Subaru has slashed Solterra pricing from $44,995 to $38,495.
The 2025 Solterra gains a new Onyx Edition, which features black accents.
The electric crossover will arrive at U.S. dealerships early next year.
Subaru has introduced the 2025 Solterra and announced pricing will start at $38,495 before a $1,420 destination fee. That’s a $6,500 drop, but the delivery fee climbs $75.
Thanks to the change, the Solterra Premium costs less than the Toyota bZ4X XLE AWD. That model begins at $39,150 and has a $1,395 destination fee that brings the combined price to $40,545.
Pricing aside, the 2025 Solterra gains a new Onyx Edition. It costs $45,495 and is based on the range-topping Touring trim.
As the name suggests, the model echoes the bZ4X Nightshade Edition and features a host of dark flourishes. This includes black badging and 20-inch wheels with a black finish. They’re joined by an assortment of other black accents including the roof pillars, shoulder line trim, door frames, and rear spoiler. Buyers will also find black StarTex upholstery and black door trim.
All Solterras are equipped with a 72.8 kWh battery pack, which powers a dual-motor all-wheel drive system producing a combined output of 215 hp (160 kW / 218 PS) and 249 lb-ft (337 Nm) of torque. The Premium trim has an EPA-estimated range of 227 miles (365 km), while higher-end variants are limited to 222 miles (357 km) due, in part, to their larger 20-inch wheels.
Speaking of equipment, the Solterra Premium has LED headlights and 18-inch wheels. Customers will also find a 7-inch digital instrument cluster and an 8-inch infotainment system with Android Auto and Apple CarPlay compatibility. Rounding out the highlights are a leather-wrapped steering wheel, heated front seats, and a dual-zone automatic climate control system.
Since EVs aren’t ideal for long distance trips, customers who purchase or lease a new Solterra gain access to the Subaru Just Drive Rental program. Participating Subaru dealers will provide a free car for up to ten days, so you can get something gas-powered for your family vacation.
2025 Subaru Solterra Pricing
Model
MSRP
Solterra Premium
$38,495
Solterra Limited
$41,995
Solterra Touring
$44,995
Solterra Touring Onyx Edition
$45,495
Prices exclude a $1,420 destination fee ($1,570 in Alaska)
LISLE, Ill. – For the holiday season, Durham School Services’ team members have once again demonstrated their continued commitment to giving back to their communities. Team members from across the country participated in various community events such as holiday food drives, fundraisers, clothing and toy drives, school bus donations, providing complimentary transportation, holiday parades, volunteering at food banks, and more.
These community outreach efforts are carried out as part of the Company’s community outreach program, Partners Beyond the Bus, which aims to raise and increase awareness of and recognize the volunteer efforts of our teams and strengthen ties with our customers and community partners.
A few highlights from the holiday season include:
Little Egg Harbor, NJ – Hosted their annual food drive to provide ten families from four different school districts with a delicious and generous variety of food for the upcoming holiday.
Hutchinson, KS – Together with their partner, Salty Cycles, collected over $5,000 in cash and toys in addition to bicycle donations for the Annual Reno County Toy Run.
California, MO – Participated in the community’s Tipton Christmas Parade and won first place with their spectacular and realistic-looking Grinch themed bus.
Grayslake, IL – Donated transportation to the Great Lakes Naval Station in North Chicago, IL to transport over 100 cadets to enjoy a Thanksgiving dinner at the Veterans of Foreign Wars (VFW) Post 4600.
Jacksonville, FL – Hosted a toy drive for community partner and donated six buses for National Wreaths Across America Day to transport volunteers to and from the Jacksonville National Cemetery where volunteers placed wreaths to honor and remember fallen soldiers.
San Bernardino, CA – Donated a school bus to the All-American Boys Chorus to transport the choir to and from their regular and holiday season concerts and field trips.
“I can’t praise our team members enough for their unmatched generosity and commitment to their communities year-round particularly during the holidays when it can be especially meaningful to so many,” said Tim Wertner, CEO of Student Transportation, National Express. “It is a great honor to work amongst such giving, selfless community heroes who constantly lead by example. As a result of their example, I find myself also learning from their good deeds and actions. Thank you again to all our team members for their dedication to living the Company’s values every day and supporting their communities.”
About Durham School Services: As an industry-leading student transportation provider, Durham School Services is dedicated to the safety of our students and People. For more than 100 years, we have been committed to Excellence and upholding our mission of getting students to school safely, on time, and ready to learn. Through this mission and a grassroots approach to our operations, Durham School Services has earned recognition as a trusted transportation provider among our Customers and the Communities we serve.
Honda’s 0 Series EV lineup will expand to include five SUVs globally by 2030.
Two all-electric sedans are also in development for the next-generation lineup.
A proprietary vehicle operating system will debut at the Las Vegas event in 2025.
Honda is doubling down on its electrified future, and it’s starting to look interesting. Twelve months after providing us with a glimpse of its vision for the next generation of EVs, the Japanese automaker has confirmed plans to debut two new electric vehicle prototypes at the upcoming Consumer Electronics Show (CES) in Las Vegas.
A teaser image gives us a sneak peek at these two prototypes. On the left sits a car that appears nearly identical to last year’s Saloon EV Concept, retaining its signature design elements like the intricate LED taillight, illuminated Honda script, and the diffuser-mounted slim brake light. However, Honda has labeled it a “prototype” rather than a concept this time, suggesting it’s an evolved version. We can’t tell from the shadowy image what’s changed, so we’ll have to wait for its CES debut to see how Honda has refined the design and engineering.
The SUV Grabs the Spotlight
Perhaps of more interest is the 0 Series prototype pictured next to it. This vehicle adopts the form of a boxy SUV and it looks like a big one too, perhaps similar in size to the Hyundai Ioniq 9 and Kia EV9. It appears to lack traditional wing mirrors, has a lengthy wheelbase, and an almost completely vertical rear window adorned with a wraparound LED light bar. Two extra lights are positioned towards the base of the rear bumper.
Last year, Honda provided a preview of the new vehicles that will form part of the 0 Series family. Set to launch in 2026 alongside the saloon are a mid-size SUV and an entry-level SUV. In 2027, these will be followed up by a three-row, large SUV, while a compact SUV has been scheduled for 2028 and a small-size SUV is in the works for 2029. By 2030, Honda will launch 7 vehicles in its 0 Series globally.
It’s not just these two concepts that Honda will bring along to CES. The Japanese brand will also introduce a new proprietary vehicle operating system to be used by its future EVs. New automated driving technologies are also on the agenda.
Honda’s new EVs are based around a “Thin, Light and Wise,” approach. The brand’s CES display will focus on the ‘Wise’ value and also provide a look at the System on Chip (SoC) underpinnings of the 0 Series models, as well as Honda’s future Software Defined Vehicles (SDV).
