Latest news with #WorldIntegratedTradeSolution
Yahoo
4 days ago
- Business
- Yahoo
Tomatoes May See a Big Price Increase Soon—Here's Why
A change is coming on July 14, and it's likely going to affect the price of your BLT's. On that date, the U.S. is expected to pull out of the Tomato Suspension Agreement that was most recently negotiated in 2019 with Mexico. More specifically, the agreement, which dates back to 1996, is between the Department of Commerce and producers and exporters of fresh tomatoes that are grown in Mexico, as explained by the U.S. Department of Agriculture. This deal essentially ensured that producers and exporters will sell tomatoes at or above an "established reference price." The agreement initially stemmed from a long-time antidumping the agreement is terminated, the International Trade Administration expects a 20.91% tariff on "most imports of tomatoes from Mexico." The dissipation of this agreement is intended to allow "U.S. tomato growers to compete fairly in the marketplace." The Trump Administration has enforced strict U.S. trade laws since the beginning of his term, surging predicted price increases for a number of staple foods (such as bananas, shellfish, olive oil, chocolate, and nuts). Typically, the lowest cost of tomatoes is handed to the summer months, due to increased production deriving from peak harvest times. During the winter, when production decreases, is when grocery stores usually fall victim to a higher price. However, with Mexico being the largest supplier of tomatoes to the U.S., it's likely consumers will now see an increase year-round, including the summer months. RELATED: The USDA's most recent forecast cites 93% of the U.S.'s tomato imports coming from Mexico. Growers are already preparing for the change, with the report stating that "producers are expected to reduce planting in the autumn-winter season in response to the U.S." With this seasonal anticipation, the amount of available agricultural work may also decrease. Canada and Guatemala are the next biggest trade partners to the U.S. as of 2023, as reported by the World Integrated Trade Solution, but the countries still only account for a small percentage of total tomato imports. What does this mean for your grocery store bill? Well, aside from purchasing the vegetable outright, tomatoes are a staple ingredient in so many of your everyday foods—salsas, sauces, ketchup, pizza, etc. So, should these tariffs come into full effect, your grocery receipt will begin to see a subtle price change (especially in the upcoming winter months, when the U.S. more heavily relies on imports of seasonal summer foods).Tomatoes May See a Big Price Increase Soon—Here's Why first appeared on Men's Journal on Jul 8, 2025
CNBC
28-04-2025
- Business
- CNBC
CNBC Daily Open: Countries are pivoting away from the U.S. amid Trump policies
U.S. President Donald Trump's "America First" ideology, which, generally speaking, prioritizes the domestic over the international, rests on the assumption that the world needs America more than it needs the world. This may be true for the status quo. The U.S. is the world's largest importer and among the biggest exporters, according to the World Integrated Trade Solution, a database provided by the World Trade Organization. And its policies are already being felt: Factories in China are struggling to fill their order books because of increased export costs to the U.S. But change is afoot. Countries are finding ways to respond to Trump's nationalistic gestures. Southeast Asian nations, which suffered the brunt of Trump tariffs, are banding together to increase intra-regional trade and diversify their export destinations. China, after assessing the severity of Trump's threats, seems to be ready to strengthen its fiscal stimulus, and is likewise expanding to other overseas markets. It's not like the U.S. has a monopoly over all aspects of international affairs, either. China controls much of the supply chain of rare earth elements as well as critical minerals like nickel and copper. Trump's green light to deep-sea mining of those elements is a sign the U.S. is playing catch-up with China. An "America First" policy may backfire as it drives other countries to take measures that could leave the U.S. behind. Asia markets tick upMajor U.S. indexes climbed Friday, concluding the week in the green. The S&P 500 rose 0.74% Friday to mark its first four-day winning streak since January. The Nasdaq Composite advanced 1.26% and the Dow Jones Industrial Average inched up 0.05%. However, stock futures edged lower Sunday evening local time. Asia-Pacific markets ticked up Monday. Japan's Nikkei 225 added around 0.4%. Shares of Tokyo-listed Toyota Motor rose roughly 3.7% on reports the company is exploring a potentially 6 trillion yen ($42 billion) deal to acquire Toyota Industries. China calls for more economic supportChina plans to help struggling businesses with "multiple measures" and called for "timely reductions" of interest rates in the face of "increased external shocks," according to a readout of a Politburo meeting chaired Friday by President