Latest news with #Trump tariffs
Yahoo
6 days ago
- Business
- Yahoo
William Watson: Any help for tariff-hit firms needs to be temporary
One good thing, maybe the only good thing, about the Trump tariffs and Canadians' backlash against them: the lines at the border are a lot shorter. A check yesterday of the U.S. tracking system showed delays, in many instances, of zero minutes — zero, this in mid-August. People of my very close acquaintance who crossed over in April on their way to North Carolina — on a trip that had been booked and was non-refundable — were asked by the U.S. border agent why they hadn't used the NEXUS lane. 'Because there wasn't anyone in either the NEXUS or the regular lane,' we responded (oops!). With Canadian visits to the U.S. way down, U.S. border guards are like the Maytag repairman of yore — though you might think that with so little to do they'd be more than happy to sniffer-dog every visitor for all the fentanyl that's supposed to be going across. With crossings way down year-over-year, the 32 Canadian land border duty-free shops that are members of the Frontier Duty Free Association have been hit hard. Almost from Day 1 they've been asking Ottawa for help, whether new regulations, less red tape, COVID-style grants or just interest-free or low-interest loans to help them through the remaining Trump years. One remedy they don't mention is higher taxes on liquor and the other products they sell for immediate export to the U.S. The only reason these stores exist is that Canadian taxes are so high. If Ottawa raised its taxes further, that would provide more incentive for travellers to the U.S. to stop by the duty-frees. Of course, it wouldn't be so good for the vast majority of Canadians who do their drinking and other self-indulgence in-country. Taxes are high enough already. But it would give the duty-frees a little more business. Raising taxes on all other Canadians to help a sector hit hard by the tariffs sounds weird but in fact just about any financial help given to any sector, and there are lots asking for it, will involve such a trade-off. One way or another, other Canadians will be paying for it. Petitioners for help draw parallels with the assistance governments gave businesses during COVID. With all that went wrong with COVID aid, it's probably not their best argument. But during COVID governments basically shut down the economy and therefore bore at least some responsibility for the hit businesses took. Our governments didn't create Donald Trump, however, or provoke his tariffs. He's more like an act of God. Or some other power. If the fall in border crossings is temporary, then, no, it probably doesn't make sense for potentially profitable operations to go under because they face hard times over the next year or two. But is the federal government the only possible source of bridge financing? Successful companies presumably have reserves. And mightn't other lenders see an opportunity? There's also EI to cover temporary layoffs, while businesses making losses can write them off or carry them forward. Why are Canadian taxpayers always asked to be the main risk-takers in this country? (And it's a country brimming over with risk-takers, if 24/7 TV ads for gambling are any indication.) If the fall in border business is permanent, however, then in the long run we simply don't need as many duty-free stores. No politician will say so but we actually want some stores to go out of business. No ill will to those that don't make the cut — and bravo for having been an entrepreneur in a country that doesn't favour them — but the society already offers lots of safety nets and ways to get going elsewhere or on other things. The same reasoning applies to other sectors hit hard by tariffs. If we think the problem is temporary, it doesn't make sense for perfectly viable firms to go out of business because of it. But the most viable ones will find ways to get through the hard patch. Assistance doesn't have to be lavish — which is good, given all the other demands on public resources. If the tariffs are permanent, however, and they looking more so every day, we need to get on with the economic adjustment. If we provide permanent help to companies that shift their exports away from the U.S. to other countries, we're effectively subsidizing those other countries. On the other hand, if the companies we help on a permanent basis keep exporting to the U.S., we're basically paying the Trump tariffs for them. That would be very nice of us — not nasty at all, to use the president's latest favourite adjective for us — but it would make no sense. William Watson: Economic forecasters, beware Donald Trump's personality penalty William Watson: A lament for the postwar trading system Every government program creates a constituency. Which is why one of the hardest things for any government to do is to shut down a program. We therefore need to be clear that temporary help really is temporary. And we need to give permanent help only to operations whose continued existence is truly in the national interest — not local or political or partisan interest. Sign in to access your portfolio
Yahoo
12-08-2025
- Business
- Yahoo
Why a Fed rate cut could lead to bad news for Big Tech stocks
