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What to Know About Who Pays the Higher Costs of Trump’s Tariffs

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President Trump’s latest tariffs are about to become an unavoidable and expensive reality for American businesses and for people who rely on foreign goods.Shoppers buying clothes from retailers in China may soon pay more than twice as much, now that a special exemption for lower-value imports is disappearing. And companies involved in international trade must now make even more complicated calculations to decide how much they owe in tariffs.“Maybe 3 percent of the people are well prepared,” said Jeremy Page, a founding partner of Page Fura, an international trade law firm, whose clients include large companies. “And that might even be charitable.”Imports from China have been hit with tariffs of 145 percent. That means for every $100 worth of goods a business buys from that country, it has to pay $145 to the federal government. Goods from most other countries have a new 10 percent tax, though that could rise if the countries do not reach trade agreements with the United States by July. And there are separate tariffs on cars, steel and aluminum. Mr. Trump has also said he wants to impose new tariffs on pharmaceuticals and computer chips.Mr. Trump contends that the tariffs will encourage businesses to produce goods in the United States. The tariffs on Chinese goods will almost certainly reduce imports from the country. But American businesses will not be able to quickly get goods from elsewhere — U.S. imports from China totaled $439 billion last year — and they will end up owing huge amounts in tariffs.A garment factory in Guangzhou, China. Imports from China have been hit with tariffs of 145 percent. Qilai Shen for The New York TimesWe 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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    U.S. Infrastructure Improves, but Cuts May Imperil Progress, Report Says

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    A report card from an engineering group found that American roads, ports and other infrastructure got better last year but could be hurt if federal funding is reduced.Increased federal spending in recent years has helped to improve U.S. ports, roads, parks, public transit and levees, according to a report released on Tuesday by the American Society of Civil Engineers.But that progress could stagnate if those investments, some of which were put on hold after President Trump took office in January, aren’t sustained.Overall, the group gave the nation’s infrastructure a C grade, a mediocre rating but the best the country has received since the group’s first report card in 1998. Most infrastructure, including aviation, waterways and schools, earned a C or D grade; ports and rail did better. The group also projected a $3.7 trillion infrastructure funding shortfall over the next decade.“The report card demonstrates the crucial need for the new administration and Congress to continue sustained investment in infrastructure,” Darren Olson, the chairman of the society’s committee on America’s infrastructure, said on a call with reporters. “Better infrastructure is an efficient investment of taxpayer dollars that results in a stronger economy and prioritizes American jobs.”The report, which is now released every four years, has long noted that the United States spends too little on infrastructure. But that started to change in 2021, the group said, thanks to the Infrastructure Investment and Jobs Act, which authorized $1.2 trillion in funding under President Joseph R. Biden Jr. That investment is showing results, with grades having improved since the last report, in 2021, for nearly half the 18 categories that the group tracks.But in January, Mr. Trump froze much of the funding under that law and another aimed at addressing climate change, pending a review by his agencies. That halted a variety of programs, including those intended to help schools, farmers and small businesses.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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    in Economy

    Ahead of Possible Tariffs, No Rush to Get Goods In From Canada and Mexico

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    Companies in the United States do not appear to be making a concerted effort to rush in shipments from Mexico and Canada ahead of the high tariffs that President Trump has threatened to impose on Saturday.Mr. Trump said after taking office that the United States would apply tariffs of 25 percent on imports from Canada and Mexico, contending that they were allowing “mass numbers of people to come in and fentanyl to come in.”The tariffs would raise the cost of imports significantly, especially since tariffs are not applied to most goods under the U.S.-Mexico-Canada Agreement, the trade deal that Mr. Trump signed in 2020. Canada and Mexico together account for 30 percent of U.S. trade. Many industries could be saddled with extra costs, including the vast auto operations that straddle the U.S. borders with Mexico and Canada.Mr. Trump could withdraw his threat or reduce the tariff if he decides Canada and Mexico are doing more to address his complaints, Howard Lutnick, the president’s nominee to lead the Commerce Department, suggested on Wednesday.With the tariff deadline near, some data shows higher freight volumes on road and rail, but the increases are not especially large, and transportation experts say rail and trucking companies have the capacity to cope. The situation, they said, is quite different from 2021 and 2022, when a deluge of imports overwhelmed supply chains, causing shipping costs to skyrocket and helping fuel a rapid acceleration of inflation.“The industry’s probably never been in a better spot to deal with significant changes in the marketplace,” said Scott Shannon, vice president of North America cross-border at C.H. Robinson, a freight forwarder.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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    Port Workers Could Strike Again if No Deal Is Reached on Automation

