Business Headlines
Baristas, chocolatiers caught in trade war cross fire
Marcus Wells, a barista at Float Coffee in Hollywood, Calif., speaks, April 8, 2025, about the impact the global tariff war will have on his business. KABC(NEW YORK) -- Americans' love affair with coffee and chocolate could soon get a lot more expensive.Baristas and confectioners say the beans they need to make their products are mostly grown in countries targeted by the Trump administration's tariffs.According to the U.S. Department of Agriculture, the United States is the world's second-largest importer of coffee. In a reflection of how much Americans love chocolate, U.S. businesses import about $5 billion worth of cocoa beans a year, according to the USDA.Some owners of small businesses dealing in coffee and confections say they fear the tariffs imposed by President Donald ... Read More
US stocks climb, shrugging off China trade war and consumer fears
Michael M. Santiago/Getty Images(NEW YORK) -- U.S. stocks climbed on Friday, shrugging off new Chinese tariffs on American goods that intensified a trade war between the two largest economies in the world.The Dow Jones Industrial Average jumped 808 points, or 2%, while the S&P 500 surged 2.1%. The tech-heavy Nasdaq increased 2.1%.Meanwhile, a selloff of 10-year Treasuries sent yields climbing to 4.46%. That figure neared a recent high attained hours before President Donald Trump announced on Wednesday a 90-day delay of so-called "reciprocal tariffs" for most U.S. trade partners.A University of Michigan survey of shopper sentiment on Friday showed consumer attitudes fell more than expected in April, dropping to a level lower than any recorded during the Great Recession.The market turmoil Friday morning came after China issued a ... Read More
Trump’s tariffs still risk inflation and recession as China trade war looms, experts say
Anna Moneymaker/Getty Images(WASHINGTON) -- President Donald Trump's decision to pause so-called "reciprocal tariffs" for most countries triggered a historic stock market rally on Wednesday, but the levies that remain in place are still expected to hike prices and put the U.S. at risk of a recession, experts told ABC News.Alongside the suspension of some tariffs, Trump increased duties on Chinese goods to a total of 145%, marking a significant escalation of a trade war between the two largest economies in the world.Stock markets plunged on Thursday as investors digested Trump's tariff announcement, slashing roughly half of the previous day's rally.The high tariffs on China, the third-largest U.S. trade partner, are expected to raise prices for an array of widely used ... Read More
Inflation cooled but egg prices soared in March, before Trump’s tariff escalation
Kinga Krzeminska/Getty Images(NEW YORK) -- Consumer prices rose 2.4% in March compared to a year ago, marking a cooldown during a period that preceded the recession warnings and market turmoil following President Donald Trump's recent escalation of tariffs. The reading came in lower than economists expected.Even as overall cost hikes slowed, egg prices soared 60% higher than a year prior. Bird flu has decimated the egg supply, lifting prices higher.The cooldown is owed in part to a drop in energy prices, as gasoline prices fell about 6% from the previous month, U.S. Bureau of Labor Statistics data showed. Food prices rose 0.4% compared to the previous month, however, putting upward pressure on the cost of living.Core inflation -- a closely ... Read More
Uncertainty looms over US housing market in wake of Trump tariffs
ABC News(RALEIGH, N.C.) -- In the Research Triangle area in and around Raleigh, North Carolina, home sales and construction development are booming as thousands flock to the area in search of affordable homes close to work.However, the severe tariffs President Donald Trump put on virtually all U.S. trading partners have created uncertainty within the U.S. housing market.Leonard Windham, a Raleigh area realtor, gave ABC News a tour of a new housing development in Youngsville -- an up-and-coming town just 20 miles north of Raleigh."In the real estate industry, we're just not sure what's going to happen," Windam said. "If there's a possibility, of course, as the price of construction material goes up, it could affect the home price."Realtors and homebuilders ... Read More
Billionaire Trump backer Bill Ackman issues dire warning over tariffs
