Construction input prices rose 0.2% in May, according to a new Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Last month, nonresidential construction input prices reduced by 0.1%. Overall construction input prices are 1.3% higher than levels from a year ago, and nonresidential construction prices are 1.6% higher. Prices decreased in two of three major energy categories in April. Natural gas prices fell 18.7%, unprocessed energy materials were down 3.5%, and crude petroleum prices increased by 1.3%. Chart credit: Associated Builders and Contractors“Construction materials prices continued to increase at a faster-than-ideal pace in May,” said ABC Chief Economist Anirban Basu. “While input prices are up just 1.3% over the past year, that modest escalation is entirely due to price decreases during the second half of 2024. Costs have increased rapidly since the start of this year, with input prices rising at a 6% annualize... #tariffed #construction #materials #increased #price

Reuters reports that Elon Musk’s annoying chatbot, Grok, is now being used by the U.S. government. While the extent and nature of that usage is unclear, sources interviewed by the news outlet have expressed alarm at the implications of the chatbot’s access to government data. Grok was launched by xAI, an AI company founded by Musk in 2023,  and has since become integrated into Musk’s social media platform, X. The chatbot is known to summarize information in the most cringe-inducing manner possible, and was originally fashioned as an “anti-woke” antidote to ChatGPT and other more politically correct applications. Musk’s Department of Government Efficiency team is now using a customized version of Grok, with the apparent goal of sorting and analyzing tranches of data. The team may also be using the chatbot to prepare reports, sources told the outlet. Aside from the very obvious data privacy concerns raised by Grok’s integration with government data, it appears that, once again, Musk is at the center of a conflict-of-interest violation. In fact, Reuters characterizes the promotion of Grok as a potentially criminal transgression of federal regulations. The outlet writes: If Musk was directly involved in decisions to use Grok, it could violate a criminal conflict-of-interest statute which bars officials — including special government employees — from participating in matters that could benefit them financially, said Richard Painter, ethics counsel to former Republican President George W. Bush and a University of Minnesota professor. “This gives the appearance that DOGE is pressuring agencies to use software to enrich Musk and xAI, and not to the benefit of the American people,” said Painter. The statute is rarely prosecuted but can result in fines or jail time. Yes, but how many times have we heard that one before? Elon has conflicts of interest up the wazoo. He is a walking conflict of interest, at this point. To my knowledge, he’s never seen the interior of a courtroom and, unless he gets caught with a dead body or something, it seems doubtful he ever will. Ever since Musk helped Trump get re-elected with hundreds of millions from his own piggybank, he’s has been treating the U.S. government like his personal plaything to destroy. Everywhere you look, the billionaire appears to be benefiting from his work with the government, whether it’s the White House bullying tariffed countries to adopt services from the billionaire’s satellite internet company, Starlink, or a new report that shows the billionaire’s companies may have saved nearly billion from federal fines and penalties that were active under Biden but have since been “neutralized” in the Trump era. As far as DOGE’s mandate goes, the organization has been an unmitigated failure. It has barely saved a fraction of the money that Musk initially claimed that it would and, in the long term, the cuts are likely to cost Americans money, since many of them have been to important agencies that dispense key services to Americans. #elons #doge #reportedly #using #grok

If you’re like most people, you’re getting a real-time crash course in tariffs, imports, and exports these days. Realizing that tariffs are going to increase costs for just about everything is just the beginning: The next phase of acceptance is realizing what “everything” means. We import so much of the stuff we use in our daily lives that it’s going to be impossible to avoid what is essentially a new tax on stuff.That means that any plans you have to renovate, remodel, or repair your home are going to be a lot more expensive. How much more? Some experts suggest a blanket 25% increase in your budget, driven by an estimated increase in building materials costs of about $7,500 to $10,000 per house. That’s a lot of money no matter how big or modest your renovation plans are, and might make you think twice about your project. But there are strategies you can use to blunt the impact of those tariffs if you plan your home project carefully.DIY thoughtfullyYour first step is to consider where you can offset those extra costs by doing some of the work yourself. Demolition is often an easy way to shave a bit of money from a renovation budget, and if you have any other applicable DIY skills (or the willingness to learn), you can offset extra costs by doing some tiling, painting, or installations yourself. Just be thoughtful about it—you won’t save anything if you screw up part of your renovation and have to pay someone to re-do the whole project.Pad the budgetThe worst outcome of a renovation or remodeling project isn’t extra costs, necessarily—it’s not being able to finish the job because you run out of money and finding yourself doomed to live in a half-finished house. To avoid that fate, review your renovation budget—which should already include some padding against unexpected