administration experiences significant blowback due to increased volatility in the stock market, then they may be slower to implement them, if at all,' Mangiofico said. 'And, given enough time, pharma companies could build and ramp up their production in this country, bypassing tariff issues altogether.' Experts said most consumers won't see immediate savings from the executive order. 'Even if drug companies cut prices they charge wholesalers, it won't reduce the co-pays and deductibles that patients pay,' said David Williams, healthcare business and policy expert. 'So, consumers will have to look elsewhere to make up for rising overall costs.' In addition, Williams said over-the-counter medications sold at retailers like Walmart could get more expensive, especially those using imported ingredients. Finally, legal challenges could slow implementation, while pharmaceutical companies may find alternative ways to shift the costs; therefore, it's too early to expect lower prices. 'These developments could significantly influence both the affordability and availability of treatments, making it a crucial time for anyone managing the cost of necessary medicines,' Carrillo said. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard How Much Money Is Needed To Be Considered Middle Class in Every State? I'm a Retired Boomer: 6 Bills I Canceled This Year That Were a Waste of Money This article originally appeared on Will Trump's Order on Prescription Drug Prices Be Enough To Offset Tariffs? 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Yahoo
25-05-2025
- Business
- Yahoo
5 Bills Most Likely To Eat Into Your Paycheck Under Tariffs — and How To Cut Them
Tariffs on fuel, electricity infrastructure and imported goods are driving up the cost of regular bills, forcing families to get creative to afford the same items they usually buy or do without. We're a Family of 5 Living on One Salary: Try These: Even bills you don't typically associate with global trade, like power or streaming services, are being affected by these price increases. Here are the bills most likely to eat into your monthly paycheck and what you can do to cut costs. Tariffs on energy and fuel are significantly impacting consumers, particularly lower- and middle-income households. For instance, the 10% tariff on Canadian energy resources is raising costs for gasoline and other energy products, which indirectly increases transportation and heating expenses, according to George Carrillo, CEO of the Hispanic Construction Council (HCC), but also the former director of social determinants of health for the state of Oregon. 'Historically, a 25% rise in energy prices has felt more like a 30% increase for these households due to their relatively greater reliance on energy-intensive essentials,' he explained. This means families are paying more at the pump, in their heating bills, and even indirectly through transportation costs affecting goods and services. Read Next: Tariffs and 'ballooning transmission and distribution costs' have become a 'silent surcharge on every U.S. power bill,' according to Owen Quinlan, Head of Data at Arbor. 'These costs and debts roll into the delivery line of power bills, so households — roughly 40 % of national electricity demand — are funding both last century grid repairs and tomorrow's capacity build out at the same time,' he said. Residential supply rates are also spiking this summer, he said, 'with double digit hikes already locked in for large parts of Pennsylvania, Ohio and Illinois,' where supply hasn't caught up with demand. Meanwhile, the utility companies are pouring billions into storm preparation and long overdue infrastructure upgrades, and new tariffs on steel, aluminum and transformers could add up to $53 billion a year to sector costs, Quinlan said. 'Every extra dollar a utility spends on borrowing or upkeep shows up in some way or another on everyday American's power bills, and the squeeze will only widen if capital and [operating and management] costs keep climbing,' he explained further. To lower your energy bills, focus on efficiency, Carillo urged. 'Switching to LED bulbs, unplugging unused devices and using a programmable thermostat can all help. Consider improving insulation, sealing doors and windows, or upgrading to energy-efficient appliances to save in the long term.' Additionally, Quinlan recommended seeking rebates and incentives for home upgrades. 'There are a wide range of federal, state, and local incentives designed to lower the upfront cost of energy-efficient upgrades,' he noted. 'This includes things like heat pumps, weatherization, insulation, smart thermostats and even electric panel updates.' When tariffs drive up the costs of imported goods like food and fuel, the effects ripple down to other monthly expenses, Carrillo said. 'Groceries, for example, now cost 2.6% more on average, with fresh produce spiking over 5%,' he said. This is translating to households spending roughly $3,800 more annually on groceries, he noted. 'To save, focus on buying seasonal and locally grown produce, which can be fresher and cheaper,' Carrillo advised. 'Discount grocery stores and bulk buying options for staples like rice and canned goods are excellent for cutting costs.' Other strategies include using store loyalty programs and coupons, planning meals ahead to avoid impulse purchases and favoring more affordable protein alternatives like chicken or legumes. While not a bill, per se, items you rely upon in your home, such as appliances and electronics, are already 10-25% more expensive, Carrillo said, because they're often made from tariffed materials like steel and aluminum. 