Economics

Summary

Acer CEO Jason Chen confirmed that U.S. laptop prices will rise by 10% starting March 2025 due to new Trump administration tariffs on Chinese imports.

Acer’s high-end laptops could see price increases of hundreds of dollars, with potential industry-wide effects.

The Consumer Technology Association warns U.S. customers may pay $143 billion more collectively, while domestic production is expected to rise by 8%.

Acer is exploring alternative supply chains, but for now, the cost burden will fall on consumers.

KEY POINTS

• Southwest said it would cut about 15% of its corporate workforce, or 1,750 jobs.
• The airline has been under pressure to cut costs.
• CEO Bob Jordan said it was the company’s first large-scale layoff.

Summary

In an interview with the Guardian, Nobel economist Joseph Stiglitz warned that Trump's tariff threats and disregard for contracts have made the US a risky place to invest.

He argued that such policy uncertainty could slow economic growth, trigger stagflation, and push up inflation, as global trade tensions and potential Federal Reserve rate hikes add further risk.

Summary

Small businesses are facing uncertainty under Trump’s second term, struggling with funding freezes, rising costs, and cautious consumers.

Some, like a Washington consultancy, have lost federal contracts, forcing layoffs. Others, like a day care owner in Wisconsin, worry about losing critical subsidies.

Entrepreneurs are scaling back investments amid high interest rates and potential tariff hikes. While large corporations court Trump’s favor, small businesses feel sidelined.

Analysts warn abrupt policy changes could hurt economic stability, with business owners unsure how to navigate the evolving landscape.

Summary

Trump announced plans for “reciprocal” tariffs on countries imposing duties on US goods but did not introduce specific measures.

He ordered a Commerce Department review, due in April, to address trade “imbalances.” Trump acknowledged short-term price increases but claimed tariffs would boost US jobs.

He also suggested 100% tariffs on BRICS nations if they undermine the US dollar.

Economists warn tariffs could fuel inflation, which remains at 3%.

Summary

Merger talks between Honda and Nissan have collapsed due to disagreements over Nissan’s role in the deal.

The proposed $60 billion tie-up aimed to strengthen both companies against growing Chinese competition in the electric vehicle market.

Nissan, struggling with declining sales and past leadership turmoil, sought relief, while Honda held a stronger position.

Analysts warn Nissan now faces an uncertain future, though Taiwan’s Foxconn has shown interest in investing.

Summary

Wisconsin-based Uline allegedly paid Mexican workers significantly less than their American counterparts while employing them in U.S. warehouses under a "shuttle program."

Workers from Mexico earned around $38 per day, while U.S. workers made $30–$35 per hour with benefits. The program used tourist and B1 visas, with workers allegedly instructed to misrepresent their purpose of travel.

Former employees also described harsh conditions for temporary workers, especially in freezing temperatures.

Uline, owned by major Trump donors, has not responded to inquiries about these allegations.

Summary

The consumer price index rose by 3% last month – up slightly from December’s annualized 2.9% reading, despite Donald Trump's campaign promise to quickly lower prices.

The consumer price index increased 0.5% month-over-month, surpassing economists' 0.3% forecast.

Inflation, which peaked at 9.1% in 2022, has since declined but remains a challenge.

While Trump initially pledged rapid relief, he later acknowledged the difficulty of reducing prices.

KEY POINTS

• Chevron is implementing a plan to slash costs by between $2 billion and $3 billion by the end of 2026.
• The oil major’s fuel business posted a loss for the fourth quarter as refining margins have fallen.
• Chevron’s pending acquisition of Hess is tied up in arbitration with Exxon Mobil.

Summary

Donald Trump announced a 25% tariff on foreign steel and aluminum, ending exemptions granted under Biden and increasing aluminum duties. The tariffs take effect March 4.

Trump claims they will boost domestic production and national security, while trade partners warn of retaliation. He also hinted at future tariffs on cars, chips, and pharmaceuticals.

The move extends his 2018 national security tariffs and reverses prior waivers. Economists warn tariffs could raise prices, but Trump insists they strengthen the economy and pressure trade partners into compliance.

Summary

Gold prices hit a record $2,896 per ounce as investors sought safe-haven assets following Trump’s announcement of 25% tariffs on steel and aluminum imports.

Aluminium prices also rose, while financial markets reacted nervously. Major suppliers like Canada, Brazil, and South Korea face potential economic impacts, prompting emergency industry meetings and diplomatic efforts for exemptions.

Analysts warn the tariffs could disrupt supply chains, while Trump’s proposed tax cuts may further increase national debt.

Summary

China's retaliatory tariffs on U.S. goods take effect on February 10, escalating trade tensions. This follows new 10% U.S. tariffs on all Chinese products imposed on February 4.

Beijing will impose a 15% tax on U.S. coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, and large-engine cars.

China also launched an anti-monopoly probe into Google and restricted rare metal exports.

China has challenged U.S. tariffs at the WTO, but a ruling is unlikely soon.

Summary

With U.S. farm income down 23% since 2022 and crop prices at four-year lows, farmers are turning to agritourism—Airbnb rentals, corn mazes, and farm experiences—to generate revenue.

The $4.5 billion industry has grown, with farmstay listings increasing 77% in five years. Many farms earn an extra $25,000 to $100,000 annually, with some exceeding $1 million.

Platforms like Airbnb and HipCamp report rising farmstay demand.