The offer has returned just after the Model S Long Range prices jumped to $79,990.
Interested customers should know that the offer excludes Teslas used for taxi and rideshare services.
Sales of the Model S are thought to have slipped considerably this year.
The end of 2024 is fast approaching, and Tesla looks eager to sell as many Model Ss as it can before the end of the month. It’s so desperate to sell its flagship electric sedan that it has reintroduced a free Supercharging for life offer that was last available in 2018.
Tesla recently updated its website to reveal that customers who purchase or lease a new Model S after December 13, 2024, will be eligible for free Supercharging. However, the offer does include some important caveats that somewhat limit its appeal.
For starters, the free Supercharging offer is tied to an owner’s Tesla Account and cannot be transferred to another vehicle, person, or order, “even in the case of ownership transfer.” That means any Model S sold at a later date won’t retain free Supercharging. Additionally, Tesla says that “vehicles used for commercial purposes,” including taxi, rideshare, and delivery services are excluded from the promotion. While we’re not sure how Tesla can determine if a vehicle is being used for commercial purposes like this, it’s an important catch to take note of.
Tesla has added that owners remain responsible for Supercharger idle and congestion fees when applicable. The carmaker also says it “reserves the right in its sole discretion to remove the free Supercharging from your vehicle in the event of excessive charging or unpaid fees related to Supercharging.” So, in theory, you could wake up and find your car is no longer eligible for free Supercharging.
Price hikes
The announcement of this deal also comes just a few days after Tesla jacked up prices of the Model S in the US by $5,000, meaning the Long Range now starts at $79,990 and the flagship Model S Plaid is priced from $94,990 before destination fees. While anyone who splashes on a new Model S this month will get free Supercharging, they’ll indirectly be paying for it through this price increase.
With Supercharging costing an average of $0.25 per kWh, $5,000 is about 200 full charges of the Model S’s 100 kWh battery pack.
Tesla does not break down sales for each individual model in its lineup, and as of late, it has grouped together sales of the Model S, Model X, Cybertruck, and Semi into a single figure. In Q2, 21,551 of these models were sold, and Electrek believes sales of the Model S/X may have amounted to between 12,000 and 13,000 units, roughly a ~30% decline from the year prior.
The new screen array will premiere in the next-generation iX3, arriving next year.
US comedian Tim Meadows will host its debut at next month’s CES.
BMW is planning to launch six Neue Klasse models in the coming years.
BMW is gearing up to showcase the latest iteration of its iDrive system and display that’ll be used in upcoming Neue Klasse production models. The new tech will be unveiled at next month’s Consumer Electronics Show (CES) in Las Vegas in a special event hosted by comedian Tim Meadows.
The debut will take place at the BMW Pavilion, and attendees will have the chance to take a close look at the system. It’ll consist of the brand’s first panoramic iDrive display and, according to BMW, set new standards “for in-vehicle experiences with a clear focus on driver orientation, safety, and personalization.”
Images published of Tim Meadows may provide us with a hint of what to expect from the new system. Pictured behind the comedian is the top of a huge steering wheel, an angular infotainment screen, and what appears to be a full-width panoramic display. Both the steering wheel and the infotainment display match up with the Vision Neue Klasse X concept and appear likely to make it to production.
Details about the “panoramic” display are a little murkier. Both the Vision Neue Klasse X SUV and the Vision Neue Klasse sedan concepts had curved full-width displays at the base of the windshield. It’s possible that BMW intends to make these screens a reality for its future production models.
All will be revealed on January 7th at 8:30 a.m. PST. Meadows will be joined by BMW AG chief development officer Frank Weber, head of BMW Group Design Adrian van Hooydonk, and head of UI/UX development, Stephan Durach.
The first Neue Klasse-based production model to hit BMW showrooms will be the next-generation, all-electric iX3, set to adopt a very similar design philosophy to the Vision Neue Klasse X. It will launch next year, while a road-going variant of the Neue Klasse sedan concept is set to arrive in 2026. A further four Neue Klasse models will join the burgeoning family over the following two years.
Wellington, Kansas – Durham School Services (DSS), a student transportation leader committed to serving and giving back to its communities, has donated a school bus to Freewill Baptist Church to use for transportation to community events.
Thus far, the church has utilized the donated bus for several local trips to community events, concerts, church services, and even an out-of-state youth retreat to Oklahoma. Most recently, for the holiday season, the church utilized the bus for a Christmas Home Tour and has plans to go Christmas Caroling at local nursing homes around the community to spread holiday spirit and cheer.
“We are so grateful to be able to provide transportation for our church and community! It’s been a huge blessing to our church,” said Pastor Zane Brooks, Freewill Baptist Church. “Having this bus has allowed for a much more comfortable experience for everyone while traveling to community events. Thank you again for Durham’s generosity. Numerous people have benefited from such a kind gift, and we are all very grateful!”
“As a partner of the Wellington community, we are glad to have had this opportunity to fulfill a transportation void in the community with this bus donation to the Freewill Baptist Church,” said Heather Helpingstine, General Manager, Durham School Services. “When community outreach opportunities present themselves, I am extremely proud to say that our team is always more than willing to step up and give back. This bus donation is an example of that fact. We are happy to be able to offer a helping hand to another partner in the community with whom we respect greatly and does so much for the Wellington community.”
Church members riding the donated Durham bus during their Women’s Christmas House Tour event.From left to right: Pastor Zane Brooks with DSS General Manager Heather Helpingstine and DSS Driver/Church Member Mark Saunders, who delivered the donated bus to the church.
About Durham School Services: As an industry-leading student transportation provider, Durham School Services is dedicated to the safety of our students and People. For more than 100 years, we have been committed to Excellence and upholding our mission of getting students to school safely, on time, and ready to learn. Through this mission and a grassroots approach to our operations, Durham School Services has earned recognition as a trusted transportation provider among our Customers and the Communities we serve.
A spending bill to be debated in Congress this week includes a provision to allow sales of a gasoline blend that includes up to 15% ethanol nationwide throughout the year. (Getty Images stock photo)
A spending bill U.S. House appropriators released Tuesday evening to keep the government open into next spring includes a provision to allow sales of a gasoline blend that includes up to 15% ethanol nationwide throughout the year.
After years of prohibiting the blend, known as E15, from being sold at gas stations during the summer months, the Environmental Protection Agency this year allowed year-round sales in eight Midwestern states. The provision in the stopgap funding bill would allow E15 sales in all states throughout the year.
The provision is a major win for corn producers and their allies in Congress from both parties. Supporters of ethanol, which is derived from corn, say it boosts U.S. production and lowers gas prices.
Sen. Deb Fischer, a Nebraska Republican who sponsored a bill to make the blend available all year, said the move was part of the GOP agenda to “unleash American energy.”
