By CHRISTOPHER RUGABER and PAUL WISEMAN, Associated Press

WASHINGTON (AP) — After weeks of anticipation and speculation, President Donald Trump followed through on his reciprocal tariff threats by declaring on Wednesday a 10% baseline tax on imports from all countries and higher tariff rates on dozens of nations that run trade surpluses with the United States.

In announcing the reciprocal tariffs, Trump was fulfilling a key campaign promise by raising U.S. taxes on foreign goods to narrow the gap with the tariffs the White House says other countries unfairly impose on U.S. products.

“Reciprocal means ‘they do it to us and we do it to them,’” the president said from the White House Rose Garden on Wednesday.

Trump’s higher rates would hit foreign entities that sell more goods to the United States than they buy. But economists don’t share Trump’s enthusiasm for tariffs since they’re a tax on importers that usually get passed on to consumers. It’s possible, however, that the reciprocal tariffs could bring other countries to the table and get them to lower their own import taxes.

The Associated Press asked for your questions about reciprocal tariffs. Here are a few of them, along with our answers:

Do U.S.-collected tariffs go into the General Revenue Fund? Can Trump withdraw money from that fund without oversight?

Tariffs are taxes on imports, collected when foreign goods cross the U.S. border by the Customs and Border Protection agency. The money — about $80 billion last year — goes to the U.S. Treasury to help pay the federal government’s expenses. Congress has authority to say how the money will be spent.

Trump — largely supported by Republican lawmakers who control the U.S. Senate and House of Representatives — wants to use increased tariff revenue to finance tax cuts that analysts say would disproportionately benefit the wealthy. Specifically, they want to extend tax cuts passed in Trump’s first term and largely set to expire at the end of 2025. The Tax Foundation, a nonpartisan think tank in Washington, has found that extending Trump’s tax cuts would reduce federal revenue by $4.5 trillion from 2025 to 2034.

Trump wants higher tariffs to help offset the lower tax collections. Another think tank, the Tax Policy Center, has said that extending the 2017 tax cuts would deliver continued tax relief to Americans at all income levels, “but higher-income households would receive a larger benefit.’’

How soon will prices rise as a result of the tariff policy?

It depends on how businesses both in the United States and overseas respond, but consumers could see overall prices rising within a month or two of tariffs being imposed. For some products, such as produce from Mexico, prices could rise much more quickly after the tariffs take effect.

Some U.S. retailers and other importers may eat part of the cost of the tariff, and overseas exporters may reduce their prices to offset the extra duties. But for many businesses, the tariffs Trump announced Wednesday — such as 20% on imports from Europe — will be too large to swallow on their own.

Companies may also use the tariffs as an excuse to raise prices. When Trump slapped duties on washing machines in 2018, studies later showed that retailers raised prices on both washers and dryers, even though there were no new duties on dryers.

A key question in the coming months is whether something similar will happen again. Economists worry that consumers, having just lived through the biggest inflationary spike in four decades, are more accustomed to rising prices than they were before the pandemic.

Yet there are also signs that Americans, put off by the rise in the cost of living, are less willing to accept price increases and will simply cut back on their purchases. That could discourage businesses from raising prices by much.

What is the limit of the executive branch’s power to implement tariffs? Does Congress not play any role?

The U.S. Constitution grants the power to set tariffs to Congress. But over the years, Congress has delegated those powers to the president through several different laws. Those laws specify the circumstances under which the White House can impose tariffs, which are typically limited to cases where imports threaten national security or are severely harming a specific industry.

In the past, presidents generally imposed tariffs only after carrying out public hearings to determine if certain imports met those criteria. Trump followed those steps when imposing tariffs in his first term.

In his second term, however, Trump has sought to use emergency powers set out in a 1977 law to impose tariffs in a more ad hoc fashion. Trump has said, for example, that fentanyl flowing in from Canada and Mexico constitute a national emergency and has used that pretext to impose 25% duties on goods from both countries.

Congress can seek to cancel an emergency that a president declares, and Sen. Tim Kaine, a Democrat from Virginia, has proposed to do just that regarding Canada. That legislation could pass the Senate but would likely die in the House. Other bills in Congress that would also limit the president’s authority to set tariffs face tough odds for passage as well.

What tariffs are other countries charging on US goods?

U.S. tariffs are generally lower than those charged by other countries. The average U.S. tariff, weighted to reflect goods that are actually traded, is just 2.2% for the United States, versus the European Union’s 2.7%, China’s 3% and India’s 12%, according to the World Trade Organization.

Other countries also tend to do more than the United States to protect their farmers with high tariffs. The U.S. trade-weighted tariff on farm goods, for example, is 4%, compared to the EU’s 8.4%, Japan’s 12.6%, China’s 13.1% and India’s 65%. (The WTO numbers don’t count Trump’s recent flurry of import taxes or tariffs between countries that have entered into their own free trade agreements, such as the U.S.-Mexico-Canada Agreement that allows many goods to cross North American borders duty free.)

Previous U.S. administrations agreed to the tariffs that Trump now calls unjust. They were the result of a long negotiation between 1986 to 1994 — the so-called Uruguay Round — that ended in a trade pact signed by 123 countries and has formed the basis of the global trading system for nearly four decades.

By WILL WEISSERT

WASHINGTON (AP) — President Donald Trump invited Kid Rock into the Oval Office on Monday and signed an executive order that he says will help curb ticket scalping and bring “commonsense” changes to the way live events are priced.

“Anyone who’s bought a concert ticket in the last decade, maybe 20 years — no matter what your politics are — knows that it’s a conundrum,” said Kid Rock, who wore a red bedazzled suit featuring an American flag motif and a straw fedora.

Designed to stop “price-gouging by middlemen,” the order directs Attorney General Pam Bondi and Treasury Secretary Scott Bessent to ensure that scalpers offering tickets at higher prices than their face value comply with all Internal Revenue Service rules.

It also orders the Federal Trade Commission to ensure “price transparency at all stages of the ticket-purchase process” and to “take enforcement action to prevent unfair, deceptive, and anti-competitive conduct in the secondary ticketing market,” which the Trump administration argues can restore sensibility and order to the ticket market.

Trump said he knows Kid Rock, a longtime supporter whose real name is Robert James Ritchie, as simply “Bob.”

“He’s been a good friend for a long time,” Trump said.

The president said rising fees for concerts and other events have “gotten worse and worse with time.” Kid Rock agreed.

“You can buy a ticket for $100. By the time you check out, it’s $170. You don’t know what you’ve been charged for,” Kid Rock said. “But, more importantly, the bots, you know, they come in, they get all the good tickets to your favorite shows you want to go to, and then they’re relisted immediately for sometimes 400-500% markup.”

The order mostly directs federal agencies to enforce existing laws. Still, it marks a rare instance of policy crossover with the administration of Democratic President Joe Biden, which used the FTC to target “ junk fees,” or levies tacked on at the end of the purchase process that can mask the full price of things like concert tickets, hotel rooms and utility bills.

Under Biden, the Justice Department also sued Ticketmaster and its parent company, Live Nation Entertainment, last year. It accused them of running an illegal monopoly over live events and asked a court to break up the system that squelches competition and drives up prices for fans.

Those companies have a history of clashing with major artists, including Bruce Springsteen and Taylor Swift. whose summer 2022 stadium tour was plagued by difficulty getting tickets.

Country music star Zach Bryan even released a 2022 album titled “All My Homies Hate Ticketmaster.” A representative for Bryan said he had “nothing to add” when asked to comment on Monday’s executive orer.

The Biden administration used such initiatives as a way to protect consumers from rising prices that were already inflated. Trump, meanwhile, campaigned on combating high ticket prices, calling them “very unfortunate.”

Kid Rock, known for hits like “Cowboy” and “Bawitdaba,” called Trump’s order a ”great first step” and said he’d eventually like to see a cap on resale prices on tickets — while quickly adding, “I’m a capitalist.” He also said he’d spoken to Ticketmaster, which he described as “on board” with the change.

The White House says America’s live concert and entertainment industry has a total nationwide economic impact of $132.6 billion and supports 913,000 jobs, “But it has become blighted by unscrupulous middle-men who impose egregious fees on fans with no benefit to artists,” according to a fact sheet it released Monday.

Trump’s order further directs federal officials and the FTC to deliver a report in six months “summarizing actions taken to address the issue of unfair practices in the live concert and entertainment industry and recommend additional regulations or legislation needed to protect consumers in this industry.”

“Ticket scalpers use bots and other unfair means to acquire large quantities of face-value tickets, then re-sell them at an enormous markup on the secondary market, price-gouging consumers and depriving fans of the opportunity to see their favorite artists without incurring extraordinary expenses,” the White House face sheet said.

It also noted that higher prices don’t mean additional profits for artists but instead go “solely to the scalper and the ticketing agency.”

Kid Rock agreed that such markups don’t benefit artists like himself, then chuckled while offering, “I’ll be the first one to say, and I know the president doesn’t like when I say this, but, I’m a little overpaid right now.”

