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Are tariffs driving prices up? Here’s what we know : NPR

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A family shops in a toy store in Princeton, N.J.

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Matt Slocum/AP

It’s the most common question asked about tariffs: When will prices start going up?

For months, shoppers heard from manufacturers and retailers that President Trump’s barrage of new tariffs on virtually all imports would cost them dearly. But that hasn’t happened, and the full blow has yet to land.

Here’s what’s going on.

The biggest tariffs keep getting pushed back

Back in April, Trump imposed new tariffs on nearly everything the U.S. imports, with Chinese goods facing a levy as high as 145%. The stock market plummeted on the news, and Trump put the plan on a 90-day pause. And when the 90th day came in July, he extended the pause again until this Friday, Aug. 1.

In the meantime, tariffs have been set at 30% for Chinese imports and at least 10% for essentially the rest of the world, while the Trump administration tries to negotiate individual trade deals with every country. On Sunday, Trump shook hands with the president of the European Commission after agreeing to terms for a new deal. Talks continue between the U.S. and China today.

Companies stockpiled goods to avoid paying more

Given Trump’s longtime campaign in favor of tariffs, some companies began stockpiling goods as early as last winter — hoping to avoid new import taxes for a while.

Best Buy rushed electronics from Asia. American Fireworks Company in Hudson, Ohio, stocked up on fireworks for the Fourth of July, almost all of which are made in China. Pet-gear seller Barton O’Brien from Kent Island, Md., borrowed money to get as many harnesses, collars and other supplies from China as he could store.

“We had dog life jackets in the bathroom,” O’Brien, whose company BAYDOG sells at hundreds of stores, told NPR in May. “Our warehouse was bursting. We had to rent a container and put it out back.”

In fact, so many importers rushed their shipments that wintertime ports looked more like peak season — as if another Black Friday and Christmas were on deck — than the typical post-holiday lull.

Barton O'Brien, shown with his dog Walter, runs the BAYDOG company, which sells harnesses, life-jackets and other pet supplies. He imports products from China, India and Vietnam, and double-digit tariffs have been challenging for his business.

Barton O’Brien, shown with his dog Walter, runs the BAYDOG company that sells harnesses and other pet supplies. Facing new tariffs, he had rushed to stockpile shipments from China and canceled an order from India.

courtesy of Barton O’Brien


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courtesy of Barton O’Brien

“A lot of the things that consumers have bought so far is from that first surge,” said Zac Rogers, supply chain management expert at Colorado State University who tracks shipping and warehousing data. “All that stuff came in pre-tariffs, which is one of the reasons why we haven’t had the really high costs yet.”

Importers are holding back shipments

Importers were shocked by Trump’s April announcement adding steep tariffs not only on China — for which they’d prepared — but also Vietnam, Mexico and other major trading partners.

Trump has argued that foreign nations would pay his tariffs, but in practice it’s American importers who suddenly faced new charges at customs. Many of them responded by canceling shipments or holding them abroad until the tariff plan becomes clear. And that means those costlier imports are simply not here yet.

“Importers are afraid,” said Patrick Allen, an importer of French wine who’s based in Columbus, Ohio. “They don’t know when the other shoe is going to drop.”

His customers are “sitting on their hands,” Allen said, instead of placing their usual orders for the fall and winter holidays. Pet-supplies retailer O’Brien canceled his order of doggie sweaters from India. Hair barrette seller Rozalynn Goodwin from Columbia, S.C., halted her shipments from China.

Many companies are eating new costs

Suppliers and retailers who are paying higher tariffs – the current 10% for most imports or 30% for Chinese ones — are hesitant to pass on the full cost to inflation-weary shoppers.

“I think we raised [prices] about 10% and absorbed the rest,” said Bobby Djavaheri, whose Los Angeles-based company Yedi Houseware imports air fryers and waffle irons from China. “It’s simply impossible to pass on all of it because folks aren’t going to buy the product.”

Major carmakers are mostly absorbing new tariffs as a hit to profits. General Motors last week reported tariffs cost the company about $1.1 billion in the latest quarter. Stellantis – whose brands include Chrysler, Jeep, Dodge and Ram – says it paid more than $300 million in tariffs and built fewer vehicles overall to avoid paying even more.

Industry data shows car prices this summer increased less than usual.

Tariff delays mean price delays — not necessarily price breaks

Trump’s 90-day summer pause gave importers a new window to stockpile at a predictable, lower tariff rate. In fact, the second delay to Aug. 1 let many stores shore up goods for the holiday season to avoid particularly painful price hikes during the key shopping period.

Supply-chain professor Rogers believes this was the Trump administration’s idea, as retailers needed more time to get holiday inventory at lower tariffs.

“It reminded me a lot of when I give a homework assignment that’s supposed to be due at the end of class,” he said, “and there’s five minutes left, and no one’s done, and I’m like, ‘Okay, you guys can take it home.’ That’s sort of what happened with the tariffs and extending the deadlines.”

