(ST. LOUIS) — About 3,200 union members at Boeing facilities in Michigan and Illinois went on strike at midnight on Monday after rejecting an contract offer from the company, the union said.
Local members of the International Association of Machinists and Aerospace Workers, who build and maintain fighter jets, including the F-15 and F/A-18 models, voted on Sunday to reject Boeing’s latest contract offer.
“IAM District 837 members build the aircraft and defense systems that keep our country safe,” IAM Midwest Territory General Vice President Sam Cicinelli said in a statement.
Cicinelli added, “They deserve nothing less than a contract that keeps their families secure and recognizes their unmatched expertise.”
The union members work at Boeing facilities in St. Loius and St. Charles, Missouri, along with Mascoutah, Illinois, according to the union.
They had voted on July 27 to reject an earlier 4-year contract proposal put forward by the company, the union said.
“We’re disappointed our employees rejected an offer that featured 40% average wage growth and resolved their primary issue on alternative work schedules,” Boeing said in a statement on Sunday.
Boeing added, “We are prepared for a strike and have fully implemented our contingency plan to ensure our non-striking workforce can continue supporting our customers.”
(MIAMI) — ABC began broadcasting with a new local affiliate in Miami on Monday, just months after Disney Entertainment struck an agreement with Sunbeam Television Corporation.
Under the deal established in March, ABC Miami will broadcast ABC’s national sports, news and entertainment programming over-the-air on Channel 7.2 in the Miami-Fort Lauderdale television market, according to a statement. ABC can also be accessed on local Chanel 18.
“We are incredibly excited to join forces with Sunbeam Television in South Florida moving forward as they not only share Disney’s enduring commitment to serving local communities, but they also recognize the value of ABC’s esteemed brand and the significant investments we’re making to our world-class network content,” Susi D’Ambra Coplan, Disney Entertainment’s senior vice president of affiliate relations, said in a statement.
Paul Magnes, co-president of Sunbeam Television Corporation, echoed the sentiment.
“When the opportunity to affiliate with ABC became available, we knew that our combined resources would allow us to develop an extremely strong partnership,” Magnes said. “As a family-owned company, we have been embedded in this community for nearly 70 years, with a commitment to local news and supporting non-profit organizations across South Florida.”
The Walt Disney Company is the parent company of Disney Entertainment and ABC News.
(NEW YORK) — Hiring slowed in July as President Donald Trump’s tariffs pinched the balance sheets of some major companies and reshaped the nation’s trade relationships. The reading fell short of economists’ expectations.
The U.S. added 73,000 jobs in July, according to data from the U.S. Bureau of Labor Statistics, or BLS. That figured marked a slowdown from 147,000 jobs added in the previous month. The unemployment rate ticked up to 4.2%, keeping it at near-historic lows.
The report also provided new estimates for two previous months, significantly dropping the government’s estimate of jobs added in May and June. The fresh data indicated a notable slowdown in hiring as Trump’s tariffs took hold over recent months.
The Trump administration described the downward revisions as an unwelcome sign for the U.S. economy.
“Obviously, they’re not what we want to see,” White House Council of Economic Advisors chair Stephen Miran said on Friday.
Miran blamed the weak performance in part on uncertainty tied to the fate of Trump’s domestic spending legislation as well as the ultimate outcome of tariff policy. Congress passed Trump’s spending measure earlier this month; more recently, Trump announced a fresh round of tariffs late Thursday.
“Both of those sources of uncertainty are resolved,” Miran said. “We expect things to get materially stronger from here, now that our policies are starting to sort into place.”
In May, the U.S. added 19,000 jobs, much lower than a previously estimated total of 139,000 jobs, the BLS said. While in June, the economy added just 14,000 jobs, revising downward a previous estimate of 147,000 jobs.
“Not only was this a much weaker than forecast payrolls number, the monster downward revisions to the past two months inflicts a major blow to the picture of labor market robustness,” Seema Shah, chief global strategist at Principal Asset Management, told ABC News in a statement.
The jobs report arrives days after a separate government report showed better-than-expected economic growth. U.S. GDP increased at a 3% annualized rate over three months ending in June, the report said.