Xi Jinping, translated by CNBC. The meeting of the Politburo, the second most powerful political body in China, comes as the trade war between the U.S. and China heats up. Factories in China halting workChinese manufacturers are pausing production and sending workers home as the impact of U.S. tariffs sets in, according to companies and analysts. This phenomenon is largely occurring in the export hubs of Yiwu and Dongguan for now, said Cameron Johnson, Shanghai-based senior partner at consulting firm Tidalwave Solutions. But Chinese companies are already turning to customers in Europe and Latin America to make up for a slowdown in exports to America. Trump signs order to boost deep-sea miningU.S. President Donald Trump signed on Thursday a sweeping executive order to jump-start the controversial practice of deep-sea mining, which uses heavy machinery to remove minerals and metals from the seabed. The move attempts to shore up America's access to strategically important minerals such as nickel, copper and rare earth elements, offsetting China's dominant position in critical mineral supply chains. Southeast Asian countries turn to each otherExport-oriented Asian countries were hit hard by Trump's "reciprocal" tariffs and the ensuing U.S.-China trade war. China is among the biggest trade partners for those countries, while the U.S. serves as their strategic partner in areas like defense and development. Instead of picking a side, however, the region's nations are developing their own economies and strengthening trade ties with each other. [PRO] Eyes on earnings and dataMore than 180 companies in the S&P 500 report their results this week, making it the busiest period of the first-quarter earnings season, notes CNBC's Sarah Min. Companies to look out for include Meta Platforms, Microsoft, Amazon and Apple. Investors should also watch the personal consumption expenditures price index, out Wednesday, and nonfarm payrolls, out Friday. Indian airlines can't fly over Pakistan. Here's how that is affecting flights Pakistan's closure of its airspace to Indian airlines Thursday is forcing carriers to alter some routes that link India to Europe, North America, Central Asia and the Middle East. The airspace closure comes amid tit-for-tat reactions from the nuclear-armed neighbors, following the killing of 26 tourists in the scenic town of Pahalgam in the northwestern India-administered state of Jammu and Kashmir. Indian carriers — including Air India, IndiGo, Akasa Air and SpiceJet — must now fly longer, and thus costlier, flights on some westbound routes. The detour could push some flights to add a refueling stop or cancel certain routes altogether. Indian carriers will pay a price, but passengers may not see airfares go up by much because of Pakistan's airspace closure, said John Grant, chief analyst at the aviation intelligence company OAG.
CNBC
28-04-2025
- Business
- CNBC
CNBC Daily Open: Trump's ‘America First' might leave the U.S. behind
U.S. President Donald Trump's "America First" ideology, which, generally speaking, prioritizes the domestic over the international, rests on the assumption that the world needs America more than it needs the world. This may be true for the status quo. The U.S. is the world's largest importer and among the biggest exporters, according to the World Integrated Trade Solution, a database provided by the World Trade Organization. But change is afoot. Countries are finding ways to respond to Trump's nationalistic gestures. Southeast Asian nations, which suffered the brunt of Trump tariffs, are banding together to increase intra-regional trade and diversify their export destinations. China, after assessing the severity of Trump's threats, seems to ready to strengthen its fiscal stimulus. It's not like the U.S. has a monopoly over all aspects of international affairs, either. China controls much of the supply chain of rare earth elements as well as critical minerals like nickel and copper. Trump's green light to deep-sea mining of those elements is a sign the U.S. is playing catch-up with China. An "America First" policy may backfire as it drives other countries to take measures that could leave the U.S. behind. Winning week for stocksMajor U.S. indexes climbed Friday, concluding the week in the green. The S&P 500 rose 0.74% Friday to mark its first four-day winning streak since January. The Nasdaq Composite advanced 1.26% and the Dow Jones Industrial Average inched up 0.05%. However, stock futures edged lower Sunday evening local time. Europe's regional Stoxx 600 index added 0.35% Friday, its fourth consecutive daily gain. The U.K.'s FTSE 100 closed 0.1% up for its 10th straight positive session, extending its longest winning run since 2019. China calls for more economic supportChina plans to help struggling businesses with "multiple measures" and called for "timely reductions" of interest rates in the face of "increased external shocks," according to a readout of a Politburo meeting chaired Friday by President Xi Jinping, translated by CNBC. The meeting of the Politburo, the second most powerful political body in China, comes as the trade war between the U.S. and China heats up. Trump signs order to boost deep-sea miningU.S. President Donald Trump signed on Thursday a sweeping executive order to jump-start the controversial practice of deep-sea mining, which uses heavy machinery to remove minerals and metals from the seabed. The move attempts to shore up America's access to strategically important minerals such as nickel, copper and rare earth elements, offsetting China's dominant position in critical mineral supply chains. Southeast Asian countries turn to each otherExport-oriented Asian countries were hit hard by Trump's "reciprocal" tariffs and the ensuing U.S.