costs—and add an additional “pad” to cover potential tariffs.Since everything about these tariffs changes more or less constantly, you can’t accurately predict each and every impact. Assuming an additional blanket cost of about 20% on top of your current estimate is probably a pretty safe course.Buy materials nowWhen, exactly, prices will start jumping due to tariffs is difficult to quantify; it depends on how large a supply remains, the specific country a material is sourced from, and when the last non-tariffed shipments arrived. But if you have plans for a renovation in the near future, it might be smart to buy your materials now, even if you’re not ready to engage contractors for a while. If you know you want imported marble tile, for example, chances are they’re as cheap right now as they’re going to be for a very long time. And if your kitchen reno involves all-new appliances, you’ll almost certainly pay less today than you will in a few weeks or months.Go domesticOf course, you also ask yourself if you need imported materials at all. While the U.S. isn’t a manufacturing powerhouse, you can identify domestic options for a wide range of renovation and remodeling materials. Costs still may go up if those companies need to import goods to produce those made-in-the-U.S. products, but this strategy may help mitigate costs. A few examples include:Chasing Paper offers made-in-the-U.S. peel-and-stick tile and wallpaper.Mohawk flooring offers laminate flooring and other flooring products that are free from tariffs.Copeland Furniture manufactures collections that are mostly made in the U.S. (like most furniture makers, they import some machined parts, like nuts and bolts), so tariff impacts will be minimal.Barker Cabinets makes kitchen cabinetry right here in the U.S. using domestic lumber.A little research and consultation with your contractors can identify many domestic alternatives for materials that can help offset or eliminate tariff costs.Work the contractWhen you hire a general contractor or a subcontractor, there’s always a negotiation (or there should be). That means you might be able to claw back some of the extra tariff-related costs by pursuing some strategies in the renovation contract:Price locks. If you’re relying on your contractor to supply the necessary materials for your project, ask to insert price locks in the contract. This is language that freezes the cost of those materials for a period of time (typically a few months). This at least insulates you from a sharp uptick in costs due to sudden shifts in trade negotiations and tariff rates.Guaranteed Maximum Price ("GMP"). You can also ask to have the maximum cost of the project written into the contract. A GMP is the most the contractor will be able to collect from you, no matter what else might change in terms of their materials costs (or any other cost). It usually includes some padding to cover reasonable overages and their fees, but it can be a useful defense against uncertainty when it comes to the cost of the project.Shared savings clauses. You can also suggest that you and the contractor “share savings,” which means that if they identify lower-cost options for materials, labor, or any other aspect of the job, you agree to pay them a percentage of the savings total. This incentivizes the contractor to evade tariffs, seek out domestically sourced alternatives, or find materials already sitting in a warehouse somewhere that don’t need to be imported new.Wait for the off seasonAnother way to offset tariff increases in a reno project is to wait. Many renovation projects have a season, and contractors often go through skinny periods when business drops off. They’re often motivated to offer discounts or work with smaller budgets during these periods, so if you’re willing to endure some extra logistical problems (like having work done during the winter months), you can make up at least some of the difference in terms of tariff costs. Some examples of renovation “seasons” include:Most kitchen, bathroom, and landscaping projects are done in the spring, as are most roofing and HVAC projects. These contractors may be more amenable to discounts in the fall or winter.Window replacements and hardscaping projects like patios are usually done in the summer.Exterior paint is typically done in the fall, when temperatures are cooler and humidity is lower, but you can have your house painted as long as temperatures are above 35 degrees, so painting companies may be motivated to offer discounted work in different seasons.Many flooring installers run promotions during the winter, when business is slower.If you buy your materials now to save some money and then start the project in the off-season, you can maximize your savings. Source: https://lifehacker.com/money/tariff-proof-home-renovations-and-repairs?utm_medium=RSS #six #strategies #039tariffproof039 #your #home #renovation #project

Key Takeaways The US and China have agreed to lower tariffs, with the US now charging a 30% tariff, whereas China will charge 10%. Actual prices may not come down in the long run, but we may see an increase at a much lower pace. Lower tariffs may also not see massive domestic production shifts, so the trade deficit may close more slowly than expected. After a long-fought tariff war, the US and China seem to have reached an understanding. The two countries’ representatives met at Geneva and decided to lower the tariffs for 90 days. The US agreed to bring down its tariffs from 145% to 30%, while China will now only impose a 10% tariff on US goods instead of the previous 125%. It’s worth noting that the 30% tariff by the US comprises a 10% universal tariff imposed by Trump on all countries and an additional 20% tariff for failing to curb fentanyl flows by the Chinese. Trump used the entire tariff weapon to reduce the US’s massive $295.4B trade deficit with China as of 2024. He accused China of taking ‘unfair advantage’ of the US for years. This is also the largest trade deficit the US has had with any trading partner. Will Lower Tariffs Lead to Lower Prices? One important thing to understand is that while the tariffs have been reduced, the overall average effective tariff still stands at 17.8%, which is the highest since 1934. Even if you consider the shift in consumption due to the increased tariffs, the average tariff rate would come to 16.4%, the highest since 1937.  