The robust reading suggested the economy has continued to avert a significant tariff-induced cooldown. A one-off statistical quirk tied to a drop-off of imports appeared to partially account for the surge, however.
Some key measures of the economy have proven resilient in recent months, defying fears of resurgent inflation and a possible economic downturn. Inflation has increased for two consecutive months but it remains well below a peak attained in June 2022.
The hiring data arrives days after the Federal Reserve opted to hold interest rates steady at its July meeting.
Five meetings and seven months have elapsed since the Fed last adjusted interest rates. The federal funds rate stands between 4.25% and 4.5%, preserving much of a sharp increase imposed in response to a pandemic-era bout of inflation.
A meaningful slowdown in the labor market could prompt the Fed to grant greater consideration to a potential rate cut.
Trump has repeatedly urged the central bank to lower interest rates, saying the policy would boost economic performance and reduce interest payments on government debt.
Fed Chair Jerome Powell, by contrast, has voiced some concern about a rekindling of inflation due to elevated tariffs. Importers typically pass along a share of the higher tax burden in the form of price hikes.
Speaking at a press conference in Washington, D.C., on Wednesday, Powell said tariffs had begun to contribute to price increases for some goods but the ultimate impact of the policy remains uncertain.
“Higher tariffs have begun to show through more clearly into prices of some goods but their overall effects on inflation and the economy remain to be seen,” Powell said. “Their effects on inflation could prove to be short-lived, but it is possible the inflation effects could be more persistent.”
He added, “We’ll do what we need to do to keep inflation under control.”
(NEW YORK) — Hiring slowed in July as President Donald Trump’s tariffs pinched the balance sheets of some major companies and reshaped the nation’s trade relationships. The reading fell short of economists’ expectations.
The U.S. added 73,000 jobs in July, according to data from the U.S. Bureau of Labor Statistics, or BLS. That figured marked a slowdown from 147,000 jobs added in the previous month. The unemployment rate ticked up to 4.2%, keeping it at near-historic lows.
The report also provided new estimates for two previous months, significantly dropping the government’s estimate of jobs added in May and June. In May, the U.S. added 19,000 jobs, much lower than a previously estimated total of 139,000 jobs, the BLS said. While in June, the economy added just 14,000 jobs, revising downward a previous estimate of 147,000 jobs.
The fresh jobs data indicated a notable slowdown in hiring as Trump’s tariffs took hold over recent months.
“Not only was this a much weaker than forecast payrolls number, the monster downward revisions to the past two months inflicts a major blow to the picture of labor market robustness,” Seema Shah, chief global strategist at Principal Asset Management, told ABC News in a statement.
The jobs report arrives days after a separate government report showed better-than-expected economic growth. U.S. GDP increased at a 3% annualized rate over three months ending in June, the report said.
The robust reading suggested the economy has continued to avert a significant tariff-induced cooldown. A one-off statistical quirk tied to a drop-off of imports appeared to partially account for the surge, however.
Some key measures of the economy have proven resilient in recent months, defying fears of resurgent inflation and a possible economic downturn. Inflation has increased for two consecutive months but it remains well below a peak attained in June 2022.
The hiring data arrives days after the Federal Reserve opted to hold interest rates steady at its July meeting.
Five meetings and seven months have elapsed since the Fed last adjusted interest rates. The federal funds rate stands between 4.25% and 4.5%, preserving much of a sharp increase imposed in response to a pandemic-era bout of inflation.
A meaningful slowdown in the labor market could prompt the Fed to grant greater consideration to a potential rate cut.
Trump has repeatedly urged the central bank to lower interest rates, saying the policy would boost economic performance and reduce interest payments on government debt.
Fed Chair Jerome Powell, by contrast, has voiced some concern about a rekindling of inflation due to elevated tariffs. Importers typically pass along a share of the higher tax burden in the form of price hikes.
Speaking at a press conference in Washington, D.C., on Wednesday, Powell said tariffs had begun to contribute to price increases for some goods but the ultimate impact of the policy remains uncertain.
“Higher tariffs have begun to show through more clearly into prices of some goods but their overall effects on inflation and the economy remain to be seen,” Powell said. “Their effects on inflation could prove to be short-lived, but it is possible the inflation effects could be more persistent.”
