Economics impacts our lives every day. Below are some of the top storylines from this past week related to economics.

o   Although many companies oppose President Donald Trump’s tariffs due to fears that they will increase costs and provoke retaliation measures against their products, some business owners support Trump’s tariffs. Those supporters believe that their industries have been harmed by unfair trade. Particularly, the steel and aluminum businesses have long had to deal with foreign rivals – specifically, those in Canada. The steel and aluminum industry is divided on Trump’s tariffs because of the American companies with plants based in Canada.

While Trump suspended broad tariffs from Canada and Mexico, a 25 percent tariff on steel and aluminum products imported from Canada, Mexico and other countries, remains in place. United States based steel and aluminum manufacturers believe that they can take back a larger share of the domestic market. However, questions remain whether they are willing to make large investments needed to increase capacity. [The New York Times]

o   Growing economic concerns among businesses and consumers has lowered demand for domestic travel, according to Delta Airlines. Delta cut its financial forecast for the year’s first quarter, with an anticipated revenue increase of three percent year-over-year – down from a previously anticipated gain of seven percent.

The airline noted that fewer passengers are booking flights on short notice. The airline noted that its demand for international travel was unchanged. Delta has also been impacted due to customer anxiety after an airplane operated by a Delta subsidiary flipped on a Toronto runway after landing. Other major US-based carriers such as American Airlines, United Airlines and Southwest Airlines have yet to report their latest trends. [The New York Times] 

o   Have you grown frustrated with the technology in your car? If so, you’re like an increasing number of drivers who are becoming frustrated with excessive and often unreliable technology in today’s newest cars. Features, such as touch screens, are causing problems and distractions on the roads, with some automakers bringing back physical buttons after 28 percent of new car buyers favored buttons over touch screen in a 2022 survey from Escalent.

Drivers are happy with technology in cars, but they want it to be simpler and easier to use. The most popular feature in cars among drivers are wireless phone-charging pads, heated and ventilated seats, rain-sensing windshield wipers, and built-in vacuum cleaners. [The Wall Street Journal]

o   What industries and areas of the United States could retaliatory tariffs imposed by Canada and China impact the most? The tariffs are targeted toward the agriculture, manufacturing and energy sectors. Parts of the South are likely to see more of the impact of the tariffs imposed targeted in the manufacturing sector, while the Midwest is especially vulnerable to tariffs imposed on agriculture.

Counties that voted for President Donald Trump in the 2024 election have a larger number of workers in industries targeted by the retaliatory tariffs. That includes an estimated three million workers in those counties, compared to two million in counties that voted for former Vice President Kamala Harris. The farming industry is expected to feel a significant impact due to an anticipated decrease in the ability to sell crops abroad, while cost of production will increase due to a reliance on Canadian fertilizer. In addition, cuts at the US Agency for International Development, which many US farmers rely on to buy surplus crops. [The Washington Post]

o   Tariffs are expected to have the greatest impact on America’s most vulnerable – the poor. Low-income households tend to favor cheaper imports than the wealthy, are expected to take on the greatest impact of retaliatory tariffs imposed by Canada and China.

Walmart has indicated that it is seeing signs of “stress behaviors” among cost-conscious shoppers as they contend with high food prices. Target has also signified that they are planning on goods that come from overseas, such as Mexican fruits and vegetables during the winter months. [Bloomberg]