-China trade war. China is among the biggest trade partners for those countries, while the U.S. serves as their strategic partner in areas like defense and development. Instead of picking a side, however, the region's nations are developing their own economies and strengthening trade ties with each other. [PRO] Eyes on earnings and dataMore than 180 companies in the S&P 500 report their results this week, making it the busiest period of the first-quarter earnings season, notes CNBC's Sarah Min. Companies to look out for include Meta Platforms, Microsoft, Amazon and Apple. Investors should also watch the personal consumption expenditures price index, out Wednesday, and nonfarm payrolls, out Friday. Inflation job nearly done but tariff risks loom — what European Central Bank members said this week European Central Bank policymakers whom CNBC spoke to at the World Bank and International Monetary Fund's Spring Meetings this week broadly stuck a dovish tone, indicating they saw interest rates continuing to fall and few upside risks to euro zone inflation. Christine Lagarde, European Central Bank president, said that the "disinflationary process is so much on track that we are nearing completion." However, all stressed the current high levels of uncertainty, the need to keep monitoring data, and the high risks to the growth outlook. Lagarde, for instance, cautioned that the world economy is experiencing "shocks" that will be "a dampen on GDP." Echoing her sentiment, Klaas Knot, president of The Netherlands Bank, said "the uncertainty that is created by the unpredictability of the tariff actions by the U.S. government works as a strong negative factor for growth."
Yahoo
05-04-2025
- Business
- Yahoo
Tariffs, 'generational' changes have an impact on Southeast Minnesota's lumber industry
Apr. 5—PRESTON, Minn. — Southeast Minnesota's lumber and woodworking industry is a scene of continual change. There have been changes in the number of sawmills in the area, changes in the number and type of workers, and changes in the types of wood people want to see in their homes. President Andy Nigon of Nigon Woodworks in Rochester said that about every five years there's a shift in the wood types people request for projects. For example, cherry was popular in the early 2000s. He watches the wood prices change with the demand, too. There's another change — and a lot of unknowns — to deal with: tariffs. Lately, Nigon has been continually checking with suppliers about how tariffs imposed by the Trump administration might impact lumber prices for projects in Southeast Minnesota. Nigon's sheet goods, while made through a company based in northern Minnesota, come from Canada. His business works on residential remodels with wood products in kitchens and bathrooms as well as commercial projects with Formica-style plastic laminate. Wood prices appear likely to increase with a 25% tariff on imported products from Canada. A 14.5% duty rate was already in place on Canadian lumber, according to the National Association of Home Builders. The tariffs started in March with reciprocal tariffs on products from around the world on April 2. Lumber is currently exempt from the reciprocal tariffs, though additional tariffs are expected, CNBC reported. The U.S. imports softwood lumber from Canada, China, Brazil, Mexico and Germany. In 2022, wood imports from Canada totaled more than $28 million, according to the World Integrated Trade Solution. The price of softwood lumber between Canada and the U.S. varied considerably over the years. U.S. Sen. Amy Klobuchar introduced a bill on April 1, with fellow senators Tim Kaine and Mark Warner, to reverse the Canadian tariffs. The Senate passed the resolution on Wednesday. "You look at the fact that the Chamber of Commerce has been out opposing the tariffs as a whole ... that the steelworkers have been out there, that the homebuilders have been out there because of the cost of lumber. This is across the board, across the country, a national sales tax on Americans," Klobuchar said in a press conference announcing the legislation. While tariffs will drive up prices for imported lumber, there's still a lot of uncertainty about just how large that impact will be for local businesses, especially as they start to price out future projects. Nigon said his business might buy the wood for a residential project weeks in advance, which means there's more confidence about the cost of the lumber. But commercial projects