Investors are looking for an interest rate cut — but the market may not respond as expected when it comes. "I think that the market's going to have to come to grips with the Fed is going to cut rates, and is it going to be the right move for the Fed to make now?" Jim Bianco of Bianco Research said on Opening Bid. July's Consumer Price Index (CPI) report showed core inflation rose 0.3%, the largest increase in six months. "Last year they cut rates, and the market decided it wasn't the right move," Bianco added. "And it shot yields on the 10 [year Treasury] and the 30-year up over 100 basis points." Bianco said the real inflationary pressure is building due to Trump's tariffs, and the impact could be significant. While some of the costs may be eaten by exporters or corporations, others will be passed on via price hikes. "There's about an extra $250 to $300 billion of tariffs that are going to be collected over the next year ... tariffs were running around $8 billion a month. Now they're running nearly $30 billion a month," he noted. Bianco expects Fed Chair Jerome Powell to provide some clarity at the Fed's annual Jackson Hole Economic Symposium later this month. And if Powell signals a September cut isn't coming, the backlash could be intense — including renewed political pressure from President Trump, who has previously floated the idea of firing the Fed chair. "If he says he's not going to cut rates, I would then put Trump firing him back into the play," Bianco said. The Fed's decision could also have an outsized impact on megacap tech stocks. The largest 10% of US companies now account for 76% of total market capitalization, the highest concentration on record, according to market data platform Barchart. The concentration makes the entire market vulnerable to shifts in interest rates. As yields go higher, money could move out of stocks and into bonds. Bianco warned that if 10-year Treasury yields hit 5%, it could trigger profit-taking in Big Tech stocks. Bianco advised investors to stay cautious when chasing the market's most popular names. "If you want to play some of these Mag 7s, you have to be prepared for big gains and big losses," he said. "Some think it's all a one-way street ... until it isn't." Francisco Velasquez is a Reporter at Yahoo Finance. He can be reached on LinkedIn and X, or via email at Click here for in-depth analysis of the latest stock market news and events moving stock prices
Gizmodo
01-08-2025
- Business
- Gizmodo
You Should Get All Those Switch 2 Accessories Now Before They Get Even More Expensive
The situation surrounding Trump tariffs hasn't eased its pressure on Nintendo. Even as the Switch 2 has become one of the fastest-selling consoles ever, the Mario maker said that select Switch 2 accessories may see price 'adjustments' starting Aug 3. Not only that, but the original Switch and Switch OLED could cost more going forward. I guess we shouldn't say we told you so, but even we didn't expect to witness original Switch models selling for $40 or $50 more than before. In a news post, Nintendo said U.S. customers can expect certain accessories, select amiibo, and the cute Alarmo bedside clock to all get more expensive in the next few days. After Nintendo fully revealed the Switch 2 in May, the company delayed preorders for North American customers and blamed the wide-reaching tariffs for the issue. While the console maker decided not to hike Switch 2 prices, it raised prices on the Switch 2 Pro Controller, Joy-Con 2 split controllers, and the official Switch 2 Camera peripheral by $5 each. We can expect some console extras to cost more, but we'll have to see which amiibos Nintendo decides to hike. We can assume the DK and young Pauline figurine for Donkey Kong Bananza is first in line. New Switch pricing in the U.S. (from Target) OG Switch $299 -> $339OLED Switch $349 -> $399Lite Switch $199 -> $229 — Nintendeal (@Nintendeal) August 1, 2025Nintendo said its games shouldn't cost any more after Aug. 3. That's not much of a relief considering the company is already pushing some titles for $70 or as much as $80. If some gamers were already suffering consternation surrounding the Switch 2's $150 jump from the original Switch to the Switch 2, the divide is already starting to shrink. Digital deals hunter Wario64 spotted that Target had already increased prices for the 8-year-old console. A Switch Lite went from $200 to $220. The original Switch now costs $40 more at $340. The fan-favorite Switch OLED, which was priced at $350 on launch, now sells for $400. Nintendo Joy-Con 2 (L)/(R) Light Blue/Light Red currently $94.99 (will increase to $99.99 this weekend according to Target) Amazon Best Buy GameStop #ad — Wario64 (@Wario64) August 1, 2025Target prices indicate the Switch 2 Pro Controller won't get a price hike, but both the Joy-Con 2 and the original Switch Joy-Con controllers will now cost more at $100 and $90, respectively. Alarmo will now cost $110, while prices on accessories, like the original Joy-Con charging stand, will go up by $5. The price hikes come on the heels of Nintendo declaring the Switch 2 had sold more than 6 million units globally in the first seven weeks after release—around July 24. The company said in its latest financial results that it sold nearly as many copies of Mario Kart World, though that includes the software downloads from the $500 Switch 2 and Mario Kart bundle. Nintendo didn't offer nearly as much data on its peripheral sales, though original Switch sales were already declining before the Switch 2 release. A more expensive console won't do Nintendo's older systems any favors. Either way, if you still had plans to grab a few Switch 2 accessories, you best do so now before they cost you even more.
