Business Headlines
Inflation is dropping but these prices are still soaring
Spencer Platt/Getty Images(NEW YORK) -- Inflation cooled in the aftermath of President Donald Trump's "Liberation Day" levies last month, dropping to a four-year low and defying fears of tariff-driven price hikes, government data this week showed.Even egg prices -- a symbol of rising costs -- fell about 10% in April compared to the previous month.Still, prices for some products continued to soar, including everyday items such as coffee and beef.It's normal for some prices to rise at a much faster pace than overall inflation, said Omar Sharif, founder and president of research firm Inflation Insights. The impact, he added, depends on the role such items play in a given person's finances."At the end of the day, what's important is the ... Read More
Winners of Trump’s meme coin contest potentially include foreign investors
Tom Williams/CQ-Roll Call, Inc via Getty Images(WASHINGTON) -- The race to win tickets to an exclusive crypto dinner gala with President Donald Trump at his private golf club in Virginia on May 22 ended with top 220 holders of the Trump meme coin winning invitations to the black tie gala, the coin's official X account announced Monday.A "leaderboard" of the top 220 holders appearing on the website did not display the identities of the winners, but it listed numerous wallets that some crypto experts have linked to possible foreign individuals and entities, heightening concerns about potential conflicts of interest arising from the Trump family's businesses and foreign interests.According to the meme coin's website, the top 25 "VIP holders" were also ... Read More
Inflation data to reveal impacts of Trump’s ‘Liberation Day’ tariffs
Yevgen Romanenko via Getty Images(WASHINGTON) -- This week's inflation report will offer a first look at how President Donald Trump's "Liberation Day" tariff announcement has impacted pricing across the United States.Trump's tariff escalation, announced April 2, set off fears among economists and consumers about a possible burst of inflation, since importers typically pass along a share of such taxes in the form of price hikes.Government data, which will be published Tuesday, is expected to show that pricing has defied such worries – at least for now.Economists expect prices to have increased 2.3% over the year ending in April, which would mark a slight cooldown from the prior month.However, many analysts anticipate a rekindling of inflation over the coming months as ... Read More
Stocks soar as US and China agree to slash tariffs
Matteo Colombo/Getty Images(NEW YORK) -- U.S. stocks soared on Monday, just hours after the U.S. and China announced an agreement to slash tariffs for 90 days as the world’s two largest economies negotiate a wider trade deal.The Dow Jones Industrial Average climbed 1,050 points, or 2.5%, while the S&P 500 jumped 3%. The tech-heavy Nasdaq increased 4%.Facebook parent Meta, Amazon, and Starbucks each climbed more than 7%. Tesla, the electric carmaker led by White House advisor Elon Musk, jumped more than 6%.Best Buy, the electronics retailer that previously warned of tariff-induced price hikes, saw shares surge more than 5%.The U.S. agreed to cut tariffs on Chinese goods from 145% to 30%, while China committed to reduce tariffs on U.S. products ... Read More
Do Trump’s tariffs put small businesses at greater risk? Experts weigh in
(Thana Prasongsin/Getty Images)(NEW YORK) -- A carousel ride and 12 flavors of fudge await shoppers at LARK Toys, a family-owned toy shop outside Minneapolis, Minnesota.The glee on offer belies the stress behind the counter as President Donald Trump's 145% tariffs on China, which are set to trigger price increases and product shortages within a matter of a few months, co-owner Kathy Gray told ABC News.The store imports four out of every five of its products from China, Gray said. A flurry of orders helped amass inventory before the tariffs, Gray added, but the shop lacks the funds and storage space to build up a major stockpile."It's threatening," Gray said. "This administration isn't operating with the best intentions of small businesses ... Read More
Trump floats lower tariffs on China. What would it mean for prices?
Peter Kramer/NBC via Getty Images(WASHINGTON) -- President Donald Trump on Friday voiced a willingness to ease tariffs on China, saying on social media it "seems right" to slash levies from 145% to 80%.The announcement arrives a day before Treasury Secretary Scott Bessent is set to begin trade negotiations with Chinese officials at a meeting in Geneva, Switzerland.The potential tariff reduction floated by Trump may avert a virtual standstill of trade between the world's two largest economies, but the move would not substantially ease expected price increases for goods such as clothes, sneakers and toys, analysts told ABC News.Product shortages would also remain a possibility at the lower tariff rate, they added."A tariff of 80% would still have a dramatic effect," ... Read More
Mortgage rates are falling. Is it a good time to buy a home?