“My bill puts an end to years of patchwork regulations and uncertainty — year-round, nationwide E15 will now be a reality,” Fischer said. “This legislation also delivers on the mandate we received in November to unleash American energy. Not only will my bill lower gas prices and give consumers more choices, but it will also create new opportunity for American producers, who are especially hurting right now from lower prices.”
House Energy and Commerce ranking Democrat Frank Pallone of New Jersey applauded inclusion of the measure, saying it would help reduce gas prices and bolster U.S. energy production.
“By allowing for a higher blend of ethanol in our gasoline, Americans can rely more on homegrown biofuels that save drivers money at the pump and help insulate Americans from dramatic global price fluctuations,” Pallone said in a statement.
U.S. Rep. Don Bacon, R-Neb., one of a handful of farm-state House Republicans pushing for the E15 provision, said in a statement, “Year around E-15 is the most important policy we can embrace for Midwestern farmers and ranchers. I was glad to advocate for this on the Agriculture Committee and to our Speaker, and glad to see it embraced. I also know our entire Nebraska delegation was pulling for this. It is a team win.”
At a U.S. Senate Environment and Public Works Committee hearing last year, Sen. Debbie Stabenow, a Michigan Democrat who chairs the Senate Agriculture Committee, and Sen. Pete Ricketts of Nebraska promoted E15 availability as a way to lower greenhouse gas emissions and lower prices.
The EPA issued a waiver in May 2022 to allow the blend to be available nationwide throughout the year, as President Joe Biden’s administration sought to tame gas prices.
The stopgap measure, known as a continuing resolution, would keep the government funded at current levels through mid-March. It includes a few additional provisions, including funding to rebuild the Francis Scott Key Bridge in Maryland.
The House and Senate are expected to pass the catch-all measure before members depart for their holiday break on Friday. Biden is expected to sign the bill.
Nebraska Examiner reporter Aaron Sanderford and D.C. Bureau senior reporter Jennifer Shutt contributed to this report.
Toyota has announced the 2025 bZ4X will start at $37,070, which is $6,000 less than its predecessor.
The reduction comes shortly after Lexus dropped RZ pricing by more than $11,000.
Limited gains additional equipment, while there’s a new Nightshade Edition based on the XLE AWD.
Lexus recently slashed the price of the 2025 RZ to $43,975 which meant it was $490 cheaper than the 2024 Toyota bZ4X. The mainstream brand is now addressing that discrepancy by cutting the cost of entry to $37,070 before a $1,395 destination and handling fee.
That’s $6,000 less than last year’s model, but the crossover still costs significantly more than the Chevrolet Equinox EV, which starts at $33,600 and has an EPA-estimated range of 319 miles (513 km). That compares to a mere 252 miles (406 km) for the most efficient version of the bZ4X.
The range-topping Limited trim starts at $41,800 for a reduction of $5,380. While the price cut isn’t as drastic as on the XLE, buyers will find three new driver assistance systems. They include Front Cross-Traffic Alert, Lane Change Assist, and Traffic Jam Assist. The latter system is the most notable as it allows for hands-free operation at speeds under 25 mph (40 km/h) on controlled access freeways.
The other big change for 2025 is a new Nightshade Edition. It starts at $40,420 and is based on the XLE with all-wheel drive.
The model has black badging, black door handles, a black spoiler, and 20-inch wheels with a black finish. Buyers will also find a leather-wrapped steering wheel as well as SofTex and fabric-trimmed seats with red contrast stitching.
The 2025 bZ4X is slated to arrive at dealerships early next year and customers will find a familiar powertrain lineup. Front-wheel drive variants have a 71.4 kWh battery pack that powers a 201 hp (150 kW / 204 PS) electric motor. All-wheel drive models have a slightly larger 72.8 kWh battery and a dual-motor setup producing a combined output of 214 hp (160 kW / 217 PS).
A sign protesting Enbridge Line 5 in Michigan. (Laina G. Stebbins | Michigan Advance)
“The land does not belong to us, it is borrowed by us from our children’s children” said Robert Blanchard, chairman of the Bad River Band of Lake Superior Chippewa. “We harvest our wild rice from the waters, we hunt from the land, fish from the lake, streams, and rivers to feed our families and gather the medicines to heal our relatives.”
The Bad River Band cites this relationship with the land in its fight against the Enbridge Line 5 pipeline, which has operated in trespass on the Bad River Band’s reservation for years. Now, the Band and its allies are challenging the Wisconsin Department of Natural Resources (DNR) decision to grant permits that the Canadian oil company Enbridge will need to construct a re-route of the pipeline. The new route no longer trespasses on the reservation, it will still run through the Bad River watershed. The tribe and a coalition of state environmental groups say a spill in that area could be devastating.
Last Thursday, Midwest Environmental Advocates, 350 Wisconsin, the Sierra Club of Wisconsin and the League of Women Voters of Wisconsin filed a petition for a contested case hearing with the DNR, challenging DNR permitting for Line 5. Shortly after filing the challenge, Midwest Environmental Advocates received a report of a 69,000-gallon oil spill in Jefferson County.
According to an accident report shared with Wisconsin Examiner, the spill originated from Enbridge’s Line 6 pipeline. Some 1,650 barrels of crude oil are estimated to have leaked from the pipeline, with 42 gallons to a barrel. When plugged into Google Maps, GPS data in the accident report point to a roadway running through a grassy, wooded area. The map shows that the spill occurred near a waterway that flows into Lake Ripley, not far from a group of nature preserves and campgrounds. Although the pipeline segment had a leak detection system, the accident report states that this didn’t alert anyone to the leak, which was first noticed on Nov. 11 by an Enbridge technician.
Line 6 is one of four pipeliness that run from Superior, Wisconsin, to Illinois. It carries crude oil from Superior to Lockport, Illinois.
Anti-Line 5 graffiti at Enbridge’s pumping station in Mackinaw City, Mich., May 12, 2021. (Laina G. Stebbins | Michigan Advance)
Tony Wilkin Gibart, executive director of Midwest Environmental Advocates, said in a statement that the Line 6 spill highlights the dangers of Line 5. “Consider that in the very same week that DNR issued permits for Line 5 based on its conclusion that the risk for a spill would be ‘low,’ DNR was investigating a significant oil leak on another Enbridge pipeline in Wisconsin,” said Gibart. “DNR’s reasoning for approving Line 5 defies common sense.”
In November, the DNR decided to issue wetland and waterway permits to Enbridge as a step towards moving the pipeline off the Bad River reservation. The DNR highlighted that the wetland permits would include over 200 conditions which Enbridge would need to honor, and which would keep the company in compliance with Wisconsin’s wetland and waterway standards. Both the DNR and the U.S. Army Corps of Engineers would need to approve the permits before construction of the reroute could begin.
