CNBC Business News Update Market Midday: Stocks Lower, Uncertainty Over China Trade, Retailers Are Dancing To Handle Tariffs 5/30/25
May 30, 2025
Stock markets are feeling the heat from trade war anxieties with China, leaving investors on edge. Inflation numbers may be improving, but they’re getting lost in the worry. Retailers are bracing for a significant spike in tariffs, with rates soaring from 2.5% to 21%. Walmart is strategizing price hikes, while Ulta Beauty shines amid the turmoil. Also, updates on SpaceX’s Texas operations add an interesting twist to the business landscape.
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Jamie Dimon on China Trade War
- J.P. Morgan CEO Jamie Dimon shared his recent visit to China and observations from the Reagan National Economic Forum.
- He warned about China's preparation for a trade conflict and emphasized focusing trade on national security related goods.
Inflation vs Tariffs
- Inflation dropped to 2.1% in April, lower than expected, signaling easing price pressures.
- However, current prices reflect past tariff regimes; future cost increases are expected due to higher tariffs.
Retailers Brace for Tariff Impact
- Retailers face higher costs due to tariffs despite trying to move production out of China.
- The 30% tariff from China and 10% from elsewhere will hit retailers in the second half of the year.