He added, “We’ll do what we need to do to keep inflation under control.”
(NEW YORK) — U.S. stocks tumbled in early trading on Friday, just hours after President Donald Trump signed an executive order slapping new tariffs on dozens of countries. A weak jobs report worsened investor jitters, revealing a slowdown of hiring over recent months as Trump’s previous tariffs took hold.
The Dow Jones Industrial Average dropped 615 points, or 1.3%, while the S&P 500 dropped 1.6%. The tech-heavy Nasdaq declined 2.1%.
Trump’s executive order late Thursday laid out rates to be applied against nearly 70 countries, ranging from 10% to 41% in what a Trump administration official hailed as the beginning of a “new system of trade.” The new duties are now set to go into effect on Aug. 7.
The tariff rates resemble reciprocal tariffs that were placed on more than 90 countries on April 2, though there are some differences. Those reciprocal tariffs were delayed 90 days when they set off a major stock selloff and a spike in bond yields.
In early July, Trump delayed the tariffs again, setting a deadline of Aug. 1.
The tariffs announced late Thursday came hours before a jobs report on Friday morning showed a marked cooldown in hiring as Trump’s prior levies filtered through the economy in recent months.
The U.S. added 73,000 jobs in July, which came in well below an average of 130,000 jobs jobs added each month this year, according to data from the U.S. Bureau of Labor Statistics, or BLS.
The report also provided new estimates for two previous months, significantly dropping the government’s estimate of jobs added in May and June. In May, the U.S. added 19,000 jobs, much lower than a previously estimated total of 139,000 jobs, the BLS said. While in June, the economy added just 14,000 jobs, revising downward a previous estimate of 147,000 jobs.
“Today’s jobs report was underwhelming as it missed economists’ expectations, but it’s the stark revisions to the prior two months that really stands out,” Bret Kenwell, U.S. investment analyst at eToro, told ABC News in a statement.
The selloff on Friday appeared to interrupt resilient performance of the stock market going back months. After some market volatility in the spring, investors have largely shrugged off Trump’s tariffs.
The Dow has climbed 2% this year, while the S&P 500 has jumped 6%. The Nasdaq has increased 8%.
Alongside a hotter-than-expected inflation reading on Thursday, the jobs data “may have thrown some cold water on the rally,” Kenwell said.
(WASHINGTON) — President Donald Trump on Thursday sharply criticized India over its trade policy, escalating a series of attacks as the White House readies to ratchet up tariffs on the country.
The Trump administration plans to slap 25% tariffs on Indian products and impose additional penalties starting on Friday, the president said on social media. The incendiary rhetoric toward India comes as Trump also prepares to impose new levies on dozens of other countries.
The White House has faulted India for high tariffs that Trump views as an effort to shut out U.S. producers. In recent days, Trump has also condemned India over its decision to continue purchasing Russian oil throughout the Russia-Ukraine war.
India’s tariffs are “far too high, among the highest in the World,” Trump said on social media.
In a statement on Wednesday, the Indian government said it had “taken note” of Trump’s comment and would “study its implications.”
Here’s what to know about the U.S.-India trade feud and why it matters:
Where does Trump’s trade feud with India stand?
Trump is set to hike tariffs on India to 25% on Friday, putting them one percentage point below the level of levies threatened in a Rose Garden ceremony on April 2.
A 25% tariff would set levies with India at a higher rate than the 15% tariffs placed on the European Union and Japan as part of recent trade agreements. The threatened tariff on India would come in slightly below 30% tariffs slapped on China in May.
The proposed levies may complicate ongoing trade negotiations between the U.S. and India, which have sought to reach an agreement over multiple rounds of discussions spanning months.
India, the 12th-largest U.S. trade partner, has become a destination for some manufacturers that shifted production away from China in recent years. In May, Apple CEO Tim Cook said the company had moved production of iPhones sold in the U.S. to India as a means of avoiding high tariffs.
Overall trade in goods between India and the U.S. last year amounted to about $129 billion, the Office of the U.S. Trade Representative, or OTR, found. Top imports from India include apparel, chemicals, machinery and agricultural products.