“Many of our people will feel the effects if we lose these resources,” said Blanchard. “In my view, the DNR failed our children when it gave Enbridge the permits to build this reroute. They failed to consider the company’s multiple disasters in Minnesota and in Michigan, which are still being cleaned up. They failed to consider our tribe, our water quality, and the natural resources of the entire Bad River watershed. As a tribal chairman and an elder, it’s my responsibility to protect the generations still to come. That’s why we are fighting this reroute in court.”
The Band is represented by EarthJustice in a lawsuit filed against the DNR which, like the petition filed last week by the environmental groups, accuses the state agency of producing an inadequate final Environmental Impact Statement on the reroute which violates the Wisconsin Environmental Protection Act.
Blanchard highlighted his tribe’s reliance on wild rice fields growing along the Bad River and Lake Superior, as well as natural medicines, wild game, and the land itself which are crucial to the Bad River Band’s cultural practices and way of life. Every year the tribe holds an annual wild rice harvest, and Bad River Band members hunt and gather from the land all year.
“If something was to happen during that time, or when that pipeline is in place, you know, it’s really going to affect a lot of things that we do here, and the way that we do things here on the reservation as far as our way of life,” Blanchard warned.
Currently the Line 5 pipeline crosses the Bad River inside the boundaries of the reservation. If the reroute goes through, Enbridge would construct 41 miles of new pipeline to cross the river outside of reservation land. The reroute would still place the natural resources the tribe relies on in danger if an oil spill or leak were to occur.
Enbridge, Sti. Ignace | Susan J. Demas
Stefanie Tsosie, senior staff attorney at Earthjustice, also warned that constructing new pipeline damages natural formations and resources which are often irreplaceable. “Once construction starts they can’t undo the damage,” Tsosie said in a statement. “Enbridge has a terrible track record for pipeline construction and operation. And this place — this watershed and this territory — is not another place they can just plow through.”
Today, an area known as the “meander” is also creating concern for the Bad River Band. “The river is changing course, and it does that throughout the way it runs,” said Blanchard. At the meander where the pipeline crosses, he added, “If we have high water events, flooding, harsh winter with a lot of ice build up, and all that breaks loose in the spring, then we get this high water that very well could take that pipeline out, and cause a spill.”
A billboard promoting Enbridge Inc. (Susan Demas | Michigan Advance)
The tribe is monitoring the situation regularly, but this does little to ease their anxieties. The meander is “quite difficult to get to,” said Blanchard, and it’s also just one area of concern along the pipeline’s route. “A few years back, we had an exposed pipeline coming down one of the sidehills up there,” said Blanchard. “There was quite a ways where the pipeline was exposed and just kind of hanging in mid-air, which could have been disastrous if it wasn’t found and something done about it.”
If Line 5 were rerouted, it would still go through other wetlands and habitats outside the reservation. “These are some of the most treasured areas in Wisconsin,” said Brett Korte, an attorney with Clean Wisconsin. “When we think of the beauty of our state, our precious freshwater resources, the places we must protect, these areas are at the top of the list.”
In a statement, Korte added, “This push from Canadian oil giant Enbridge is getting national attention because what it’s proposing to do here in Wisconsin is dangerous.”
This report was updated with additional information about Line 6.
A customer walks by a display of fresh eggs at a grocery store on Sept. 25 in San Anselmo, California. Grocery prices rose 0.4% in November, according to the Consumer Price Index, leading to tougher times for many during the holiday season. (Photo by Justin Sullivan/Getty Images)
A rise in food prices makes for a less than merry holiday season.
Grocery prices rose 0.4% in November, according to the Consumer Price Index, released this week by the U.S. Bureau of Labor Statistics.
Eggs made one of the biggest jumps at 8.2% over the month, and 37.5% over the past year, providing challenges for people trying to eat a somewhat cheaper protein and families cooking holiday foods such as sugar cookies and jelly doughnuts.
Although the increase in food prices has moderated a bit from past years, they are still more than 20% higher than they were before the pandemic, according to David Ortega, at Michigan State University.
“It was a key issue in the election in terms of people really feeling that sticker shock at the grocery store,” said Ortega, a food economist.
President-elect Donald Trump vowed to bring down prices during his campaign and blamed the Biden administration for how they reached this point. But in an interview with TIME published this week, Trump said he does not believe his presidency would be a failure if grocery prices do not come down.
“It’s hard to bring things down once they’re up,” he said.
Price changes to understand before you set the holiday table
The increase in grocery, or food at home prices, was partly driven by the rise in egg and beef prices, Ortega said. He said the price of holiday roast has been affected by drought and high feed prices. This year, the inventory of beef cattle was the smallest beef herd since 1951.
“On eggs, the story continues to be bird flu together with increased consumer demand given the holiday season,” he said following Wednesday’s release of the latest Consumer Price Index. “And for beef the issue is supply — high input costs and decisions that beef producers made a couple of years back when they were facing drought and high feed prices which has reduced beef supply, and this in turn is affecting beef prices.”
The latest food price numbers presented a mixed bag for holiday shoppers looking to bake treats this month. Flour and prepared four mixes fell 1% and bread decreased 1.3%, while sugar and sweets rose 0.2%, and butter ticked up 1.5%.
Oranges, including the popular stocking stuffers tangerines, fell 1.8% in the latest Consumer Price Index report.
The rise in cost of eating your meals at home compared to the rise in cost of eating out is also getting narrower, with the gap in inflation between restaurant menu prices and grocery year-over-year prices being the narrowest it has been since May 2023, according to Supermarket News. Food at home in previous reports rose 0.2% and 0.4% compared to 0.2% and 0.3% for the past two food away from home reports.
Are companies profiting off of uncertain times?
Rakeen Mabud, chief economist at the Groundwork Collective, a left-of-center economic think tank, said that just a few seed producers, meatpackers, and grocers dominate the food industry, which is a key part of the story of what drives grocery prices. This hurts lower-income shoppers the hardest. Oklahoma, Iowa, and Arkansas are some of the states most dominated by a single grocer, such as Walmart or Hy-Vee.
“Across the food and grocery industry, we have a sector that is deeply consolidated,” Mabud said. … And so when you have big companies controlling such large chunks of the market, we know that they have used things like inflation, things like supply chain shocks to jack up prices far beyond what their input costs to justify.”
Mabud said that when there is this level of market concentration, companies can signal to each other in earnings calls that they are going to start raising prices.
“If you know that your only other competitors are also raising prices, there’s kind of no reason for you to try to undercut them if you both hold giant shares of a market,” she said.
An economic paper published this year found that companies are able to coordinate price increases around cost shocks and increase profits from these events. Mabud said the holidays provide plenty of opportunity for the food industry to raise prices on things people ordinarily don’t buy and don’t have a price comparison for during a less in-demand season.
“Grocers and the food industry kind of know that they know that they have more information about the underlying cost of a good than a consumer who only comes to buy the Christmas ham once a year. And so they can take advantage of that,” she said.