are priced longer in advance. "Commercial projects are quite a bit bigger than residential, and sometimes those will extend six months, eight months, or even a year. And so that would impact us where we price something today. (We) wouldn't buy the material until fall of next year and the prices could be quite a bit different. That would be a challenge," Nigon said in March. He added that his location doesn't have extra space to buy in bulk. Root River Hardwoods in Preston has adapted through generations since the 1970s. The Preston logging and sawmill business, co-owned by Mike Merritt, Jeff Wand, Andy Bahl and Brett Merritt, added a new pair of investors in January 2025, and they're grinding toward more growth, like increased sawmill production, tree harvesting and millwork. They work with hardwoods grown in the Driftless area, like walnut, oak and elm. Those hardwoods largely become home-related projects — like cabinets, flooring, tables and doors — throughout Southeast Minnesota. Whether demand or tariffs, Wand said, "we have go at the flow of the markets." During the "wait and see" period of the tariffs occurring, Bahl said the tariffs would likely increase what are otherwise relatively stable prices. The tariffs create a higher cost for wood like yellow poplar, which isn't grown in Minnesota. Merritt said the uncertainty of how tariffs will impact everyone means business "might be rocky for a year." Trump signed two executive orders on March 1, including "Freeing Our Forests" with the goals of decreasing reliance on imported timber and increasing domestic timber production, increasing forest management, and decreasing wildfire risks. "President Trump is committed to creating jobs, lowering construction costs, and making the United States more self-reliant by tapping into its abundant timber resources," according to a White House fact sheet on the executive order. Although some area businesses believe the tariffs will affect them in some way, others believe the impact may be minimal. Austin Fohrman, owner of Versatile Woodworks in St. Charles, said the focus on locally-sourced wood and products is a benefit of the tariffs. His business, which opened in 2019, is multifaceted with a tree service, custom woodshop and a retail store for woodworking hobbyists. He hopes more people will purchase locally because of the tariffs. The tree service focuses on salvaged wood within about 20 miles of St. Charles. Those trees are milled, air-dried and kiln-dried and made into tables, countertops, mantles, and shelving. "We're very well insulated from that (the tariffs) just because it's all sourced right here," said woodshop manager Nathan Fohrman. "I don't foresee that affecting us at all, even the brands that we're distributing (are) mostly U.S.-based. Not saying anything else won't go up, but I don't foresee that affecting us in any adverse way," Austin Fohrman said. While the sawmill and woodworking businesses wait to see how the economic climate will impact them, area leaders say they'll continue doing the work like they have for decades. As one of the few sawmills left in Southeast Minnesota, Root River Hardwoods employs 42 people. Caledonia has a stave mill, Staggemeyer Stave Company, which produces barrel staves and headings from the area's white oak. There are also small mills, such as Red Fern Design in Rushford and Brent Dietrich's Wood in Millville. Northern Minnesota's mills focus on pulp and paper mills for items such as paper and toilet paper. The mills in Winona were once pillars of the lumber business that flowed through on the Mississippi River. All along the river, Minnesota's river mills closed in 1870 due to the amount of sawdust, and in 1878 Minnesota's wood production could circle the globe, according to University of Minnesota Forestry Extension professor and educator Angela Gupta. In recent years, employment and specifically retirements have had an impact on businesses. From 2013 to 2022, the Minnesota Department of Employment and Economic Development reported a steady increase in the percentage of agriculture, forestry, fishing and hunting industry employees age 65 and older. That topped at 10.3%. Meanwhile, the group comprising the largest share of employees is 25 to 44 years old, at 40.6% in 2022. Nigon said his business is "in the middle of a generational shift," as new team members have been added to work alongside the experienced cabinetmakers. The specialized trade depends on experiential learning that becomes a lifetime of learning with wood, he said. "The thing that keeps me awake at night the most is just getting good quality human beings to work with us here and retaining them," Nigon said. The sawmill and lumber businesses also tend to be a family affair. The leadership team at Root River has always included a range of ages and generations. Andy Bahl joined the company with his dad Dick and mom Carolyn in 1988. Bahl described working with his dad as "hand in hand" mostly. And Merritt's son, Brett, runs the Albert Lea store and showroom. Nigon's father, Daryl Nigon, who retired in 2023, started the business as Nigon