“It’s kind of ridiculous. I would rather be, you know, a hero to working-class people and have them be able to come attend my shows and give them a fair ticket price,” he said. “I can’t control that right now so hopefully this is a step to make that happen.”

Associated Press writer Maria Sherman contributed to this report from New York.

By Rosie Cima, Nerdwallet

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Thinking about changing jobs? You’re in good company. According to data released by the Bureau of Labor Statistics, Americans are staying in the same job for shorter periods of time than in the past.

The length of time you’ve worked for your current employer is called your job tenure. In 2014, the median job tenure – across all age groups, occupations and industries – was 4.6 years. In 2024, it dropped to 3.9 years. In fact, job tenure is now the shortest it has been in over 20 years.

Economists care about tenure as a measure of employment security and health of the labor market. And personal job tenure is important to workers because job changes often raise questions about personal finances and planning for the future.

Tenure Trends

The median job tenure generally got longer from the 1980s through the 2010s. From 2014, it started to recede. Women tend to have shorter tenures than men – a gap that was starting to close in the 2010s, but has since opened back up. And tenure increases with age, as people have generally spent more time in the workforce.

Tenure also varies by industry and current occupation.

On average, people in “management occupations” have stuck around the longest: 5.7 years. This makes sense, as one common path to management is when a company promotes a long-tenured employee into a supervisory role.

If your job tenure is dramatically above average for your occupation, that could be a sign that your job is a really good fit. But no matter how long you’ve been at your job, if you’re feeling unsatisfied, or think your future at the company is uncertain, you may be considering a change.

Consider the benefits of having more tenure

Changing employers could help you get paid what you’re worth. Wage growth is generally higher among job switchers, according to data from the Federal Reserve Bank of Kansas City.

But many workplaces provide incentives to stay. Senior employees often get more PTO, access to development programs or more job security. Your time at a company can also translate into institutional knowledge and a level of respect among colleagues who haven’t been around as long.

Another benefit of seniority is the possibility of advancement. If you’re not fully satisfied in your current role, your employer might consider what they can do to keep you. Being prepared to walk away from a job is a very strong negotiating position, and may help you find a better role at the same company.

It’s unlikely that any single one of these things will make or break your decision to leave. But it’s a good idea to closely examine whether or not the potentially higher salary with a new employer is offset by fewer benefits or other tradeoffs.

Financial checklist when job switching

If you ultimately decide it’s time to move on, take steps to get your financial house in order before turning in your notice:

Do: Make a plan to support yourself financially

You might already have a new source of income lined up, or a job offer for a new position. If not, or if that new job doesn’t pay as much as the one you’re leaving, you’re probably going to want to budget for this transition.

This means taking a look at your spending, your savings and how much you expect to make in the coming months. Cutting back on your spending, even in modest ways, can buy you more time. When you’re job hunting, there’s a big difference between running out of money in six months versus running out in one.

Don’t: Forget about your retirement account

If you have a 401(k account, the most common kind of employer-sponsored retirement account, you can leave it where it is, roll it over to another account or cash it out early. Cashing it out is the least recommended option because it comes with hefty tax penalties.

If your employer contributes to your retirement account, you should nail down how much of your balance is yours for the taking. Your employer’s contributions might be yours to take with you (known as “vested”) only after a certain number of years with the company.

If you’re unsure of how much of your retirement account is your contributions versus your employers’ portion, or you’re unclear on your vesting schedule, talk with your human resources or finance department.

Do: Have a plan for health insurance

Figure out when your employer-paid insurance is going to end, and who will insure you after it does. Temporarily extending your coverage through COBRA is one of several options. Switching to a new insurer will reset your deductible, so if you’ve met or are close to your current deductible, now may be a good time to get any health care you’ve been putting off.

Do: Cash out your use-it-or-lose-it benefits

Some employers pay out unused PTO when you leave, but how much varies from job to job. If you have unused days that won’t pay out when you quit, now is the time to use them. If you have a flexible spending account (FSA), it won’t follow you to the next job. Find out when it’s going to expire, and then spend it before it does.

Don’t: Forget your HSA

Unlike an FSA, you can keep your employer-provided health savings account (HSA) after you quit. If you have a significant amount in the account – which you might, especially if you’ve opted to invest it – don’t lose track of that money. You can choose to leave your HSA where it is, or you can transfer the funds to a new HSA to consolidate.

Do: Get a good reference

When you give your notice, communicate clearly, cordially and professionally. Do your best to part ways on a positive note. Your last few weeks at a job are a good time to thank your coworkers and superiors for working with you, and to ask if they’d be willing to provide you with a reference in the future.

Rosie Cima writes for NerdWallet. Email: articles@nerdwallet.com.

The article Job Tenure is Down: What to Do Before You Quit originally appeared on NerdWallet.

By MARC LEVY

HARRISBURG, Pa. (AP) — Delaware is trying to protect its status as the corporate capital of the world amid fallout from a judge’s rejection of billionaire Elon Musk ’s landmark Tesla compensation package, although critics say fast-tracked legislation will tilt the playing field against investors, including pensioners and middle-class savers.

A Delaware House committee was expected to vote Wednesday on the bill, which is backed by Democratic Gov. Matt Meyer who says it’ll ensure the state remains the “premier home for U.S. and global businesses” to incorporate.

Backers say it’ll modernize the law and maintain balance between corporate officers and shareholders in a state where the courts, for a century, have settled all sorts of business disputes as the legal home of more than 2 million corporate entities, including two-thirds of Fortune 500 companies.

Critics — including institutional investors, pension funds and asset managers — say it’ll lower corporate governance standards, curb shareholder rights and, as a result, limit the ability to hold corporate officers accountable for decisions that violate their fiduciary duty.

The bill passed the state Senate unanimously last week.

What happened in Elon Musk’s case?

A Delaware judge last year invalidated Musk’s compensation package from Tesla that was potentially worth more than $55 billion. Lawyers for shareholders had sued over the package that Tesla’s board of directors awarded Musk in 2018.

Chancellor Kathaleen St. Jude McCormick said it was developed by directors who weren’t independent of Musk and approved by shareholders who had been given misleading and incomplete disclosures in a proxy statement.

The ruling bumped Musk out of the top spot on Forbes’ list of wealthiest people, although he has since climbed back up.

Musk and Tesla are appealing in the state Supreme Court. But Musk unloaded on Delaware, saying “Never incorporate your company in the state of Delaware” and instead recommended competitors Nevada or Texas as destinations.

Now, lawmakers are being warned by corporate lawyers that their clients are considering heading to the exits — making a “Dexit,” as it’s been dubbed — and that startups are being advised to incorporate elsewhere.

What did Musk and others do?

Must took his own advice, moving Tesla’s corporate listing to Texas after a shareholder vote and his companies SpaceX to Texas and Neuralink to Nevada.

Backers of the bill say corporate unrest had been simmering the past couple years over various Delaware Supreme Court decisions in corporate conflict-of-interest cases and that Musk inflamed the discontent.

The fallout seemed to accelerate in recent weeks when the Wall Street Journal reported that Meta Platforms — the parent company of social media platforms Facebook, Instagram and WhatsApp — was considering moving its incorporation to Texas. Meta didn’t confirm the report.

DropBox, the online file-sharing platform, moved its corporate listing to Nevada, and Bill Ackman, founder of Pershing Square Capital Management, a major hedge fund, said he’d leave Delaware, too.

On Feb. 1, Musk took to his social media platform X to crow about it, saying, “Companies are flooding out of Delaware, because the activist chief judge of the Delaware court has no respect for shareholder rights.”

That said, critics of the bill say there’s no evidence that corporations are fleeing Delaware in any numbers.

What does the bill do?

It changes several things.

One, it gives corporations more protections in conflict-of-interest cases — such as a pay package for a CEO or intercompany agreements — in state courts when fighting shareholder lawsuits.

Two, it limits the kind of documents that a company must produce in court cases and makes it harder for stockholders to get access to internal documents or communication that could prove time-consuming and expensive for a company to produce — not to mention, damaging to its case.

Eric Talley, a Columbia University law professor, has compiled a running list of three dozen Delaware Supreme Court precedents that the legislation stands to change.

Lawrence Hamermesh, a former professor at Widener University’s Delaware Law School, disagreed. Hamermesh, who helped draft the legislation after Meyer asked him last month, said perhaps only a couple doctrines would be wiped out.

A legal challenge is widely expected should Meyer get the bill and sign it into law. Meanwhile, institutional investors say such a law may prompt them to push corporations that they own to incorporate elsewhere.

Why is this a big deal for Delaware?

Money.

Approximately one-third of Delaware’s state government revenue — about $2.2 billion — comes from corporate license fees and associated tax revenues, according to the governor’s office. That helps the state to maintain a 0% sales tax and keep property taxes relatively low, a nice perk for the beach vacation home industry along its Atlantic coast.

Beyond that, Wilmington is home to a cottage industry that caters to the corporate lawyers who live, stay, dine and shop around the state Supreme Court and the Chancery Court of Delaware buildings where they argue their cases.

Follow Marc Levy on X at: https://x.com/timelywriter.

