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    Donald Trump issues fresh tariff threats

    SO BEGINS Donald Trump’s tariff roller-coaster, sure to be a stomach-churning ride for the global economy. He started his first day in office with an unexpected show of restraint: rather than slapping hefty new tariffs on other countries, he instead issued a presidential memorandum calling for a review of unfair trade practices. It seemed to be a measured start for Mr Trump—at least on the protectionist front, if not his wider programme—prompting relief in government offices and on trading floors around the world. Foreign currencies and stocks rallied. More

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    Why has Donald Trump held fire on tariffs?

    Donald Trump started his new presidential term with an unexpected show of restraint. Just a couple of months ago, Mr Trump had warned that he would announce hefty new levies on his first day back in the White House. Instead, he opted for a softer opening. He was set to issue a presidential memorandum, calling for an “America first” trade policy and a review of commercial relationships with China, Canada and Mexico. His measured start prompted relief in government offices and on trading floors around the world. Foreign currencies and stocks rallied. More

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    Stanley Druckenmiller says ‘animal spirits’ are back in markets because of Trump with CEOs ‘giddy’

    Billionaire investor Stanley Druckenmiller believes Donald Trump’s re-election renewed a jolt of speculative enthusiasm in the markets and surging optimism within businesses.
    “I’ve been doing this for 49 years, and we’re probably going from the most anti-business administration to the opposite,” Druckenmiller said on CNBC Monday. “We do a lot of talking to CEOs and companies on the ground. And I’d say CEOs are somewhere between relieved and giddy. So we’re a believer in animal spirits.”

    While the notable investor, who now runs Duquesne Family Office, is bullish on the economy in the near-term, he remains somewhat cautious on the stock market because of elevated bond yields. He revealed that he is holding onto his short against Treasurys, effectively betting that bond prices will fall and yields will rise.
    “In terms of the markets, I would say it’s complicated,” Druckenmiller said. “You’re going to have this push of a strong economy versus bond yields rising in response to that strong economy, and that kind of makes me not have a strong opinion one way or the other.”
    The S&P 500 surged nearly 6% in November on Trump’s victory, bringing the benchmark’s 2024 gains to 23.3%. Trump’s promised tax cuts and deregulation have boosted risk assets dramatically, especially bank and energy stocks, as well as bitcoin, which just hit another record high Monday.
    Druckenmiller, 71, said he would focus on individual stocks, not worrying about the broader market. The investor noted he’s bullish on companies where artificial intelligence is going to lower their costs and drive productivity. He didn’t reveal which AI stocks he’s betting on after selling out of Nvidia and Microsoft.
    ‘Risks are overblown’
    As for concerns that Trump’s punitive tariffs would spoil the market rally and spike inflation, Druckenmiller believes that the revenue generated by duties could lessen the pressing fiscal problem in the country.

    “We have a fiscal problem, we need revenues,” Druckenmiller said. “To me, tariffs are simply a consumption tax that foreigners pay for some of it. Now the risk is retaliation, but as long as we stay in the 10% range, …I think the risks are overblown relative to the rewards, the rewards on high.”

    Trump’s trade memorandum to be issued Monday would not impose tariffs yet. His camp has been reportedly discussing a schedule of graduated tariffs increasing by about 2% to 5% a month on trading partners.
    Druckenmiller once managed George Soros’ Quantum Fund and shot to fame after helping make a $10 billion bet against the British pound in 1992. He later oversaw $12 billion as president of Duquesne Capital Management before closing his firm in 2010.  More

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    Trump trade memorandum won’t impose new tariffs on day one

    U.S. President-elect Donald Trump speaks during a rally the day before he is scheduled to be inaugurated for a second term, in Washington, U.S., January 19, 2025. 
    Brian Snyder | Reuters

    President-elect Donald Trump is poised to sign a flurry of executive orders as soon as he’s sworn in, but imposing tariffs on U.S. trading partners won’t be one of the actions Monday.
    Trump is set to issue a broad trade memorandum Monday that directs federal agencies to study and assess unfair trade practices and currency policies with other nations, especially China, Canada and Mexico. However, the memo stopped short at slapping any new duties on the countries.

    The Wall Street Journal first reported on Trump’s move to hold off on imposing tariffs on his first day in the White House.
    The president-elect’s plan on trade could be evolving from what he touted on the campaign trail. His camp has been discussing a schedule of graduated tariffs increasing by about 2% to 5% a month on trading partners, Bloomberg News reported last week.
    Trump once made universal tariffs a core tenet of his economic campaign pitch, floating a 20% levy on all imports from all countries with a specifically harsh 60% rate for Chinese goods.
    Many economists feared that such protectionist trade policy could make production of goods more expensive and raise consumer prices, just as the world recovers from pandemic-era inflation spikes.
    — CNBC’s Megan Cassella contributed reporting. More

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    Here are the products and companies most at risk from Trump’s tariff plans

    Tariff proposals have put the complex global supply chain front and center as President-elect Donald Trump gets inaugurated on Monday.
    On the campaign trail, Trump said he would add tariffs for goods made in other countries, especially China.
    Those higher costs on sneakers, cars, furniture and more could force many consumers to change their buying habits.

