Economy

The 15% tariff rate will take effect on August 1. It will cover automobiles, but other details remain unclear.

The value of core capital goods orders—a proxy for investment in equipment excluding aircraft and military hardware—dropped 0.7% last month, and bookings for all durable goods fell 9.3 percent.

Although tariffs’ impact on consumer prices has been modest thus far, “the day of reckoning is finally upon us, and many [U.S. businesses] are planning price adjustments this summer, likely beginning in July.”

Newly released Fed study projects that the Trump administration’s approach to immigration and deportation will reduce U.S. GDP growth by nearly 1 percentage point this year.

The muted impact Trump’s tariffs have had on inflation has emboldened the White House and created splits among Fed officials.

A CBO report projects the Trump budget package would have minimal positive effect on GDP growth (0.04 percentage point), while adding $441 billion to federal budget deficits over the next decade.