Why is Trump targeting India
In recent months, Trump has repeatedly criticized India for elevated tariffs on a range of products, including agricultural and dairy goods.
“We have, over the years, done relatively little business with them because their Tariffs are far too high,” Trump said in a social media post on Wednesday.
India has sought to protect its domestic industries with elevated tariffs on some goods, including levies exceeding 100%.
The U.S. ran a trade deficit in goods of about $45 billion in 2024, which marked a 5.4% increase over the previous year, according to the OTR. By comparison, the U.S. notched a far larger trade deficit with China of $295 billion last year.
More recently, Trump has taken issue with India’s decision to continue buying Russian oil over the course of the Russia-Ukraine war.
India is “Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE,” Trump said on social media on Wednesday.
How has India responded to Trump’s threats?
In a statement this week, the Indian government struck a measured but firm tone in response to Trump.
“India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months,” the Indian government said on Wednesday. “We remain committed to that objective.”
“The Government will take all steps necessary to secure our national interest,” the statement added.
The two sides are expected to meet for another round of trade discussions in late August.
(WASHINGTON) — The Federal Reserve held interest rates steady on Wednesday, just days after President Donald Trump made an unusual visit to the central bank, calling for a rate cut.
The central bank has defied Trump’s public criticism for months, adopting a wait-and-see approach as central bankers observe the effects of tariffs.
“Uncertainty about the economic outlook remains elevated,” Federal Open Market Committee (FOMC), a policymaking body at the Fed, said on Wednesday.
Two Fed governors appointed by Trump — Michelle Bowman and Christopher Waller — dissented from the 12-member vote, saying they would prefer a quarter-point rate cut. It marked the first time two Fed governors have voted against the majority since 1993.
Five meetings and seven months have elapsed since the Fed last adjusted interest rates. The federal funds rate stands between 4.25% and 4.5%, preserving much of a sharp increase imposed in response to a pandemic-era bout of inflation.
The decision on interest rates came hours after a government report showed better-than-expected economic growth over three months ending in June, though a statistical quirk accounted for a significant portion of the sturdy performance.
In theory, robust economic growth eases pressure on the Fed to lower interest rates, since consumers and businesses appear undeterred by high borrowing costs.
Trump has repeatedly urged the central bank to lower interest rates, saying the policy would boost economic performance and reduce interest payments on government debt.
“We have a man who just refuses to lower the Fed rate,” Trump said of Powell last month. “Maybe I should go to the Fed. Am I allowed to appoint myself? I’d do a much better job than these people.”
The Fed is an independent agency established by Congress. Trump is legally barred from appointing himself the head of the central bank.
In recent weeks, Trump has also slammed Powell, citing cost overruns tied to the central bank’s $2.5 billion building renovation project.
The Fed attributes spending overruns to unforeseen cost increases, saying that its building renovation will ultimately “reduce costs over time by allowing the Board to consolidate most of its operations,” according to the central bank’s website.
Federal law allows the president to remove the Fed chair for “cause” — though no president has ever done so. Powell’s term as chair is set to expire in May 2026.
The Fed is guided by a dual mandate to keep inflation under control and maximize employment. In theory, a lowering of interest rates could help stimulate economic activity and boost employment, especially while inflation remains modest.
The central bank, however, issued a forecast last month indicating some concern about a rekindling of inflation due to elevated tariffs. Importers typically pass along a share of the higher tax burden in the form of price hikes.
Tariffs contributed modestly to the rise of inflation in June, though overall price increases owed largely to a rise in housing and food products with little connection to tariffs, analysts previously told ABC News.
Despite its patient approach, the Fed last month forecast two quarter-point interest-rate cuts over the remainder of 2025, carrying over a prediction issued in March.
Earlier this month, Powell said he would not rule out a potential interest rate cut as soon as the July meeting.
“I wouldn’t take any meeting off the table or put any on the table,” Powell told the panel at the European Central Bank forum in Sinatra, Portugal. “It depends on how the data evolve.”