    Customers shop for food at a grocery store on Jan. 15, 2025 in Chicago, Illinois. 
    Scott Olson | Getty Images

    Many of the items that U.S. shoppers browse and buy in retailers’ aisles come from far-away factories or farms — a reality that could soon force many consumers to change their buying habits.
    Sneakers, T-shirts, beer and other common household items are often made in countries like China, Mexico and Canada before they wind their way to a big-box retailer, grocer or mall in the U.S. That complex global supply chain is front and center Monday as President-elect Donald Trump gets inaugurated and is widely expected to announce new tariffs on imports.

    While tariffs have become a familiar concept for more Americans since Trump implemented them on metals and other key materials during his first term in office, the levies he has threatened for his return to the White House could have a much bigger effect on household budgets.
    Most people have little grasp of just how many items could see price hikes due to the duties: from avocados to children’s toys, to chocolate and cars, experts told CNBC. Proposed tariffs on products from China, Mexico and Canada — the three largest U.S. trading partners — would likely affect U.S. consumers the most.
    The exact details of those tariffs, including which countries would be affected and how high the duties might be, remain unclear and could change. On the campaign trail, Trump spoke about implementing 10% to 20% tariffs on all countries, and putting levies as high as 60% on Chinese goods.
    While news reports in recent weeks have suggested Trump could scale back his tariff proposals, and could be using them as a negotiating tactic to bend foreign governments to his will, the president-elect has denied those reports.
    Since his first run for president, Trump has argued tariffs will encourage more manufacturing in the U.S. and promote job creation and national security. It’s not just him: President Joe Biden and other Democrats have backed more limited tariffs for the same reasons.

    Regardless, the risk is clear for retailers: Any tariffs would bring extra costs they’d have to absorb, share with producers or pass on to customers by charging higher prices —the latter of which is the most likely scenario as the industry is reluctant to sacrifice profits, retail executives and industry experts told CNBC in recent weeks. Major retail trade groups, including the National Retail Federation and Consumer Technology Association, have warned tariffs would effectively become a tax on American businesses and consumers.
    Shoppers are already expecting tariffs to hit their pocketbooks. About 67% U.S. adults surveyed said they think it is very likely or somewhat likely that companies will pass on the cost of tariffs to consumers, according to Morning Consult survey of more than 4,400 people in early December. Even so, the same poll found about 45% of adults back a 10% tariff on all imports, and more than a third of respondents support a 20% duty on all goods and a 60% levy on Chinese imports.
    Ali Furman, consumer markets industry leader for PwC, said tariffs have become the number one topic of discussion among companies working with the consulting firm, and the conversations have reached the top of the C-suite. She said the tariff fallout could be different now than during Trump’s first term, since his new proposal is broader and comes as retailers struggle to convince inflation-weary consumers to spend.
    “It’s not 2017,” she said. “Because there’s a more cost-conscious consumer, you have to be much more thoughtful about passing on those costs to the consumer.”
    “At the same time, you don’t want to come across as anti-tariff or anti-American,” she added.
    Planning for tariffs now is challenging because companies do not know how Trump will proceed. Automotive executives who have spoken with CNBC in recent weeks said they are preparing for several different scenarios but not making any moves until there’s more clarity.
    “We are working, obviously, on scenarios,” Antonio Filosa, head of Stellantis’ North American operations, said. “But yes, we need to await his decisions and after the decision of Mr. Trump and his administration, we will work accordingly.”
    Professor Brett House, an economist from Columbia Business School, said just about every consumer product could see a price increase under the proposals, but some companies have higher exposure than others.
    “Something around 50% of U.S. petroleum imports come from Canada. The Trump administration puts tariffs on those, it is unequivocally the case that everything in the United States will become substantially more expensive,” House told CNBC in an interview. “The breadth of the impact that we should expect to see from these tariffs could be enormous and could affect every single thing we produce in the United States and every household and every business. No one will be immune.”
    Here are just some of the everyday items that would be affected if duties on goods from China, Canada and Mexico take effect.

    Miami, Five Below, discount variety store merchandise. 
    Jeff Greenberg | Universal Images Group | Getty Images

    China: Sneakers, furniture and toys

    Within closets, living rooms and children’s playrooms, a range of American household goods originate in China.
    The country is the largest furniture exporter on the globe, according to data from the Home Furnishings Association, a trade group that lobbies on behalf of home goods retailers. In 2023, $32.4 billion in furniture was imported into the U.S., 29% of which came from China, followed close behind by Vietnam, which accounted for 26.5% of imports, according to the HFA, which cited investment banking firm Mann, Armistead & Epperson – one of the furniture industry’s top sources for data.

