TikTok loses challenge against law requiring sale or ban
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(NEW YORK) — A federal appeals court on Friday rejected TikTok’s bid to overturn a law banning the platform unless the company finds a new owner. The defeat inches the apps closer to a U.S. ban, which is set to take effect on Jan. 19.
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(NEW YORK) — The price of bitcoin has tumbled about 12% from a record high reached earlier this week.
After topping $108,000 for the first time on Tuesday, the world’s largest cryptocurrency dropped to a price below $93,000 in early trading on Friday. Bitcoin soon recovered some of those losses, settling around $95,000 at 9:30 a.m. ET.
The selloff rippled through the wider cryptocurrency market. Ether, the second-largest cryptocurrency, ticked down about 1%. Lesser-known dogecoin fell 4% and crypto-trading exchange Coinbase fell nearly 2%.
The slide for bitcoin has largely come after the Federal Reserve announced late Wednesday that it expects fewer interest rate cuts next year.
Lower interest rates typically stimulate economic activity, drive up corporate profits and lift the value of forward-looking assets like stocks and cryptocurrencies. In theory, a longer-than-expected period of high interest rates could diminish those returns.
The Fed’s forecast sent stocks falling within minutes and helped push bitcoin to its lowest level in weeks.
The recent slide for bitcoin erases some of the gains enjoyed since the election of former President Donald Trump, who is widely viewed as friendly toward cryptocurrency. Still, the price has climbed about 36% since Election Day.
Bitcoin had climbed to a new high earlier this week after Trump reaffirmed support for a U.S. bitcoin strategic reserve.
A U.S. bitcoin strategic reserve would amount to a substantial government holding of bitcoin similar to the country’s stockpile of oil or gold. Bitcoin bulls expect such a potentially large acquisition of bitcoin to drive up demand and hike the price.
Supporters of a bitcoin strategic reserve also say the asset would help diversify the nation’s financial holdings, protecting it from the possible decline in value of other assets, such as the U.S. dollar.
Since the price of bitcoin is highly volatile, a large purchase of the asset could end up threatening the nation’s financial stability rather than safeguarding it, some critics say.
The major stock indexes rebounded on Thursday, recovering some of the losses they took after the Fed’s unwelcome forecast.
(WASHINGTON) — Tariffs on goods from Mexico and Canada that are set to take effect could hike the price of a gallon of gasoline for some drivers by as much as 70 cents and send grocery bills climbing, experts told ABC News.
The Trump administration this week reiterated plans to slap 25% tariffs on all products from Canada and Mexico on Feb. 1. Those countries make up two of the three largest U.S. trading partners, government data shows.
Tariffs of this magnitude would likely increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers, experts said. The policy could raise prices for an array of products ranging from tomatoes to tequila to auto parts.
“The scary thing is the list of products is very, very long,” said Jason Miller, a professor of supply-chain management at Michigan State University.
The price impact remains unclear, however, since businesses within the supply chain could opt to take on some or all of the tax burden, some experts added, noting the tariffs may not take effect at all since Trump has previously used them as a source of leverage in international negotiations.
In response to ABC News’ request for comment, a White House spokesperson touted Trump’s previous economic policies, including tariffs.
“In his first administration, President Trump instituted an America First economic agenda of tariffs, tax cuts, deregulation, and an unleashing of American energy that resulted in historic job, wage, and investment growth with no inflation. In his second administration, President Trump will again use tariffs to level the playing field and usher in a new era of growth and prosperity for American industry and workers,” White House spokesperson Kush Desai told ABC News.
Here’s what to know about which products could see price increases as result of the tariffs, according to experts:
Gas
Mexico and Canada account for 70% of U.S. crude oil imports, which make up a key input for the nation’s gasoline supply, according to the U.S. Energy Information Administration, a government agency.
Those imports come primarily from Canada, which sends crude oil to U.S. refineries built specifically to process the crude and redistribute it as car-ready gasoline, Timothy Fitzgerald, a professor of business economics at the University of Tennessee who studies the petroleum industry, told ABC News.
Gasoline that originates as Canadian crude reaches customers in the upper Midwest as well as some along the East and West coasts, Fitzgerald said. For those drivers, he added, prices could rise between 40 and 70 cents per gallon of gasoline.
“You could definitely be looking at 50 cent-a-gallon increases in a lot of parts of the country,” Fitzgerald added, noting that the effects would be limited to the regions that rely on imported crude.
The tariff-related price increase may combine with a seasonal price hike set to take effect within weeks, since demand for gas typically grows as travel picks up in the warmer spring weather, experts said.
That seasonal price impact could add another 30 cents per gallon, putting the total increase in gasoline prices at $1 per gallon if the tariffs remain in place at the onset of spring, Fitzgerald said.
Tomatoes and Avocados
The U.S. imported $38.5 billion in agricultural goods from Mexico in 2023, making it the top recipient of such products, U.S Department of Agriculture data showed. Those imports include more than $3 billion worth of fresh fruits and vegetables.
Mexican imports account for a large share of some fruits and vegetables routinely eaten by Americans.
Roughly 90% of avocados eaten in the U.S. last year originated in Mexico, USDA data showed. Other products with a high concentration of Mexican imports include tomatoes, cucumbers, bell peppers, jalapenos, limes and mangos, Miller said.
It would be difficult for the U.S. to replace those goods with domestic production or an alternative supplier, making it likely that prices would rise significantly if the tariffs take effect, he added.
“You’d certainly expect to see an impact on prices,” Miller said.