An unhappy new year for grocery shoppers
Economists are watching out for how the next administration will impact food prices.
Trump’s promise to impose heavy tariffs on the U.S.’s biggest trading partners – Mexico, Canada and China – are expected to drive up the cost of everything, including groceries.
Products the U.S. can’t produce year round, like fruit and coffee, will be affected, Ortega said.
“There’s still a lot of uncertainty in terms of whether these tariffs are really going to be implemented or are they a negotiating tool? But that creates a lot of uncertainty,” he said. “Even that amount of uncertainty can lead to a rise in costs as companies prepare for the potential of these tariffs taking place.”
Trump’s expected policy of mass deportation of immigrants will also affect the agriculture industry, in addition to the major human rights implications.
“If there’s a mass deportation that is a shock to the labor supply and the agricultural sector. And that will lead to an increase in costs as producers and companies have to offer higher wages to attract enough labor. Ultimately that gets passed down to the consumer in the form of higher prices,” Ortega said.
Mabud is also concerned that expected tariffs could mean companies take advantage of the policy change well beyond the actual financial impact to their business.
“It’s a policy change where consumers don’t necessarily know how much the price of an avocado is going up because of a tariff versus a supply chain issue versus the grocery store just wanting to increase the price,” she said.
Patricia “Pogo” Overmeyer, 65, who works as a lawyer in Arizona and lives with her retired husband, said she has always been focused on how to save money on groceries. But she said she has become even more thrifty since inflation worsened.
She said she’s been using more meatless meals and stocks up on holiday food all year round when prices are low, some of which she freezes and cans.
“Once I retire, our income will not be as high,” she said, “Most likely I will forgo some foods or make substitutions. It’s anyone’s guess as to what we will be paying for groceries.”
President Joe Biden on Thursday, Dec. 12, 2024, commuted the sentences of roughly 1,500 people and granted pardons for 39 individuals with convictions for nonviolent crimes. (Photo by Caspar Benson/Getty Images)
WASHINGTON — President Joe Biden Thursday commuted the sentences of roughly 1,500 people who were placed in home confinement during the coronavirus pandemic, and granted pardons for 39 individuals with convictions for nonviolent crimes.
“America was built on the promise of possibility and second chances,” Biden said in a statement. He noted many of the 1,500 were serving long sentences that would be shorter under current laws, policies and practices.
As the Biden administration winds down, it’s the largest single-day grant of clemency in modern day history.
The president added that his administration will continue to review clemency petitions before his term ends on Jan. 20. There are more than 9,400 petitions for clemency that were submitted to the White House, according to recent Department of Justice clemency statistics.
“As President, I have the great privilege of extending mercy to people who have demonstrated remorse and rehabilitation, restoring opportunity for Americans to participate in daily life and contribute to their communities, and taking steps to remove sentencing disparities for non-violent offenders, especially those convicted of drug offenses,” Biden said.
Those 39 people who received pardons included 67-year-old Michael Gary Pelletier of Augusta, Maine, who pleaded guilty to a nonviolent offense, according to the White House, which provided brief biographies of the pardoned individuals.
After his conviction, Pelletier worked for 20 years at a water treatment facility and volunteered for the HAZMAT team, assisting in hazardous spills and natural disasters. He now grows vegetables for a local soup kitchen and volunteers to support wounded veterans.
Another pardon was granted to Nina Simona Allen of Harvest, Alabama.
Allen, 49, was convicted of a nonviolent offense in her 20s, the White House said. After her conviction, she earned a post-baccalaureate degree and two master’s degrees and now works in the field of education. Additionally, she volunteers at a local soup kitchen and nursing home.
Hunter Biden pardon
The clemency action came after the president gave a full pardon for his son, Hunter Biden, on gun and tax charges and any other offenses, from 2014 until December. The president previously stated he would not pardon his son, but changed his mind because he said his son was constantly targeted by Republicans.
Additionally, advocates and Democrats have pressed Biden to exert his clemency powers on behalf of the 40 men on federal death row before President-elect Donald Trump returns to the White House. Democrats have pushed for this because Trump expedited 13 executions of people on federal death row in the last six months of his first term.
The co-executive directors of Popular Democracy in Action, a progressive advocacy group, Analilia Mejia and DaMareo Cooper, said in a joint statement that Biden should “not stop now.”
“Thousands more of our people who have been wronged by an unjust system are still waiting for freedom and compassion,” they said.
Those with nonviolent offenses who were pardoned by the president, according to the White House:
Toyota isn’t expected to make many significant changes to the 2025 bZ4X.
The electric SUV is offered with $10,000 in lease cash across several US regions.
However, shoppers can still pick up a 2024 bZ4X with $16,250 in lease cash, so it may be the better option.
Toyota is getting ready to launch the 2025 bZ4X, but it’s already sweetening the deal with some hefty leasing and financing incentives, before you even get a glimpse of the new model at dealerships.
The 2025 Toyota bZ4X is currently available with up to $10,000 in lease cash in select US regions, including Los Angeles, Boston, Denver, Portland, and San Francisco, until January 6, 2025. Final lease terms are still under wraps, but Toyota’s offering a deal that essentially amounts to 0% financing, likely in a bid to pull more people that it already has into its electric crossover, developed in partnership with Subaru.
If you want to walk away with an electric Toyota at a compelling rate, you’re not just limited to the 2025 model. The outgoing 2024 version is also offered with an even bigger $16,250 lease incentive in many regions across the country and a money factor equivalent to 0% APR.
According to Cars Direct, residents in Southern California can pick up the keys to one for $219 per month for 36 months with a $2,999 downpayment. That works out to be the equivalent of $302 per month and while it’s not the single cheapest new EV on the market to lease, it is very affordable and even cheaper to lease than a 2025 Toyota Corolla, underscoring Toyota’s aggressive push to make EVs accessible.
Very few changes are expected for the 2025 bZ4X. It may get a few new trim options, but mechanically, it will likely be identical to the model it replaces. It should also hit the market with a largely unchanged exterior and interior. The bZ4X is currently offered with single and dual-motor versions, rated at 201 hp and 214 hp respectively.
For those of you set on grabbing the 2025 model, financing deals are also on the table: 0% APR for 72 months, plus $2,500 in Toyota Financial Services Subvention Cash. It’s not going to set the world on fire, but for what’s essentially a tweak on an existing model, it’s a smart way to move metal while keeping the price competitive.
MERIDIAN, Idaho – Durham School Services recently welcomed Mayor Simison of Meridian to its new facility and introduced its advanced fleet of buses.
During his visit, Mayor Simison was given a tour of Durham’s brand-new facility by General Manager Samuel Ray while Safety Training Supervisor Terry Marinos proudly showcased a bus from Durham’s new 200+ bus fleet. The mayor was also given an in-depth overview of the safety technology and other features aboard all of Durham’s buses. This includes DriveCam (driver safety monitoring system), Zonar (pre and post trip inspection reporting), CCTV, LED lights, and more.
