The Philadelphia Mint will strike its final batch of one-cent coins on Wednesday, marking the end of a production run that began in 1793.

Though pennies will remain in circulation, the phase-out has prompted businesses to adjust prices, as coins become increasingly scarce.

Why the Penny Is Being Retired

Pennies, made of copper-plated zinc and honoring President Abraham Lincoln, now cost nearly four cents each to produce, more than double the cost a decade ago, according to the Treasury Department.

The government estimates that ending penny production will save about $56 million per year. President Donald Trump, when announcing the plan in February, said it would “rip the waste out of our great nation’s budget, even if it’s a penny at a time.”

The move reflects the rise of electronic payments, which has made the penny increasingly irrelevant. The Treasury estimates about 300 billion pennies remain in circulation, far exceeding commercial demand.

Impact on Consumers

While many pennies remain unused in piggy banks—around 60% of coins in circulation—businesses may begin rounding prices, potentially increasing costs for shoppers. A Richmond Federal Reserve study estimated this could cost consumers $6 million annually.

Global Context

Other countries have already phased out low-value coins:

• Canada: Last one-cent coins produced in 2012

• Australia & New Zealand: Retired one- and two-cent coins in the 1990s

• New Zealand: Stopped production of five-cent coins in 2006

• UK: Planned 1p coin removal in 2018, later withdrawn; production halted in 2024 due to sufficient circulation

Next Target: The Nickel

Attention in the US is now on the nickel, which costs nearly 14 cents to produce. Retiring it could save far more, but would impact consumers more heavily, with a Richmond Fed study estimating a $55 million annual cost increase.

Source: BBC – US ends penny-making run after more than 230 years

The post US Mint Strikes Final Penny After More Than 230 Years appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Published Time: 08-13-2025, 15:00

President Donald Trump has publicly criticized Goldman Sachs following a report suggesting that U.S. consumers are likely to bear the majority of costs from higher tariffs. Trump questioned the bank’s economic analysis and recommended that CEO David Solomon hire a new economist, reigniting debate over tariffs, inflation, and corporate forecasting.

Trump Challenges Goldman Sachs’ Economic Analysis

In a post on Truth Social on Tuesday, former President Donald Trump questioned the conclusions of Goldman Sachs’ economists, asserting that tariffs have not contributed to inflation or other economic issues. He stated, “Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury’s coffers. David Solomon and Goldman Sachs refuse to give credit where credit is due.”

Trump also directed criticism at Goldman Sachs CEO David Solomon, suggesting he either hire a new economist or return to his former career as a DJ, jokingly noting, “I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution.”

Solomon, who previously performed at high-profile events as a DJ, stepped away from his entertainment pursuits under pressure from Goldman Sachs’ board two years ago.

Goldman Sachs’ Tariff Report Predicts Consumer Costs

Over the weekend, Goldman Sachs’ economists released a report indicating that Americans had absorbed 22% of tariff costs through June, with the share expected to rise to 67% by October if tariffs follow trends observed in earlier rounds. While Trump did not specifically reference the report, his remarks appear to respond to the broader implications of its findings.

The bank has declined to comment on the former president’s statements.

Chief Economist Jan Hatzius Gains Attention

Goldman Sachs’ chief economist, Jan Hatzius, authored the report predicting higher consumer costs. Hatzius is widely respected in both policy and financial circles, regularly consulting with figures such as President Joe Biden and Federal Reserve Chair Jerome Powell.

Hatzius was noted for accurately forecasting that the U.S. economy would avoid a recession in 2023, a prediction that set him apart from many other economists. His forecasts on tariff-related consumer costs align with other major financial institutions, which have also warned that tariffs may lead to increased prices for consumers over time.

Inflation and Consumer Price Trends

Despite concerns about tariffs, recent inflation data suggests that price increases remain moderate. The U.S. Consumer Price Index (CPI) for July showed a 0.2% monthly rise, keeping the annual inflation rate at 2.7%. This data indicates that, so far, the direct impact of recent tariffs on consumer prices has been less pronounced than some projections had suggested.

Economists note that while tariff-related price effects can be delayed, the current CPI trend suggests limited immediate consumer impact. Nevertheless, reports from Goldman Sachs and other institutions indicate that the longer-term effects could become more visible in the coming months if tariffs remain in place.