'These percentage increases quickly add up across a household budget, tightening financial flexibility.' 'Electronics, which rely on tariffed imported components, are becoming pricier, with some reports pointing to rising prices of phones, laptops and gaming consoles,' Carillo added. Subscription services, despite not being directly tariffed, are raising fees to cover operational overhead related to higher infrastructure costs, Carrillo said. 'These overlooked bills could unexpectedly strain budgets if not adjusted for.' Carrillo recommended some simple budgeting tips and tricks to make adjustments: Track: Track your expenses carefully to spot savings opportunities, like reducing dining out or unnecessary shopping. Prioritize: Prioritize essentials over discretionary spending by noting which items are needs and which are wants, deferring purchases like upgrades to electronics. Shop smarter: Use discounts, compare prices rigorously, and capitalize on cash-back and loyalty programs. Proactively employing these strategies can help households absorb the higher costs without significant sacrifices to their quality of life. These small, temporary adjustments can provide immediate relief in offsetting the rising costs caused by tariffs. More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 6 Big Shakeups Coming to Social Security in 2025 This article originally appeared on 5 Bills Most Likely To Eat Into Your Paycheck Under Tariffs — and How To Cut Them Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
4 Red Flags for the Middle Class After Trump's First 100 Days
Middle-class Americans are already feeling the early tremors of economic change after the first 100 days of President Donald Trump's second term. Be Aware: Find Out: From rising prices at the grocery store to the threat of shrinking job opportunities in key industries, warning signs are emerging that could squeeze household budgets and long-term financial stability. Here are four red flags for the middle class after Trump's first 100 days. In the first 100 days of Trump's return, price hikes are hitting middle-class households in subtle but significant ways. From groceries to gas, everyday essentials are climbing faster than wages and squeezing budgets already stretched thin. 'Tariffs are inflationary, so American consumers need to watch their expenses carefully, especially in the areas of consumer goods,' said Mayra Rodriguez Valladares, managing principal at MRV Associates. 'We are a huge importer of Asian toys, for example, and those are rising in price.' She also explained that, with inflation remaining elevated as an effect of the tariffs, interest rates on loans, credit cards and mortgages will also remain high. In addition, Valladares said the 'erratic nature of the president's policies' worsens the problem. 'If individuals and businesses knew significantly in advance what the tariff policies are, they could plan for the future,' Valladares said. 'Uncertainty and volatility make it very difficult for consumers or businesses to figure out how to budget for tariffs.' Learn More: Industries like construction, agriculture and retail are vulnerable, because they rely heavily on imported materials and goods. 'You might see businesses cutting back, which could lead to fewer jobs or reduced hours in manufacturing, construction and retail,' said George Carrillo, CEO of the Hispanic Construction Council (HCC). These slowdowns hit hardest in regions where local economies depend on vulnerable sectors and lead to fewer opportunities and greater financial insecurity. 'States in the Midwest and South that depend on manufacturing and farming are expected to bear the brunt of these economic policies,' Carrillo said. 'The Pacific Northwest is also likely to struggle as major companies, like Nike, Adidas and Colombia Sportswear, headquartered in the region face rising costs and potential disruptions.' Carrillo added, 'It's a tough spot for workers and businesses in these areas as they face rising costs and shrinking margins.' Rising tariffs are quietly driving up the cost of dining out, making restaurant meals less affordable for middle-class families. As ingredient prices climb, many restaurants are passing those increases on to customers and turning even casual meals into budget concerns. According to the food blog Eat This, Not That, here's why middle-class diners could see price hikes on some of their favorite menu items. Guacamole and avocado-based dishes: 90% of avocados consumed in the U.S. come from Mexico. Salsa and tomato-based sauces: The U.S. relies on Mexico for tomatoes. Fresh salads: Imported produce from Mexico and Canada. Imported beer and alcohol: Many popular beers come from Mexico. Beef and meat-centric dishes: The U.S. imports a portion of its beef from Canada. Supply chain issues are worsening under Trump's trade policies, causing periodic shortages of essential products. Electronics, certain food items and auto parts are becoming harder to find, and these gaps in availability can raise prices even further. These disruptions not only frustrate consumers but also create instability for retailers and manufacturers already coping with higher costs. Carrillo said the ripple effects of supply chain shortages can add stress to households and increase the likelihood that consumers will rely on credit cards to cover rising expenses. 'This can create long-term financial problems if interest starts piling up,' Carrillo said. 'To manage these challenges, focus on sticking to a budget, look for savings through coupons and bulk purchases, and explore ways to bring in extra income or build new skills.' Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Surprising Items People Are Stocking Up On Before Tariff Pains Hit: Is It Smart? 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 5 Little-Known Ways to Make Summer Travel More Affordable Warren Buffett: 10 Things Poor People Waste Money On Sources Bureau of Economic Analysis, Gross Domestic Product, 1st Quarter 2025 (Advanced Estimate) Mayra Rodriguez Valladares, MRV Associates George Carrillo, Hispanic Construction Council Eat This, Not That, '10 Menu Items Getting More Expensive as New Tariffs Start.' This article originally appeared on 4 Red Flags for the Middle Class After Trump's First 100 Days Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit — Here's What To Buy