    Between 30% and 40% of furniture is produced in the U.S., but as much as 50% of raw materials – like wood, fabrics, hinges and screws – are imported, making price increases on home products difficult to avoid, even if they’re technically “made in America.”
    HFA CEO Shannon Williams said home goods retailers cannot withstand a 60% tariff on China imports and would likely have to move supply chains if Trump’s proposed tariffs went into effect. While tables and couches likely would not cost 60% more, their prices would still rise, said Williams.
    If companies redirected supply chains to Vietnam, where many manufacturers fled during Trump’s first administration, retailers could still face tariffs of 10% to 20% – plus the cost of moving and scaling operations. The tariffs alone could make a $2,000 couch cost as much as $2,200 to $2,400.
    If businesses moved operations to Mexico, which accounted for about 10% of U.S. furniture imports in 2023, a $2,000 couch could cost up to 25% more at $2,500.
    When Trump first announced tariff increases, some industry experts suggested that retailers might eat some of that cost and try to pass some on to the manufacturer to prevent big price hikes for consumers.
    Between 2018 and 2019, when Trump introduced 10% tariffs on certain goods during his first administration, furniture prices increased by about 2.3%, according to the HFA, which cited data from the consumer price index.
    This time around, the tariffs are not only higher, but also the home goods sector is struggling, leaving it less equipped to absorb the cost. Covid-era purchasing, high interest rates and a sluggish housing market have made it a “rough couple years” for the industry, said Williams.
    Beyond furniture, consumers could see another everyday item cost more if higher tariffs take effect: toys.
    Around 80% of toys imported to the U.S. come from China, and the cost of toys made outside of the U.S. could increase by up to 56% under Trump’s proposals, according to the Toy Association, a trade group that lobbies on behalf of the industry.
    That would make a $20 Barbie doll, which has historically been manufactured in China, cost as much as $31.20.
    “If this were to happen, parents could be pushed to buy less expensive, non-compliant toys from unsanctioned, online sellers. These toys often do not meet U.S. safety and quality standards and could be toxic and dangerous to children, putting them at risk,” the Toy Association said in an email to CNBC. “Toys produced by the U.S. toy industry are compliant with rigorous safety and quality standards, and we hope they will remain affordable to American families and not subject to tariffs.”

    The new and old versions of the classic Barbie dolls are on display at Mattel Design Center in El Segundo, California, U.S., February 22, 2024. 
    Mario Anzuoni | Reuters

    As of the end of 2023, about 50% of toys from Barbie’s parent company Mattel were made in China, according to CEO Ynon Kreiz. This year, Mattel expects less than 40% of its sourcing to come from China so its “exposure in the U.S. to China sourcing is therefore 20%” given the company’s geographic sales mix, Chief Financial Officer Anthony DiSilvestro said.
    “We’ve done a good job mitigating the potential exposure,” DiSilvestro said during a Morgan Stanley retail conference in December. “But to the extent we’re impacted, we would expect to raise prices to offset it.”
    Footwear is another industry with a heavy reliance on China. About 37% of footwear imports came from the country in 2023, followed by about 30% from Vietnam, nearly 9% from Italy and 8% from Indonesia, according to data from the U.S. International Trade Commission
    Nearly 100% of all footwear is imported to the U.S., according to the group.
    Even before Trump’s first term, footwear manufacturers were moving some sourcing out of China as its labor force shrank, the organization’s CEO Matt Priest said. Yet he said it would be unrealistic to return production to the U.S., and moving it to another part of Asia can be difficult.
    Already, some companies have accelerated their plans. Steve Madden said in November that it will reduce the goods it imports from China by as much as 45% over the next year.
    At a press conference on Thursday, Priest said U.S. footwear companies are waiting for clearer policy.
    “All of these actions are inflationary,” he said. “You have to pay the piper somewhere.”
    China isn’t a major manufacturer of cosmetics, but E.l.f. Beauty, a drugstore staple and popular brand among younger shoppers, makes about 80% of its makeup in the region.
    During an interview with CNBC late last year, CEO Tarang Amin said the company could be forced to raise prices if the tariff hikes take effect — a risky move considering its low prices are one of its main draws.