“This visit from Mayor Simison was an exciting experience. In addition to showcasing our facility and buses, it gave us the special opportunity to display the incredible safety technology we use to transport the students of Meridian safely, every day. It also allowed us to highlight the phenomenal hard work our team put into ensuring a successful school start-up for the school district,” said Samuel Ray, General Manager, Durham School Services. “Moreover, we were able to reaffirm our Company’s values and commitment to always providing safe and reliable service. I’d like to thank Mayor Simison for his visit and sincerity in learning about our bus operations. It was an honor.”
Durham School Services currently serves the West Ada School District, the largest district in the state of Idaho. This new five-year partnership was announced in February and consists of 200 routes. In early November, the Durham and West Ada team were recognized at the district’s board meeting for a “smooth and effective” school start-up.
About Durham School Services: As an industry-leading student transportation provider, Durham School Services is dedicated to the safety of our students and People. For more than 100 years, we have been committed to Excellence and upholding our mission of getting students to school safely, on time, and ready to learn. Through this mission and a grassroots approach to our operations, Durham School Services has earned recognition as a trusted transportation provider among our Customers and the Communities we serve.
Cadillac’s new flagship electric SUV is offered in four different trim levels.
All models are powered by the same 200+ kWh battery pack and twin electric motors.
Pricing for the top-tier flagship model begins at $150,490 before optional add-ons.
It’s been a lengthy 16 months since the 2025 Cadillac Escalade IQ first debuted, but only now has the automaker confirmed its full specs, including the electric SUV’s driving range. The Escalade IQ boasts an impressive GM-estimated range of 460 miles (740 km), setting a new standard for the Escalade lineup.
As anticipated, the electric SUV commands a premium price tag, starting at $130,000 ($129,990, to be exact) and topping out at $150,490 before factoring in a $2,290 destination and handling fee or optional add-ons. For perspective, this represents a considerable jump over the gas-powered Escalade, which starts at $89,950 for the base RWD model and maxes out at $121,890 for the long-wheelbase ESV Platinum trim. That said, the IQ still slots below the $164,990 V-Series ICE flagship.
And that’s without factoring in the reality that, like most—if not all—EVs, the Escalade IQ is likely to experience significantly steeper depreciation compared to any other major vehicle types. This might be something worth considering for buyers weighing the commitment of a six-figure investment.
Four Trim Options
Cadillac is going to sell the Escalade IQ with a single powertrain option. The entry-level model is the Luxury 1 and comes standard with huge 24-inch polished wheels with black accents, an illuminated grille, basic LED headlights, and Galvano door handles.
Shoppers who want something that looks a little sportier can opt for the Sport 1, priced from $130,490. It has most of the same features as the Luxury 1 but sits on different 24-inch wheels with black center caps, features body-colored door handles, perimeter lighting, and Hudson Metallic nameplates.
Then we get to the two range-toppers, the Luxury 2 and the Sport 2, priced from $149,990 and $150,490, respectively. These models add trick new slim HED vertical headlights, better seats, a 36-speaker AKG Studio Reference audio system, power-adjustable second-row massage seats, and some extra standard safety features, including a wired trailer view camera. The Luxury 2 and Sport 2 can also be optioned with the Executive Second Row Seating Package.
2025 CADILLAC ESCALADE IQ MSRP
TRIM
*MSRP
Luxury 1
$129,990
Sport 1
$130,490
Luxury 2
$149,990
Sport 2
$150,490
*MSRP excludes a $2,290 destination and handling fee
SWIPE
This option, priced at $7,500, adds an 8-inch rear screen, second-row executive seating with heating, and ventilation, a 10-point power massage function, dual wireless chargers, a custom rear floor console, tray tables, and a 40-speaker AKG audio system.
One Powertrain, Plenty of Power
As mentioned, regardless of trim, the Escalade IQ packs the same all-electric powertrain: a mammoth battery with over 200 kWh of capacity powering dual electric motors. Together, they produce 680 hp and 615 lb-ft (834 Nm) of torque. Enable the Velocity Max drive mode, and output spikes to 750 hp and 785 lb-ft (1,063 Nm), launching the luxury SUV from 0 to 60 mph (96 km/h) in under five seconds.
There’s no word on how long it takes to fully charge the massive battery, but Cadillac says the 800-volt electrical architecture means up to 100 miles (161 km) of range can be added in 10 minutes through a DC fast charger.
The SUV has been designed exclusively for the Chinese market and will be built with GAC.
Powering entry-level models is a 50 kWh lithium-iron-phosphate battery pack.
Despite the SUV’s bargain price, it comes loaded with driver assistance systems.
The electric vehicle market in China is increasingly becoming a battleground for automakers looking to offer more for less, and Toyota’s latest entry, the bZ3X, promises to shake things up. Launched in partnership with Toyota’s GAC joint venture, this electric SUV is priced to undercut much of the competition, starting at just 100,000 yuan ($13,800) and capping out at 200,000 yuan ($27,500). With first deliveries slated for March next year, Toyota is making a serious play for value-conscious EV buyers.
Compact Power, Long(ish) Range
The entry-level model, known as the 430 Air+, comes equipped with a 50.03 kWh lithium-iron phosphate battery pack. That’s quite a small pack for an SUV of this size, but Toyota says it’s good for 430 km (267 miles) of range on a single charge. However, this is under the CLTC cycle, which is known to bequite generous. This battery powers a single electric motor with a quoted 221 hp (165 kW).
In addition to the 430 Air+, the SUV will also be available in 520 Pro+ and 620 Max forms, although limited details about these variants are known. If the naming strategy is any indication, they could have 520 km (323 miles) and 620 km (385 miles) of range respectively, which might necessitate a larger battery pack.
The bZ3X is sized competitively within the compact SUV segment, measuring 4,600 mm (181.1 inches) in length, 1,875 mm (73.8 inches) in width, and 1,645 mm (64.7 inches) in height, with a wheelbase of 2,765 mm (108.8 inches). It has a curb weight of 1,835 kg (4,045 lbs).
Toyota has been working on the bZ3X for quite some time and previewed it earlier in the year alongside the smaller bZ3C crossover. The cabin of the bZ3X seems to be quite well-equipped and as standard, includes a 14.6-inch infotainment display and an 8.8-inch digital instrument cluster. It also rocks a two-spoke steering wheel, a wireless phone charger, and a split center console. An 11-speaker Yamaha audio system comes standard.
Perhaps most impressive is all the safety technologies that Toyota has crammed into its new EV. It’s equipped with no less than 11 high-definition cameras, three millimeter-wave radars, a lidar, and 12 ultrasonic sensors, enabling a raft of driver-assistance systems.
