A trillion-dollar tab for climate change
Good morning! It’s Daniel de Visé with your Daily Money.
With natural disasters and extreme weather events becoming more common, the U.S. real estate market will lose more than a trillion dollars in value as Americans move away from riskier areas and toward those expected to be more resilient, according to a new report.
But the great climate migration of the coming decades won’t be linear, the analysis says. Americans will likely continue to flock to many of the areas that face the most peril, as local amenities and favorable economic conditions outweigh the mounting costs of climate risk.
The cost of Trump's tariffs
President Donald Trump's tariffs on three of the nation's biggest trading partners could have sweeping impact around the world and raise prices for American consumers, Rachel Barber reports.
Trump imposed 25% tariffs on goods from Canada and Mexico, a decision he said he hopes decreases the amount of fentanyl and migrants coming into the U.S. across their borders. The president imposed a 10% tariff on imports from China. The taxes set the stage for a trade war.
Here are some of the products affected.
What about inflation?
The new tariffs will reignite inflation and deal a significant blow to an economy that has been chugging along, economists say.
The Federal Reserve’s preferred annual inflation measure, which was at 2.8% in December, will rise to 3% by the end of the year, estimates Ryan Sweet, chief U.S. economist for Oxford Economics. Sweet had expected the reading to fall to 2.2%, close to the Fed’s 2% goal, without the import duties.
Trump has downplayed inflation worries, but some economists forecast an even bigger impact.
📰 More stories you shouldn't miss 📰
- Mexico orders retaliatory tariffs
- Why do people quit Ozempic?
- A tough time to find jobs
- How to beat inflation at the mall
- When should couples claim Social Security?
About The Daily Money
Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.
Daniel de Visé covers personal finance for USA Today.
