Consumer News: Main Street gears up for Trump tariffs' impact

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Details: Written by Consumer Affairs News; Category: Consumer Daily Reports; Published: 16 April 2025; Created: 16 April 2025; Last Updated: 16 April 2025

Supply costs, shifting consumer behavior, falling tourism are terrifying many small business owners

April 15, 2025

Key takeaways:

Entrepreneurs nationwide prepare for cost increases tied to new import tariffs
Supply chain adjustments, price hikes, and sourcing shifts underway
Many owners fear long-term strain on operations, hiring, and consumer demand

As new rounds of President Trump's tariffs loom, small businesses across the United States are scrambling to assess and mitigate the potential economic fallout. The measures include broad import taxes on a wide range of goods, with higher rates for nations running trade surpluses with the U.S.

Business owners say the move has injected uncertainty into already fragile post-pandemic operations.

From retail to manufacturing, owners are reviewing supply chains, forecasting pricing adjustments, and, in some cases, exploring domestic sourcing options to shield operations from what could become a long-term economic shift.

Im terrified for my business, and Im terrified for all the other small businesses in the United States right now, because we dont know what to do, and were invested in our businesses. I could lose my home, and I dont understand it, and I dont know what to do," said Beth Benike, the ownerofBusy Baby, Zumbrota, Minnesota.

"I am abandoning my products in China. I am leaving them there because I simply cannot afford to ship them here," Benike told The Guardian.

Weve already seen material costs jump 8% in the last quarter, said Carmen Liu, owner of a home goods company in Illinois. If tariffs hit as planned, Ill either have to raise prices or cut back on hiring neither is ideal.

Navigating rising costs

Many small businesses rely on international suppliers for raw materials, parts, or finished goods. The proposed tariffs, particularly on electronics, textiles, and auto components, are expected to raise wholesale costs by 1025%, depending on the country of origin.

Were building contingency plans, said Tim Harper, who runs a bike shop in Oregon. If tariffs go into effect, our imported components could cost 20% more were already working with vendors to lock in pre-tariff inventory.

Others, like food and beverage startups, are stockpiling inventory or seeking alternative suppliers in countries unaffected by the new trade rules.

Tourism, travel bookings fall

The ongoing tariffs are having a direct impact on our vacation rental business, with cancellations from Latin American and Canadian guests and a noticeable drop in new bookings from these markets," said Helena Sideris,general manager,Park City Lodging, Park City, Utah. "Combined with rising costs and broader economic volatility, these shifts are creating real pressure on our family business.

In California, the popular winter playground Palm Springs has been feeling a chill. Canadian visitors and winter residents packed up and left early and, while no tumbleweeds have been spotted, the normally bustling downtown area has been eerily quiet lately.

Gov. Gavin Newsom unveiled atourism campaignon Monday urging Canadians to come experience our California Love after seeing a dip in in visits from the United States' northern neighbors who say theyve been alienated by President Trumps policies.

In a videoposted on social media, Newsom focuses on the allure of the Golden State while distancing it from Trumps administration.

Sure, you-know-who is trying to stir things up back in D.C., but dont let that ruin your beach plans, Newsom says, as images of the Golden Gate Bridge and a woman flying a kite on a beach appeared on the video.

Shifting consumer behavior

The concern isnt just about input costs its also about whether customers will absorb higher prices. A recent Numerator survey found that 83% of U.S. consumers plan to alter their spending habits in response to rising costs. For small businesses, this could mean reduced sales or a longer road to profitability.

Consumer spending has remained robust but there are early indicators that consumers may be cutting back.Kikoff, acredit-building platform,surveyed over 1,700 users to understand how inflation, and now tariffs, are reshaping spending behavior.

Key findings include:

A majority (85.7%) said inflation has impacted their ability to afford everyday items like gas and groceries
- Nearly half have used Buy Now, Pay Later (BNPL) options to manage unexpected expenses
- More than a quarter turned to payday loans
Low confidence in the economy
- About two-thirds of those surveyed rate the current U.S. economy as "poor" or "very poor and believe a recession is likely or very likely in 2025
73% have scaled back summer plans to reduce spending

That's not good news for businesses counting on consumers to continue their habitual spending.

We run a tight margin. A price hike of even 5% can mean the difference between staying afloat or going under, said Marisol Rivera, who owns a boutique skincare brand sourcing packaging from Asia.

Policy and Preparedness

Industry groups like the National Federation of Independent Business (NFIB) and U.S. Chamber of Commerce are calling for clarity and support, urging policymakers to consider how tariffs could compound inflation pressures and slow recovery for small businesses.

"More than 95% of consumers live outside the United States. Selling more U.S.-made goods and services around the world is crucial to American jobs and will help businesses small and large grow. Expanding trade also enhances the competitiveness of U.S. manufacturers while boosting the buying power of American families," the Chamber said on its website.

Meanwhile, some small business owners are hopeful that policy details or legal challenges may delay or soften the impact but many arent waiting to find out.

Weve learned that agility is key, said Harper. Whether its tariffs, supply chain snags, or labor shortages, we have to be ready to pivot fast.

As the business community awaits formal implementation of the tariff plan, small business owners are balancing caution with creativity, determined to protect their livelihoods and adapt to an increasingly volatile economic environment.

