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    Amazon Sought Tariff Loophole Used by Chinese Rivals. Now Biden Is Closing It.

    Under pressure from Chinese competitors, Amazon, Walmart and other U.S. retailers have been exploring ways to avoid tariffs. Could a new Biden administration rule change that?Major American retailers including Amazon and Walmart have been quietly exploring shifting toward a business model that would ship more goods directly to consumers from Chinese factories and require fewer U.S. workers in retail stores and logistics centers.The plans have been driven by the rocketing popularity of Chinese e-commerce platforms like Shein and Temu, which have won over consumers with their low prices. These platforms ship inexpensive products directly to consumers’ doorsteps, allowing them to bypass American tariffs on Chinese goods, along with the hefty costs associated with brick-and-mortar stores, warehousing and distribution networks.Rising competition from Shein, Temu and other Chinese companies is pushing many major U.S. retailers to consider shifting to a similar model to qualify for an obscure, century-old U.S. trade law, according to several people familiar with the plans. The law, known as de minimis, allows importers to bypass U.S. taxes and tariffs on goods as long as shipments do not exceed $800 in value.But that trend toward changing business models may have been disrupted on Friday, when the Biden administration abruptly moved to close off de minimis eligibility for many Chinese imports, including most clothing items. In an announcement Friday morning, the Biden administration said it would clamp down on the number of packages that come into the country duty-free using de minimis shipping, particularly from China.The Biden administration’s changes will not go into effect immediately. The proposal will be subject to comment by industry before being finalized in the coming months, and some imports from China would still qualify for a de minimis exemption.But Friday’s action may head off a change that has been looming in global retail. Amazon has been preparing a new discount service that would ship products directly to consumers, allowing those goods to bypass tariffs, according to people familiar with the plans. Even companies that preferred to keep their business models as-is — like Walmart — have been forced to consider using more de minimis to compete.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Boeing Workers Walk Off the Job in First Strike Since 2008

    Thousands of workers who build commercial planes in the Seattle and Portland, Ore., areas rejected a tentative contract recommended by union leaders.Thousands of machinists and aerospace workers walked off the job on Friday, after rejecting a proposal that would have delivered raises and improvements to benefits but fell short of what the union initially sought.Lindsey Wasson for The New York TimesThousands of Boeing workers walked off the job on Friday after rejecting a contract offer from the company, a potentially costly disruption as Boeing tries to increase airplane production after a safety crisis.The strike, the first at Boeing in 16 years, is expected to bring operations to a halt in the Seattle area, home to most of Boeing’s commercial plane manufacturing. The slowdown could also further disrupt the company’s fragile supply chain.Kelly Ortberg, the company’s new chief executive, had urged employees to approve the deal. “A strike would put our shared recovery in jeopardy, further eroding trust with our customers,” he said in a video statement on Wednesday.Boeing plays a substantial role in the U.S. economy. It employs almost 150,000 people across the country — nearly half of them in Washington State — and is one of the nation’s largest exporters. The company, which also makes military jets, rockets, spacecraft and Air Force One, is a global symbol of America’s manufacturing strength.The union said the strike vote passed by 96 percent, well above the two-thirds required to initiate a walkout, after 95 percent rejected the proposed contract.The contract had been agreed upon by union leaders and company management on Sunday after months of talks. It included many gains for workers, but fell short of what the union initially sought. Union leaders had hoped to get bigger raises and other concessions from the company, but said it was still “the best contract we’ve negotiated in our history.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Interest payments on the national debt top $1 trillion as deficit swells

    With the Federal Reserve holding benchmark rates at their highest in 23 years, the government has laid out $1.049 trillion on debt service, up 30% from the same period a year ago.
    The jump in debt service costs came as the U.S. budget deficit surged in August, edging closer to $2 trillion for the full year.

    A view shows a bronze seal beside a door at the U.S. Treasury building in Washington, U.S., January 20, 2023. 
    Kevin Lamarque | Reuters

    The U.S. government for the first time has spent more than $1 trillion this year on interest payments for its $35.3 trillion national debt, the Treasury Department reported Thursday.
    With the Federal Reserve holding benchmark rates at their highest in 23 years, the government has laid out $1.049 trillion on debt service, up 30% from the same period a year ago and part of a projected $1.158 trillion in payments for the full year.

