The economy dominated headlines this past week, with inflation and rising costs shaping decisions for families and businesses alike. From the checkout line to the gas pump, Americans are feeling the financial pressure more than they did a year ago.
President Donald Trump is moving forward with a new round of tariffs on dozens of countries that trade with the United States, even as temporary levies he previously put in place expired Friday. The new taxes, ranging from 10% to 12.5%, will apply to imports from 60 trading partners that together account for 99% of all U.S. imports. The administration says those countries have not done enough to stop goods made through forced labor from entering the market. The temporary 10% worldwide tariffs, which Trump had relied on after the Supreme Court struck down his larger tariff plan in February, expired at 12:01 a.m. Friday.
Global oil prices climbed above $100 per barrel this week for the first time in two months, sending gas prices sharply higher across the country. By Monday, the national average had crossed $4 per gallon, and prices kept climbing as military exchanges between the U.S. and Iran continued. By Friday, AAA reported the national average for a gallon of regular gas had reached $4.11 — roughly a dollar more than at this point last year and about 12 cents higher than just the previous week. Prices differ from state to state based on factors like local taxes and nearby fuel supplies.
On a brighter note, the number of Americans filing for unemployment benefits dropped to its lowest point in more than 50 years. For the week ending July 18, new jobless claims fell by 22,000 to just 187,000, the Labor Department reported Thursday. That’s the lowest weekly total since the week ending September 6, 1969. Analysts had expected around 215,000 new filings, according to the data firm FactSet. Weekly unemployment applications are widely viewed as a reliable, near-real-time measure of layoffs and overall job market health.
Homebuyers are facing even steeper borrowing costs this week. The average 30-year fixed mortgage rate rose to 6.58% from 6.55% the week before, according to mortgage buyer Freddie Mac. That’s the highest level in nearly 12 months — though it remains below the 6.74% average recorded one year ago. The rate has now increased for three straight weeks. Higher rates can add hundreds of dollars to monthly mortgage payments, reducing what buyers can afford and causing some to put off purchasing a home altogether — a factor that has contributed to sluggish home sales this year. The average rate on 15-year fixed mortgages, commonly used for refinancing, also ticked up to 5.96% from 5.93% last week. A year ago, that rate stood at 5.87%.
It was a down week on Wall Street, with U.S. markets finishing lower overall and stocks showing mixed results on the final trading day. Companies including Tesla, Google, and American Airlines saw their share prices fall despite posting mostly positive quarterly earnings. Concerns ranged from increased spending to cautious outlooks for the remainder of the year. Ongoing conflict in the Middle East also weighed on markets by raising fears about disruptions to the global supply of oil and gas. Brent crude, the international benchmark, jumped this week, as did U.S. benchmark crude. Before the Iran conflict began in late February, Brent crude was trading near $72 per barrel.
Ford Motor Co. is recalling more than half a million Bronco vehicles due to a fire risk. The automaker says 565,691 Ford Broncos and Bronco Raptors from model years 2021 through 2026 are affected. The problem involves a wiring harness in the engine compartment that lacks adequate protection, which can lead to exposed wires, short circuiting, and an increased fire risk. Ford estimates about 1% of the recalled vehicles actually have the defect and says it has received no reports of accidents or injuries connected to the issue. The Detroit-based company has been outpacing other automakers in the number of recalls issued this year.