Dodge dealers are in line to make a killing on every new Charger Daytona EV they sell, a new report says.
Cars Direct claims dealers could pocket $3,246 based on the difference between the invoice price and MSRP.
Markups could balloon that figure – one dealer told reporters Daytonas would sell for at least $10k over list price.
Dodge dealers are set for some big paydays if they can persuade drivers to take a new Charger EV home. A new report claims retailers could bank thousands of dollars on every 2024 / 2025 Charger Daytona they sell, and that’s before the inevitable markups enter the conversation. For dealerships, it’s a windfall. For buyers? Well, that depends on how much they’re willing to shell out for Dodge’s electrified muscle revolution.
According to Cars Direct, which analyzed the difference between dealers’ internal Stellantis order guide invoice pricing (the price the dealer pays Dodge) and the MSRP for the same vehicles and found high-spec Daytonas could generate over $3,200 for the retailer.
The investigation revealed the base Charger Daytona has a before-options MSRP of $57,995, but an invoice price of $55,096, meaning the dealer will pocket $2,899 from a straight cash sale. That compares with an invoice-to-MSRP difference of just $607 on a 2023 Challenger SXT, which sounds very low, although dealers also get deals from automakers and may often pay below invoice for a car.
Things get even more lucrative if the buyer is looking at the sportier Scat Pack. The official invoice price for one of those is $61,746, so if the dealer sells at MSRP, he could bank $3,246. But we’re talking about one of the most hotly anticipated American performance cars of the year. The dealers likely aren’t going to be selling at MSRP. One dealer in Scottsdale, AZ, told Cars Direct Daytonas will be slapped with a markup of at least $10k.
Markups Meet EV Transparency
The report suggests Dodge might have purposely built dealer profit into the Charger to avoid markups being applied, and because EVs tend to have more transparent prices. But if other dealers have the same attitude as the Arizona one in the story, the strategy has not worked.
Whether the Daytona EV can handle those kind of markups once the initial rush of excitement is over remains to be seen. Dodge might bring forward the introduction of the combustion-powered, six-cylinder Charger because that’s where customers are indicating they want to spend their money.
But presuming it is the electric version of the Charger you want and you can find a dealer who isn’t going to fleece you with a crazy markup, there are some good deals around that make it a tempting package. Dodge is offering $549 per month lease deals and giving buyers 0 percent APR for up to 72 months.
With zero down, the LR Dual Motor’s effective lease payment is $599 per month.
Polestar is also offering 0% financing on its SUVs until January 2, 2025.
Prices for the twin-motor Polestar 3 start at $73,400 excluding delivery.
Hot on the heels of Polestar starting production of the entry-level, single-motor 3 in the US at its Charleston, South Carolina facility, the electric carmaker has announced new financing and lease deals for some of the higher-end models. While Polestar is in a little bit of turmoil, the 3 is a compelling option for those in the market for a high-end electric SUV.
American customers eyeing the 2025 Polestar 3 Long Range Dual Motor with the Pilot Standard Pack can now lease one for $599 per month over 36 months. However, this excludes a hefty $5,599 down payment. When factoring in this upfront cost, the effective monthly payment rises to $755, with mileage capped at 10,000 miles per year.
Over the life of the lease, this works out to be $27,163. Previously, this version of the Polestar 3 had commanded $699 per month for 36 months.
Of course, these are the advertised rates, so your mileage may vary depending on your haggling skills, the dealership’s flexibility, your ability to negotiate a lower capitalized cost (negotiated price of the car, including fees), and whether you can secure a more favorable money factor (interest rate). As always, persistence and careful negotiation can make a significant difference in the final cost of a lease.
One key reason shoppers may lean toward leasing rather than outright purchasing the Polestar 3 is the $7,500 lease cash currently available. This contrasts with its ineligibility for the $7,500 federal EV tax credit when purchased outright, despite the fact that the model is manufactured in the U.S.
0% Financing
Polestar has also rolled out a new financing offer for the electric SUV, which might be a better deal if you want to keep the car. A bulletin recently sent to dealers reveals it’s eligible for 0% financing for 60 months for all variants, excluding the new single-motor version. Cars Direct says the financing rate had previously been sent at 6.99%, meaning buyers can now benefit from $15,000 in savings. Both the new lease and financing deals run until January 2, 2025.
Specs and Pricing
Pricing for the dual-motor Polestar 3 starts at $73,400 (excluding destination). This model pairs a 111 kWh battery pack with two electric motors, producing a combined 489 horsepower and 620 lb-ft (840 Nm) of torque. The setup delivers an EPA-estimated range of 315 miles (507 km) on a full charge.
For those wanting more luxury and performance, Polestar offers a $78,900 version of the Long Range Dual Motor model, which includes the Plus Pack. This adds premium features such as heated rear seats, a 25-speaker Bowers & Wilkins audio system, and 21-inch wheels.
The Polestar 3 family also includes the Long Range Dual Motor w/Pilot and Performance Pack, and the Long Range Dual Motor w/Pilot, Plus Pack, and Performance Pack, priced from $79,400 and $84,900, respectively.
The 30-foot balsam fir serving as Wisconsin's 2024 capitol tree was donated by a Rhinelander family.(Henry Redman | Wisconsin Examiner)
Government employees, children in snow pants warding off the frigid early-December temperatures and Smokey the Bear gathered in the pine-smelling rotunda of the Wisconsin Capitol Thursday afternoon to light this year’s state holiday tree.
This year, the tree commemorates the 125th anniversary of Wisconsin’s state parks, which began with the opening of Interstate State Park on the St. Croix River in northwest Wisconsin in 1900. Hundreds of ornaments handmade by kids from across the state celebrate outdoor recreation in Wisconsin.
“Wisconsin is a treasure of natural beauty and wonder,” Gov. Tony Evers said before the lighting of the 30-foot balsam fir, donated by a Rhinelander family.
Smokey the Bear and a seventh grader who spoke about what Wisconsin’s state parks mean to her flipped the switch to light the tree’s 10,000 multi-colored lights.
Evers says new DNR secretary has been chosen, wants to keep focus on budget
At a news conference shortly after the tree lighting, Evers said that he has selected someone to take over as secretary of the Department of Natural Resources — a position that has been vacant for more than a year after former Secretary Adam Payne resigned last October.
Evers wouldn’t say who the nominee is, but said it would be a woman.
The governor also said he wouldn’t weigh in on the primary election in next spring’s campaign for a new Superintendent of the Department of Public Instruction and that April’s state Supreme Court race is “a huge, huge election,” but that the Court doesn’t make the law so he wanted to focus on the branch that does so.
He told reporters that he hasn’t spoken with Assembly Speaker Robin Vos since November’s election. The relationship between Evers and Republicans in the Legislature has often been frosty, and he said he didn’t think that would change. But Evers said that in the upcoming legislative session, in which the two chambers are more closely divided than in recent years, it would be necessary for the two parties to work together to find solutions.