    Subtracting the interest the government earns on its investments, net interest payments have totaled $843 billion, higher than any other category except Social Security and Medicare.
    The jump in debt service costs came as the U.S. budget deficit surged in August, edging closer to $2 trillion for the full year.
    With one month left in the federal government’s fiscal year, the August shortfall popped by $380 billion, a dramatic reversal from the $89 billion surplus for the same month a year prior that was due largely to accounting maneuvers involving student debt forgiveness.
    That took the 2024 deficit to just shy of $1.9 trillion, or a 24% increase from the same point a year ago.
    The Fed is widely expected to lower rates next week, but just by a quarter percentage point. However, in anticipation of additional moves in future months, Treasury yields have tumbled in recent weeks.
    The benchmark 10-year note last yielded about 3.7%, down more than three-quarters of a percentage point since early July.

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    Wholesale prices rose 0.2% in August, in line with expectations

    The producer price index increased 0.2% in August, the Bureau of Labor Statistics said Thursday. That matched the Dow Jones consensus estimate.
    Initial filings for unemployment benefits totaled 230,000 for the week ended Sept. 7, up 2,000 from the previous period and higher than the 225,000 estimate.

    Wholesale prices rose in August about in line with expectations, the final inflation data point as the Federal Reserve gets set to lower interest rates.
    The producer price index, a measure of final demand goods and services costs that producers receive, increased 0.2% on the month, the Bureau of Labor Statistics said Thursday. That matched the Dow Jones consensus estimate.

    Excluding food and energy, PPI increased 0.3%, slightly hotter than the 0.2% consensus estimate. The core increase was the same when excluding trade services.
    On a 12-month basis, headline PPI rose 1.7%. Excluding food, energy and trade, the annual rate was 3.3%.
    In other economic news Thursday, the Labor Department said initial filings for unemployment benefits totaled 230,000 for the week ended Sept. 7, up 2,000 from the previous period and higher than the 225,000 estimate.
    Stock market futures were little changed after the report while Treasury yields were mostly lower.
    On the PPI measure, services prices pushed much of the gain, with a 0.4% monthly increase driven by a rise in services less trade, transportation and warehousing. Another big contributor was a 4.8% jump in guestroom rental.

    Goods prices were flat on the month, reversing a 0.6% gain in July.
    The release comes a day after the BLS reported that consumer prices rose 0.2% on the month in line with expectations. However, that report also showed that core prices climbed 0.3%, slightly more than expected and pushed higher mostly by an increase in shelter-related expenses.
    On an annual basis, headline CPI inflation decreased to 2.5% while core held at 3.2%.
    Neither report is expected to keep the Fed from lowering benchmark interest rates by a quarter percentage point when its two-day policy meeting concludes Wednesday. The central bank’s key overnight borrowing rate is currently targeted in a range between 5.25%-5.5%.
    Market pricing had indicated some uncertainty over how much the central bank would cut, but recent data along with statements from policymakers have pushed Wall Street into looking in a more traditional quarter-point move, rather than a more aggressive half-point reduction.
    Fed officials of late have turned their attention more to a slowing labor market.
    The jobless claims report indicated that layoffs have not spiked, though the weekly number has risen slightly over the past several months.
    Continuing claims, which run a week behind edged just higher to 1.85 million, an increase of just 5,000 from the previous period.

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    U.S. Latino economic output grows to $3.6 trillion, new report finds

    The U.S. Latino economy grew to $3.6 trillion in 2022, up from $3.2 trillion the year prior, according to a new report by the Latino Donor Collaborative in partnership with Wells Fargo.
    If Latinos were an independent country, their GDP would rank fifth in the world and be the second-fastest-growing economy, the study found.
    The U.S. Latino population increased by 1.65%, while the non-Latino population grew by just 0.08%, with a large share of Latinos being younger and yet to enter the labor market.

    Miami Beach, Florida, Cafe Sazon, Cuban flag with seniors at table. 
    Jeff Greenberg | Universal Images Group | Getty Images

    The U.S. Latino economy grew by 13% from $3.2 trillion in 2021 to $3.6 trillion in 2022, according to a new report released Thursday by economic think tank Latino Donor Collaborative and Wells Fargo.
    That would make the cohort the fifth-largest economy in the world — surpassing the annual output of India, the United Kingdom, France and Canada.

    “There is no doubt that the U.S. Latino economy is a formidable force, characterized by strong GDP growth, significant population expansion, high workforce participation, and increased educational achievements,” Sol Trujillo, Latino Donor Collaborative chairman, said in the report.
    “This is not a matter of diversity and inclusion; it is a critical business strategy,” Trujillo added.
    The report is based on data from 2022, the most recent year for which information is publicly available. It includes data from the U.S. Census Bureau, the Bureau of Economic Analysis and the Bureau of Labor Statistics, among others.
    Looking at the world’s 10 largest economies between 2017 and 2022, Latinos would be the second fastest-growing economy with a 4.6% annual average real growth rate, behind just China at 5.3%. The growth rate of the U.S. Latino gross domestic product, or GDP, is also 2.6 times faster than the rest of the U.S. economy.
    Industry strength for Latinos remained steady in manufacturing, public administration, accommodation and food services, construction, and transportation.

