WASHINGTON -- The Biden administration is cracking down on cheap products sold out of China, expanding a push to reduce U.S. dependence on Beijing and bolster homegrown industry, but that could trigger higher prices for U.S. consumers who flock to popular shopping sites like Temu and Shein.
President Joe Biden's proposed rule says foreign companies can't avoid tariffs simply by shipping goods that they claim to be worth $800 or less. Sellers mainly from China have used the so-called de minimis exemption to flood the U.S. market, shipping dresses, shoes, toys and bags directly to American shoppers in small packages.
The number of these shipments has jumped from 140 million annually to over 1 billion last year, according to a White House statement. The U.S. government says the exemption also makes it harder to block banned imports like fentanyl and synthetic drug content, raising fears that unsafe and unlawful products are slipping through.
China is the biggest source of retail packages entering the U.S., accounting for the bulk of parcels worth $800 and less, according to Customs and Border Protection data.
Homeland Security Secretary Alejandro Mayorkas has acknowledged that it is impossible to screen the 4 million packages that enter the U.S. every day under the tariff exception, which he said is "built on a false premise that low value means low risk."
Consumer sentiment ticks higher
WASHINGTON -- Americans' outlook on the economy improved for the second straight month in September, bolstered by lower prices for long-lasting goods such as cars and furniture and the prospect of interest rate cuts by the Federal Reserve.
The University of Michigan's consumer sentiment index ticked up to 69 in its preliminary reading, its highest level since May and up from 67.9 in August. The gain was driven by consumers' perceptions that prices have improved for durable goods, the report from University of Michigan said.
The survey bottomed out in June 2022, when inflation peaked at 9.1 percent, and has since risen by about 40 percent, though it remains significantly below pre-pandemic levels. The long-term average for the index is nearly 85, according to Capital Economics.
"Consumers remain guarded as the looming election continues to generate substantial uncertainty," said Joanne Hsu, director of consumer surveys at University of Michigan.
The proportion of consumers expecting interest rates to decline over the next 12 months rose to 54 percent, the highest on record dating back to 1978. The Fed is set to cut its interest rate by at least a quarter-point next week.
Feds slow walk steel deal block
WASHINGTON -- President Joe Biden has voiced his opposition to Nippon Steel buying U.S. Steel, but the federal government appears to be in no hurry to block the deal.
White House officials earlier this month did not deny that the president would formally block the acquisition. But the necessary report from the government's Committee on Foreign Investment in the United States has yet to be submitted to the White House.
"It's their process -- it's independent," White House press secretary Karine Jean-Pierre told reporters Friday. "We have to see the recommendation from CFIUS. That's the process."
The proposed takeover carries some heavy political weight in Pennsylvania, a state that both Vice President Kamala Harris and Donald Trump view as a must-win in November's presidential election. U.S. Steel is headquartered in Pittsburgh.
Biden, Harris and Trump have all come out against the deal. Biden is close with the United Steelworkers, the labor union whose members work for U.S. Steel and worry about the loss of job protections. Supporters of the merger note that U.S. Steel's older mills could be shuttered without the improved corporate balance sheet that a merger could produce.
Today's Top Headlines
Story continues below
Former Gamecocks staffer alleged to have committed 'serious' violations, report says Body of missing 2nd grader found in pond near elementary school in Simpsonville Bishop England says no fans allowed at football game vs. Philip Simmons Ray Tanner's tenure as Gamecocks' athletic director will soon end; USC to search for replacement Several Charleston restaurants have closed in the last month. Is it a trend or a coincidence? Mother of missing 2nd grader found dead calls for justice, says school was negligent Mount Pleasant had big plans for a property, but they just sold it for $10M. What happens now? CSX train and semitruck carrying artillery vehicle collide in Goose Creek. Here's what we know. Mitchelville archaeologist unearths a lost history on Hilton Head Island SC man gets $63M in baby powder cancer case. With months to live - and no money yet - he speaks out. Election betting put on hold
ATLANTIC CITY, N.J. -- Just hours after it began, legal betting on the outcome of U.S. Congressional elections has been put on hold by a federal appeals court.
The Court of Appeals for the District of Columbia Circuit issued an order Thursday night temporarily freezing the matter until it can consider and rule on the issue. No timetable was initially given.
The court acted at about 8:30 p.m. Thursday, mere hours after a federal judge cleared the way for the only bets on American elections to be legally sanctioned by a U.S. jurisdiction.
U.S. District Court Judge Jia Cobb permitted New York startup company Kalshi to begin offering what amounts to bets on the outcome of November elections regarding which parties win control of the House and Senate. The company's markets went live soon afterwards, and Kalshi accepted an unknown amount of bets, which it called "contracts."
The Thursday night order put a halt to any further such bets. What might happen to those already made was unclear Friday.
Trump says he won't sell stock
NEW YORK -- Shares of Trump Media & Technology Group Corp. jumped Friday after former President Donald Trump said he won't sell shares of the social media company.
"I don't wanna sell my shares. I don't need money," Trump said while speaking to reporters at his golf club in Los Angeles.
Trump owns nearly 115 million shares of the company, according to a recent filing with the Securities and Exchange Commission. Based on Thursday's closing price of $16.08, Trump's shares are worth approximately $1.85 billion.
The former president can start selling shares of Trump Media, the parent company of Truth Social, starting on Sept. 19 when a lockup provision ends, if he chooses to do so. The lockup provision prevented company insiders from selling newly issued shares for six months after the company began trading publicly in March.
Even though Trump would receive a sizeable payout if he did sell, the stock of Trump Media is now worth considerably less than it was valued at several months ago. When the company made its debut on the Nasdaq in March, it hit a high of $79.38.
Uber to dispatch robotaxis
Ride-hailing leader Uber on Friday announced it will dispatch robotaxis built by driverless technology pioneer Waymo beginning next year in Austin, Texas and Atlanta in a deal that deepens the bond between once-bitter rivals.
The alliance expands upon a partnership the two companies forged in Phoenix last year, signaling they were ready to set aside their differences and work together following a bruising legal battle revolving around allegations that Uber had stolen Waymo's trade secrets.
Uber's increasing reliance on Waymo's robotaxis to supplement the fleet of cars driven by people responding to requests sent on a mobile app comes just a few weeks after it announced plans to deploy driverless cars from General Motors' beleaguered Cruise subsidiary.
It hasn't been revealed yet where Uber and Cruise will be working together next year, but it probably won't be in California, where Cruise's license remains suspended following a grisly October 2023 incident in San Francisco that seriously injured a pedestrian.
Sign up for our business newsletter. Our twice-weekly newsletter features all the business stories shaping Charleston and South Carolina. Get ahead with us - it's free.
Sign Up!