By Kimberly Palmer, NerdWallet

Forget about workbooks and flash cards. Financial-themed videos, grocery store games and even escape rooms can be a better way to teach kids about money, according to the latest thinking from financial literacy experts.

“A lot of traditional curriculums were about the numbers,” says Noel Wilkinson, a program coordinator for the Take Charge America Institute within the Norton School of Human Ecology at the University of Arizona.

That can be a turn-off for some students.

“That led me to involve more play and gamification into workshops,” he adds, which led to greater engagement and, as a result, more learning.

Here are a few ways to make learning about money fun — and more effective:

1. Let kids practice and make mistakes

“I’m a big believer in experiential learning,” says Jessie Jimenez, an accredited financial counselor in Oregon and founder of the website Cashtoons.com, where she makes engaging videos about financial topics.

In other words, learning by doing — such as practicing buying items on a budget at the grocery store or keeping money safe while you shop. While it might be nerve-wracking to watch your kids handle real money, those kinds of experiences can actually help them learn.

Jimenez says she grew up feeling like she was not a “money” person or a “numbers” person, and it was only after she became a mother that she started focusing more on financial literacy.

“I thought, ‘How did I get this far without being taught personal finance management? Where is the resource for those of us who don’t want to listen to podcasts about investments?’”

The answer, she discovered, was that she had to create those types of experiences that allow kids to experiment with financial management on their own.

2. Invent money games

With preschoolers, many everyday experiences, such as saving money on groceries, can be turned into a game, Wilkinson says.

“It’s all about encouraging parents to learn through play with kids,” he says.

You could play “price detective” where you each try to find the best deal to save money on a specific item, for example, or you could play “restaurant” at home where your child takes your order and sets prices.

“Play creates a safe environment where you can make decisions and choices that don’t affect us in real life,” Wilkinson says.

You can experiment with choices and outcomes without fear, he adds.

Teenagers can graduate to more advanced games. Wilkinson and his team developed an escape room for teenagers in Arizona where they finish a budget for a character in order to solve a puzzle and get a key, for example. Even something simple like tracking savings visually on a chart posted in the kitchen can make the process seem more fun.

“The concept of gamifying learning in general has become widespread,” Wilkinson adds.

Video games like Animal Crossing, Railroad Tycoon and Atlas:Earth can also help teach teens and young adults about personal finance.

Buying digital real estate parcels in Atlas:Earth, a virtual real estate game, gives you hands-on insight into value and scarcity, says CEO and co-founder Sami Khan. Players can also earn cash back for various actions.

“The time between 20 and 30 is an important decade for compounding, so it’s important for people to learn about money early,” Khan says.

3. Make it fun

Whether you’re trying to teach price comparison at the mall or explain how kids can use their allowance, Jimenez says one key is to avoid calling the process “learning.” Instead, it should just feel fun, whether it’s a casual conversation in the car or a shopping trip.

“Don’t announce, ‘It’s time to learn!’” Jimenez cautions. “That turns it into a chore.”

She also suggests giving yourself some extra time for the shopping trip if you’re going to let your kid help you hunt for bargains.

“It takes a little longer and you have to be open to that,” she says.

Part of financial literacy is simply learning to explore your own feelings and habits when it comes to money, and learning to be intentional instead of impulsive about decisions, Jimenez says. Kids can learn those skills from talking to you and watching you in your own life.

Try talking out loud when making purchase decisions or opening bills and discussing what they mean. Explaining big purchase decisions like cars and vacations can also help with comprehension.

4. Recognize different learning styles

Wilkinson says some kids may be more drawn to learning through books and storytelling while others prefer video games, practical exercises at the store or a budget-themed escape room. One key to learning, he says, is to embrace the method that works best for you and to acknowledge that everyone is coming from a different place.

“Some folks just don’t have experience with financial literacy. Maybe they didn’t grow up in a household where parents talked about investing or building wealth,” he says.

In those cases, adults can learn alongside their children through books, games and other experiences.

“Even as adults we benefit from involving play in learning,” he adds.

With these fun approaches to learning about money, kids might become “numbers” people without even realizing it.

Kimberly Palmer writes for NerdWallet. Email: kpalmer@nerdwallet.com. Twitter: @kimberlypalmer.

The article 4 Ways to Make Learning About Money a Blast originally appeared on NerdWallet.

Myesha Johnson, The Detroit News

Workers at another Starbucks in Michigan have voted to unionize as they seek better wages and fair scheduling from the national coffee chain.

Starbucks Workers United said in a statement Monday that the Starbucks on Dequindre Road and Universal Drive in Warren marks the 18th store in the state to join the union. The labor group represents 11,000 employees at more than 550 stores who “demand Starbucks finalize strong contracts.”

Olive Gentry, who has worked at the Warren cafe since it opened three years ago, said unionizing was the only way to get better pay and stable scheduling.

“There’s a lot of inconsistencies, so we’re trying to protect ourselves,” Gentry said. “I’m excited for Starbucks to work with us on finalizing other contracts so we can move forward and have all the things that all the baristas before us have been fighting for.”

Starbucks did not immediately return a request for comment.

According to a news release, Starbucks Workers United’s core issues include living wages, respect, racial and gender equity, and fair scheduling. Workers at more than 150 stores have joined the union since February 2024 including locations in Maine, North Carolina, Texas, Illinois and Seattle.

Starbucks and Starbucks Workers United are expected to return to bargaining after hundreds of baristas across the country went on strike on Christmas Eve.

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The post The Metro: The importance of shopping small and supporting local economies appeared first on WDET 101.9 FM.

By JOSH BOAK, Associated Press

WASHINGTON (AP) — President Donald Trump said Tuesday that he will double his planned tariffs on steel and aluminum from 25% to 50% for Canada, escalating a trade war with the United States’ northern neighbor.

Trump said on social media that the increase of the tariffs set to take effect on Wednesday is a response to the price increases that the provincial government of Ontario put on electricity sold to the United States.

“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD,” Trump posted Tuesday on Truth Social.

The U.S. president has given a variety of explanations for his antagonism of Canada, saying that his separate 25% tariffs are about fentanyl smuggling and voicing objections to Canada putting high taxes on dairy imports that penalize U.S. farmers. But he continued to call for Canada to become part of the United States as a solution, a form of taunting that has infuriated Canadian leaders.

“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Trump posted on Tuesday. “This would make all Tariffs, and everything else, totally disappear.”

The U.S. stock market promptly fell following his social media post, triggering more concerns after a brutal selloff on Monday that puts Trump under pressure to show he has a legitimate plan to grow the economy instead of perhaps pushing it into a recession.

Trump was set to deliver a Tuesday afternoon address to the Business Roundtable, a trade association of CEOs that during the 2024 campaign he wooed with the promise of lower corporate tax rates for domestic manufacturers. But his tariffs on Canada, Mexico, China, steel, aluminum — with plans for more to possibly come on Europe, Brazil, South Korea, pharmaceutical drugs, copper, lumber and computer chips — would amount to a massive tax hike.

The stock market’s vote of no confidence over the past two weeks puts the president in a bind between his enthusiasm for taxing imports and his brand as a politician who understands business based on his own experiences in real estate, media and marketing.

Harvard University economist Larry Summers, a former treasury secretary for the Clinton administration, on Monday put the odds of a recession at 50-50.

“All the emphasis on tariffs and all the ambiguity and uncertainty has both chilled demand and caused prices to go up,” Summers posted on X. “We are getting the worst of both worlds – concerns about inflation and an economic downturn and more uncertainty about the future and that slows everything.”

The investment bank Goldman Sachs revised down its growth forecast for this year to 1.7% from 2.2% previously. It modestly increased its recession probability to 20% “because the White House has the option to pull back policy changes if downside risks begin to look more serious.”

Trump has tried to assure the public that his tariffs would cause a bit of a “transition” to the economy, with the taxes prodding more companies to begin the years-long process of relocating factories to the United States to avoid the tariffs. But he set off alarms in an interview broadcast on Sunday in which he didn’t rule out a possible recession.

“I hate to predict things like that,” Trump said on Fox News Channel’s “Sunday Morning Futures.” ”There is a period of transition, because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing. And there are always periods of — it takes a little time. It takes a little time. But I don’t — I think it should be great for us. I mean, I think it should be great.”

The promise of great things ahead did not eliminate anxiety, with the S&P 500 stock index tumbling 2.7% on Monday in an unmistakable Trump slump that has erased the market gains that greeted his victory in November 2024. The S&P 500 index fell roughly 0.4% in Tuesday morning trading.

The White House after the markets closed on Monday highlighted that the tariffs were prompting companies such as Honda, Volkswagen and Volvo to consider new investments in U.S. factories.

It issued a statement that Trump’s combination of tariffs, deregulations and increased energy production had led industry leaders to promise to “create thousands of new jobs.”

The significance of thousands of additional jobs was unclear, as the U.S. economy added 2.2 million jobs last year alone, according to the Bureau of Labor Statistics.

ALEX VEIGA, The Associated Press

Detroit-based mortgage lender Rocket Cos. has agreed to acquire online real estate brokerage Redfin in an all-stock deal valued at $1.75 billion.