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    Cargo could stop flowing at East and Gulf Coast ports, which handle most imports, if a union and an employers’ group can’t agree on the use of machines that can operate without humans.Ports on the East and Gulf Coasts could close next week if dockworkers and employers cannot overcome their big differences over the use of automated machines to move cargo.The International Longshoremen’s Association, the union that represents dockworkers, and the United States Maritime Alliance, the employers’ negotiating group, on Tuesday resumed in-person talks aimed at forging a new labor contract.After a short strike in October, the union and the alliance agreed on a 62 percent raise over six years for the longshoremen — and said they would try to work out other parts of the contract, including provisions governing automated technology, before Jan. 15.If they don’t have a deal by that date, ports that account for three-fifths of U.S. container shipments could shut, harming businesses that rely on imports and exports and providing an early test for the new Trump administration.“If there’s a strike, it will have a significant impact on the U.S. economy and the supply chain,” said Dennis Monts, chief commercial officer of PayCargo, a logistics payments platform.The union is resisting automation because it fears the loss of jobs at the ports. President-elect Donald J. Trump lent his support to the union’s position last month. “I’ve studied automation, and know just about everything there is to know about it,” he said on his website Truth Social. “The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen.”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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    Trump Backs a Longshoremen’s Union That Supported Him

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    President-elect Donald J. Trump is supporting the International Longshoremen’s Association, which could strike soon if it doesn’t reach a deal on automation with employers.Leaders of some labor unions tried to establish good relations with Donald J. Trump before the election — and for one of them, that effort may already be paying off.President-elect Trump lent his support on Thursday to the International Longshoremen’s Association, which represents dockworkers on the East and Gulf Coasts. Contract negotiations between the union and employers have broken down over the use of port machinery that can move cargo without human involvement. The I.L.A. opposes it, believing it reduces jobs, but the employers, mainly large shipping companies, have said that the equipment moves goods more cheaply and efficiently.Writing on Truth Social, Mr. Trump said on Thursday that he had met with I.L.A. leaders and that he sympathized with the union’s fears.“I’ve studied automation, and know just about everything there is to know about it,” he said. “The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen.”The union suspended a short strike in October after securing a large wage increase, and agreed to keep negotiating with port operators until Jan. 15 on other parts of the contract, including provisions on how much automated machinery can be used.Mr. Trump won a second presidential term with the support of many union members, and he has vowed to protect American workers. And while it is unclear how much he will do to help the labor movement broadly, his backing of the I.L.A. suggests he could strengthen the hand of unions that have courted him.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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    Ports Rush to Reopen After Dockworker Strike Is Suspended

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    Days after tens of thousands of longshoreman along the East and Gulf Coasts walked out, their union and their bosses reached a tentative agreement on wages.Hours after a longshoremen’s union on the East and Gulf Coasts agreed to suspend its strike, major ports rushed to reopen on Friday and get cargo to businesses that have spent the last few days racked with fear over lost sales.The strike, which began on Tuesday and shut down many of the nation’s largest shipping hubs, threatened to weaken the economy weeks ahead of a national election. The Biden administration spent the last few days pressing the United States Maritime Alliance, the group representing port employers, and the union, the International Longshoremen’s Association, to find a way to end the strike.The two sides announced late Thursday that they had reached a tentative agreement on wages — a 62 percent increase over six years — and said they were extending the current contract until mid-January to negotiate other issues. The biggest remaining one is the use of automated machinery at the ports, which the I.L.A. considers a job killer. It was the first full-scale stoppage at East and Gulf Coast ports since 1977.Labor experts say the I.L.A. has more leverage in contract negotiations than unions in most other industries, because a walkout can shut down shipping facilities for which there are no practical alternatives. Labor experts said the wage increase was a big victory for the I.L.A. and its combative president, Harold J. Daggett, a 78-year-old, third-generation dockworker.“The I.L.A. seized the moment,” said William Brucher, an assistant professor at the Rutgers School of Management and Labor Relations. “Things really aligned in their favor.”Analysts said the strike was unlikely to lead to higher prices for consumers. Many businesses, anticipating the walkout, sped up their shipments so they could receive them before this week, softening the blow for many.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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    Port Strike’s End Is an Economic Relief to Savannah, Ga.