The U.S. also imports large quantities of beer, tequila and other alcoholic beverages from Mexico, experts said. In 2022, the U.S. imported about $26 billion worth of alcoholic drinks from Mexico, according to the USDA.
“Don’t forget all that beer we import from Mexico,” Miller said.
Cars and auto parts
Carmakers and consumers depend on the auto industry’s deep ties to Canada and Mexico, making tariffs a threat to prices, experts said.
Mexico and Canada make up the top two U.S. trading partners for both finished motor vehicles and car parts, according to a Cato Institute analysis of data from the U.S. International Trade Commission.
In 2023, Canada and Mexico accounted for nearly $120 billion worth of U.S. motor vehicle imports, which totaled about 47% of all such vehicles imported that year. Canada and Mexico made up nearly the same share of auto parts imports that year, the Cato Institute analysis showed.
“The operations of auto companies on both sides of the border will be hugely affected by these tariffs,” Robert Lawrence, a professor of trade and investment at Harvard University’s Kennedy School of Government, told ABC News.
Amazon delivery drivers and third-party workers for the nation’s predominant shopping platform have walked off the job in the past week, seeking what they consider a fair labor agreement — and triggering widespread concern among consumers about a potential disruption of deliveries amid a surge of last-minute shopping just before Christmas.
But experts who spoke to ABC News — all of whom study the e-commerce giant’s vast distribution network — said there is little indication that the nationwide demonstrations have imposed significant delays of package delivery, let alone cancellations.
“I haven’t seen evidence that the strike has been effective because of the high level of complexity of the Amazon network,” Jean-Paul Rodrigue, a professor of maritime business administration at Texas A&M University-Galveston who studies Amazon’s freight distribution, told ABC News.
“You’re dealing with a hydra. You can try to chop off one of its heads, but there are other heads,” Rodrigue added.
However, the protests could delay deliveries by one or two days near major cities where efforts are focused.
The International Brotherhood of Teamsters said in a statement that thousands of its Amazon-affiliated members are striking in areas including New York City, New York; Atlanta, Georgia; San Bernardino, California; San Francisco, California; and Skokie, Illinois.
The union has focused its efforts on delivery centers that carry packages over the “last mile” to a customer’s home, Barry Eidlin, a professor of labor sociology at McGill University, told ABC News.
Demonstrations in recent days appear to have occasionally slowed trucks passing in and out of the delivery centers, which could delay local package deliveries in those areas by a few days, Eidlin added.
Speaking to “Good Morning America” on Friday, the second day of the protests, Teamsters President Sean O’Brien said the union had heard some “success stories” in its effort to disrupt deliveries.
“We are slowing the packages down,” O’Brien said, later adding: “We’ve got to use our leverage. Unfortunately, it may come at the inconvenience of the consumer.”
In that case, he urged consumers to have patience — and to fault Amazon for any delivery delays.
“Amazon is the one that caused this issue, not the drivers, not the Teamsters union,” O’Brien said.
Teamsters began participating in what they are calling a strike at seven Amazon delivery centers across the country last week.
They were joined by unionized Amazon workers at a 5,500-person warehouse in Staten Island, New York, on Saturday, the Teamsters said. Some company workers at an air hub facility in San Bernardino also joined over the weekend, the Teamsters added.
However, Amazon doesn’t consider the situation a “strike,” since there hasn’t been a work stoppage, according to Kelly Nantel, a spokesperson for the e-commerce titan.
In response to ABC News’ request for comment, Nantel said the striking workers are not Amazon employees and that the demonstrations have had no impact on Amazon’s operations.
“What you’re seeing at these sites are almost entirely outsiders — not Amazon employees or partners — and the suggestion otherwise is just another lie from the Teamsters,” Nantel said. “The truth is that they were unable to get enough support from our employees and partners and have brought in outsiders to harass and intimidate our team, which is inappropriate and dangerous.”
Amazon also said in a statement to ABC News that the federal government has not ordered the company to bargain with Teamsters-affiliated workers — and it said that none of its workers have paid dues to the Teamsters.
Overall, nearly 9,000 Amazon workers, across 20 bargaining units, have affiliated with the Teamsters, according to the union.
This means that the protesting workers represent less than 1% of the company’s 800,000 operations employees in the U.S.
And the picket lines involve a small fraction of the company’s roughly 585 delivery centers, making it unlikely that such demonstrations will meaningfully impact package delivery, even for nearby customers, said Marc Wulfraat, president and founder of logistics consulting firm MWPVL.
“For the Teamsters to have a meaningful impact, they would have to penetrate a significant number of those delivery stations in order to really cause Amazon heartburn,” Wulfraat said.
The headline-grabbing protests could also inspire some workers to organize unions at new facilities, posing a future threat to the company’s distribution network — but the protesters appear far from attaining the scale necessary for such impact, the experts said.
“We appreciate all our team’s great work to serve their customers and communities, and thanks to them, we’re not seeing any impact to customers’ orders,” Nantel said in her statement to ABC News.
Regardless of whether the protests meaningfully impact Amazon’s operations, the public attention could dissuade some customers from ordering out of fear of a possible delay, experts said.
“It’s possible a small percentage of customers might choose to buy elsewhere,” Rob Handfield, a professor of operations and supply-chain management at North Carolina State University, told ABC News.
Public awareness of the labor effort could also draw more employees to the Teamsters, building union momentum and posing a threat to the company’s distribution network in the coming months or years, experts observed.
“There certainly could be some kind of snowball effect. If I was an Amazon leader, that’s what I’d be most afraid about,” Rodrigue said.
But he also noted that the workers appear fairly far from threatening a major disruption, adding: “They still have a ways to go.”