A worker carries a shipment of fireworks on a forklift at the Phantom Fireworks warehouse in Warren, Ohio.

A worker carries a shipment on a forklift at the Phantom Fireworks warehouse in Warren, Ohio.

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But of course, not everything needed for the holiday season will arrive in the U.S. before August. Plus, Rogers says the cost of warehouse storage is also rising. In June, his data showed demand for storage space outpaced supply for the first time since the supply-chain crunch of 2022.

Retailers slow-roll price hikes and hope tariffs blow over

And that means higher prices are still expected, even if slower or lower than originally feared.

In June, inflation rose slightly, by 2.7% from a year ago, with prices increasing a tad more in categories especially affected by tariffs: clothes, appliances and toys.

Toymaker Hasbro on Wednesday said it now expected tariffs to bite later in the year, and likely with less damage than originally feared, thanks to stockpiles and delays. Finance chief Gina Goetter described tariff-related expenses so far as “minimal,” offset by cost-cutting, budget-reshuffling, shifting suppliers and “targeted” price increases.

Similarly, overall retail pricing through June was “largely stable, with limited impact from tariffs,” according to data firm Circana. But if Trump makes good on his promise of steeper tariffs in August, Circana warns of impending impact on heavily imported products, including shrimp, tilapia, coffee, spices, cocoa, bananas, berries and canola oil.

Many business owners hope Trump’s original plans — for Chinese tariffs as high as 145%, for example – never come to pass.

“That would have put people out of business in a hurry, quite honestly,” said Danny Reynolds, who runs Stephenson’s clothing boutique in Elkhart, Ind. “So I feel like that was always just kind of a threat that was dangled out there by the president to begin negotiations.”

He’s counting on tariffs to stay as they are now, around 30% on Chinese goods, with costs getting divvied up among manufacturers, wholesalers, retailers and shoppers.

“If you take 30% and cut that into five or six,” Reynolds said, “now suddenly it’s not quite as dramatic.”



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Chinese and Philippine ships collide near disputed shoal

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BEIJING (AP) — China’s coast guard accused a Philippine ship of deliberately ramming one of its vessels on Tuesday near the disputed Scarborough Shoal in the South China Sea. The Philippines denied it, saying China’s forces used powerful water cannons that damaged its ship and injured a crew member.

A Chinese coast guard statement said more than 10 Philippine government ships coming from various directions entered the waters around the shoal, which is called Huangyan island in Chinese. It said it deployed water cannons against the vessels.

The encounter came six days after China announced it was designating part of Scarborough Shoal as a national nature reserve. The Philippine government, which calls the shoal Bajo de Masinloc, filed a diplomatic protest.

China and the Philippines have clashed repeatedly around outcroppings in the South China Sea, which China claims almost in its entirety. The two countries are among several that have competing claims to territory in the waters, which are of strategic importance and home to valuable fishing grounds.

The Philippine coast guard said two Chinese coast guard ships hit a Filipino fisheries vessel, the BRP Datu Gumbay Piang, with powerful water cannons for nearly 30 minutes “resulting in significant damage,” including in the captain’s cabin and the bridge. A glass window was shattered and injured a personnel while the deluge of water caused a short circuit that affected electrical outlets and five outdoor air-conditioning units, it said.

A Chinese navy warship also broadcast a radio notice “announcing live-fire exercises” at the shoal which caused panic among Filipino fishermen, said the Philippine coast guard.

The Philippine coast guard and fisheries ships were deployed to the shoal on Tuesday to provide fuel, water, ice and other aid to more than 35 fishing boats in the area.

Several friendly countries have backed the Philippines on the nature reserve.

A statement from U.S. Secretary of State Marco Rubio called the Chinese action “yet another coercive move to advance sweeping territorial and maritime claims in the South China Sea at the expense of its neighbors.”

The U.K. and Australia also expressed concern, and the Canadian Embassy in the Philippines said it opposed attempts to use environmental protection as a way to take control over the disputed Scarborough Shoal.





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Mariners’ Cal Raleigh sets single-season HR record by switch hitter, ties franchise record

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Just two days after tying Mickey Mantle for the most home runs in a single season by a switch hitter (54), Seattle Mariners catcher Cal Raleigh has reset the record. With his 55th home run of the season, Raleigh stands alone among switch hitters, topping a record that had stood since 1961.

Facing the Kansas City Royals in a critical three-game set, Raleigh unloaded his 55th homer of the year in the third inning, a 419-foot blast to right field off starter Michael Wacha.

However, Raleigh wasn’t done making history just yet. An inning later, Raleigh unloaded a two-run homer, this time from the right side of the plate, to tie Ken Griffey Jr. for the Mariners’ single-season home run record (56). Raleigh’s 56 home runs lead MLB this season.

In all, Raleigh has 35 homers from the left side and 21 from the right.