While the exact details and impact of President Trump's tariff plans still remain uncertain, many experts project that these will lead to significant price increases for consumers. One analysis from The Budget Lab at Yale University, based on data as of April 2, projects that the tariffs announced so far will cost the average American household $3,800 in purchasing power annually. Learn More: Find Out: The effects could take a little bit of time as retailers figure out pricing strategies and negotiate with suppliers, but one strategy for consumers to save money could be to stock up on non-perishable items. In a recent post on social media app Bluesky, entrepreneur Mark Cuban said that it's not a bad idea to go to a big-box store to get lots of consumables now, before retailers have to restock with the new inventory reflecting the cost of tariffs. Cuban went so far as to note that items made in the U.S. are not immune from this issue, given that some retailers might use tariffs as an excuse to hike prices. 'When the market shifts because of tariffs, companies will find reasons to adjust their prices to match,' added George Carrillo, co-founder and CEO at Hispanic Construction Council. 'You buy now and avoid potential price hikes later.' With that in mind, consider stocking up on items such as the following if you have the space and budget for it: One of the items Cuban suggested buying now is toothpaste. According to Crest, toothpaste usually has a shelf life of about two years from the date it's manufactured. So, consider how much toothpaste your family is likely to use by then, and think about buying a few tubes to last you for a while. If you know you're going to use it, there's a case for locking in the price now and potentially saving a few dollars. Read Next: Soap is another item suggested by Cuban. Similar to toothpaste, soap tends to last a few years, though the shelf life varies a bit based on factors such as whether it's liquid vs. bar soap. Still, if you know you're going to go through several bottles or bars in the coming year or two, it might make sense to buy those now at current prices. Another household product that you might want to stock up on is laundry detergent, according to Carrillo. If unopened, liquid laundry detergent typically lasts around 12-18 months, while opened ones last around six months, according to Gain. Other formats can have different shelf lives, so consider that before stocking up. But in general, this is another product that you can potentially save a few dollars on since you know you're going to use it in the coming months. Another suggestion, according to Carrillo, is buying over-the-counter medicines now. The expiration dates for these vary widely by product, but it's not necessarily a bad idea to buy some common drugs like headache or cold medicine so that you're not only prepared for getting sick but also possibly sparing your wallet a bit. While pharmaceuticals were exempt from the April 2 announcement of reciprocal tariffs, it's unclear exactly what will happen with this sector. Even if some tariffs are avoided, the cost of raw materials could go up for things like packaging. Or over-the-counter medicines could simply get caught up in the same potential price hikes that retailers could put on all items to spread out the impact of tariffs. Lastly, consider stocking up on toilet paper now, suggested Carrillo. Toilet paper can last indefinitely and could get more expensive due to things like timber tariffs. Of course, you don't want to go overboard and fill up every spare inch of your house with toilet paper. Everyone remembers the toilet paper frenzy and shortages at the beginning of the pandemic. 'Stocking up on essentials might seem like the responsible thing to do, especially with prices rising and uncertainties looming, but it's not without its challenges. When everyone tries to prepare at once, shelves empty faster, supply chains buckle and prices inevitably go up,' said Carillo. When it comes to buying toilet paper — or any other consumables — try to seek the balance between being proactive vs. panicking. 'Buying an extra item during regular shopping trips can help you prepare without overwhelming stores or straining manufacturers. Collaboration also plays a big part in avoiding unnecessary chaos. By sharing resources with neighbors, friends or family, everyone can gather what they need without leaving others empty-handed,' said Carrillo. Collaborating with friends, family, and neighbors can also make stocking up more practical. 'By pooling resources, you can buy in bulk without stretching your budget too thin, and sharing storage across multiple households makes it much easier to manage,' he added. More From GOBankingRates Mark Cuban: Trump's Tariffs Will Affect This Class of People the Most How Far $750K Plus Social Security Goes in Retirement in Every US Region How To Get the Most Value From Your Costco Membership in 2025 12 SUVs With the Most Reliable Engines This article originally appeared on Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit — Here's What To Buy