    By state, California led the way in Latino GDP in 2022 once again. Here’s a look at the top five states by Latino GDP, per the report:

    California: $935.2 billion
    Texas: $686.6 billion
    Florida: $347.8 billion
    New York: $268 billion
    Illinois: $125 billion

    Antonio Munoz, owner of the 911 Taco Bar restaurant, prepares carne asada and chicken, meats that have increased in price and costs for his business with recent inflation, in Las Vegas, Nevada on February 1, 2024. 
    Patrick T. Fallon | AFP | Getty Images

    Latino wealth soars

    The Latino economic boom has also led to a wealth boom for the group.
    Hispanic household wealth has tripled over the last decade, according to new data compiled by the Hispanic Wealth Project.
    That is two years ahead of a goal set out by the nonprofit, after Latinos lost up to two-thirds of their median household wealth in the wake of the Great Recession. By 2022, the median net worth of Hispanic households reached $63,400 — 3.17 times higher than in 2013, when adjusting for inflation.
    Increasing homeownership rates, rising home prices and a surge in Hispanic-owned businesses have all contributed to steady growth, the HPW reported.
    However, a significant gap remains when the group is compared with non-Hispanic white households, which had a median net worth of $283,300 in 2022. Median net worth was $192,160 for the general population.
    “The U.S. Latino cohort is essential to our country’s future,” said Trujillo.

    Latino economy shows no sign of slowing

    The LDC also set a forecast for the U.S. Latino economy through 2029. It shows the cohort’s economic output will surpass Japan’s by 2024 and Germany’s by 2027, based on national GDP forecasts from the International Monetary Fund.
    A significant part of that, Trujillo said, is due to the group’s population growth rate. “U.S. Latino population growth is nearly ubiquitous across the country.”
    Latino economic growth is also expanding at a faster rate than that of non-Latinos in states such as Colorado, Washington and Georgia. Between 2021 and 2022, the U.S. Latino population increased by 1.65%, while the non-Latino population grew by just 0.08%. This growth has translated to the Latino population being significantly younger than its peers, with a large share of Latinos who have yet to enter the labor market.
    As a result, the U.S. economy is increasingly reliant on U.S. Latinos to replenish its working-age population, Trujillo said. “A young Latino in the U.S. turns 18 every thirty seconds.”
    “Leveraging the unique and powerful opportunities presented by the U.S. Latino market will benefit every American,” Trujillo said.
    The report’s findings were released during the L’Attitude conference, which examines the state of Latino leadership, participation and representation in corporate America as well as in the public, media and entertainment sectors. More

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    Why Low Layoff Numbers Don’t Mean the Labor Market Is Strong

    Past economic cycles show that unemployment starts to tick up ahead of a recession, with wide-scale layoffs coming only later.As job growth has slowed and unemployment has crept up, some economists have pointed to a sign of confidence among employers: They are, for the most part, holding on to their existing workers.Despite headline-grabbing job cuts at a few big companies, overall layoffs remain below their levels during the strong economy before the pandemic. Applications for unemployment benefits, which drifted up in the spring and summer, have recently been falling.But past recessions suggest that layoff data alone should not offer much comfort about the labor market. Historically, job cuts have come only once an economic downturn was well underway.

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    Layoffs per month
    Data is seasonally adjusted.Source: Bureau of Labor StatisticsBy The New York TimesThe Great Recession, for example, officially began at the end of 2007, after the bursting of the housing bubble and the ensuing mortgage crisis. The unemployment rate began rising in early 2008. But it was not until late 2008 — after the collapse of Lehman Brothers and the onset of a global financial crisis — that employers began cutting jobs in earnest.The milder recession in 2001 offers an even clearer example. The unemployment rate rose steadily from 4.3 percent in May to 5.7 percent at the end of the year. But apart from a brief spike in the fall, layoffs hardly rose.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Consumer prices rose 0.2% in August as annual inflation rate hits lowest since early 2021

    Prices increased as expected in August while the annual inflation rate declined to its lowest level since February 2021, according to a Labor Department report Wednesday that sets the stage for an expected quarter percentage point rate cut from the Federal Reserve in a week.
    The consumer price index, a broad measure of goods and services costs across the U.S. economy, increased 0.2% for the month, in line with the Dow Jones consensus, the Bureau of Labor Statistics reported.

    That put the 12-month inflation rate at 2.5%, down 0.4 percentage point from the July level and compared to the estimate for 2.6%.

