Business Briefs - June 18, 2025
Trump tax bill would widen deficits by $2.8T after factoring in economic impacts, CBO says
WASHINGTON (AP) — President Donald Trump's tax and budget bill would increase deficits by $2.8 trillion over the next decade after factoring in other economic effects. That's according to a more fulsome analysis released Tuesday by the Congressional Budget Office. The report finds that the bill would increase interest rates and boost interest payments on the baseline projection of federal debt by $441 billion. Tuesday's report uses dynamic analysis by considering how changes in the economy might affect revenues and spending. A previous analysis used static scoring, which presumes other economic factors stay constant.
Toy company challenges Trump's tariffs before the Supreme Court in long shot bid for quick decision
WASHINGTON (AP) — An Illinois toy company is challenging Donald Trump's tariffs at the Supreme Court. Learning Resources Inc. filed an appeal asking the Supreme Court to take up the case soon rather than let it continue to play out in lower courts. The company argues the president illegally imposed tariffs under an emergency powers law rather than getting approval from Congress. An appeals court has allowed Trump to continue collecting tariffs ahead of arguments in July. The company says tariffs and uncertainty are taking a major toll. Trump says the emergency powers law gives him the authority to regulate imports during national emergencies and the country's longtime trade deficit qualifies as a national emergency.
Americans turn cautious and retail sales slide after a spring rush to beat tariffs
WASHINGTON (AP) — Retail sales fell sharply in May as consumers pulled back after a sharp increase in spending in March to get ahead of President Donald Trump's sweeping tariffs on nearly all imports. Sales at retail stores and restaurants dropped 0.9% in May, the Commerce Department said Tuesday, after a decline of 0.1% in April. The figure was pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of Trump's 25% duty on imported cars and car parts. Excluding autos, sales fell 0.3%. The sales drop comes after sharp declines in consumer confidence this year.
The US economy is in a good place, but the Federal Reserve is not
WASHINGTON (AP) — The U.S. economy is mostly in good shape but that isn't saving Federal Reserve chair Jerome Powell from a spell of angst. As the Fed considers its next moves during a two-day meeting this week, most economic data looks solid: Inflation has been steadily fading, while the unemployment rate is still a historically low 4.2%. Yet President Donald Trump's widespread tariffs may push inflation higher in the coming months, while also possibly slowing growth. With the outlook uncertain, Fed policymakers are expected to keep their key interest rate unchanged on Wednesday at about 4.4%.
Senate is expected to pass a crypto bill without addressing Trump's investments
WASHINGTON (AP) — The Senate is voting on legislation regulating a form of cryptocurrency called stablecoins. The bill is the first in what's expected to be a wave of crypto-friendly legislation in Congress following the industry's heavy spending in last year's election. The bill has advanced with bipartisan support so far, but some Democrats have raised concerns it does little to address Republican President Donald Trump's personal interests in crypto. Known as the GENIUS Act, the bill would establish guardrails and consumer protections for stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The vote is expected Tuesday afternoon.
US and UK announce a trade deal, but steel imports are still being negotiated
KANANASKIS, Alberta (AP) — U.S. President Donald Trump and British Prime Minister Keir Starmer say they have signed a trade deal that will slash tariffs on U.K. auto and aerospace industry imports, but they are still discussing how to handle steel production. The pair spoke to reporters Monday at the Group of Seven summit. Trump brandished the pages of what he said was the long-awaited agreement but then dropped them. He also at first said the United States had reached an agreement with the European Union when he meant the United Kingdom. The U.S. president nonetheless insisted the pact would "produce a lot of jobs, a lot of income."