Latest news with #Inflation
The Independent
2 days ago
- Business
- The Independent
The Black hair industry imports products from China. Here's what tariffs mean for braids and wigs
Before the oppressive summer heat descends on Atlanta, therapist Brittanee Sims usually gets her thick, curly hair braided at a salon to preserve her healthy mane. But it's more expensive this year. So she'll only pay for her teenage daughter and son to get their summer hairdos. Not having braided hair 'creates more of a hassle for everything,' said Sims, who counts herself among the tens of millions of women that regularly spend on the Black hair care industry. Now, she said, she has to 'go home and figure out what I'm gonna do to my hair in the morning, after I went to the gym and it's messed up with sweating and frizz.' President Donald Trump's tariffs are driving up prices for products many Black women consider essential, squeezing shoppers and stylists even more as they grapple with inflation and higher rents. Much of the synthetic braiding hair, human hair for extensions, wigs and weaves, styling tools, braiding gel and other products is imported from or has packaging from China, which was subject to a combined 145% tariff in April. Many Black women have hair types and workplace-favored styles that require careful attention, and they can spend hundreds of dollars at salons each month on extensions, weaves, wigs and braids. The Associated Press spoke with several Black hair industry experts, beauty supply store owners, and wholesale companies, as well as nearly two dozen Black stylists and braiders, some of whom may have to raise prices even as business has slowed. On Thursday, a federal appeals court reinstated most of Trump's tariffs on imported goods after they were blocked the day before by a three-judge panel of the U.S. Court of International Trade. Earlier this month, the United States agreed to drop the 145% tax on goods imported from China to 30% while the two economic superpowers negotiate new trade agreements. Imports from most other countries face baseline tariff rates at 10%. Regardless, the next few months 'are already shot' for many items, said Marty Parker, a University of Georgia business professor and supply chain expert who worked in the hair care industry. The costs companies have been facing at ports are making their way down to consumers, supply shortages are getting worse, and it's unclear what will happen if negotiations break down. 'Prices go up very fast and come down very slow,' Parker said. Costs go up for Atlanta stylists Some stylists said they're seeing fewer clients because prices are going up for virtually everything. Atlanta stylists are paying more for hair from China. Atlanta stylist Yana Ellis, who also sells products like wigs, paid an extra $245 in shipping for 52 bundles of hair in March compared to 40 bundles in December. AaNiyah Butler said her shipping costs for human hair more than doubled from February to May. And Dajiah Blackshear found in early May that a beauty supply store raised the cost of the kind of hair she's used for years by $100. The store owner said he may have to stop selling that brand of hair because it went up so much. Similarly, some wholesale hair stores have seen higher costs or are expecting them in the coming weeks. Even the typical $6 to $10 cost of a pack of synthetic hair has crept up. Blackshear doesn't want clients to bring hair because she likes to vet the quality. But if expenses continue to mount, she may have to raise her prices. 'It's going to be extremely difficult,' she said, especially for clients who are "having to make those hard decisions, between 'do I get my hair done or do I pay my bills?'' Janice Lowe, who runs 5 Starr Salon in a lower-income neighborhood southeast of Atlanta, has started asking clients to bring hair and is unable to purchase certain products. 'I'm falling behind on my obligations,' she said. The industry braces for uncertainty Consultants vary on how much prices will rise, when they'll go up and for how long — and the full harm to stylists and consumers could be months away. The global Black hair care industry was worth about $3.2 billion in 2023, according to and Black women spend six times more on hair care than other ethnicities. Stylists often purchase some harder-to-get professional products from door-to-door distributors that buy from wholesale companies or larger distributors that purchase directly from other countries. Lowe has seen some of her distributors vanish altogether, making it harder to get professional lines such as Black-owned leading professional hair care brand Design Essentials, manufactured in Atlanta at McBride Research Laboratories. Design Essentials is trying to delay big price increases until 2026 or 2027, and may turn to layoffs or pause promotions to save money, said president Cornell McBride Jr. Most packaging plastics come from China, but ingredients can come from many places. 