    A carrier trailer transports Toyota cars for delivery while queuing at the border customs control to cross into the U.S., at the Otay border crossing in Tijuana, Mexico May 31, 2019.
    Jorge Duenes | Reuters

    Mexico: Cars, beer and avocados

    Over the last decade, U.S. consumers have developed a bigger appetite for avocados and Mexican beers. They’ve also gotten used to buying cars from major U.S. automakers with a lot of manufacturing in Mexico.
    Tariffs on Mexican imports could endanger those habits, particularly for price-sensitive shoppers.
    Most major automakers have factories in the U.S. However, they still heavily rely on imports from other countries including Mexico to meet American consumer demand.
    Under the North American Free Trade Agreement and the United States-Mexico-Canada Agreement that replaced it, automakers increasingly looked to Mexico as a less expensive place to produce vehicles than in the U.S. or Canada.
    Nearly every major automaker operating in the U.S. has at least one plant in Mexico, including the top six-selling automakers that accounted for more than 70% of U.S. sales in 2024.
    The industry is deeply integrated between the countries, with Mexico importing 49.4% of all auto parts from the U.S. In turn, Mexico exports 86.9% of its auto parts production to the U.S., according to the International Trade Administration.
    Wells Fargo estimates that 25% tariffs on Mexico and Canada imports would put most of the adjusted earnings of General Motors, Ford Motor and Stellantis at risk. The firm estimates the impact of 5%, 10% and 25% tariffs to be $13 billion, $25 billion and $56 billion, respectively, across the three companies.
    Most notably, GM and Stellantis both have massive plants in Mexico that produce highly profitable full-size pickup trucks. They, along with Ford and others, also have built EVs in Mexico to lower costs.
    Mexico is also home to the top-selling beer in the U.S. In 2023, Constellation Brands’ Modelo overtook the crown from Bud Light. Constellation also owns Corona, which ranks in the top 10 U.S. beer brands, and fast-growing Pacifico.

    Bottles of Modelo Especial beer sit on a table in Los Angeles on June 14, 2023.
    Mario Tama | Getty Images

    All of the company’s beer brands are imported from Mexico, and beer accounted for 85% of the company’s sales in the first three quarters of its fiscal year.
    If Trump implements the tariffs, Constellation’s cost of goods sold would rise by roughly 16%, according to estimates from Wells Fargo Securities.
    The company would likely choose to offset the levies by raising prices, because moving production doesn’t seem like an option due to a 2013 antitrust settlement. Constellation has spent billions of dollars in recent years to expand its Mexican production capacity.
    On the company’s latest earnings conference call, Constellation CEO Bill Newlands said “it’s really too early to hypothesize” about how the tariffs will play out.
    “As you would expect, we have a lot of permutations that we have considered and certainly we’ll adjust our approach depending on what plays out as we go forward,” he told analysts on Jan. 10.
    Uncertainty about tariffs has led a number of Wall Street analysts to downgrade Constellation’s stock since Trump announced his intention to reignite a trade war with Mexico.

    A farmer harvests avocados at an orchard in the municipality of Uruapan, Michoacan State, Mexico, on Oct. 19, 2016.
    Ronaldo Schemidt | Afp | Getty Images

    Avocados have proven less easy to substitute than beers.
    The fruit, once a rare sight in U.S. grocery stores, has become a staple of produce displays, thanks to the growing popularity of Mexican food and diets that call for “healthy fats.”
    From June 2023 to June 2024, the U.S. imported more than 2.4 billion pounds of Mexican Hass avocados.
    In the U.S., avocados are grown in California, Florida and Hawaii. But roughly 90% of the avocados eaten in the U.S. are grown in Mexico, according to U.S. Department of Agriculture data.
    The country is one of the few places that can produce the fruit year round, ensuring that consumers can eat avocado toast in the summer and guacamole on Super Bowl Sunday.
    Over the years, avocado consumers have proven that they are willing to pay more for the fruit. While avocado demand has roughly doubled over the last decade, prices have also climbed.
    “There’s nothing like an avocado … There are times of the year that yes, our prices go a little bit higher, but I feel like that is also part of the norm with our consumers. We don’t see a great dip in our consumption when those prices are a little bit higher,” Alvaro Luque, CEO of the nonprofit Avocados from Mexico, told CNBC.
    Chipotle Mexican Grill famously charges a premium for adding guacamole, but the chain’s customers have largely shrugged off price increases across its menu over the last few years. The burrito chain is one of the few restaurant companies that reported traffic growth quarter after quarter last year.
    Outside of avocados and cars, some companies make clothing in Mexico, too. Kontoor Brands, for example, has turned to the region to make some of its Wrangler jeans. While some of its denim currently retails for about $60 at Macy’s, that could rise to as much as $75 with tariffs factored in.