Jared Siskin/Patrick McMullan via Getty Images(NEW YORK) -- Hedge fund honcho Bill Ackman has joined a growing list of President Donald Trump's billionaire backers calling for the White House to slam the brakes on tariffs.As the Trump administration's reciprocal tariffs went into effect Wednesday, triggering retaliatory reactions from China and the European Union, Ackman took to social media, asking Trump to put a 90-day pause on tariffs, arguing the president can "accomplish his objectives without destroying small businesses in the short term."In the lengthy post on X, Ackman, founder of Pershing Square Capital Management, issued a dire warning of what could happen if the tariffs aren't halted immediately."If the president doesn't pause the effect of the tariffs soon, many small businesses will ... Read More
US stocks surge as Trump announces 90-day pause on some tariffs
CFOTO/Future Publishing via Getty Images(NEW YORK) -- U.S. stocks surged on Wednesday after President Donald Trump announced a 90-day pause in some tariffs.The Dow Jones Industrial Average climbed 2,370 points, or 6.3%, while the S&P 500 soared 7.4%. The tech-heavy Nasdaq jumped 9.6%.President Donald Trump's latest batch of levies on China increased the cumulative rate of tariffs on Chinese goods to 104% -- a move met with retaliatory tariffs in Beijing that raised tariffs on U.S. goods to 84%.European Union countries on Wednesday backed the European Commission’s proposal to push back on Trump’s tariffs on steel and aluminum with a set of countermeasures.The latest U.S. tariffs came into force with key Asian markets already open. In Japan, the Nikkei index ... Read More
Trump moves full steam ahead on politically risky tariffs despite market tumult
Kevin Dietsch/Getty Images(WASHINGTON) -- After days of market tumult, President Donald Trump on Wednesday made good on his long-sought goal of imposing aggressive tariffs against dozens of U.S. trading partners.But his gamble comes with major political risks for his legacy amid mounting concerns from Republicans and business leaders that's he's making a mistake by going too far in exacting economic retaliation.Chief among his new trade moves is a hefty 104% tariff rate on China, which went into effect at 12:01 a.m. on Wednesday. In total, new levies were slapped on nearly 90 countries.China hit back immediately with its own 84% tariff against U.S. goods. The European Union, too, approved a set of countermeasures against the U.S. in response to Trump's tariffs on steel and ... Read More
Trump touts falling oil prices, borrowing costs. Experts say they’re warning signs.
Kevin Dietsch/Getty Images(WASHINGTON) -- President Donald Trump has repeatedly touted a drop in oil prices and borrowing costs as a sign that sweeping new tariffs bode well for the U.S. economy.Experts who spoke to ABC News largely rejected the notion, saying the trends indicate expectations of an economic slowdown that would diminish energy demand and send money flooding into bonds as safe-haven investments.A drop in oil prices and borrowing expenses could offset some of the damage caused by a potential downturn, some experts noted, but such relief is unlikely to offset acute economic pain.“The reason those prices have fallen is not positive,” Dominic Pappalardo, chief multi-asset strategist at Morningstar Investment Management, told ABC News. “Oil prices and Treasury yields fell ... Read More
Trump admin tells prosecutors to ease up on crypto enforcement
U.S. President Donald Trump visits a cryptocurrency-themed bar called Pubkey in the West Village on September 18, 2024 in New York City. (Photo by Spencer Platt/Getty Images)(WASHINGTON) -- The Trump administration is pulling back its enforcement of crypto regulations, disbanding a unit dedicated to cryptocurrency enforcementThe Justice Department instructed federal prosecutors to "no longer target virtual currency exchanges, mixing and tumbling services, and offline wallets for the acts of their end users or unwitting violations of regulations," according to a memo from the U.S. deputy attorney general reviewed by ABC News."The Department of Justice is not a digital assets regulator," the memo said. "The National Cryptocurrency Enforcement Team (NCET) shall be disbanded effective immediately."The shift is consistent with President Donald ... Read More
US stocks rise as Trump signals tariff negotiations
Man Hei Leung/Anadolu via Getty Images(NEW YORK) -- U.S. stocks rose on Tuesday in a burst of investor optimism as the Trump administration signaled plans to negotiate with some countries targeted by sweeping new tariffs.The Dow Jones Industrial Average jumped 1,385 points, or 3.6%, while the tech-heavy Nasdaq increased 3.7%. The S&P 500 was up 3.3%.The move followed an upswing in markets worldwide.Asian markets opened in positive territory after posting significant losses on Monday driven by President Donald Trump's global tariffs campaign,Japan's Nikkei index closed just over 6% up on Tuesday, recovering some of almost 8% of losses posted on Monday.South Korea's KOSPI index rose by 0.3%, Australia's S&P/ASX 200 grew by 2.2% and India's NIFTY 50 index climbed almost ... Read More