Woodcraft. "You can make anything out of wood," Andy Nigon said. "There's the details. I love the smell of wood. I love the sound of ... woodworking machines running. It's very familiar to me, makes me feel like I'm at home." Across the state, there are around 15.8 million acres of commercially productive forest land, most of which is located in northern Minnesota, according to the Department of Natural Resources. The Minnesota Forest Resources Council notes Southeast Minnesota has about 725,000 forest acres. The forest lands in Southeast Minnesota are largely on private land, Gupta said. "It's almost a forgotten part of the state as far as timber harvesting," said Wand, one of the owners of Root River Hardwoods. He purchases their standing timber, Merritt works on log grading and Bahl runs the sawmill. Versatile, Root River and Nigon all use locally-sourced timber for a variety of their projects. Root River harvests most of its trees from a 100- to 150-mile radius, Nigon utilizes trees harvested in the Rochester area as well as northern Minnesota, and Versatile gets its timber from the St. Charles area. Root River and Nigon supplement their supply with imported wood from Canada, which is used for specific home projects like millwork, cabinet pieces or custom projects where the type of wood is not available in Minnesota. People will travel an hour or more to purchase a custom piece from Versatile. The Fohrmans work with a "niche" of hobbyists, Nathan said, including offering charcuterie board classes. People can also pay hourly rates for woodshop services. Austin Fohrman said using local timber means the customer gets a unique wood creation. They regularly use oak, ash, walnut and maple, though "we always have a rotating inventory of different materials," Nathan Fohrman said. With the seasonal tree service from spring to late fall, they own or rent five sites for their business aspects. "We live in ... a good nook in Minnesota where we have access to a lot of different natural hardwoods. We've got oak, hickory, maple, walnut, ash, elm. There's a lot of deciduous hardwoods in this area that we already have access to (for our inventory)," Nathan Fohrman said. Their custom-made pieces highlight the tree's shape. Nathan Fohrman said the live edges are more expensive than dimensional lumber, which is cut to a uniform size. "Even if you look at two slabs that are out of the same log, there's different parts inside of that. Just the figuring, the size, the shape. You can't have two that are the same," Austin Fohrman said. "I think that this is a massive appeal to a very specific demographic that's like, 'I'm looking for something unique.' In that sense, it's almost art." In the 1980s, Root River started with a 10- to 15-mile radius harvesting red oaks, which grow in the hills and valleys of the area and were popular at the time. White and bur oaks, grown in the flats, are a "hot commodity" currently, Wand said. They purchase 4 million feet of logs yearly and about 500,000 feet are sold. The logs become simple and complex pieces, including bark for landscaping, firewood slab bundles and bedding with the sawdust. They also work with an Amish mill in Canton. With expansion planned on the tree line, Root River Hardwoods is excited to have the new investors "take it to the next level," as Merritt said. Most importantly, Bahl said, "we're still here" continuing the legacy and offering more services. "You'd be surprised how much the community relies on the sawdust, the slabs for firewood, the lumber, the employment," Wand said. "There's a lot of things that go into this company that you know, we probably haven't even given that much thought to but it's definitely made a difference, hopefully." Whether for logs or sawmill-made products, Root River serves "a lot of the same customers from the very beginning," Bahl said. "We don't mind selling a board. ... And we sell some customers million-plus-dollar projects," Root River CEO Jon Summers said. "That's just fun to see that we are so linked to both this community but also the broader community of our customers in a way that makes this team matter." Root River has custom wood creations, including mouldings and curved millwork, in luxury home projects on Lake Minnetonka, west of Minneapolis. Their typical homes are sized around 10,000 square feet with their largest project at 60,000 square feet, Bahl said. "We get people from the Twin Cities that will come down and you can pick out your lumber there, which is really unique because we have so many different species," especially hardwood lumber, Bahl said of the store in Albert Lea. Nigon said his company's year-round jobs include kitchens, bathrooms, furniture or built-ins. They focus on remodel projects rather than new construction homes. Their solid wood is from Rochester with sheet goods from northern Minnesota. "We don't have necessarily a line of cabinets that you would see if you went to Menards or IKEA," Nigon said. "We'll meet with the customer, take measurements of the room, figure out what it is that they want in their kitchen and truly customize it to that."