    Canada: Cars, coats and French fries

    Tariffs on Canadian goods would be another blow for automakers and car buyers. French fries and winter coats also risk getting pricier for consumers.
    Canada exported $27 billion of cars in 2022, trailing only crude petroleum as its top export, according to the Observatory of Economic Complexity.
    Tariffs on Canadian vehicles would impact Detroit automakers the most, but there would likely be consequences across the industry depending on changes to parts from suppliers such as Canada-based Magna. Ontario Premier Doug Ford and other politicians and industry officials have described Trump’s tariff proposal as an existential threat to the country’s recovering automotive industry.
    Five automakers — Ford, GM, Stellantis, Toyota Motor and Honda Motor — produced 1.54 million light-duty vehicles last year in the province, largely for U.S. consumers.
    Michigan Gov. Gretchen Whitmer warned on Wednesday that potential 25% tariffs on imports from Mexico and Canada would harm the U.S. auto sector, increase vehicle prices and benefit China.
    “Think about this: 70% of all the auto parts we make in Michigan go directly to our neighbors. … The only winner in that equation is China. They would love nothing more than to watch us cripple American’s auto ecosystem all by ourselves. This is a matter of national security. We cannot let that happen,” she said during a speech at the Detroit Auto Show.

    Salt on french fries
    Peter Dazeley | Getty Images

    But it wouldn’t just be the auto industry that feels the pressure from Canadian tariffs.
    Consider the humble French fry: Canada exports roughly $40.5 billion in agricultural goods to the U.S. annually, including $1.7 billion in frozen French fries and other frozen potato products, according to Agriculture and Agri-Food Canada, the country’s counterpart to the U.S. Department of Agriculture.
    Canada’s frozen French fries largely come from McCain Foods. The Canadian family-owned company says that one out of every four fries eaten globally comes from its facilities. The company has seven Canadian factories and 11 in the U.S, according to its subsidiaries’ websites.
    As the last year has shown, consumers have grown more price sensitive at grocery stores and in fast-food drive-thru lanes, making it unlikely that they’d swallow a price increase offsetting the tariff.
    If Trump does implement steeper tariffs on Canadian goods, McCain could shift even more of its production to the U.S. Suppliers could jump ship to a U.S. rival like Lamb Weston. Luckily, many French fry suppliers, including the Idaho-based Lamb Weston, have expanded their capacity since the Covid pandemic.

    A view inside Canada Goose’s U.S. flagship store in New York City. 
    Noam Galai | Wireimage | Getty Images

    Tariffs on Canadian goods could also affect apparel.
    Canada Goose has built its reputation on high-end outerwear for chilly temperatures, made in Canada. About 70% of the retailer’s merchandise is made in the country, and 30% is made in Europe at a factory that the company owns in Romania and at contractors in other parts of the continent.
    A company spokesperson declined to comment on how Canada Goose is preparing for tariffs and whether it will increase prices. More

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    Chinese investments in the U.S. have plummeted since Trump’s first term. The trend is unlikely to reverse

    Chinese companies won’t likely step up investments in the U.S. under the incoming Trump administration, analysts said.
    “That’s probably the last thing on Trump’s mind, is trying to incentivize [Chinese companies] to invest here,” said Rafiq Dossani, an economist at U.S.-based think tank RAND.
    Chinese investment deals in the U.S. have slowed drastically since Trump’s first term, according to the latest American Enterprise Institute data.

    Cho Tak Wong, the chairman of auto glass giant Fuyao Glass, bought the vacant General Motors manufacturing plant in Moraine, Ohio in 2014.
    The Washington Post | The Washington Post | Getty Images

    Chinese investments in the U.S. have dramatically declined since Donald Trump’s first term. This trend is unlikely to reverse as Trump returns to the White House, analysts said.
    Trump has threatened additional tariffs on Chinese goods soon after his inauguration on Monday, building on an increasingly tough U.S. stance on Beijing.

    “That’s probably the last thing on Trump’s mind, is trying to incentivize [Chinese companies] to invest here,” said Rafiq Dossani, an economist at U.S.-based think tank RAND.
    “There’s an ideological mismatch. All the rhetoric is, keep China out of the U.S., let their products come in, which are low-end,” he said in an interview earlier this month. But other than that, “don’t, don’t let them come in.”
    In the last several weeks, Emirati property giant Damac has pledged $20 billion to build data centers in the U.S., while SoftBank CEO Masayoshi Son announced a $100 billion investment for artificial intelligence development in the U.S. over Trump’s four-year term.

    Chinese investment deals in the U.S. have slowed drastically, according to the latest American Enterprise Institute data. Just $860 million flowed into the U.S. in the first six months of 2024, following $1.66 billion in 2023. That’s down sharply from $46.86 billion in 2017, when Trump began his first term.
    At the peak, Chinese companies had made high-profile U.S. acquisitions, such as buying the Waldorf Astoria hotel in New York. But regulators on both sides have stemmed the flow.