The transaction, announced Monday, gives one of the nation’s largest mortgage lenders an in-house network of more than 2,000 real estate agents across 42 states and Redfin’s popular home and rental housing listings platform, which draws nearly 50 million monthly visitors.

The deal values Redfin at $12.50 per share. Shares in Seattle-based Redfin soared 68.5% in morning trading to $9.81 per share, while shares in Detroit-based Rocket Cos. slumped 15%.

Rocket expects the acquisition will save the company $140 million in costs by eliminating duplicative operations and other expenses. Rocket also anticipates the move will boost revenue by more than $60 million by enabling the company to connect its clients with Redfin’s agents and, ultimately, offering those customers other real estate services that Rocket provides, including title insurance and loan servicing.

Redfin CEO Glenn Kelman is expected to remain at the helm of the real estate brokerage, reporting to Rocket’s CEO, the companies said.

Under the terms of the deal, each share of Redfin common stock will be exchanged for a fixed ratio of 0.7926 shares of Rocket Cos. Class A common stock, which represents a premium of 63% over the volume weighted average price of Redfin’s common stock for the 30 days ended March 7.

Once finalized, current Rocket Cos. shareholders will own roughly 95% of the combined company on a fully diluted basis, while Redfin shareholders will own about 5%, the companies said.

The companies’ board of directors have already approved the transaction, though Redfin shareholders still have to sign off on the sale. The companies expect the transaction to close in the second or third quarter this year.

By Kim Mercado, NEXT

When you start a small business, there’s one thing you need more than anything else: money. However, getting money to fund a business has been challenging for women, particularly women of color.

While women continue to make strides in raising more venture capital, they still only garnered just 2% of the total capital invested in venture-backed startups in the U.S.

To source money for their new businesses, women need to look at multiple funding avenues. As NEXT points out, one opportunity is small business grants for women, which can get overlooked by traditional loans and lines of credit.

What are business grants for women?

Business grants provide money to set up or grow your business, and you don’t have to pay it back. Free money — sounds good, right?

Grant opportunities are different from business loans because you don’t need to repay them — no lenders or dealing with payback schedules.

The downside is that it can be harder to qualify for a business grant than for a small business loan. You have to be prepared to put some work into the grant application.

However, if you’re a woman starting a new business, it can be much easier to qualify for dedicated grants for women.

Federal government grants for women

The federal government offers several grant programs for small business owners. Most of them are for all small business owners, not just for women, but they are still worth checking out.

Grants.gov

Grants.gov is a huge database of government grants spanning over 20 federal agencies. While it’s not exclusive to small businesses or women-owned businesses, you can search for federal grants that are suitable for your business using keywords and filters.

To apply for any grants, you need to have a Unique Entity Identity Identifier (UEI) — a unique 12-character business identification number (previously, you had to provide a DUNs number). You also need to register your business with the federal government and create an account at the Grants.gov site.

Small Business Innovation Research and Small Business Technology Transfer programs

Typically, the Small Business Administration (SBA) does not provide grants for starting or expanding a business. However, they offer a few grants to businesses involved in medical or scientific research via the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs.

The Empower to Grow program

This is more of a training program than a straight grant award. However, this program is unique because it’s designed to help small business owners get on the fast track to lucrative government contracting opportunities. Even better: The federal government’s goal is to award at least 5% of all its contracting dollars to women-owned businesses annually.

State government and local grants

Small business grants can be tough to come by on a federal level. There are often more funding opportunities on a state or local government level—specifically designed for women entrepreneurs.

U.S. Economic Development Administration

Every state has economic development resources funded by the Economic Development Administration (EDA). They often give grants out because they want to see local economies succeed. For example, the California Office of the Small Business Advocate (CalOSBA) supports economic growth and innovation across the entire state.

Small business development centers

Small business development centers (SBDC) offer free business consulting, training and help in getting funding for your business. Sponsored by the SBA, these centers help entrepreneurs find assistance and counseling in their area.

Women’s Business Centers (WBC)

Run by the SBA, there are 168 women’s business centers nationally to help you learn how to manage your business and find more funds. Resources are often free or low-cost. Some WBCs lend money to women entrepreneurs, while others help owners find qualifying grants and loans.

Private business grants for women

These are business grants for women that private organizations and companies fund. Some of the best private grants for women starting a business are:

The Amber Grant for Women

Named in honor of Amber Wigdahl, who passed away at a young age before realizing her business dreams, the Amber Grant provides three amazing grants every month.

1. $10,000 grant to a woman entrepreneur. (Amber Grant)
2. $10,000 grant to businesses in the “idea” phase. (Startup Grant)
3. $10,000 grant to a set monthly business-specific category. (Business-Specific Grant)

Business categories for Business-Specific Grants

For the Business-Specific Grant, there are 12 business categories you could be eligible for. If your business falls under these specific business categories, you automatically become eligible (once per year). Each year, one of these 12 winning business categories is given an additional grant of $25,000.

All businesses selected for one of the three monthly $10,000 grants are automatically eligible for three year-end Amber Grants ($25,000).

Best of all, the application process is fairly simple—you only need to fill out one application to be considered for all of these different grants.

IFundWomen universal grant application database

IFundWomen is a funding platform for women entrepreneurs that provides access to capital via crowdfunding and business grants. They offer a variety of grants, including business partnerships and crowdfunded grants. You can check for active grants and eligibility requirements.

Their universal grant application database is unique and delivers grant opportunities directly to you. When you submit your application, you get added to their database. Then, when IFundWomen brokers a grant, they match the grant criteria to their database.

If you match the program criteria, they notify you and invite you to apply. No more spending time on your application to find out you didn’t read the fine print and are ineligible.

Tory Burch Foundation

American fashion label Tory Burch has a philanthropic arm called The Tory Burch Foundation that gives out grants to women entrepreneurs. There are two grant pathways: their fellowship program and a woman of color grant program.

• Fellowship program: Fellows participate in a year-long program complete with virtual education programming, options to attend in-person events and a trip to New York for a five-day workshop. Recipients also receive a $5,000 grant for business education.

The Tory Burch Foundation also partners with the Bank of America capital program to help provide more access to capital through affordable loans.

Cartier Women’s Initiative

The Cartier Women’s Initiative offers a women’s fellowship program with grants ranging from $100,000 or $30,000 to 30 regional laureates and finalists each year. It also provides executive coaching, peer-learning sessions, collective workshops, networking opportunities and other educational resources to help develop and support business needs.

Additionally, the Cartier Women’s Initiative awards several thematic grants:

• Science and technology pioneer award. The award amounts are the same as the regional awards—$100,000-$30,000.
• Diversity, equity, and inclusion award. This award is not disclosed and is also open to men.

Women Founders Network (WFN)

The Women Founders Network (WFN) is a nonprofit organization that provides education on entrepreneurship and investing to women and girls. Their Fast Pitch competition offers mentoring, coaching and sponsorships as part of the overall program. Aside from the $55,000+ in cash grants available for distribution, there is a cash investment potential from investors who attend the event, so it pays to sharpen your pitch skills.

digitalundivided BREAKTHROUGH program

digitalundivided is a nonprofit focused on economic growth for Black and Latinx communities through women entrepreneurs. In partnering with JPMorgan Chase’s Advancing Black Pathways, they launched the BREAKTHROUGH program. Upon completing the program, each company accepted to the program will receive a $5,000 grant to invest in their business.

This program is regionally based, accepting cohorts in different cities. Check their website and social pages for information about what city they’re coming to next.

The BGV Pitch program

Got a business idea? Black Girl Ventures holds a hybrid pitch program where they coach entrepreneurs, host a pitch competition and connect founders to their network of professionals for additional support. They have several different pitch programs where applicants can win grants and stipends.

The Mama Ladder

The Mama Ladder’s High Five grant program has helped mom business owners grow since 2018. They’ve granted over $70,000 to women business owners and aim to give $1 million in grants by 2033.

EmpowerHer fund

This grant is for women-led organizations that benefit women and girls in New York City. Every quarter, they grant a business $1,000.

Microgrants for woman-owned businesses

Galaxy Grants

Hidden Star, a nonprofit organization dedicated to helping minority and women entrepreneurs nationwide offers the Galaxy Grant. Entrants have the chance to win a grant of $2,450.

Kitty Fund Mompreneur business grant

Created in honor of Mother’s Day and Founder’s First CEO Kim Folsom’s mother, the Kitty Fund makes microinvestments in mothers running employer-based small businesses. Totaling $25,000, this program grants ‘mompreneurs’ in the form of $1,000 microgrants.

HerRise MicroGrants

HerRise microgrants are worth $1,000 each and are open to women of color entrepreneurs. Winners are selected monthly.

The Enthuse Foundation

The Enthuse Foundation provides a variety of financial awards to help entrepreneurs with crucial business needs. They offer 10 microgrants worth $2,500 each.

Giving Joy Grants

Giving Joy grants are one-time microgrants (up to $500) for entrepreneurs. Women 18 or older from any country in the world are eligible to apply.

Additional grants and resources

While these grants are not exclusive to women, they may be useful to small business owners.