Before resetting Mantle’s switch hitter record, Raleigh had already passed Salvador Perez’s record of 48 home runs by a catcher in a single season. His 57th homer will give him one more record as the Mariners’ single-season holder.

If that already wasn’t enough history, Raleigh also became the first switch hitter to win the Home Run Derby, outlasting Junior Caminero at Atlanta’s Truist Park in July. With 12 games remaining in the Mariners’ season (counting Tuesday night’s contest), Raleigh would need six home runs to match Aaron Judge’s record for most homers in a season by an American League player (62).

(Photo of Cal Raleigh celebrating his home run in the third inning Tuesday: Jamie Squire / Getty Images)





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Barbra Streisand among stars to pay tribute to Robert Redford: ‘One of the finest actors ever’ | Robert Redford

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Barbra Streisand has paid tribute to Robert Redford, calling him “one of the finest actors ever”.

The entertainer shared a statement after her co-star in The Way We Were died at the age of 89 on Tuesday. His publicist wrote that he died “at Sundance in the mountains of Utah – the place he loved, surrounded by those he loved”.

On Instagram, Streisand reminisced about their time together while making the 1973 hit.

“Every day on the set of The Way We Were was exciting, intense and pure joy,” she wrote. “We were such opposites: he was from the world of horses; I was allergic to them! Yet, we kept trying to find out more about each other, just like the characters in the movie. Bob was charismatic, intelligent, intense, always interesting— and one of the finest actors ever. The last time I saw him, when he came to lunch, we discussed art and decided to send each other our first drawings. He was one of a kind and I’m so grateful to have had the opportunity to work with him.”

Romantic drama The Way We Were was a critical and commercial hit with Streisand’s theme song also becoming a chart hit and receiving an Oscar nomination.

Streisand’s tribute joins a long list from Hollywood and beyond after Redford’s death. Meryl Streep, who starred with him in Out of Africa and Lions for Lambs, wrote: “One of the lions has passed. Rest in peace my lovely friend.”

Jane Fonda, who starred with him in four movies including Barefoot in the Park, said in a statement: “It hit me hard this morning when I read that Bob was gone. I can’t stop crying. He meant a lot to me and was a beautiful person in every way. He stood for an America we have to keep fighting for.”

“Bob was a unique artist, in front of and behind the camera … and he gave the world of American cinema something irreplaceable and lasting with Sundance,” said film-maker Martin Scorsese, who Redford directed in his film Quiz Show. “It saddens me to know that I won’t be seeing him again. And I’ll never forget my time with him.”

Ethan Hawke remembered him as “our ultimate champion of independent film, relentless advocate for authentic storytelling and fiercely passionate environmentalist”, while Leonardo DiCaprio told Associated Press that Redford’s death was “a huge loss”.

“Not only was he an incredible actor — we all know his work — but his ability, as a director too, films like Quiz Show,” he said. “He was one of the first guys to do political thrillers – Three Days of the Condor, All the President’s Men … he paved the way for films like this but more so than anything, he was a staunch environmental leader and was a member of the NRDC, like me, and fought for Indigenous rights — the list goes on and on. We lost a legend today.”

Morgan Freeman wrote on Instagram: “There are certain people you know that you’re going to click with. After working with Robert Redford on Brubaker in 1980, we instantly became friends. Working with him again in An Unfinished Life was a dream come true. Rest peacefully, my friend.”

Journalist Bob Woodward, who Redford played in All the President’s Men, wrote on Instagram, “He will be remembered as one of the greatest storytellers in our country’s history. He elevated stories beyond mainstream. He not only cared about the environment, but he took all conceivable actions to protect it.”

Samuel L Jackson wrote on Instagram: “It was a dream come true to work on screen with Mr Redford. Sometimes your heroes don’t disappoint and truly are as great as you imagined.”

Hillary Clinton shared a picture of her with Redford, writing: “He championed progressive values like protecting the environment and access to the arts while creating opportunities for new generations of activists and filmmakers. A true American icon.”

Scarlett Johansson, who starred in The Horse Whisperer, a drama directed by and starring Redford looked back on their time together. “He was patient and warm and kind,” she said. “Bob taught me what acting could be, and it was from his generosity and patience that I was inspired to pursue the possibilities of the craft. That same generosity and love of the art inspired Bob’s creation of Sundance, a place where film-makers learn from one another, inspire one another, and discover one another’s talent. Bob, thank you for your belief in me and for your grace and guidance.”

He was also described by Ron Howard as an “artistic game changer”.

Redford was known for his many films as an actor, including The Sting, All the President’s Men and Spy Game, but also played a key role in the Sundance film festival, with many seeing him as a pioneer of US independent cinema.

“We are deeply saddened by the loss of our founder and friend Robert Redford,” a Sundance statement read. “Bob’s vision of a space and a platform for independent voices launched a movement that, over four decades later, has inspired generations of artists and redefined cinema in the US and around the world.”

Robert Redford: one of Hollywood’s defining stars – video obituary





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