    “Chinese investment in the U.S. has slowed down dramatically since Beijing tightened control over capital outflows in 2017, followed by a series of regulatory policies in the U.S. aimed at excluding investments in certain sectors,” Danielle Goh, senior research analyst at Rhodium Group, said in an email.
    In the “foreseeable future,” she doesn’t expect Chinese investments in the U.S. will recover the peak levels seen during the 2016 to 2017 period. Goh pointed out that instead of acquisitions, Chinese companies have turned more to small joint ventures with U.S. companies or greenfield investments, in which business are built from scratch.
    For example, Chinese battery manufacturing company EVE Energy is the technology partner with a 10% stake in a joint venture with U.S. engine company Cummins’ Accelera division, Daimler Truck and PACCAR. The companies announced in June 2024 they were kicking off plans for a battery factory in Mississippi that would begin production in 2027 and create more than 2,000 jobs.
    Since the Covid-19 pandemic, the U.S.-China Chamber of Commerce has mostly helped Chinese e-commerce companies set up local offices, rather than establish manufacturing businesses, the nonprofit’s president Siva Yam told CNBC.
    “Most of those investment nowadays tend to be a little bit smaller, so they are not on the radar, easier to approve,” he said, referring to regulators in both the U.S. and China. But he remained uncertain about whether Chinese companies could use investments to offset the impact of tariffs.
    Individual U.S. states have grown increasingly wary of Chinese investment. Last spring, Politico reported that more than 20 states were passing new restrictions on land purchases by Chinese citizens and companies, or updating existing rules.
    Chinese hackers in December targeted a government office that reviews foreign investment in the United States, CNN reported, citing U.S. officials. This was part of a wider breach of the Treasury Department, which declined a CNBC request for comment.

    Deal-making strategy?

    Trump has indicated tariffs may be used to coerce Chinese investment in the U.S.
    In his speech accepting the Republican nomination, he said, “I will bring auto jobs back to our country, through the proper use of taxes, tariffs, and incentives, and will not allow massive auto manufacturing plants to be built in Mexico, China, or other countries.”
    “The way they will sell their product in America is to BUILD it in America, and ONLY in America. This will create massive jobs and wealth for our country,” he said, according to an NBC News transcript.
    Chinese battery giant CATL reportedly said in November it would build a U.S. plant if Trump allowed it. The company did not immediately respond to a request for comment.
    Advocacy group Center for American Progress pointed out in December that during his first term, Trump cancelled restrictions on Chinese telecommunications company ZTE — just days after the Chinese government and Chinese banks invested $1 billion in a Trump Organization-affiliated theme park in Indonesia.
    The Trump transition team did not immediately respond to a request for comment on the ZTE deal or the opportunities for Chinese companies to invest in the U.S.
    Even if Trump welcomed more Chinese investment, or coerced it through tariffs, large investments are long-term processes that won’t happen overnight, pointed out Derek Scissors, senior fellow at the American Enterprise Institute.
    Then there’s the unpredictability of the president-elect’s policies.
    “Trump saying the U.S. is open to Chinese companies in 2025 is no guarantee [even] for 2029,” he said. More

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    CFPB fines Equifax $15 million over errors on credit reports

    The Consumer Financial Protection Bureau fined Equifax $15 million over credit reporting errors.
    The CFPB alleged the credit bureau failed to properly investigate consumer disputes.
    Credit reports have a significant impact on consumer finances, experts said. They may dictate someone’s success in qualifying for a loan, renting an apartment or getting a job.

    Elijah Nouvelage/Bloomberg via Getty Images

    The Consumer Financial Protection Bureau fined Equifax $15 million over errors tied to consumer credit reports, alleging the company failed to conduct proper investigations of disputed information, the federal watchdog announced Friday.
    Equifax is one of three major credit reporting agencies in the U.S., a group that also includes Experian and TransUnion.

    “Equifax ignored consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to be reinserted into credit reports, provided confusing and conflicting letters to consumers about the results of its investigations, and used flawed software code which led to inaccurate consumer credit scores,” according to the CFPB’s order.

    Why credit reports are important

    Credit reports are a ledger of consumers’ borrowing records, such as loan payment history and bankruptcy filings.
    The financial consequences of inaccurate information on those reports can be “severe,” said Adam Rust, director of financial services at the Consumer Federation of America, a consumer advocacy group.
    “It can change your ability to qualify for a loan, to get a job, to rent an apartment, all kinds of things that are very fundamental to navigating your personal life,” Rust said.

    Equifax had ‘flawed’ process, CFPB says

    Equifax processes about 765,000 consumer disputes a month, CFPB said.

    Its “flawed” dispute policies and technology failures occurred since at least October 2017, “to the detriment of millions of consumers,” according to the CFPB, which alleged Equifax violated the Fair Credit Reporting Act.
    More from Personal Finance:Expert predictions for interest rates in 2025Over 1 million people got student debt forgiven in 2024Nearly half of credit card users are carrying debt
    Equifax settled the allegations to “[turn] the page on the CFPB’s long-running investigation,” a company spokesperson wrote in an e-mail.
    The company has invested more than $1.5 billion in technology and infrastructure improvements over the last few years, including “significant changes” to its dispute process and consumer support, the spokesperson said.
    “Our Purpose is to help people live their financial best and we know consumers and our customers depend on our data for important financial decisions,” they wrote. “Even one error affecting a consumer is one error too many.”