ABC NewsMortgage rates have dropped over the early months of 2025, offering homebuyers an opportunity for some borrowing relief if they move ahead with the big-ticket purchase.The housing market remains sluggish and wider economic uncertainty looms, however. President Donald Trump's tariffs threaten to upend global trade and tip the U.S. into a downturn, experts said. Federal Reserve Chair Jerome Powell warned on Wednesday of a possible resurgence of inflation, which could trigger higher interest rates.The mixed signals pose a quandary for homebuyers: Is it the right time to get into the market?Lower mortgage rates ease the financial pain for prospective homebuyers, presenting an incentive at a moment when it appears unclear whether borrowing costs will drop any further, some analysts ... Read More
Kentucky bourbon exports at risk as Trump-Canada trade tensions escalate
Bryan Woolston/Getty Images(FRANKFORT, KY) -- Kentucky's bourbon industry faces potential devastation as President Donald Trump's latest tariff dispute with Canada threatens to halt $43 million in annual whiskey exports. During Tuesday's Oval Office meeting with Canadian Prime Minister Mark Carney, Trump maintained his hard stance on tariffs, declaring that Canada would need to make significant concessions to see any relief.The dispute is part of a broader trade conflict that has particularly impacted American spirits, with Canadian retaliatory tariffs targeting bourbon producers.Rep. Morgan McGarvey (D-KY), chair of the Congressional Bourbon Caucus, expressed concern about the meeting's outcomes in an interview with ABC News."With Kentucky, Canada is our largest trading partner," McGarvey said. "We're going to lose tens of millions of dollars ... Read More
Fed holds interest rates steady, defying pressure from Trump
Vincent Alban/Getty Images(WASHINGTON) -- The Federal Reserve held interest rates steady on Wednesday, just weeks after President Donald Trump intensified calls for lower borrowing costs and voiced eagerness about the potential "termination" of Fed Chair Jerome Powell.In recent days, Trump has dialed back his attacks on Powell, saying he will not fire Powell before the end of the top central banker's term next year. Trump has reiterated his displeasure with the level of interest rates, however, urging the central bank to lower them.Speaking at a press conference in Washington, D.C., on Wednesday, Powell said the economy remains in "solid shape" but warned Trump's tariff policy could cause higher inflation and an economic slowdown."If the large increase in tariffs that have been announced are sustained, ... Read More
What Trump’s latest tariff proposal could mean for Hollywood, moviegoers
Tasos Katopodis/Getty Images(WASHINGTON) -- President Donald Trump late Sunday proposed a 100% tariff on foreign-made films, saying the policy would counteract financial incentives that have drawn Hollywood productions overseas."WE WANT MOVIES MADE IN AMERICA, AGAIN!" Trump said in a post on social media.Movie studios have increasingly moved production abroad in recent years as a means of cutting costs, industry analysts told ABC News, but it remains unclear how adding a tariff would succeed in boosting domestic production.Instead, it could send costs soaring, the analysts said. It could also reduce the number of Hollywood films produced each year and potentially increase ticket prices, they explained."Essentially what Trump is trying to do is make it untenable for U.S. movie studios to produce ... Read More
‘Cult following’: Why automakers are still making wagons in the SUV era
"We're seeing lots of customer demand for the M5 Touring," said Juliana Ochs, a manager of business development for BMW Luxury Class and M. Image via BMW.(NEW YORK) -- Think your giant sport-utility vehicle is cooler than the middling station wagon? Think again.German automaker BMW recently entered the U.S. "super wagon" category with its high performance M5 Touring, a ludicrously fast family hauler (starting price $121,500) that can smoke a two-seater sports car on a racetrack -- again and again. This is the wagon you wish your parents drove.The wagon's turbocharged 4.4-liter V8 packs 717 horsepower and BMW claims a 0 to 60 mph sprint in 3.5 seconds. Bonus: the M5 Touring is a plug-in hybrid and gets about 25 ... Read More
Collections on defaulted student loans may affect millions of people’s credit scores
ayk7/Getty Images(NEW YORK) -- President Donald Trump's administration is set to begin collecting defaulted student loan payments next week -- which could harm the credit scores of millions of borrowers.Roughly 5 million borrowers will have their university and college loans sent for collections beginning May 5, the Department of Education said last month.When that happens, the borrowers' credit scores could be impacted, since ratings agencies are often alerted when collections ensue, experts told ABC News.Here’s what to know about the collections and what it could mean for borrowers' credit scores:Why are the credit scores of some student loan borrowers at risk?Student loan borrowers are considered delinquent if they fail to make a loan payment for 90 days. When late payment ... Read More
Hiring slowed in April amid turmoil set off by Trump’s ‘Liberation Day’ tariffs
Narisara Nami/Getty Images(NEW YORK) -- Hiring slowed but remained robust in April following President Donald Trump's "Liberation Day" tariff announcement early last month, fresh data on Friday showed. The reading exceeded economists' expectations.The U.S. added 177,000 jobs in April, according to data from the U.S. Bureau of Labor Statistics. That figure marked solid growth but a slowdown from 228,000 jobs added in the previous month. The unemployment rate stood unchanged at 4.2%, a historically low figure.In a post on social media, President Donald Trump applauded the jobs data and touted his tariff policy."We’re only in a TRANSITION STAGE, just getting started!!!" Trump said.Trump called on the Federal Reserve to lower interest rates, criticizing the central bank weeks after saying he ... Read More
US economy expected to have slowed sharply at start of Trump’s 2nd term
Spencer Platt/Getty Images(WASHINGTON) -- Government data to be released on Wednesday is expected to show a sharp economic slowdown over the initial months of President Donald Trump’s second term as a flurry of tariff proposals stoked uncertainty among businesses and consumers, analysts told ABC News.The measure of gross domestic product, or GDP, will likely be lowered by a surge of imports as firms stockpiled inventory to avoid far-reaching tariffs, though the trend did not reflect economic weakness, analysts said.The government’s GDP formula subtracts imports from exports in an effort to exclude foreign production from the calculation of total goods and services.The report will detail GDP over the first three months of 2025, offering the first look at a top gauge ... Read More
Trump to ease tariffs faced by US automakers
Ashley Cooper/Getty Images(WASHINGTON) -- President Donald Trump is set to provide tariff relief for carmakers on Tuesday, just weeks after the onset of auto levies triggered warnings of price increases.An administration official confirmed that the 25% tariff on finished foreign-made cars and parts will remain -- but today's announcement will prevent tariffs from stacking on top of other tariffs he's imposed, such as duties on steel and aluminum.Trump's 25% tariff on foreign auto parts goes into effect on Saturday and automakers will also be reimbursed for those tariffs up to an amount equal to 3.75% of the value of a U.S.-made car for one year. Reimbursement would fall to 2.5% of the car's value in a second year, and then ... Read More
Top of page