“I don’t think it’ll be much different,” Evers said. “They’re going to be huffing and puffing and I’m going to be huffing and puffing so on and so forth. But I believe that the makeup of the Legislature is going to make it imperative on all of us to come to some reasonable conclusions. We’ll see what happens.”
“We’ll propose something, they’re going to save it or throw it out,” he continued. “We get five minutes together and get something accomplished. But at the end of the day, my priorities are in the budget.”
Polestar has begun producing the 3 Long Range Single Motor, which starts at $67,500.
The crossover sports a rear-mounted motor producing 295 hp and 361 lb-ft of torque.
The entry-level variant comes nicely equipped and has an EPA range of up to 350 miles.
The Polestar 3 lineup is expanding as the company has begun building a new entry-level variant in Charleston, South Carolina. Known as the Long Range Single Motor, the latest version of the electric crossover starts at $67,500 before a $1,400 destination fee.
That’s $5,900 less than the dual-motor all-wheel drive variant and the good news doesn’t end there as the entry-level model has an EPA range of up to 350 miles (563 km/h). That’s 35 miles (56 km) more than its counterpart.
However, there are some obvious tradeoffs as the crossover has a rear-mounted motor producing 295 hp (220 kW / 299 PS) and 361 lb-ft (489 Nm) of torque. This results in a 0-60 mph (0-96 km/h) time of 7.5 seconds. When it comes time to replenish the 111 kWh battery pack, a 250 kW DC fast charger can take it from a 10-80% charge in as little as 30 minutes.
The Polestar 3 Long Range Single Motor comes nicely equipped with LED headlights, rain-sensing wipers, and acoustic windows. They’re joined by a panoramic glass roof, a power liftgate, and 20-inch wheels.
Moving inside, drivers will find a 9-inch digital instrument cluster and a 14.5-inch infotainment system. Other highlights include eight-way power heated front seats, a tri-zone climate control system, a wireless smartphone charger, and a 10-speaker audio system.
An assortment of driver assistance systems come standard including Pilot Assist, Lane Change Assist, Adaptive Cruise Control, and Blind Spot Information with Steer Assist. Buyers will also find Lane Departure Warning, Road Sign Information, and Rear Collision Warning and Mitigation.
An assortment of options are available including a $5,500 Plus Pack that adds a 25-speaker Bowers & Wilkins audio system, a head-up display, a heated steering wheel, and heated rear seats. The package also includes soft-close doors, a power-adjustable steering column, and a foldable load floor.
The Polestar 3 Long Range Single Motor will also be offered in Europe where it will have a WLTP range of up to 438 miles (706 km). German pricing starts at €79,890 while Brits will need to shell out £69,900.
A scene on tariffs from Ferris Bueller’s Day Off in 1986 is getting some extra attention. (Paramount Pictures.)
Fans of the movie, “Ferris Bueller’s Day Off,” will remember the scene. Ben Stein plays a famously boring high school teacher giving a lecture about economics to a room full of teenagers fighting to stay awake. In about a minute, he covers the Smoot-Hawley Tariff Act and the Laffer Curve, fundamental economic topics, desperately trying to get the students to engage with him.
“Anyone? Anyone…” is the memorable device Stein uses, to no avail, to engage an audience who couldn’t care less.
Some analysts say the economy is the reason voters chose Donald Trump for a second term in last month’s election. His economic plan is rooted in the broad and cavalier use of tariffs on imports from friends and foes alike. Last week, he announced his plan to impose 25% tariffs on Canada and Mexico. The announcement prompted a surprise visit from Canadian Prime Minister Justin Trudeau, and a phone call from Mexican President Claudia Sheinbaum.
Meanwhile, the American public, particularly Trump voters, remain in an economic daze much like Ben Stein’s class.
The Smoot-Hawley Tariff Act was passed in 1930 in an attempt to thwart the impacts of the Great Depression. It was legislation initially designed to provide relief to the American agriculture sector but became “a means to raise tariffs in all sectors of the economy.” It also marked the end of an entrenched Republican platform of protectionist policymaking during that era. The policies ended because they were…anyone…anyone? Failures.
The details
Ignorance has become a vital asset in the political space these days. Yes, it is an asset in politics, but it is the devil in economics.
As a political asset, there are voters who believe that simply throwing a tariff at any nation they are mad at has nothing but benefits. Mad at Mexico because of migration? Slap them with a tariff and border crossings will go down, right? A good number of voters believe the answer is yes. Though this is almost entirely wrong, politically speaking, that ignorance served the pro-tariff candidate in November.
Economically however, the only real certainty that a 25% tariff on Mexico will have, is a 25% price increase in America. There actually is no disagreement on how tariffs functionally work, but I will refer to PBS for a simple explanation. Importers here pay the tariff, otherwise known as a tax, and remit that payment to the U.S. Treasury. How they pass that increase in costs along may vary a little from merchant to merchant, but ultimately it ends up in the price the American consumer pays.
Yes, a tariff program, in the most basic sense, is government imposed price increases. So, if high prices are the reason why an American voted against the current party in power, voting for higher prices seems, well, ignorant.
Now, does a tariff hurt who the angry American is mad at? Sure. In our example, Mexican goods become less affordable if a tariff is applied to them. In that sense, a tariff can hurt who it is designed to hurt. But that doesn’t change the fact that Americans pay the tariff, not the other country.
Many voters have the perspective that Trump imposed tariffs during his first term, and everything worked out fine. The Associated Press reports, “When Trump first became president in 2017, the federal government collected $34.6 billion in customs, duties and fees. That sum more than doubled under Trump to $70.8 billion in 2019, according to Office of Management and Budget records.” That sounds like a lot of money, until it is put in the context of the current $29.3 trillion gross domestic product.
The tariffs Trump is discussing in 2024 are wildly bigger and are being threatened toward virtually every country. But that’s not the only thing different between 2024 and 2017.
What else is different?
Anyone? Anyone?
The economy that Trump inherited in 2017 is sharply different than the one he will inherit in January. Inflation eight years ago was low and had been for a long time. Interest rates were also low and had been for a long time. The 2016 election wasn’t about inflation, and those rather small tariffs weren’t either. But times have changed.
For the life of me, I cannot find any credible theory as to how raising prices on imported goods will have the effect of lowering prices. I’ve written that sentence six times, and I know it reads like gibberish, but I just can’t help it.
Simply put, tariffs raise prices. After a bout with historic global inflation, consumers are exhausted with high prices. We can all agree with that part.
But there is a word for thinking that raising prices will actually lower them.
Anyone? Anyone?
Ohio Capital Journal is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Ohio Capital Journal maintains editorial independence. Contact Editor David Dewitt for questions: info@ohiocapitaljournal.com. Follow Ohio Capital Journal on Facebook and X.
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