The Halstead Grant

The Halstead Grant is only for those in the jewelry industry—both women and men.

Designed to help jewelry entrepreneurs kick-start their careers, the winner gets $7,500 in grant money plus $1,000 for Halstead jewelry supplies. It’s available for early-stage businesses that have been open for three to five years.

National Association for the Self-Employed Growth Grants

The National Association for the Self-Employed (NASE) awards Growth Grants to members of their organization. It’s open to both women and men small business owners. Awardees will receive $4,000, which can be used for marketing, advertising, hiring employees, expanding facilities and other specific business needs.

FedEx Small Business Grant Contest

Global shipping company FedEx has a small business grant program. It awards ten U.S.-based businesses with grants of up to $50,000 and up to $4,000 in FedEx Office print and business services. One business receives the grand prize of $50,000, and several second prize recipients get $20,000 for a prize pool totaling over $300,000.

How can I get business grants for women?

You can take steps to boost your chances of success when you apply for business grants for women.

• Read the application requirements carefully. Make sure you choose a grant that really fits your business, so you don’t waste time applying for a grant you are unlikely to receive.
• Don’t skip any documents that the application asks you for, and don’t be late for the application deadline.
• Prepare a clear business plan. Describe what your business does and exactly how the grant will help. Be as detailed as you can.
• Bring in outside experts, like an accountant or a business advisor. It looks good to have an expert on your team.
• Check that your business has all the necessary licenses. Make sure you have valid business insurance. It shows that you are responsible and reliable.

This story was produced by NEXT and reviewed and distributed by Stacker.

Mark Niquette, The Washington Post

President Donald Trump spoke Tuesday before a joint session of Congress to outline his vision for a second term that started only six weeks ago and has already resulted in an upheaval of the federal workforce, disintegration of relationships with allies and a trade war.

With his party controlling both chambers of Congress and Democrats largely on the sidelines and divided in their approach, Trump is poised to drive home his agenda of tariffs, tax breaks and spending cuts. Earlier Tuesday, his administration slapped 25% levies on goods from Mexico and Canada and layered another 10% duty on China on top of an identical hike a month before.

Here are the president’s key economic statements from the address, fact-checked and contextualized.

EGG PRICES

TRUMP: “Joe Biden especially let the price of eggs get out of control. The egg price is out of control. And we are working hard to get it back down.”

FACT CHECK: This needs context. While the cost of eggs rose under the former Democratic president and has become a symbol of high prices, interest rates and other economic woes, it’s largely due to the outbreak of avian flu.

Millions of birds have been killed just since December as the outbreak hit egg-laying farms from Iowa to California to North Carolina, prompting grocery stores to limit purchases and restaurants to add surcharges. A dozen large white eggs in the US reached a record of over $8 in February, from $2.97 a year ago, according to the benchmark indicator from price-reporting service Expana.

INFLATION

TRUMP: “We suffered the worst inflation in 48 years, but perhaps even in the history of our country – they’re not sure.”

FACT CHECK: This is false. The cumulative increase in consumer prices during Biden’s term was higher than any other president in the past 40 years, not of all time.

And Trump’s policies – including pumping in $3.5 trillion for stimulus checks and other pandemic relief – and supply chain constraints when the US roared back to life also played an important part in annual US inflation hitting a 40-year high of 9.1% in June 2022 before falling to 2.7% in November when Trump was elected. It was 3% in January.

TARIFFS

TRUMP: “We will take in trillions and trillions of dollars and create jobs like we have never seen before,” Trump said of his tariff plans.

FACT CHECK: This needs context. While tariffs do generate revenue for the US, China and other foreign nations aren’t paying them. US importers are responsible for the duties, and ultimately US businesses and consumers pay through higher costs.

One academic study in 2019 concluded that consumers and US companies paid most of the costs of Trump’s tariffs in his first administration, and that after factoring in the retaliation, the main victims of the trade wars were farmers and blue-collar workers in areas that supported Trump in 2016.

TRUMP: “Tariffs are about making America rich again and making America great again and it will happen rather quickly. There’ll be a little disturbance, but we’re OK with that. It won’t be much.”

FACT CHECK: This needs context. Trump also sees tariffs as a way to help pay for the $4.5 trillion in expiring 2017 tax cuts and even replace the $2 trillion the US government raised in individual and corporate income taxes. But since the Second World War, tariffs have never generated much more than 2% of total federal revenue, according to a Congressional Research Service report published in January. And even a US tariff rate approaching 50% would only result in $780 billion in revenue and harm economic growth, economists at the Peterson Institute for International Economics calculated last year.

Consumers and companies are worried. A Harris Poll taken for Bloomberg News found that almost 60% of US adults expect Trump’s tariffs will lead to higher prices, and that 44% believe the levies are likely to be bad for the US economy. Tariffs also have come up a record 700 times during quarterly earnings calls for S&P 500 companies, according to a Bloomberg News analysis of transcripts.

Indeed, the tariffs that Trump has already imposed on China, Canada and Mexico would cost the typical US family more than $1,200 per year, the Peterson Institute said.

AUTO INDUSTRY

TRUMP: “We’re going to have growth in the auto industry like nobody’s ever seen,” Trump said, adding that he’d spoken with excited car executives. He also claimed new plants are being built.

FACT CHECK: This needs context. The CEO of Ford Motor Co. has warned taxing imports from Canada and Mexico will “blow a hole” in the US auto industry, while Jeep maker Stellantis NV has said Trump’s levies will put the company at a disadvantage versus overseas competitors. The cost to build a crossover utility vehicle will rise by at least $4,000, while the increase would be three times that for an electric vehicle, according to a new study from Anderson Economic Group.

Japanese automaker Honda Motor Co. denied making any announcement about expanding its presence in Indiana, where Trump suggested the company was building a new factory. Honda already has been manufacturing Civics at a plant between Indianapolis and Cincinnati since 2008.

IMMIGRATION

TRUMP: “Over the past four years, 21 million people poured into the country. Many of them were murderers, human traffickers, gang members, and other criminals.”

FACT CHECK: This is false. There’s no evidence other nations were sending their prisoners and mental patients to the US to join the migrants, many fleeing violence and poverty. Trump has specifically cited 13,000 murderers allowed in the country based on US Immigration and Customs Enforcement data released during the campaign.

That included 13,099 people who were found guilty of homicide and hundreds of thousands of convicted criminals. But those numbers span decades, including during Trump’s first administration.

Trump and Republicans also accuse migrants of being responsible for crime. But study after study has shown that undocumented immigrants commit fewer crimes compared to other immigrants – and even fewer compared to US-born citizens.

Gabrielle Coppola contributed to this report.

By James Royal, Ph.D., Bankrate.com

It’s the dream of many to become a millionaire, and even those with just a little dough to start can achieve this goal with careful planning. While selecting the right investments is important, one other factor is still more important if you’re starting out with a relatively small nest egg: time.

Bankrate spoke with a wealth adviser to get her take on how to turn $1,000 into $1 million.

How to turn $1,000 into a million dollars

You can sum up the process of turning a thousand dollars into one million in three simple steps.

1. Let time work its magic

Even more than picking the right investment, time is the most important element in turning small money into big money. A few extra years of compounding your money can really have a huge impact on the total snowball you can roll up.

“Start investing as early as you can,” says Andrea Zoeller, wealth manager and partner at Merit Financial Advisors. “There are several studies that show an investor that starts early and saves often can end with a portfolio value larger than one who starts later in life.”

How powerful is starting now? Let’s use a simplified example, where you invest $1,000 each year to show the value of starting early.

—You start investing at age 22 and invest $1,000 annually with 10% annual returns. If you retire at age 62, you’ll have saved $40,000 over those 40 years, but that money would have compounded to more than $440,000, assuming no taxes.

—You start investing at age 32 and invest $1,000 annually with 10% annual returns. If you retire at age 62, you’ll have saved $30,000 over those 30 years, but that money would have compounded to more than $160,000, assuming no taxes.

“The money has been invested longer when someone starts earlier in life and will have more time to generate compounding interest in the lifetime compared to someone who didn’t start until later in life,” says Zoeller.

The tax laws favor investments, too. You won’t pay any taxes on your capital gains until you sell the investment, meaning you can compound your wealth for decades without the drag of taxes.

Does 10% sound like too high of a return? In fact, every investor can purchase an investment that’s returned about 10% on average over time.

2. Pick a strong investment

You might think that you need to trade in and out of the market with the very best investments to build a million dollars. Sure, it’s better to have the best investment, but you’ll do just fine over time with a consistent performer that delivers solid returns in most years.

The best solution? Invest in a low-cost index fund, says Zoeller.

A stock index fund provides the weighted average return of all its stock holdings. A fund based on the S&P 500 index, which includes hundreds of America’s top companies, has returned about 10% per year on average over long periods. These kinds of funds are accessible to anyone with a brokerage account, and you don’t need specialized expertise to purchase them.

Low-cost funds keep more money in your pocket and working for you, and you have many choices among them. The best S&P 500 index funds charge low fees — typically less than $10 annually for every $10,000 you have invested, and some even just $3 — so you invest in a solid index fund and enjoy strong returns over time at a low cost.