US Treasury Secretary Scott Bessent (R) and US Trade Representative Jamieson Greer (L) held a press briefing on the outcome of weekend trade talks with China in Geneva, Switzerland on May 12, 2025. (Photo by Beyza Binnur Donmez/Anadolu via Getty Images)
(WASHINGTON) — The U.S. economy expanded more than expected as President Donald Trump’s tariffs took hold over recent months, federal government data on Wednesday showed.
U.S. gross domestic product, or GDP, increased at a 3% annualized rate over three months ending in June. The figure marked a sharp acceleration from an annualized contraction of -0.5% over the first three months of 2025.
The reading amounted to sturdy economic growth, suggesting the economy has continued to avert a significant tariff-induced cooldown. A boost in consumer spending helped propel the economic surge, the U.S. Commerce Department said.
To some degree, however, Trump’s levies have blurred the GDP findings.
The government’s GDP formula subtracts imports in an effort to exclude foreign production from the calculation of total goods and services. Changes in the reading on this account reveal neither underlying economic weakness nor strength.
The measure of the GDP fell over the first three months of the year, largely due to a surge of imports as firms stockpiled inventory to avoid far-reaching tariffs. Conversely, a drop-off in imports over the second quarter may have inflated the second-quarter GDP figure.
The GDP growth “primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP,” the U.S. Commerce Department said on Wednesday.
The U.S. economy so far has largely defied fears of a tariff-induced downturn.
The unemployment rate stands near a historically low level and job growth remains robust, though it has slowed from previous highs. Inflation has climbed over the last two months but it remains below where it stood when Trump took office.
In the months following Trump’s “Liberation Day” tariffs, in April, consumer sentiment declined to its lowest level in years, raising concern about a possible pullback in consumer spending, which accounts for about two-thirds of economic activity.
Consumer sentiment has ticked up for two consecutive months, however, as Trump has rolled back some of his steepest tariffs. Consumer spending has proven fairly resilient.
Wednesday’s fresh GDP data arrived hours before the Federal Reserve is set to announce its latest decision on interest rates.
An overwhelming 97% of investors believe interest rates will hold steady, according to the CME FedWatch Tool, a measure of market sentiment.
In theory, sturdy economic growth eases pressure on the Fed to lower interest rates, since consumers and businesses appear undeterred by high borrowing costs. If growth begins to slow, the Fed could seek to lower interest rates as a means of boosting economic performance.
The Fed has adopted a wait-and-see approach as it continues to observe the effects of Trump’s tariffs.
“Despite elevated uncertainty, the economy is in a solid position,” Fed Chair Jerome Powell said at a press conference in Washington, D.C., last month.
(NEW YORK) — President Donald Trump unveiled a trade agreement with the European Union on Sunday, making it the latest in a series of accords as the White House threatens to slap tariffs on dozens of countries this week.
Prior to the agreement, the European Union faced the prospect of a 30% tariff rate set to take effect Aug. 1. Instead, products from one of the largest U.S. trade partners will be slapped with a 15% tariff.
In exchange, the EU said European companies would buy $750 billion worth of energy-related goods over three years and invest an extra $600 billion in the U.S.
Speaking to reporters on Sunday, Trump touted the agreement as the “biggest deal ever made.” The White House has yet to release full details of the accord.
European Commission President Ursula von der Leyen said the agreement “creates certainty in uncertain times. It delivers stability and predictability for citizens and businesses on both sides of the Atlantic.”
Here’s what to know about what’s in the trade agreement and what comes next:
What’s in the U.S. trade agreement with the European Union?
The trade agreement lowers the tariff rate on European products to 15%, putting it below the threatened rate of 30% but higher than a universal rate of 10% faced by nearly all imports.
The 15% tariffs on European products match the level of levies established for Japanese goods in a separate agreement last week. A trade agreement with Vietnam earlier this month set U.S. tariffs at 20%, while Chinese goods currently face 30% tariffs.
The agreement includes tariff exemptions for aircraft, semiconductor equipment and some chemical and agricultural goods, von der Leyen said.
The European Union purchased about $370 billion worth of U.S. products in 2024, while the U.S. bought about $605 billion worth of Japanese goods, according to the Office of the U.S. Trade Representative, a government agency.
Last year, the U.S. goods trade deficit with the EU was $235.6 billion, which marked a nearly 13% increase from 2023, the agency said.