Broader Implications for Tariff Policy

Trump’s statements reflect a broader debate on the effectiveness and consequences of tariffs. Supporters argue that tariffs bolster domestic revenue and protect American industries, while critics warn they can indirectly increase costs for consumers and businesses.

Analysts emphasize that predicting tariff impacts is inherently complex, involving supply chain dynamics, international trade negotiations, and market responses. Goldman Sachs’ projections are part of a broader effort to quantify these effects, though they remain subject to debate and interpretation.

Looking Ahead

As the U.S. continues to navigate trade and economic policy, the discussion over tariffs, consumer costs, and inflation remains highly relevant. Goldman Sachs’ reports and Trump’s public critique underscore the tension between economic forecasting and political perspective.

Observers suggest that the coming months will provide clearer insight into whether tariff-related price increases will significantly affect consumer spending and overall inflation. Meanwhile, the debate between policymakers, economists, and business leaders highlights the challenges of interpreting and communicating complex economic data to the public.

Source: CNN – Trump tells Goldman Sachs CEO to hire a new economist after bank says consumers will pay bulk of tariff costs

The post Trump Criticizes Goldman Sachs Over Tariff Report, Suggests New Economist appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Here’s a closer look at some major companies that are planning price hikes, along with how these tariffs are impacting what Americans pay.

Walmart: Raising Prices by June

Walmart recently announced it will increase prices because Trump’s tariffs are “too high,” especially on products made in China.
Walmart CEO Douglas McMillon said, “We will do our best to keep prices low, but the magnitude of tariffs means we can’t absorb all the added costs.”
Price increases are expected to start by the end of May and rise more steeply in June.

Mattel: Toy Prices on the Rise

Mattel, the world’s biggest toy maker, confirmed it will raise prices due to tariffs. CEO Ynon Kreiz said 40% to 50% of Mattel’s products will stay under $20, but overall costs will go up.
Trump even threatened Mattel directly, saying he might slap a 100% tariff on their toys — their biggest market is the U.S.

Best Buy and Electronics: Expect Higher Costs

Best Buy warned that tariff costs will likely be passed on to consumers. While some electronics have temporary tariff exemptions, these won’t last forever.
For example, Nintendo delayed pre-orders for its Switch 2 console over tariff concerns but said the base price will stay at $450. Accessories, however, may get more expensive.
Sony’s CFO also mentioned price increases are possible for PlayStation products.

Shein and Temu: Price Jumps After Tariff Rule Changes

Chinese online retailers Shein and Temu were previously spared tariffs on small shipments under $800. That exemption was removed by Trump’s executive order.
Both companies announced price increases starting April 25, 2025. For example, patio chairs on Temu jumped from about $62 to $70 overnight. On Shein, a bathing suit set nearly doubled from $4.39 to $8.39.

Ford and Subaru: Auto Prices Go Up

Imported cars and parts face a 25% tariff. Ford’s CFO expects U.S. car prices to rise by up to 1.5% in the second half of 2025 due to tariffs.
Ford extended employee pricing deals through July to help customers buy before prices go up.
Subaru also announced price increases in the U.S., citing “market conditions” and higher costs, without specifying exact amounts.

Household Brands and Tools: Price Increases Coming

Procter & Gamble, which owns brands like Pampers and Tide, signaled it may raise prices due to tariffs. CEO Jon Moeller called tariffs “inherently inflationary.”
Stanley Black & Decker, makers of power tools, already raised prices by high single digits in April and plan more increases later this year.

Adidas: Uncertain Tariffs, But Higher Prices Likely

Adidas is preparing for higher U.S. prices as tariffs continue to fluctuate. CEO Bjørn Gulden said ongoing trade negotiations make it hard to predict exact tariffs, but added, “Cost increases due to higher tariffs will eventually cause price increases.”

What This Means for You

From toys to tools, cars to clothes, tariffs are making many everyday items more expensive. Companies are reluctant but clear: the extra costs from Trump’s tariffs can’t just be absorbed — they will hit consumers’ wallets. Shoppers should prepare for rising prices across a wide range of products as these tariffs stay in place.

If you want to stay ahead of price changes, keep an eye on announcements from your favorite retailers and consider buying before prices climb further.

Source: CNN – These companies will raise prices because of Trump’s tariffs

The post How Trump’s Tariffs Are Making Everyday Products More Expensive appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.