3. Hold on over time

It can be easy to overlook, but you are your own worst enemy when it comes to investing. That’s because you’ll sabotage your progress by doing things that you think are safe or smart. For example, it’s easy to sell when the market is rocky and the economy looks rough.

“Time in the market is more important than timing the market,” says Zoeller. “Missing out on the best positive days in the market because you are trying to time the market has shown to erode investor returns over time even when staying invested during down markets.”

So if you’re looking to achieve the returns of the index funds you’re invested in, you’ll want to stay invested. Plus, staying invested allows you to avoid paying capital gains taxes on your profits. If you sell a winner, you’re guaranteeing that your bankroll will decline in value.

“Be patient,” says Zoeller. “Building wealth is a marathon, not a race. It takes a lot of time and consistency.”

While our example uses $1,000 as a starting point, if you can add money to your portfolio over time — especially when the market falls — you can continue to earn attractive profits.

Other tips for building wealth

So that’s how you can turn $1,000 into a million — give yourself plenty of time, buy a strong index fund and then hold on. Here are some other tips for building wealth.

—Avoid selling after the market has gone down. “This is the No. 1 mistake that will erode your returns over time because there is no telling when you will get back into the market,” says Zoeller. “Oftentimes, by the time you get back in the market, it is after the recovery has happened, so you are consequently selling low and buying back at the top before possibly seeing another fall in the market.”

—Take advantage of tax-free accounts. If you’re investing for retirement, it makes sense to use a 401(k) plan or an IRA. Both accounts allow you to defer or avoid taxes on gains, allowing you to compound your money even faster. Your employer’s 401(k) plan may also pay you matching funds if you make a contribution, and it’s the easiest return you can ever make.

—Watch out for emotional decision-making. When the market becomes volatile, it can feel safe to sell first and ask questions later. “Be careful about making irrational decisions based on emotion or what other people are doing before understanding the meaning of what is happening in the markets,” says Zoeller. If you sell a winner, you’ll lock in taxes and you’ll slow your ability to compound your money.

—Work with a professional. Working with a financial adviser can yield a ton of benefits. “A professional can guide you through market volatility and educate you on how to make smart investing decisions and avoid the mistakes in investing,” says Zoeller.

You can find a financial adviser to consult in your area through Bankrate’s AdvisorMatch.

Bottom line

Time is your biggest ally when it comes to building wealth, but you can really help yourself out by finding a strong index fund and then holding on to it. You’ll also grow your wealth faster if you’re able to keep adding to your account each week or month and get more money working for you.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.

With natural disasters and homeowners insurance costs making headlines, many homeowners may find themselves dwelling on “what-ifs.” In at least one area, turning that anxiety into action could help ease some concerns.

Too often, those facing an unimaginable loss aren’t aware of how insurance payouts work with mortgaged homes — or that they’ll need to work with their mortgage company as well as their insurer.

“When you have a family that’s just lost everything, they don’t have the mental capacity to take that on,” says Brittnie Panetta, a personal injury lawyer with Matthews & Associates who has worked with California wildfire victims. “You’re just trying to get back on your feet.”

Understanding this process before you ever need to can prevent adding stress to an already difficult situation. Here’s what happens to your mortgage if your home is destroyed, how you might have to work with your mortgage company, and the steps you can take now to ensure you’ll have the resources you need in the event of a disaster.

First steps

Even if your home is a total loss, “the mortgage still lives on, unfortunately,” Panetta says — and you’re still expected to pay it. That’s why, in the wake of a devastating event, one of the first calls you should make is to your mortgage servicer. The servicer is the company you make payments to, whether it’s your original lender or a different firm.

If you need the money you would have spent paying your mortgage to cover other immediate costs, you’ll want to ask about forbearance. A mortgage forbearance temporarily puts your loan on hold, allowing you to skip payments without facing late fees or damage to your credit score. Forbearance is temporary, and it’s not forgiveness — you’ll have to make up the missed payments. But the short-term relief it provides could be invaluable.

Even if you can continue making payments, you need to inform your servicer about what happened. In fact, most home loan documents require you to inform the lender or servicer. That’s because the company that holds your mortgage has a claim on your home. That relationship can influence what comes next.

Rebuild or pay off

Homeowners faced with a total loss have to make a difficult choice: Whether to use their insurance money to rebuild or pay off the mortgage.

“It’s really tough,” says Jennifer Beeston, a branch manager and senior vice president at Rate who worked with Tubbs and Camp wildfire victims in California. “This is a horrible, emotional time. But unfortunately, it’s also one of those times where really understanding the math, looking at your options, weighing pros and cons… is critical.”

Mortgage documents are often filled with complicated language about insurance and rebuilding, but it generally boils down to a few key points. As noted above, the lender must be notified of the loss. Later, the homeowner and lender have to agree on whether the insurance payout will go toward paying off the mortgage or rebuilding. If the homeowner chooses to rebuild, the rebuilt home needs to be comparable in value to the one that was destroyed — and the lender manages paying out the insurance money.

For many homeowners, signing over the insurance check to their mortgage servicer is an unpleasant surprise.

“That was one of the things that people were really angry about,” Beeston recalls of the Tubbs fire. “Because they don’t want someone controlling their money, which I understand, but that is standard across the industry.”

During the rebuilding process, the homeowner continues making mortgage payments. That can mean paying a mortgage for a home that’s unlivable while paying for other accommodations. Loss of use coverage, which is a standard part of most homeowners insurance policies, can help defray those costs; FEMA housing assistance may also help with this expense.

A homeowner who can’t afford to — or doesn’t want to — rebuild would need to use their claim funds to pay off the destroyed property’s mortgage in full. It’s important to know that insurance policies may pay out smaller settlements for mortgage payoff than for rebuilding.

“It’s becoming a less desirable option to just pay off the mortgage with these prices,” Panetta, the personal injury lawyer, says. “Your policy may say you’re insured for $500,000 if you want a payout, but up to a million if you want to rebuild. It’s a huge discrepancy in value.”

Planning ahead

While you can’t control when disaster strikes, you can put yourself in a better position to face it. There are a couple of key preparation steps you can take now.

Make sure you can easily access key information about your mortgage, like your loan details and the servicer’s contact information. In the past, that might have meant keeping these documents in a fireproof safe, but today, storing them in the cloud or a secure app is probably more handy.

Additionally, keep documentation of your budget or regular expenses. These figures may be needed if you have to file a loss of use claim, since that’s calculated relative to your normal expenses.

The second — and admittedly much more difficult — step is to reevaluate your homeowners insurance. If you have a mortgage, you’re generally required to have homeowners insurance. But you want to be sure your coverage would be enough to rebuild at market rates and that you have the disaster coverage you need.

Putting these pieces in place now can provide some reassurance that if the worst happens, you’ll have the resources to recover.

The article What Happens to Your Mortgage If Your House Is Destroyed? originally appeared on NerdWallet.

By JOSH BOAK, PAUL WISEMAN and ROB GILLIES, Associated Press

WASHINGTON (AP) — President Donald Trump’s long-threatened tariffs against Canada and Mexico went into effect Tuesday, putting global markets on edge and setting up costly retaliations by the United States’ North American allies.

Starting just past midnight, imports from Canada and Mexico are now to be taxed at 25%, with Canadian energy products subject to 10% import duties.

The 10% tariff that Trump placed on Chinese imports in February was doubled to 20%, and Beijing retaliated Tuesday with tariffs of up to 15% on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.

Canadian Prime Minister Justin Trudeau said his country would slap tariffs on more than $100 billion of American goods over the course of 21 days. Mexico didn’t immediately detail any retaliatory measures.

The U.S. president’s moves raised fears of higher inflation and the prospect of a trade war even as he promised the American public that taxes on imports are the easiest path to national prosperity. He has shown a willingness to buck the warnings of mainstream economists and put his own public approval on the line, believing that tariffs can fix what ails the country.

“It’s a very powerful weapon that politicians haven’t used because they were either dishonest, stupid or paid off in some other form,” Trump said Monday at the White House. “And now we’re using them.”

U.S. markets dropped sharply Monday after Trump said there was “no room left” for negotiations that could lower the tariffs. Shares in Europe and Asia were mostly lower Tuesday after they took effect.

The Canada and Mexico tariffs were supposed to begin in February, but Trump agreed to a 30-day suspension to negotiate further with the two largest U.S. trading partners. The stated reason for the tariffs is to address drug trafficking and illegal immigration, and both countries say they’ve made progress on those issues. But Trump has also said the tariffs will only come down if the U.S. trade imbalance closes, a process unlikely to be settled on a political timeline.

The tariffs may be short-lived if the U.S. economy suffers. But Trump could also impose more tariffs on the European Union, India, computer chips, autos and pharmaceutical drugs. The American president has injected a disorienting volatility into the world economy, leaving it off balance as people wonder what he’ll do next.

“It’s chaotic, especially compared to the way we saw tariffs rolled out in the first (Trump) administration,” said Michael House, co-chair of the international trade practice at the Perkins Coie law firm. “It’s unpredictable. We don’t know, in fact, what the president will do.’’