    The $15 million civil penalty follows a lawsuit CFPB filed against another credit bureau, Experian, on Jan. 7, alleging the company conducted “sham” investigations of credit report errors. In a statement on its site, Experian said the lawsuit was “completely without merit” and an “example of irresponsible overreach.”
    “Credit bureaus have been sued repeatedly for this kind of conduct,” said Chi Chi Wu, senior attorney at the National Consumer Law Center. “They’re decades-old problems.”
    An Equifax data breach in 2017 also compromised the personal information of 147 million consumers, for which the company ultimately agreed to settle for $700 million.

    How to have good ‘hygiene’ with credit reports

    Consumers should check their credit reports at least once a year, Rust said. The Federal Trade Commission also recommends doing a check before applying for credit, a loan, insurance or a job.
    Consumers should ensure they recognize identity information on their credit report such as addresses and Social Security numbers, and verify that account information such as debt balances and delinquency status are correct.
    “That’s just a good practice of financial hygiene,” Rust said.

    Importantly, a credit report differs from a credit score. The latter is a numerical output compiled with information on a consumer’s credit report.
    “If you see a sudden change in credit score, that’s a signal,” Rust said.
    The three major credit bureaus allow consumers to request a free copy of their credit report once a week. Consumers can request a copy at AnnualCreditReport.com and by calling 1-877-322-8228. Other sites may charge consumers or be fraudulent, according to the Federal Trade Commission.

    What to do about a credit report error

    Smith Collection/gado | Archive Photos | Getty Images

    Consumers who see an error on their credit report should dispute it in writing, along with documentation. Send that by postal mail to the credit bureau and request a return receipt, Wu said. Consumers have better odds of resolution by mail than online, she said.
    Consumers should also file a complaint with the CFPB and their state attorney general’s office, Wu said.
    Consumers can ask that a statement of their dispute be included in their file and in future credit reports, and also ask the credit bureau to provide their statement to anyone who received a copy of their report in the recent past, Wu said.

    Consumers who can’t get an error fixed after repeated attempts may wish to consult an attorney, she said.
    “Not every error will be worth bringing a lawsuit,” she said. “But if your loan ends up being more expensive because of a credit reporting error, that’s the kind of real harm [for which] you may want to consider litigation.”
    Consumers may be able to find an attorney through organizations such as the National Association of Consumer Advocates, Wu said. More

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    Unrivaled women’s basketball league debuts Friday. Here’s everything we know about it

    Women’s basketball league Unrivaled will play its first games on Friday night.
    The league has raised $35 million in funding so far, including from prominent athletes like Coco Gauff and Alex Morgan.
    Unrivaled looks to capitalize on the rapidly growing interest and record-setting ratings the WNBA achieved in 2024.

    Unrivaled 3-on-3 women’s basketball league
    Courtesy: Unrivaled

    Unrivaled, a new 3-on-3 women’s professional basketball league, launches Friday, presenting both a major test and opportunity for women’s sports to boost its growing profile in the United States.
    The league, co-founded by WNBA superstars Napheesa Collier and Breanna Stewart, has already announced deals with a dozen sponsors and raised $35 million in funding. Collier told CNBC that the league has already shown it has “immense” potential and opportunity.

    “When you invest into the players and invest into women’s sports, I think we’re seeing the return already,” she said. “This is just the beginning for us. It’s year one and we’ve already been able to do this, so we’re really excited for the future.”
    Games will air on Warner Bros. Discovery-owned TNT Sports platforms in a multiyear media rights deal. TV ratings will matter not just in terms of total viewership, but also demographics, said Lee Berke, president and CEO of sports consulting firm LHB Sports, Entertainment & Media.
    “You’re looking for audiences that skew younger, men and women watching, you’re looking for the size of the audience,” Berke told CNBC. “There’s obviously a lot of hype going into day one. You want to see that audience expand and grow over the course of the season.”
    Here’s what to know about Unrivaled ahead of its inaugural tip-off:

    How the league works

    Unrivaled’s first season will feature six teams playing against one another for two months. The season culminates in a four-team playoff tournament, with the championship taking place on March 17. There is also a 1-on-1 player tournament set for the middle of the season.