Black Monday to the COVID crash: Worst days in the history of the US stock market
Bettmann Archive via Getty Images(NEW YORK) -- As the world reels from tariffs instituted by the Trump administration, stock markets are widely in decline.On Friday, U.S. stock saw the worst decline since the COVID-19 pandemic began in 2020. But the declines last week did not rank among the worst crashes in the history of the U.S. stock markets.President Donald Trump said Sunday, "I don't want anything to go down, but sometimes you have to take medicine to fix something and we have such a horrible -- we have been treated so badly by other countries because we had stupid leadership that allowed this to happen."Here are the worst declines in the history of the Dow Jones Industrial Average by percentage:5.) ... Read More
US stocks plunge as tariffs rattle markets worldwide
Sawayasu Tsuji/Getty Images(NEW YORK) -- U.S. stocks tumbled at opening on Monday as President Donald Trump's tariffs stoked fears of a wider global trade war and Wall Street firms sounded alarms about a possible recession. The sell-off hit U.S. firms hours after a historic rout in foreign markets.The Dow Jones Industrial Average plummeted 1,600 points, or 4.3%, while the tech-heavy Nasdaq declined 5%.The S&P 500 plunged 4.6%, tipping the index into bear market territory, a term used to designate a 20% drop below a previous peak.The market downturn stretches back to Trump's announcement of far-reaching tariffs last week. The Dow suffered its worst week since 2020, and the Nasdaq ended last week in a bear market.Hong Kong leads Asian slideTokyo's ... Read More
Why you shouldn’t ‘go into debt’ to beat the tariffs, experts say
Chip Somodevilla/Getty Images(NEW YORK) -- U.S. consumers are going on a tariff-induced shopping spree. From furniture, to appliances, to alcohol, Americans are rushing to buy before President Donald Trump's sweeping tariffs are felt at the checkout counter.Economists say the tariffs are expected to increase prices for everyday items and many are now raising the likelihood that the economy will fall into a recession.Auto sales surged 11.2% in March as car buyers flocked to dealerships to beat the 25% tariffs on all imported cars, which went into effect April 3.Once Noel Peguero heard about the wider tariff announcements, he said he hit the stores. The 50-year old school worker from Queens, New York, says he spent about $3,500 this past week ... Read More
Dow closes down 2,200 points, Nasdaq enters bear market amid tariff fallout
(lvcandy/Getty Images)(NEW YORK) -- U.S. stocks closed down significantly on Friday after a continued selloff amid fallout from President Donald Trump's "Liberation Day" tariffs.The Dow Jones Industrial Average plummeted 2,230 points, or 5.5%, while the S&P 500 plunged 6%.The tech-heavy Nasdaq declined 5.8%. The decline put the Nasdaq into bear market territory, meaning the index has fallen more than 20% from its recent peak.The trading session on Friday marked the worst day for U.S. stocks since 2020. The second-worst day for U.S. stocks since that year happened on Thursday, a day earlier. Over the past two days, the S&P 500 dropped more than 10%.Corporate giants that rely on supply chains abroad were among the firms that continued to see shares fall. ... Read More
Fed cuts interest rate by half a point
WASHINGTON (AP) — The Federal Reserve on Wednesday cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers. The rate cut, the Fed’s first in more than four years, reflects its new focus on bolstering the job market, which has shown clear signs of slowing. Coming just weeks before the presidential election, the Fed’s move also has the potential to scramble the economic landscape just as Americans prepare to vote. The central bank’s action lowered its key rate to roughly 4.8%, down from a two-decade high of 5.3%, where it had stood for 14 months as ... Read MoreWynn Resorts paying $130M for letting illegal money reach gamblers at its Las Vegas Strip casino
LAS VEGAS -- Casino company Wynn Resorts Ltd. has agreed to pay $130 million to federal authorities and admit that it let unlicensed money transfer businesses around the world funnel funds to gamblers at its flagship Las Vegas Strip property. The publicly traded company said a non-prosecution settlement reached Friday represented a monetary figure identified by the U.S. Justice Department as “funds involved in the transactions at issue†at the Wynn Las Vegas resort. In statements to the media and to the federal Securities and Exchange Commission, the company said the forfeiture wasn’t a fine and findings in the decade-long case didn’t amount to money laundering. U.S. Attorney Tara McGrath in San Diego said the settlement showed that casinos are ... Read More
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