This means that consumers might not actually see lower prices. At most, we might see slower price increases. Companies like Nvidia have already pumped up the prices of their components and products by 10 to 15%. Acer has also announced a 10% price increase as a result of the tariffs. Also, a lot of products have already been shipped to the US, effective with the 145% tariff rates. Almost 12,000 containers with products for companies like Amazon, Ikea, Tractor Supply, and Home Depot have hit the shores of the US. The PC hardware inventory turnover is 30-90 days on average, which means that the price changes may be deferred by almost six weeks. So, it might take some time for the reduced tariffs to come into effect. Even then, you can expect the prices to be more than in the pre-tariff era. This will also depend on the time required to get rid of the high-tariffed inventory sitting on the US shelves. Fast-moving consumer goods usually have a faster inventory turnover, which means you can expect a price drop soon. However, high-value products like PCs may sit on the shelves for a good couple of months. The expectation of reduced prices is also based on the assumption that no further escalations will occur. This is only a 90-day pause, and the tariff scenario remains somewhat uncertain. The overall average price levels are expected to increase by 1.7% in the short run. This means that the average American household may lose $2,800 in purchasing power when compared to 2024. Even after consumption adjustment, the loss stands at around $2,300. Production Moving Back to the US? In the wake of increasing tariffs, several companies have announced moving production back to the US to save costs. For instance, Nvidia said that it will move $500 billion worth of AI server supply chain to the US. Along with partners like TSMC, Foxconn, Wistron, Amkor, and SPIL, Nvidia plans to set up AI servers and server assembly plants in the US. Apple, too, has announced a $500 billion investment in the U.S., including a Houston manufacturing facility. Trump even went on to say that he talked with Tim Cook after the tariff reduction announcement, and ‘he’s going to be building a lot of plants in the United States for Apple.’ Trump also hinted that the actual value of these investments may be way more than $500 billion. It’s worth noting that these announcements were made when the tariffs were as high as 145%. In such a situation, it wasn’t possible for these companies to shift the entire increase in cost to the customers through price hikes. For instance, Apple said that it would lose $900 million as a result of the tariffs. However, now the situation has eased off massively, with the tariffs standing at just 30%. So, do these manufacturers still have the motivation to shift production units to domestic shores? Sure, 30% is still nothing to sniff at, but a part of this cost can be passed on to the customers while the rest can be recovered through better production planning and cost-cutting. Bottom Line All in all, this seems to be a Catch-22 situation for Trump. The entire point of imposing heavy tariffs was to lower imports and encourage domestic production. While tariffs as high as 145% met these purposes, a 30% tariff may not deter the US manufacturers. However, increasing tariffs beyond a certain point would essentially bring trading to a halt between the US and China, which doesn’t serve the purpose either. So, it now all comes down to how well Trump can negotiate with the US companies. His talks with Cook seem to be reassuring as of now. We’ll know in due course whether production sees a ‘differentiable’ shift in the next few months. Krishi is a seasoned tech journalist with over four years of experience writing about PC hardware, consumer technology, and artificial intelligence.  Clarity and accessibility are at the core of Krishi’s writing style. He believes technology writing should empower readers—not confuse them—and he’s committed to ensuring his content is always easy to understand without sacrificing accuracy or depth. Over the years, Krishi has contributed to some of the most reputable names in the industry, including Techopedia, TechRadar, and Tom’s Guide. A man of many talents, Krishi has also proven his mettle as a crypto writer, tackling complex topics with both ease and zeal. His work spans various formats—from in-depth explainers and news coverage to feature pieces and buying guides.  Behind the scenes, Krishi operates from a dual-monitor setup (including a 29-inch LG UltraWide) that’s always buzzing with news feeds, technical documentation, and research notes, as well as the occasional gaming sessions that keep him fresh.  Krishi thrives on staying current, always ready to dive into the latest announcements, industry shifts, and their far-reaching impacts.  When he's not deep into research on the latest PC hardware news, Krishi would love to chat with you about day trading and the financial markets—oh! And cricket, as well. View all articles by Krishi Chowdhary Our editorial process The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors. Source: https://techreport.com/news/us-china-tariff-understanding-price-impact/ #and #china #reach #tariff #understanding #but #prices #may #not #decrease #immediately