Yahoo
21-07-2025
- Business
- Yahoo
Fox Sees New Ad Dollars for Sports, News, Streaming in Latest Upfront Close
Fears that Trump tariffs would dampen TV's annual 'upfront' advertising market appear to have been overblown — at least for those media companies with a strong sports portfolio. Fox Corp. won new dollars to its sports schedule, Tubi streaming service and Fox News operations during the current 'upfront' market, according to the company, which has wrapped the majority of its negotiations. During this annual period, U.S. media companies look to secure the bulk of the ad dollars Madison Avenue will commit to their next cycle of programming.' More from Variety Fox Sports Inks Broad Pact With Barstool Sports, Dave Portnoy to Become Regular On-Air Contributor NBCU Says Surge in Sports Ads Boosts Upfront Sales Haul Fox News Strikes Deal to Put 'Ruthless' Podcast on Digital Roster 'The Fox portfolio of industry leading Sports, News and Entertainment content delivered double-digit revenue growth in the Upfront for the second year in a row,' said Jeff Collins, president of advertising sales, marketing and brand partnerships for Fox Corp., in a prepared statement. 'Unprecedented audience growth across the Fox portfolio has driven better outcomes for our trusted client partners. We thank them for their continued commitment and remain dedicated to making every second of their investment with us count.' Fox saw the bulk of its growth from consumer-products giants, pharmaceutical marketers and financial-services firms. The volume of dollars put behind sports programming rose by a double-digit percentage, according to people familiar with negotiations, exceeding $2 billion overall, not including the World Cup, which did not take place last year, but for which Fox has U.S. rights in 2026. Advertisers raised the volume of dollars committed to Tubi by 35%, these people said. Programming from the company's Fox News Media secured a volume increase in the double-digit percentage range, according to these people, as advertisers followed the larger audiences viewing Fox News Channel. Fox News saw the number of traditional advertisers on its roster rise, these people said. Like NBCUniversal, which revealed robust upfront results last week, Fox benefitted from a broad sports portfolio that includes one of the medium's most-watched Sunday NFL broadcasts as well as next year's World Cup and post-season Major League Baseball games. Sports has been key to the ad-sales game so far this year. There is no other programming format that continues to dependably generate the large, simultaneous viewing audiences that advertisers and distributors crave. TV networks favor the upfront market because it allows them to build support for their programs well ahead of their debut. Still, the advertising bazaar has been tougher to navigate in recent years as more people gravitate to streaming video and other means of accessing their favorite programs, movies, news and sports events. Ad commitments for the most recent cycle of primetime broadcast TV fell 3.5% in 2024's upfront market, to $9.34 billion, according to Media Dynamics Inc., while commitments for primetime on cable tumbled 4.8%, to $9.065 billion. Meanwhile, ad commitments to streaming video hubs rose a noticeable 35.3%, hiking to $11.1 billion from $8.2 billion in the previous market. The amount committed to streaming video for the most recent TV season was greater than that devoted to primetime broadcast or primetime cable — a first for the industry. Best of Variety New Movies Out Now in Theaters: What to See This Week 'Harry Potter' TV Show Cast Guide: Who's Who in Hogwarts? Final Emmy Predictions: Talk Series and Scripted Variety - New Blood Looks to Tackle Late Night Staples 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