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    Viewed through a narrow lens, Savannah is a popular tourist destination with a seemingly aesthetic profile, accentuated by its Revolutionary War history, historic Black churches and colorful Victorian homes surrounded by Spanish moss.For big companies, the city’s primary attraction has been a grittier side that has fueled an economic transformation over the decades: Savannah is the No. 2 ocean cargo complex on the East Coast, home to thriving container terminals that handle millions of tons of freight each year.That economic motor for the city and the region sputtered to a stop this week after thousands of dockworkers represented by the International Longshoremen’s Association, or I.L.A., went on strike from Maine to Texas.Instead of a stream of trucks moving big boxes in and out of the port, a group of around 100 dockworkers stood outside the main gates on Tuesday, intermittently chanting, “No contract, no work,” with traffic reduced to vehicles that drove by honking in solidarity with the striking workers.But after three days, the group representing port operators made a new pay offer, and the union suspended the walkout.On Friday, the Port of Savannah was humming again.Trucks started lining up in front of the gates of the Garden City Terminal before sunrise, and by midmorning, large container ships made their way down the Savannah River, in clear view of the city’s downtown.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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    Union Agrees to Suspend Port Strike

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    The International Longshoremen’s Association received a new wage offer and will halt its walkout at East and Gulf Coast ports, which began Tuesday.The International Longshoremen’s Association agreed on Thursday to suspend a strike that closed down major ports on the East and Gulf Coasts. The move followed an improved wage offer from port employers.The strike, which the dockworkers’ union began on Tuesday, threatened to weigh on the economy five weeks before national elections. Employers, represented by the United States Maritime Alliance, have offered to increase wages by 62 percent over the course of a new six-year contract, according to a person familiar with negotiations who did not want to be identified because the talks were continuing. That increase is lower than what the union had initially asked for, but much higher than the alliance’s earlier offer.In a statement, the union said that it had reached “a tentative agreement on wages” and that its 45,000 members would go back to work, with the current contract extended until Jan. 15. The union said it was returning to the bargaining table “to negotiate all other outstanding issues.” The alliance issued a similar statement.The agreement came after the White House pressed both sides to reach a deal to end the strike, the union’s first full-scale walkout since 1977. The wage increase is a clear victory for the I.L.A. and its combative president, Harold J. Daggett, a 78-year-old, third-generation dockworker who has led the union since 2011.President Biden, when asked about the tentative deal on the tarmac at Joint Base Andrews on Thursday evening, said: “We’ve been working hard on it. With the grace of God, it’s going to hold.”A 62 percent increase would raise the top longshoremen’s wage to just over $63 per hour at the end of a new six-year contract, from today’s $39 per hour. And at $63 an hour, the wages of East and Gulf Coast longshoremen would slightly exceed those that will be earned by West Coast longshoremen, who belong to a different union, at the end of their contract in 2027.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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    U.S. Faces Economic Turbulence Just as Recession Fears Eased

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    War in the Middle East, a strike by port workers and a devastating hurricane injected uncertainty into the U.S. economy.The United States economy is suddenly staring down new and potentially damaging crises, with tensions flaring in the Middle East and several states grappling with fallout from a devastating hurricane.The events hit just as American policymakers were gaining confidence that they had successfully tamed inflation without pushing the economy into a recession and as polls and consumer surveys suggested that Americans’ sour economic mood had begun to improve. But in just a week, new risks have emerged.The economy now faces the prospect of an oil price spike and the aftermath of a storm that could inflict more than $100 billion in damage upon large swaths of the Southeast. Economists have also been tracking potential consequences of a port workers’ strike, which was suspended on Thursday evening.“There’s new uncertainty,” said Joseph E. Gagnon, senior fellow at the Peterson Institute for International Economics. “If we lose oil output in the Middle East, if the ports are not functioning, then both are inflationary.”That uncertainty is arriving just weeks before a presidential election in which the economy — in particular, inflation — is one of the biggest factors on voters’ minds and less than a month after the Federal Reserve began cutting interest rates from more than a two-decade high. The central bank has gained confidence that inflation is coming back to its 2 percent goal, but has been wary about the labor market weakening.Even before the new risks emerged, the International Monetary Fund was projecting that the U.S. economy would slow next year.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