Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.
o President Donald Trump hit the United States’ closest allies with unprecedented tariff measures. The President announced 25 percent tariffs on all Canadian and Mexican goods entering the United States, with the exception of a 10 percent tariff placed on Canadian oil and energy. In addition, the President placed a 10 percent tariff on Chinese goods. The levies are to go into effect on Tuesday. Trump did impose tariffs on China in his first term in office, with studies showing that the cost was passed on to American consumers and suppliers in China cut their prices to offset the cost of the tariffs.
Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum each announced countermeasures against the new tariffs. Trudeau announced 25 percent tariffs on American imports into Canada. He also encouraged Canadians to buy Canadian products and to vacation in other locations besides the United States. Sheinbaum originally vowed retaliatory measures against the United States, but agreed on Monday to send 10,000 of Mexico’s national guardto the border to address drug trafficking – delaying Trump’s tariff threat for one month of further negotiations. [The New York Times]
o American families can expect to pay higher prices due to President Donald Trump’s tariffs on America’s top three trading partners. Economists believe that consumers will see higher prices on a wide range of products, from vegetables to meat to cellphones to cars.
In 2023, nearly three-quarter of United States agricultural imports from Mexico consisted of vegetables, fruit, beverages and distilled spirits, according to the United States Department of Agriculture. If Trump’s tariffs on Mexico take effect, grocery stores could be the first place where Americans could see price increases. Meanwhile, the US imports meats and grains from Canada, as well as maple syrup – with Canada producing 70 percent of the world’s supply of maple syrup. Car prices are also expected to rise, as the auto manufacturers ship billions of dollars’ worth of finished vehicles and vehicle parts across the Canadian and Mexican borders. American drivers, particularly in the Midwest, can expect to pay more at the pump due to Trump’s 10 percent tariff on Canadian energy. In addition, the US imports 30 percent of its lumber from Canada which could cause lumber costs to climb and worsen the affordability crisis on housing. [The New York Times]
o Nvidia stock dropped 17 percent in a single day after investors worried that Chinese company DeepSeek achieved a leap in artificial intelligence (AI) capabilities using less-advanced Nvidia chips. Nvidia has battled increased restrictions in what it could sell in China due to geopolitical tensions between the United States and China. In the past, the tech company has designed new chips to satisfy the rules but offered a competitive product, which has frustrated national-security officials in the American government.
Nvidia argues that selling to Chinese companies helps it bring in revenue to maintain its global lead in AI. Nvidia believes that DeepSeek’s chips are further evidence that the companies moving the industry forward would constantly need the most advanced chips and that DeepSeek’s advances don’t change Nvidia’s view on chips. Nvidia has urged government regulators to reverse restrictions put in place, believing that China will be an important long-term market. [The Wall Street Journal]
o An event such as Wednesday night’s deadly collision between an American Airlines passenger jet and a Black Hawk helicopter has been concern for decades. However, Wednesday’s crash is the first fatal airline crash in the United States since 2009, when a regional jet crashed near Buffalo, killing 50 people. Concerns over managing a congested airspace, including a single air traffic controller monitoring both airplane and helicopter traffic and handling the job typically asked of four people at Reagan National Airport.
According to FAA records, the number of fully certified controllers at Reagan’s air control tower has fallen over the years with trainees an increasing number of the workforce. Chronic understaffing is putting stress on air traffic in congested areas, with the FAA investigating the string of close calls nationally that were a result of fatigue and absenteeism. [The Washington Post]
o Paul Skenes, the Pittsburgh Pirates phenom and the 2024 National League Rookie of the Year, Topps MLB Debut Card is possibly the most sought-after baseball card in recent memory. Skenes was the No. 1 overall pick in the 2023 MLB Draft out of LSU and has quickly established himself as one of baseball’s brightest young stars. Debut Patch cards are part of a partnership between MLB and trading card company Topps, which is owned by Fanatics. The Debut Patch was worn by all players making their MLB debut and was put into a one-of-a-kind baseball card signed by the player.
Given the limited supply of the card, the cards have quickly become highly desirable among collectors. With Skenes’ success in his debut season, his card brought major appeal for collectors. The Pirates made a public offer via social media that whoever found the Skenes card would be offered two season tickets behind home plate at PNC Park for 30 years, plus a variety of unique experiences and Skenes’ autographed memorabilia, in exchange for the card to be put on display at PNC Park. The worth of the Skenes’ card is up for debate, with speculation that the card could sell for six to seven figures. [The Athletic]