Democratic lawmakers were quick to criticize the tariffs, and even some Republican senators raised alarms.

Sen. Susan Collins, R-Maine, said she’s “very concerned” about the tariffs going into effect because of her state’s proximity to Canada.

“Maine and Canada’s economy are integrated,” Collins said, explaining that much of the state’s lobsters and blueberries are processed in Canada and then sent back to the U.S.

The world economy is now caught in the fog of what appears to be a trade war.

Even after Trump announced Monday that the tariffs were going forward, Canadian officials were still in touch with their U.S. counterparts.

“The dialogue will continue, but we are ready to respond,” Canadian Defense Minister Bill Blair said in Ottawa as he went into a special Cabinet meeting on U.S.-Canada relations. “There are still discussions taking place.”

Shortly after Blair spoke, Trudeau said Canada would impose 25% tariffs on $107 billion U.S. worth of American goods, starting with tariffs on $21 billion U.S. worth of goods immediately and on the remaining amount on American products in three weeks.

“Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,” Trudeau said.

The White House would like to see a drop in seizures of fentanyl inside the United States, not just on the northern and southern borders. Administration officials say that seizures of fentanyl last month in everywhere from Louisiana to New Jersey had ties to foreign cartels.

Damon Pike, technical practice leader for customs and trade services at the tax and consulting firm BDO, suggested the responses of other countries could escalate trade tensions and possibly increase the economic pressure points.

“Canada has their list ready,” Pike said. “The EU has their list ready. It’s going to be tit for tat.’’

Tim Houston, the leader of Canada’s Atlantic coast province of Nova Scotia, said he would direct the Nova Scotia Liquor Corporation to remove all U.S. alcohol from store shelves. Houston also said his government will limit access to provincial procurement for American businesses and double the cost for commercial vehicles from the United States on a tolled highway.

The Trump administration has suggested inflation will not be as bad as economists claim, saying tariffs can motivate foreign companies to open factories in the United States. On Monday, Trump announced that Taiwan Semiconductor Manufacturing Company, the computer chipmaker, would be investing $100 billion in domestic production.

Still, it can take time to relocate factories spread across the world and train workers with the skills they need.

Greg Ahearn, president and CEO of The Toy Association, said the 20% tariffs on Chinese goods will be “crippling” for the toy industry, as nearly 80% of toys sold in the U.S. are made in China.

“There’s a sophistication of manufacturing, of the tooling,” he said. “There’s a lot of handcrafting that is part of these toys that a lot of people don’t understand … the face painting, the face masks, the hair weaving, the hair braiding, the cut and sew for plush to get it to look just so. All of that are very high hands, skilled labor that has been passed through generations in the supply chain that exists with China.”

For a president who has promised quick results, Ahearn added a note of caution about how quickly U.S. factories could match their Chinese rivals.

“That can’t be replicated overnight,” he said.

Gillies reported from Toronto. Associated Press writers Anne D’Innocenzio in New York and Lisa Mascaro in Washington contributed to this report.

By FERNANDA FIGUEROA

As 25% tariffs on imports from Mexico and Canada are set to take effect on Tuesday, Hispanic-owned businesses and companies that depend on cross-border trade are already passing higher prices onto consumers and preparing to sharply reduce imports.

The prospect of a North American trade war has already thrown the global economy into turmoil, with consumer confidence tumbling, inflation worsening and the auto sector and other domestic manufacturers bracing for a downturn.

Trump dismissed concerns that tariffs are largely paid for by consumers through higher prices, saying: “It’s a myth.”

It is possible for a stronger U.S. dollar to offset some of the costs, but most economic modeling shows tariffs will effectively amount to billions of dollars in tax hikes nationwide. Along the border, the reality is that prices were already rising in anticipation of Trump’s announcement, and much more disruption now looms.

Chamberlain Distributing represents nine different Mexican farming companies that ship about 5 million boxes of produce every year through Nogales, Arizona, to retail, wholesale and foodservice customers across the U.S. Its owner, Jaime Chamberlain, said he would raise customer prices for all the products he imports, starting Tuesday.

And if the importers of record lack the resources to pay these higher prices, Chamberlain said he won’t be able to support the farmers for more than a week or two. They’ll have to sell at a loss, or not at all. Not everything will sell in Mexico, he said. The tomatoes, bell peppers, cucumbers, beans, squash and other perishable vegetables will be left in the fields and in his two warehouses across the border.

He predicts similar dilemmas industry-wide: Supplies of produce coming into the U.S will decrease, and prices will increase.

Since January, retailers have been bracing for the impact on their bottom lines. Restaurants have already stockpiled non-perishable goods in anticipation of prices going up, said Raul Luis, who owns the Birrieria Chalio Mexican Restaurant with locations in Los Angeles and Fort Worth, Texas.

But Luis can’t do that with the meat and fruit he sources from suppliers in Canada and Mexico. And with event catering, he can’t provide customers with a set price because he does not know things will look like in a few months.

His restaurants already use menus without prices so that he can immediately reflect changing costs without printing new ones. He’s also considering reducing his menu options to avoid higher-priced ingredients. Closing either location is out of the question, he said.

“We have to figure out ways to become more efficient,” Luis said. “We learned from the pandemic that we have to pivot and do things differently and most of our customer base understands that.”

Small businesses are particularly vulnerable, said Ramiro Cavazos, CEO of the United States Hispanic Chamber of Commerce.

“They don’t have the operating revenue that larger companies have,” Cavazos said. “Small businesses would really be on the front lines of having to bear those costs and they would have no choice but to pass those costs to their consumers.”

The state of Arizona benefits from $20 billion in cross-border trade with Mexico — an economy now under stress, said Vanessa Nielsen, a spokesperson for the Arizona-Mexico Commission, which works to foster a collaborative partnership.

In fact, businesses in Mexico already raised their prices in anticipation of Trump’s tariffs, and “these prices are passed ultimately to the consumer,” she said. “Businesses, they want to have some certainty, so they raise them now just in case tariffs happen and they’re already prepared.”

That supply chain is now vulnerable and border relations have been strained, with higher prices a particular concern for people who live south of the border and come into Arizona to buy groceries, she said. Tariffs “would have a weakening effect on these communities at the border that depend on that traffic from Mexico and vice versa.”

Trump also set increased the minimum tariff on all steel and aluminum imports earlier this month from 10% to 25%. This could make housing more expensive and harm the already-low profit margins of small businesses, said George Carrillo, CEO of the Hispanic Construction Council.

Carrillo said construction businesses can only stockpile steel up to a point depending on the revenue and space they have. The fear is that future projects are going to be delayed as prices shift.

“Hispanic businesses, they typically underprice the market because they’re trying to be more competitive than larger companies,” Carrillo said. “Now they have a choice — do I pass this on to the consumer or do I eat this up myself?”

By DIDI TANG and MICHELLE L. PRICE

WASHINGTON (AP) — Chip giant Taiwan Semiconductor Manufacturing Co. plans to invest $100 billion in the United States, President Donald Trump said Monday, on top of $65 billion in investments the company had previously announced.

TSMC, the world’s biggest semiconductor manufacturer, produces chips for companies including Apple, Intel and Nvidia. The company had already begun constructing three plants in Arizona after the Biden administration offered billions in subsidies. Its first factory in Arizona has started mass production of its 4-nanometer chips.

Trump, who appeared with TSMC’s chief executive officer C. C. Wei at the White House, called it a “tremendous move” and “a matter of economic security.”

“Semiconductors are the backbone of the 21st century economy. And really, without the semiconductors, there is no economy,” the president said. “Powering everything from AI to automobiles to advanced manufacturing, we must be able to build the chips and semiconductors that we need right here in American factories with Americans skill and American labor.”

Wei said the investment will be for three more chip manufacturing plants, along with two packaging facilities, in Arizona.

The $165 billion investment “is going to create thousands of high-paying jobs,” Wei said.

Former President Joe Biden in 2022 signed a sweeping $280 billion law, the CHIPS and Science Act, to try to reinvigorate chip manufacturing in the U.S., especially after the COVID-19 pandemic.

During the pandemic, chip factories, especially those overseas making the majority of processors, shut down. It had a ripple effect that led to wider problems, such as automobile factory assembly lines shutting down and fueled inflation.

Trump has criticized the law and taken a different approach, instead threatening to impose high tariffs on imported chips to bring chip manufacturing back to the U.S.

Trump also has said companies like TSMC do not need federal tax incentives.

When asked if the new investment could minimize impact on the U.S. should China either isolate or seize Taiwan, Trump said he couldn’t say “minimize” because “that would be a catastrophic event obviously.”

Taiwan is an island that broke away from mainland China in 1949 following a civil war. Beijing claims sovereignty over the island and has ratcheted up military and diplomatic pressure on its leaders.

“It will at least give us a position where we have, in this very, very important business, we would have a very big part of it in the United States,” Trump said of the chip manufacturing.

He did not say if the investment would provide security for the self-governed island that Beijing considers to be part of Chinese territory.