    However, core CPI, which excludes volatile food and energy prices, increased 0.3% for the month, slightly higher than the 0.2% estimate. The 12-month core inflation rate was 3.2%, in line with the forecast.
    While the numbers showed that inflation slowly continued to moderate, housing-related costs remain an issue. The shelter component of CPI, which has about a one-third weighting in the index, increased 0.5%, accounting for much of the increase in the all-items measure. The shelter index was up 5.2% year over year.

    Food prices rose just 0.1%, while energy costs slid 0.8%.
    Elsewhere in the report, used vehicle prices decreased 1%, medical care services declined 0.1% and apparel prices increased 0.3%.

    Stock market futures moved lower following the report though Treasury yields spiked.
    In the fed funds futures market, traders priced in an 85% chance that the Federal Open Market Committee will approve a quarter percentage point, or 25 basis point, interest rate reduction when its meeting concludes Sept. 18, according to the CME Group”s FedWatch measure.
    This is breaking news. Please check back for updates. More

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    Chairman of property firm Damac expresses concerns over ‘expensive’ Dubai

    Increasing demand for property, especially in the luxury space, is boosting prices not just of homes but of everything else in the city as the United Arab Emirates is expected to be the world’s top wealth magnet for the third consecutive year.
    For Hussain Sajwani, chairman of Dubai property giant Damac, that’s both good news and bad.

    DUBAI, United Arab Emirates — Dubai’s property scene is showing no sign of cooling off, as 2024 is on track to be another record year in terms of sales figures and property values, according to local real estate firms.
    Increasing demand for property, especially in the luxury space, is boosting prices not just of homes, but of everything else in the city — just as the United Arab Emirates is expected to emerge as the world’s top wealth magnet for the third consecutive year.

    For Hussain Sajwani, chairman of Dubai property giant Damac, that spells both good and bad news.
    “What concerns me a little bit in Dubai is that [it’s] becoming an expensive city, and I’ve said this in the past, that Dubai [is] going to be [an] expensive city. Because whenever there is so much demand, and especially when talented people, average people are coming, they create more demand,” Sajwani told CNBC’s Dan Murphy from Riyadh on Tuesday.
    “So today, to get a seat in a school is difficult … and of course, the business is going to raise prices, and inflation [is] going to be high, so Dubai is going to be an expensive city,” the chairman said. “And I hope [the] government find ways and means. And it’s not easy to find ways and means when there is a continuous influx of people to the city.”
    The latest Dubai property market numbers tell a story of burgeoning demand. In July of 2024, property sales reached 49.6 billion dirhams ($13.5 billion), a 31.63% increase from the same period in 2023, according to locally-based brokerage firm Elite Merit Real Estate.
    “The first half of 2024 alone saw over 43,000 property transactions valued at approximately AED122.9 billion, marking a 30% increase from the previous year,” the firm’s report released on Sept. 10 wrote, adding that the growth is due in part to the “rapid absorption of new inventory.” Around 80% of the units launched since 2022 have already been sold, the report estimates.

    Aerial view of cityscape and skyscraper at sunset in Dubai Marina.
    Lu Shaoji | Moment | Getty Images

    “The Dubai property market is doing extremely well, and I think we’re going to continue to do well, because the demand in Europe is amazing,” Sajwani said. “Everybody wants to go to Dubai, from the taxi driver to the waiter to the businessman … Dubai now is attracting a lot of not only wealthy people, but a lot of talented people. And it’s growing in a different level from pre-Covid.”
    The Damac founder noted the way in which the Covid-19 period supercharged Dubai’s popularity as a place to live: while much of the world remained in lockdowns, the emirate encouraged tourism and attracted new residents with the help of visas for remote workers and entrepreneurship.
    “Dubai today is a global city, by all means, and attracting a lot of talent and a lot of businesses, we’re going to continue to grow,” Sajwani said.
    Dubai has experienced a volatile boom-and-bust cycle in the past, most notably during its 2008-2009 crisis period, when the emirates’ property market crashed, and numerous investors had to default on their debts. Asked if he was worried about a similar cycle repeated itself, Sajwani expressed confidence that the system was different now.
    Asked if Dubai is more stable now, Sajwani replied: “100%.”
    “One of the key reason for that is that the regulations the Dubai government brought in after [the] ’09 or ’08 crash has been very good regulations. Very, very strict on developers, on customers, and on zoning,” he said. “So that regulation is helping — not everybody just can come and enter the market and just launch a project … There is very strict escrow, so the customer’s money is very much protected, and that’s what makes the market very efficient.”
    Correction: This article’s headline has been updated to reflect Hussain Sajwani’s title as chairman of Damac. More