    Games are played in a 3-on-3 format and take place on a smaller court compared to WNBA courts. They last one hour and are broadcast on TNT on Fridays and Mondays and on TruTV on Saturdays. Games are also available to stream on WBD’s Max.
    All games are played at the Mediapro US venue in Medley, Florida, a suburb of Miami. The season takes place during the WNBA offseason and is intended to provide an alternative to playing overseas.
    Many WNBA players spend their offseason playing for teams in Russia, China and other countries to supplement their income. However, the WNBA collective bargaining agreement signed in 2020 now suspends players without pay for the season if they don’t return from their overseas teams in time for training camp. WNBA training camp starts on April 27.
    “It’s trying to fill a gap in the calendar for these players. It’s extending the runway of professional basketball,” Alex Bazzell, Unrivaled president and Collier’s husband, previously told CNBC.

    How players are paid

    Unrivaled will also pay many players a higher salary than the WNBA does. The total salary pool is over $8 million, Bazzell told SB Nation, which averages out to about $242,000 per player this season. Players will also receive equity and revenue shares from the league, which has said it is offering the highest average salary in women’s professional sports league history.
    At a press conference Friday, Bazzell said the league doesn’t have a minimum or maximum salary, but that pay is partly based on what competitors and other women’s sports leagues pay.
    “We are being extremely aggressive when you look at the entire landscape and ecosystem,” Bazzell said. “We try to look at numerous things: What are you making overseas, potentially? What are you making in the WNBA? How do we beat those numbers, candidly, to make it worth their while?”
    WNBA yearly salaries currently range from the minimum $66,079 to the core player maximum of $249,244. Only one player per WNBA team can be designated as a core player and earn that amount.

    Unrivaled Basketball League: Rae Burrell
    Courtesy: Unrivaled

    Who’s involved

    The league has 36 participants for its first season, all of whom played in the WNBA last year. There are 15 2024 WNBA All Stars on the rosters, headlined by All-WNBA first-team honorees Collier, Stewart and Alyssa Thomas. Other notable players include Sabrina Ionescu, Brittney Griner and Angel Reese.
    Unrivaled has raised $35 million from its seed and Series A rounds from a host of high-profile investors. Its backers include basketball stars like Giannis Antetokounmpo and Carmelo Anthony as well as Olympians like Alex Morgan and Michael Phelps. Tennis great Coco Gauff was announced as its newest investor on Jan. 6.
    Collier said while everyone else is now catching on to the rise of women’s sports, sports figures were early to recognize the value of the industry.
    “I think the people in sport have known this for a long time,” Collier said. “To see the support of other athletes is really encouraging. They believe in us so much, so that’s been really nice to see.”
    Unrivaled’s corporate partners, Collier added, align with their vision of growing the sport.
    “We said for a long time, this is not a charity. This is a great business opportunity, and those brands recognize that, too,” Collier said. “They’re not just doing this out of the goodness of their heart, they do believe in the growth of women’s sports. But they’re also doing it because they know that is something that has a lot of potential to be profitable.”
    About a dozen companies have inked sponsorship deals with Unrivaled, including Sephora, State Farm, Wilson, Ally Financial and Samsung. Most recently, Unrivaled named Sprite as its presenting partner for the 1-on-1 tournament and Bodyarmor as its official sports drink.
    “It’s tremendously impressive, both in terms of the number of sponsors, the quality of the sponsors and the fact that these are nontraditional sports sponsors,” Berke said.
    TNT Sports’ crew of announcers and studio hosts for Unrivaled coverage includes Basketball Hall of Famer Lisa Leslie and two-time WNBA MVP Candace Parker.

    Why it matters

    Unrivaled’s debut comes amid a spike in national interest in women’s sports — particularly basketball.
    The WNBA in particular enjoyed a surge, as former college stars Caitlin Clark, Cameron Brink and Reese led an attention-grabbing rookie class. The league said it broke an all-time record with over 54 million unique viewers during the season and saw its best in-person attendance numbers in 22 years.
    Last year’s WNBA Finals, in which the New York Liberty defeated the Minnesota Lynx in five games, was the league’s most-viewed championship series in 25 years, according to ESPN.
    The WNBA is expanding the Finals from a best-of-five format to a best-of-seven series starting next year. It is also debuting a 13th franchise, the Golden State Valkyries, next season and will add teams in Toronto and Portland, Oregon, in 2026.
    Both the WNBA and its players are poised to cash in on the momentum.
    The league can reevaluate its current 11-year, $2.2 billion media rights deal after 2028, CNBC previously reported, and the WNBA players union opted out of its current collective bargaining agreement in October. A new agreement, which would take effect after next season, could provide players with higher wages and more benefits, and the growing spotlight on WNBA athletes gives them greater leverage at the negotiating table.
    Unrivaled will have a big impact on the business of women’s basketball, Collier told CNBC.
    “We’re already seeing it expand the landscape. Overseas contracts are going up, other domestic league contracts are going up,” Collier said. “We’re trying to expand what the normal thinking around the business of women’s sports is, and you’re definitely going to see us push for those same things in the CBA.”
    — CNBC’s Lillian Rizzo, Jake Piazza and Alex Sherman contributed to this report. More