Taipei Economic and Cultural Representative Office, the island’s de-facto embassy in the United States, said investments by Taiwanese businesses in the U.S. have exceeded 40% of the island’s total foreign investments and that the Taiwanese government is “glad” to see Taiwanese businesses to expand investments in the U.S. and to deep cooperation on supply chain between the two sides.

“It also brings the economic and trade relations closer,” the office said.

Trump has hosted multiple business leaders at the White House since he took office in January to tout a series of investments that aim to demonstrate his leadership is a boon for the U.S. economy. He’s also pointed to the tariff threats as prodding the investments.

“It’s the incentive we’ve created. Or the negative incentive,” Trump said.

In January, he appeared with the heads of OpenAI, Oracle and SoftBank at the White House as they announced plans for a new partnership to invest up to $500 billion for infrastructure tied to artificial intelligence. He also announced in January a $20 billion investment by DAMAC Properties in the United Arab Emirates to build data centers tied to AI.

Last week, after Apple CEO Tim Cook met with Trump at the White House, the company announced plans to invest more than $500 billion in the U.S. over the next four years, including plans for a new server factory in Texas. Trump said after their meeting that Cook promised him Apple’s manufacturing would shift from Mexico to the U.S.

“I don’t have time to do all of these announcements,” Trump joked Monday as he listed some of the other investments.

The Wall Street Journal first reported the planned announcement Monday.

Associated Press writer Chris Megerian contributed to this report. Price reported from New York.

David Welch, Bloomberg

General Motors Co. plans to step up its program of buybacks by repurchasing $6 billion in shares and raising its dividend, rewarding investors by pushing more cash off its balance sheet.

The move, which the Detroit-based carmaker announced Wednesday, comes as the auto industry faces uncertainty about the impact of policy changes under President Donald Trump, including threatened tariffs and pledges to roll back support for electric vehicles.

“We feel confident in our business plan, our balance sheet remains strong and we will be agile if we need to respond to changes in public policy,” Chief Financial Officer Paul Jacobson said in a statement.

GM said the buyback has no expiration date but that it aims to complete the first $2 billion in repurchases by the end of the second quarter. The company also plans to raise the quarterly dividend by 3 cents a share to 15 cents.

Its shares jumped 6.1% to $49.54 as of 9:35 a.m. in New York.

It’s the latest in a series of blockbuster share repurchases by the company. As recently as 2021, GM had 1.45 billion in shares outstanding, but currently has less than 1 billion in publicly traded stock.

The carmaker authorized $6 billion in share buybacks in June and has $300 million remaining on that program. That came on top of a previous $10 billion buyback program it completed in November 2023. All told, including the latest announcement, GM’s board has signed off on $37.7 billion in buybacks since 2015. That has helped buoy the value of GM’s shares, despite a series of recent setbacks in its business plans and strategy.

The automaker’s estimated dividend payments over the next year rose 18% to 58 cents per share from the previous estimate of 49 cents per share, according to Bloomberg Dividend Forecasts.

With an adjusted automotive free cash flow target of $11 billion to $13 billion for 2025, the company can afford the payouts while maintaining a steady capital spending plan. But it’s choosing not to plow all of its largesse into new investments or to keep it as a cushion from any negative fallout from the policy flux in Washington.

Trump has proposed 25% tariffs on Mexico and Canada, where GM has a combined five assembly plants and also is exposed through a highly integrated North American auto parts supply chain. Trump also has directed his administration to consider eliminating policies that favor electric vehicles, which could put GM’s investments into plug-in vehicles at near-term risk.

By Luke Ramseth, Tribune News Service

Stellantis NV said Wednesday its 2024 net profit fell sharply to $5.8 billion (5.5 billion euro), a 70% drop compared to 2023’s record high.

The results reflect a tumultuous year for the maker of Chrysler, Dodge, Jeep and Ram and other brands that included poor sales across several key regions, cost cuts including layoffs, fights with unions and dealers, and the sudden departure of CEO Carlos Tavares in December.

Last year marked by far the lowest total profits that Stellantis has posted since the 2021 merger between Fiat Chrysler Automobiles NV and French automaker Groupe PSA that created the current company, now the third-largest global carmaker in terms of total units.

And although there are indicators of a turnaround, Stellantis executives in an investor call acknowledged 2025 would not be a return to the double-digit profit margins of the prior few years, and significant performance improvements would not occur until the year’s second half.

John Elkann, Stellantis’ board chair, told investors Wednesday that 2024 was “a year we are not proud of,” a sentiment that was quickly echoed by Chief Financial Officer Doug Ostermann, who said it had been “a very rough year.”

The transatlantic company’s adjusted operating income fell 64% to $9 billion (8.6 billion euro), and its margin fell to 5.5% after being in the double digits and among the best in the industry over the prior three years.

Stellantis had told investors in September to expect significantly lower profit margins amid its rocky year — a warning that had caught some off guard, and quickly led to a leadership shakeup before Tavares’ eventual exit. The 5.5% figure aligned with the low end of that updated profit forecast.

Net revenues for 2024 decreased by 17%, to $164.7 billion (156.9 billion euro). And the company’s industrial free cash flows notably plummeted 147% to negative $6.3 billion (6 billion euro) — revealing significant cash burn that investors were also notified about last fall.

Stellantis shares were down close to 4% early Wednesday.

Yet there were at least some signs of a rebound late in the year. A major problem for the automaker in 2024, especially in the United States, had been bloated dealer inventory including older models that had prevented retailers from ordering more new product from the factory.

But Stellantis said by the end of December it had reduced those inventories year-over-year by 18% worldwide, and by 20% in the United States. U.S. dealer stock stood at 304,000 vehicles, below the company’s reduction target of 330,000 vehicles. And the automaker has also begun launching key new vehicles on its new flexible platforms, known as STLA Medium, STLA Large and Smart Car.

The automaker in its earnings statement provided 2025 guidance of positive net revenue growth, a return to positive cash flow, and adjusted profit margins in the “mid-single digits.”

“The future is brighter from where we were in 2024,” Elkann told investors, though he and Ostermann repeatedly acknowledged it would be a slower recovery process, and not to expect large correction in profits or market share this year.

In the carmaker’s profit-rich U.S. market, vehicle sales fell 15% overall in 2024, and 7% for the fourth quarter. But the automaker cut prices and offered deep incentives in the final weeks of the year, which helped pick up the sales pace and clear the glut of older cars off dealer lots.

Stellantis executives are optimistic that, beyond price reductions, several new vehicle offerings in 2025 can help lift sales. In the U.S., those new offerings will include a replacement SUV for the discontinued Jeep Cherokee, filling a key hole in that brand’s lineup; a gas version of the Dodge Charger muscle car; as well as refreshed and all-new Ram pickups that executives are optimistic will be popular with consumers.

But the rollouts and sales success of those vehicles and others could be complicated by sweeping tariffs promised by President Donald Trump and other potential changes to support for electric vehicles. Stellantis has multiple factories in both Canada and Mexico, countries that could face steep new tariffs under Trump as early as next week.

And as it navigates the policy uncertainty, Stellantis is still searching for its next CEO after Tavares left late last year. It formed a special committee to lead the effort led by Elkann. The company said Wednesday the search is “well underway” and pledged to have a replacement in place sometime in the first half of this year.

The carmaker proposed a dividend to shareholders of 71 cents (.68 euro) per share pending their approval.

Stellantis was the last of the Detroit Three automakers to report earnings. General Motors Co. in January posted net 2024 income of $6 billion, well down from 2023 thanks to costly changes to its China and robotaxi operations. And Ford Motor Co. earlier this month said its net income was up substantially last year, to $5.9 billion, beating expectations.

By Luke Ramseth, Tribune News Service

Employees of Stellantis NV represented by the United Auto Workers can expect to see profit sharing checks of $3,780, though some could be more and some less based on hours worked, the automaker said Wednesday.

There are about 38,800 workers eligible for the checks. The payout is a 73% decrease from last year’s $13,860, when about 38,000 employees were eligible.

The profit-sharing announcement is part of the automaker’s annual financial results released Wednesday, and is based on a 4.2% adjusted operating income margin last year in North America. That profit margin is down from 15.4% last year amid major challenges in the region that included a major decline in vehicle sales.

This year’s payouts will be paid on March 7, according to Stellantis.

The profit sharing was calculated based on Stellantis’ 2023 labor agreement with the UAW. Union-represented employees get $900 per 1% of profit margin in North America, based on how how many hours an employee worked last year. That means the final amount may differ depending on employee.

Tweaks to profit-sharing negotiated in the 2023 contract between Stellantis and the UAW included that workers who left the company after Dec. 31 but before profit-sharing checks are cut are still eligible to get the payout.

The union also negotiated a “performance sharing” payout for supplemental workers based on the profit-sharing formula, though far fewer supplemental workers are employed by Stellantis than when the contract was hashed out.

General Motors Co. in January announced record-sharing profit-sharing payouts of up to $14,500 to 48,000 eligible workers. Ford Motor Co., meanwhile, said it would pay bonuses of about $10,208 to its 57,000 eligible workers, just below the amount for 2023.