While not all farms can participate, diversification helps sustain family farms and attract younger generations.

Summary

The U.S. economy added 143,000 jobs in January, falling short of expectations, while the unemployment rate declined to 4%.

Revisions reduced 2024 job growth figures by 589,000 but increased the number of people reporting employment.

Job gains were led by health care, retail, and government, while wages rose 0.5% monthly and 4.1% annually.

Summary

Honeywell announced plans to split into three independent companies, following pressure from investors.

The divisions will focus on automation, aerospace, and advanced materials, with the latter spinning off by early 2025 and the full separation expected by late 2026.

This follows a broader trend of US conglomerates, such as GE and Alcoa, breaking up to improve operational focus.

Honeywell shares fell nearly 3% after the announcement.

Summary

The U.S. Postal Service has suspended all package shipments from China and Hong Kong due to new tariffs imposed by China in response to Trump’s tariff increases.

The move follows Trump’s executive order ending the "de minimis" tax exemption for small imports under $800, affecting ecommerce platforms like Temu and Shein.

U.S. Customs is now scrutinizing millions of parcels daily, causing border delays. Trucking companies report shipments being turned away.

The policy marks a major shift in U.S.-China trade relations, straining global ecommerce logistics.

Summary

Waffle House has introduced a 50-cent surcharge on eggs due to rising egg prices caused by an ongoing avian flu outbreak.

The surcharge, effective Feb. 3, applies across its nearly 2,000 locations but is described as temporary, depending on market conditions.

Avian flu has led to the loss of over 14 million commercial birds, causing egg prices to hit record highs, with some stores imposing purchase limits.

While the risk of humans contracting bird flu remains low, officials continue to monitor the outbreak’s impact on food supply chains.

Summary

Donald Trump is pushing for high tariffs, not just to cut trade deficits but also as a revenue source to reduce domestic income taxes.

His administration envisions a return to 19th-century tariff-funded governance, but critics warn this won’t generate enough revenue and risks harming the economy.

Economists argue free trade benefits the U.S. more than protectionism, and tariffs could backfire by raising consumer prices and reducing trade.

If enacted, Trump's plan may isolate the U.S. economically while empowering global rivals like China.

Summary

Donald Trump’s 25% tariffs on vehicles from Mexico and Canada could cause major price increases and financial strain on U.S. automakers.

The industry, already struggling with uncertainty, faces potential costs of $40 billion annually. Automakers like GM, Ford, and Stellantis rely heavily on North American supply chains, making tariff-related adjustments difficult.

Suppliers are preparing for cost hikes, which may be passed to consumers.

While Trump aims to curb illegal migration and trade deficits, experts warn of severe economic disruptions if tariffs are implemented.

Summary

Costco and the Teamsters union reached a tentative agreement on a new contract, preventing a potential strike by 18,000 workers in six states.

The deal, which still requires member approval, comes after Teamsters voted to strike if no agreement was reached by Friday’s deadline.

The union sought a contract reflecting Costco’s strong financial growth, with revenue reaching $254 billion last year.

While details remain undisclosed, Teamsters President Sean O’Brien stated that workers deserve compensation in line with the company’s massive profits.

Summary

ES Foundry has launched the largest U.S. crystalline silicon solar cell factory in South Carolina, with plans to reach 3 GW capacity and employ 500 workers by mid-2025.

The facility aims to boost the domestic solar supply chain and economic growth, benefiting from policies like the Inflation Reduction Act (IRA).

However, a Trump executive order no longer classifies solar as an “energy resource,” raising concerns about future support.

The state’s solar industry is projected to generate $19 billion in economic impact by 2035.

Summary

Tesla’s registrations in France dropped 63% in January, their lowest since August 2022, far outpacing the broader total EV sales' 0.5% decline.

Tesla registrations across EU countries fell 13% last year, with Germany accounting for much of the decline.

Sales in Germany, Tesla’s biggest European market, also fell 41% last year due to an aging lineup, competition, and subsidy cuts.

CEO Elon Musk’s political involvement, including support for Germany’s far-right party, may be affecting demand.

Summary

Global markets tumbled after Trump announced new tariffs on Canada, Mexico, and China, with EU tariffs also expected.

European and Asian stocks fell, especially carmakers, while the US dollar surged. Canada, Mexico, and China vowed retaliation.

Investors fear economic slowdown, inflation, and stalled interest rate cuts. Oil prices rose as traders assessed impacts on US imports.

Experts warn prolonged tariffs could weaken the dollar’s global role. Trump plans talks with Canada and Mexico before the tariffs take effect at midnight on Tuesday.

Summary

Gas prices in the U.S. are expected to rise after Trump imposed tariffs on Canadian and Mexican oil imports, aiming to curb illegal immigration and drug trafficking.

Canada’s oil faces a 10% duty, while Mexico’s is hit with 25%.

Midwest refiners, heavily reliant on Canadian oil, may face supply disruptions, while Gulf Coast refiners will need alternative sources for Mexican crude.

Fuel wholesalers warn that higher costs will be passed to consumers, affecting drivers nationwide, particularly in the East Coast and Midwest.

Summary

North American companies are facing uncertainty due to Trump’s recent announcement of tariffs on goods from Canada, Mexico, and China.

While some companies, like automakers, may be able to shift production to mitigate costs, smaller companies without global operations are more vulnerable.

Industry associations and experts warn that these tariffs could lead to higher prices for consumers and disrupt supply chains.