'Nobody wants to put it to the consumer but the person who pays is the consumer in the end,' McBride Jr. said. Hawa Keita and her mother usually charge customers between $160 and $250 for braiding at their shop, Eve's African Hair Braiding in College Park southwest of Atlanta. Keita is determined to take losses because their customers 'can't afford the Atlanta prices,' Keita said. The cost of a box of 100 packs of braiding hair from China went up for the first time in two years, from $250 to $300, Keita said. They order weekly, often multiple boxes. Some companies say they'll soon raise prices or run out of stock. Making customers happy is ultimately what will keep the business afloat, Keita said. She smiled as she recounted braiding a young woman's hair for her birthday with a style she suggested. 'When we finished, she gave me the biggest hug, and she was in here screaming and just yelling because she just really loved her hair,' Keita said. Priced-out consumers face unfair beauty standards For many Black Americans, especially women, affording their hair care also means confronting unfavorable beauty standards. Georgia State University law professor Tanya Washington said recent discoveries about dangerous chemicals in synthetic hair and hair straightening products have sparked conversations among Black women looking for hairstyles that don't require as much imported products. But embracing natural hairdos can be daunting for women like the soon-to-be lawyers and clerks Washington advises who face pressure to straighten their hair. 'That puts everyone who does not have organically, naturally derived straight hair at a disadvantage in these spaces,' she said. 'I think that a definition of professionalism that favors one phenotype — European phenotype — over all others, is inappropriate." Longstanding income disparities between Black and white American women can also make higher hair care prices untenable. According to the U.S. Census, as of 2023, the median household income in Atlanta is $131,319 for white households and $47,937 for Black households. It's an inequality issue that professional hairstylists are aware of nationwide. Stylist Mitzi Mitchell, owner of PIC ONE Beauty Services in Pennsylvania, said she has stocked up on certain products and tools for another year in anticipation of price increases. She wants to avoid 'bootleg' products, which are made illegally and often aren't as safe, but became much more prevalent in the marketplace during economic downturns. 'I'm really conscientious about my Black minority clients because we make a heck of a lot less than other nationalities,' said Mitchell, who is Black. 'I try to keep prices low so we can continue to have the same services, but I know I will have to raise it.' ___
Bloomberg
3 days ago
- Business
- Bloomberg
German Inflation Slows Less Than Expected With ECB Set to Cut
German inflation slowed less than expected, highlighting lingering risks as the European Central Bank prepares to lower interest rates again. Consumer prices rose an annual 2.1% in May, more than the 2% that economists predicted in a Bloomberg survey but lower than April's 2.2% advance. Pressures in the services sector abated, while energy costs continued to fall, the statistics office said.
The Independent
6 days ago
- Business
- The Independent
Asian shares mostly lower, trading in a narrow range with US markets closed for Memorial Day
Shares were mostly lower in Asia on Tuesday, trading in a narrow range after U.S. markets were closed Monday for the Memorial Day holiday. U.S. futures were and oil prices slipped. Data on consumer confidence and housing prices were due out later on Tuesday. In Tokyo, the Nikkei 225 lost 0.2% to 37,451.60 after the governor of the central bank said he anticipated raising interest rates in coming months due to inflationary pressures. Bank of Japan Gov. Kazuo Ueda said in a speech that Japan was facing pressure from rising food prices, with rice prices doubling in the past year. Inflation in Japan is now higher than in the U.S. or Europe and above the BOJ's target level. But the central bank also has to take into account trade policies, he said without directly mentioning U.S. President Donald Trump 's tariff hikes, that complicate its goal of raising its very low benchmark interest rate of 0.5%. 