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Tariff Pains Continue For Companies
In a letter to President Trump, American retailers, tech companies and manufacturers voiced their concerns about the impact the continuing trade war with China will have on the U.S. economy.
Over 600 companies signed the letter, including mainstays such as Walmart, Costco, Target, Gap, American Eagle Outfitters and Five Below. The letter, organized by business coalition Tariffs Hurt the Heartland, specifically cited the harm that tariffs will have on jobs and consumers.
The Trump Administration has already imposed a 25% increase on tariffs on consumer goods such as air conditioners, vacuums and mattresses. Trump has threatened to impose greater tariffs on more goods including toys, apparel and appliances.
The companies called Trump’s bluff that China would, in fact, be paying for these tariffs in the letter, writing that “tariffs will be paid directly by U.S. companies.”
On Monday, The U.S. Trade Representative’s office will hold public hearings on the tariffs.
Brace Yourselves … A Rate Cut Is (Possibly) Coming
There’s been a lot of speculation about when an interest rate cut would occur from economists and market analysts. It appears that the experts are about to get their answer as the Fed prepares to remove the “patient” wording in their economic forecast statement and alter their projections next week.
One economist said that he expects a rate cut as early as next month.
“Right now, they’ll just give a very dovish message that leans toward a July rate cut,” said Joseph LaVorgna, chief economist Americas at Natixis. “The market is worried enough about weakness in China, inflation undershooting and the possibility that tariffs disrupt the global supply chain that it’s hard for me not to think the Fed won’t be moving faster than people thought.”
Americans Still Haven’t Recovered From Great Recession
A Bankrate.com survey found that the financial outlook of many Americans has not improved in the last decade.
The Great Recession dealt devastating blows to Americans financial well-being. In fact, 27% of women and 19% of men say their financial situation is worse now than it was before the recession.
Experts are watching these numbers closely as the potential for another economic downturn looms, concerned that workers who are still trying to recover may be pulled down yet again.
AdvisorNews Managing Editor Cassie Miller may be reached at cassie.miller@Adnewsfeedback.com. Cassie has an extensive background in magazine writing, editing and design. Follow her on Twitter @ANCassieM.