During his presidential campaign, Donald Trump proposed a 60% tariff on goods imported from China, which is the largest supplier to the U.S., and tariffs reaching 20% on other imports.

Retailers warn that these tariffs will negatively impact American consumers.

Although Trump claims that foreign nations will shoulder the burden of the tariffs, which are taxes charged on imported items, retailers and economists argue that it will actually be U.S. shoppers who will face higher prices.

The Fed lowers interest rates

This past Thursday, the Federal Reserve decreased its primary interest rate by a quarter of a percentage point for the second consecutive time to address easing inflation. This aims to lower borrowing costs for millions of Americans.

However, this more modest reduction might indicate a slower future rate-cutting pace, particularly following Donald Trump’s re-election. Analysts predict that Trump’s policies on taxes, trade, and immigration may reignite inflation, which has significantly decreased since 2022.

In a press release after their two-day meeting, the Fed made no mention of Trump or the recent election.

📰 A must-read 📰

Here’s an article from Betty Lin-Fisher, our recommended Consumer Friday read.

If you’re searching for a used car, be cautious of vehicles that may have suffered flood or water damage, as some may have received superficial clean-ups and are being sold to unsuspecting buyers.

According to estimates by CARFAX, this year alone, around 347,000 vehicles have experienced flood damage. Hurricane Milton contributed to an additional 120,000 cars in Florida, and Hurricane Helene caused damage to 138,000 vehicles across various states. Additionally, smaller storms throughout the summer have damaged about 89,000 vehicles.

You’d definitely want to avoid purchasing a car that is “rotting from within.”

About The Daily Money

Every weekday, The Daily Money brings you top consumer and financial updates from YSL News, simplifying complex issues and providing concise explanations on how various factors, such as Federal Reserve rate changes and bankruptcies, impact your financial situation.