'We are now closer to the target than at any time during the last three decades, though we are not quite there. Our recent path has been affected in a unique way by supply shocks,' Ueda said. Hong Kong's Hang Seng gained 0.3% to 23,359.94, while the Shanghai Composite index was little changed, at 3,346.48. In South Korea, the Kospi lost 0.4% to 2,632.93. Australia's S&P/ASX 200 held steady at 8,359.20 and Taiwan's Taiex lost 0.6%. In other dealings early Tuesday, U.S. benchmark crude oil lost 23 cents to $61.30 per barrel. Brent crude, the international standard, fell 20 cents to $63.92 per barrel. The U.S. dollar fell to 142.23 Japanese yen from 142.85 yen. The euro rose to $1.1403 from $1.1388. The future for the S&P 500 was up 0.9% and that for the Dow Jones Industrial Average advanced 0.8%. On Monday, European shares closed higher and U.S. futures surged after U.S. President Donald Trump said he would delay a threatened 50% tariff on goods from the European Union to July 9. Germany's DAX added 1.5% to 23,977.83 and the CAC 40 in Paris rose 1% to 7,810.49. Markets were closed in Britain for a holiday. The impact on markets from U.S. President Donald Trump's decision to delay a threatened 50% tariff on imports from the European Union was relatively muted as investors are growing inured to such policy changes, Stephen Innes of SPI Asset Management said in a commentary. 'Investors know this act by heart,' Innes wrote. 'The volatility is still there, but like a horror franchise on its fifth sequel, the jump scares are losing their bite. Panic-selling into a Trump pirouette doesn't pay like it used to — markets have seen this dance before.' The European Union's chief trade negotiator said Monday he had 'good calls' with Trump administration officials and that the EU was 'fully committed' to reaching a trade deal by the July 9 deadline. Just last week, Trump had said on social media that trade talks with the European Union 'were going nowhere' and that 'straight 50%' tariffs could go into effect on June 1. On Friday, U.S. stocks fell as traders weighed whether Trump's latest threats were just negotiating tactics. The S&P 500 lost 0.7% to end its worst week in the last seven. The Dow dropped 0.6% and the Nasdaq composite sank 1%.
Forbes
25-05-2025
- Business
- Forbes
Bond Yields & Stocks: Something's Happening Here
The recent sharp rise in US Treasury bond yields has raised questions about whether the move is ... More connected to US fiscal policy or the end of American exceptionalism. The evidence for alternate explanations is examined. Despite some pundits being quite convinced that US fiscal policy or the end of American exceptionalism is the reason for the recent rise in US Treasury yields, Buffalo Springfield was closer to reality when they sang, 'Something's happening here, What it is ain't exactly clear.' It is not disputed that 10-year US Treasury yields are 52 basis points (0.52%) higher since the 2025 low of 3.99% on April 4. Using US Treasury Inflation-Protected Securities (TIPS) data, expected higher inflation accounted for 15 basis points, while the remaining 37 are from a higher real (after-inflation) return. 10-Year US Treasury Note: Yield Decomposition Notably, yields were at their nadir when the betting odds of recession were at their highest. As one should expect, yields have risen as the odds of a recession have declined. Directionally, the move in yields is logical, though some might still argue that yields have increased more than is warranted. Yields & Recession Odds US government bond yields in the US have risen more than many other developed countries since April 4. Interestingly, our neighbor to the North has experienced a similar increase. 10-Year Government Bond Yield Change Since US Low Notably, global government bond yields hit their low during the pandemic and have trended higher since then. Global Yields If one looks at government yields since the end of last year, a different picture emerges. While higher government bond yields have been a global phenomenon, the US has seen slightly lower yields! 10-Year Government Bond Year-To-Date Yield Change The other proof point for those arguing for the danger of US fiscal policy or the end of American exceptionalism is the recent weakness in the US currency relative to other currencies. While there is no doubt that the US dollar has been weaker year-to-date, it follows a period of exceptional relative strength. The US dollar remains stronger than it has been most of the time since 1999. Further, as shown in the historical data, periods of a weaker US dollar do not uniformly lead to higher US Treasury bond yields. US Dollar Without exception, the fiscal position of large countries, as measured by government debt relative to GDP, deteriorated with the impact of spending during the pandemic. Most countries were already piling on more debt relative to economic activity, but the pandemic accelerated the trend. Government Debt-To-GDP There is no magic level of debt-to-GDP that signals disaster since countries with a more resilient economy can service more debt. Furthermore, countries like the US, which has a high per capita GDP, control of the global reserve currency, and only issues debt in that currency, can handle significantly more debt levels than most other countries. German government debt levels are understated relative to reality. While Germany isn't legally liable for the debts of its profligately spending neighbors, it shares a common currency and its share of European Union (EU) issued debt. Historically, Germany has been forced to contribute the most to bailout funds when other EU countries have encountered problems. Recent Government Debt-To-GDP Ratios The US House of Representatives passed its tax legislation, which, despite reports to the contrary, does not make the US fiscal situation any worse, according to Strategas. Tariffs should produce about $200 billion in revenue annually and are not included in the legislation's official scoring, leading to much confusion. The US Senate will almost certainly make some changes, so the House bill is unlikely to be the final version implemented. The S&P 500 sits only 5.6% below its mid-February high in a robust rebound from the 19% decline from the peak reached on April 8. The Magnificent 7, consisting of Microsoft (MSFT), Meta Platforms (META), (AMZN), Apple (AAPL), NVIDIA (NVDA), Alphabet (GOOGL), and Tesla (TSLA), has fared worse, and the group is 12% below its mid-December summit. Market Returns The proximate cause of the decline in stocks last week was the reheating of the tariff war, which increased the headwinds for the US and global economy. President Trump threatened the European Union with a 50% tariff and smartphone makers, notably Apple (AAPL), with a 25% tariff rate. The betting odds of recession rose to 41%, sending stocks 2.6% lower last week. Betting Odds of 2025 US Recession Despite the likely economic drag from the tariffs, only two expected rate cuts for 2025 are expected. There is little chance of a rate cut at the mid-June Federal Reserve meeting. Number Of Fed Rate Cuts Expected The primary focus will likely remain on the fallout from the tariffs, with markets watching for any changes in US policy and retaliation or concessions from other countries. Friday's April inflation reading will likely be friendly. The Core PCE Price Index is the Federal Reserve's favorite measure of inflation and should moderate to 2.5% year-over-year from the 2.6% pace in March. The last Magnificent 7 stock to report earnings is Nvidia (NVDA) on Wednesday after the close. As the leader in artificial intelligence chips, its results and forecasts will be closely watched to judge the health of technology spending. The rise in US Treasury yields does not point to a US-specific problem; instead, it is a function of the lower probability of an economic downturn and perhaps a shift in the global appetite for government bonds. Yields are not high enough yet to significantly negatively impact stock valuation since the higher yields are accompanied by less risk of an earnings decline from a recession. Like many other countries, the current fiscal trajectory in the US is unsustainable, but the recent tax bill wouldn't worsen things. Investors can be forgiven for wishing it improved the path, but the Senate will have their say next, and bond market participants will be watching closely. Government bond investors are demanding higher yields from most countries, so there might be a shift in the willingness of markets to fund large deficits, but it is too early to know for sure.
Reuters
21-05-2025
- Automotive
- Reuters
European stocks ease from 2-month highs as Julius Baer slides, US talks in focus
May 21 (Reuters) - European stocks retreated from two-month peaks on Wednesday, weighed down by a drop in Julius Baer shares after the Swiss bank revealed credit portfolio charges, while investors kept an eye on U.S. trade developments and tax bill debate. The pan-European STOXX 600 (.STOXX), opens new tab was down 0.2%, as of 0721 GMT, led by auto (.SXAP), opens new tab and retail (.SXRP), opens new tab stocks. Shares of Julius Baer (BAER.S), opens new tab slid 5.6% after the lender reported a 130 million Swiss franc ($156.36 million) charge from a credit portfolio review and announced the replacement of its chief risk officer. JD Sports (JD.L), opens new tab slumped 8.4% to the bottom of the STOXX 600 after the British sportswear retailer posted a 2% fall in first-quarter underlying sales and warned that higher prices in its key U.S. market could hit customer demand. Further spooking investors, data showed British inflation surged by more than expected in April, including in key areas closely watched by the Bank of England, complicating its path toward gradual interest rate cuts. Investors are worried about the lack of progress on trade deals as the clock ticks down to the end of U.S. President Donald Trump's 90-day tariff respites, as well as a sweeping tax bill that has raised concerns about the fiscal health. German chipmaker Infineon ( opens new tab rose 1.7% after it said it would work with Nvidia (NVDA.O), opens new tab to develop chips for new power delivery systems inside artificial intelligence data centers. Marks & Spencer (MKS.L), opens new tab slipped 3.3% after the British retailer said a "highly sophisticated cyber" attack would cost it about 300 million pounds ($403 million) in operating profit.