Top U.S imports from Europe include pharmaceuticals, cars, machinery, wine and perfume.
Tariffs typically raise prices as importers pass along a share of the tax burden to consumers, though prices have largely averted major tariff-related hikes so far.
In exchange for the softening of U.S. tariffs, the EU agreed to reduce its tariff on U.S.-made cars from 10% to 2.5%.
The EU also said European companies would buy $750 billion worth of energy-related goods over three years and invest an extra $600 billion in the U.S.
What’s next ahead of Trump’s tariff deadline on Aug. 1?
So far, Trump has brokered agreements with the United Kingdom, Indonesia, Vietnam, the Philippines, Japan and the European Union. The White House also reached a preliminary accord with China that lowered tit-for-tat tariffs previously imposed by the world’s two largest economies.
On Friday, tariffs are set to take effect for dozens of additional countries, including some of the nation’s major trade partners: Canada, Mexico, South Korea and Brazil.
For his part, the president has insisted that the on-again, off-again levies make up a key part of his negotiation strategy.
“The president and his trade team want to cut the best deals for the American people and the American worker,” White House press secretary Karoline Leavitt said last month when she announced the Aug. 1 deadline.
When asked on Sunday whether the Aug. 1 deadline could be extended, Trump said, “No.”
“Aug. 1 is there for everyone,” Trump added. “The deals all start on Aug. 1.”
(NEW YORK) — President Donald Trump’s tariffs cost German auto giant Volkswagen about $1.5 billion over the first half of 2025, the company said on Friday.
Sales in North America plunged 16% due primarily to U.S. tariffs, said Volkswagen, which owns a host of brands including Audi, Lamborghini and Porsche.
The company warned of further “challenges” that will arise from “an environment of political uncertainty, expanding trade restrictions and geopolitical tensions,” among other factors.
Volkswagen marks the latest in a string of major carmakers to announce billions in tariff-related losses.
General Motors on Tuesday said tariffs on cars and auto parts drove $1.1 billion in losses over three months ending in June. A day earlier, Jeep maker Stellantis said it expects to have suffered $2.7 billion in losses over the first half of 2025 due in part to U.S. tariffs.
Electric-vehicle maker Tesla this week reported a roughly $3 billion drop in revenue over three months ending in June when compared to the same period a year earlier.
In a statement on Wednesday, Tesla touted a “strong balance sheet” but acknowledged a “sustained uncertain macroeconomic environment resulting from shifting tariffs.”
Tariffs of 25% on vehicles imported into the United States went into effect on April 2. The auto tariffs, which apply to cars and auto parts, threaten to raise costs for carmakers that often oversee an intricate supply chain snaked between the U.S., Mexico, Canada and beyond.
In a memo in March, the White House touted auto tariffs as a means of bolstering domestic car manufacturers and protecting an industry viewed as important to U.S. national security.
The policy, the White House said, will “protect and strengthen the U.S. automotive sector.”
Volkswagen currently faces total US tariffs of 27.5%, the company said, combining the recent 25% auto tariff on top of preexisting 2.5% tariffs.
The company said it expects a worst-case scenario of current tariff levels over the second half of 2025, while in a best-case scenario tariffs could be reduced to 10%.
“There is high uncertainty about further developments with regard to the tariffs, their impact and any reciprocal effects,” Volkswagen said.
A trade agreement struck between the U.S. and Japan this week dropped auto tariffs from the universal level of 25% to 15%, putting foreign carmakers in other countries at a disadvantage.
The U.S. and European Union are near a deal that would also bring tariffs on European goods down to 15%, the Financial Times reported this week. Trump has threatened to raise tariffs on the EU to 30% on Aug. 1, unless the two sides reach a trade agreement.
Despite rising tariff-related costs for automakers, price hikes for new cars have remained low.
Car prices rose 0.6% in June compared to a year earlier, registering well below the overall inflation rate of 2.7%.
In general, tariff-induced inflation has fallen short of economists’ fears in part because companies stockpiled products before the tariffs took effect, allowing them to temporarily avert the higher cost of importing goods, analysts previously told ABC News.