Posted: 2025-04-15 23:42:20

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Consumer News: Nutrition group backs new dietary guidelines but is concerned about the process
Tue, 13 Jan 2026 14:07:07 +0000

It calls for more scientific review

By Mark Huffman

of ConsumerAffairs

January 13, 2026

The American Society for Nutrition (ASN) supports the overall eating pattern in the newly released 20252030 Dietary Guidelines for Americans (DGAs), which emphasize minimally processed, nutrient-dense foods and limits on added sugar, sodium, and saturated fat.
ASN warns that changes to the long-standing scientific review process behind the guidelines risk undermining public trust in nutrition science and creating confusion about dietary advice.
The organization is calling for greater transparency, clearer messaging, and increased federal investment in nutrition research to strengthen future dietary guidance.

The U.S. Department of Health and Human Services is shaking up the food industry most recently reshuffling the food pyramid, putting meat and saturated fat at the top.

The American Society for Nutrition is offering qualified support for the newly released 20252030 Dietary Guidelines for Americans, applauding their focus on whole, minimally processed foods. But the organization is raising serious concerns about how the guidelines were developed.

In a statement responding to the new guidelines, ASN said it agrees with the broad dietary pattern promoted by federal health officialsone that prioritizes nutrient-dense foods and limits added sugars, sodium, and saturated fats. Such approaches, the organization noted, are strongly linked to improved long-term health outcomes, particularly when they reduce reliance on highly processed foods and sugar-sweetened beverages.

A change in process

At the same time, ASN expressed alarm over what it described as a major departure from the established, science-based process traditionally used to develop the Dietary Guidelines. Instead of relying primarily on the Scientific Report of the 2025 Dietary Guidelines Advisory Committee (DGAC), the federal government introduced a separate document, the Scientific Foundation for the Dietary Guidelines for Americans.

According to ASN, this shift raises questions about transparency and rigor. The organization said there is little clarity about the methods, objectives, or timelines used to produce the new scientific foundation report, and warned that the approach diverges from the National Academies of Sciencesrecommended standards designed to build public trust.

For decades, the DGACs scientific report has served as the backbone of the Dietary Guidelines, ASN said.

That report is produced by an independent panel of experts who conduct a systematic and transparent review of the evidence. ASN strongly endorsed the work of the 2025 DGAC, which included many of its members and other nutrition scientists who volunteered significant time to evaluate research and develop evidence-based recommendations.

Possible confusion

While ASN also acknowledged and respected the contributions of ASN members who served as authors of the new scientific foundation report, it cautioned that introducing parallel reviews risks confusing both policymakers and the public.

That confusion, ASN said, is already evident in some of the final guidance. The DGACs scientific review found strong evidence that reducing saturated fat intake lowers cardiovascular disease risk.

Although the 20252030 DGAs retain the long-standing recommendation to limit saturated fat to no more than 10% of daily calories, ASN noted that the guidelines also appear to encourage greater consumption of foods such as butter and beef tallow, which are high in saturated fat.

Such mixed messaging, ASN warned, could make it harder for consumers to interpret and follow the guidelines in ways that support long-term health.

Beyond scientific process issues, ASN emphasized that dietary guidance must be practical and equitable to improve public health. Clear recommendations, the group said, must be paired with policies and food environments that make healthy choices accessible and affordable for all Americans.

Consumer News: Capital One settlement more than doubles after AG intervention
Mon, 12 Jan 2026 23:07:07 +0000

Customers nationwide will get hundreds of millions of dollars

By Truman Lewis of ConsumerAffairs

January 12, 2026

Capital One will pay $425 million in restitution and raise interest rates for affected savings customers
The money willl go to consumers who held 360 Savings accounts
The deal follows objections by New York Attorney General Letitia James to an earlier, smaller settlement

New York Attorney General Letitia James on Monday praised a revised settlement with Capital One that will return hundreds of millions of dollars to customers who were allegedly shortchanged on interest payments for years.

Under the agreement, Capital One will provide $425 million in restitution to customers nationwide, including an estimated $34 million to New Yorkers who held 360 Savings accounts. The settlement also requires the bank to raise interest rates for those accounts, ending what state officials described as a misleading two-tier savings system.

The deal more than doubles the value of an earlier proposed class action settlement that James and a bipartisan coalition of attorneys general successfully challenged in court.

Allegations of misleading savings customers

James sued Capital One in May, accusing the bank of misleading customers by marketing its 360 Savings accounts as high interest products that would outperform average savings accounts.

According to the lawsuit, Capital One kept interest rates on 360 Savings accounts artificially low even as national interest rates began climbing in 2022. At the same time, the bank introduced a nearly identical product 360 Performance Savings that offered significantly higher rates, at one point more than 14 times higher than those paid to existing 360 Savings customers.

State officials said the practice allowed Capital One to avoid paying higher interest to long-time customers while steering new deposits into the higher-yield account.

Capital One customers were counting on growing their savings accounts, but their bank misled them and cheated them out of valuable interest payments for years, James said in a statement. Today we are delivering justice for those customers nationwide.

Court rejects earlier deal

In September, James led a bipartisan coalition of attorneys general in filing an amicus brief opposing an earlier proposed settlement in the class action case.

That deal would have provided less than $300 million in restitution and would have allowed Capital One to continue paying lower interest rates on 360 Savings accounts. After the objections were filed, the court rejected the proposed settlement.

The newly negotiated agreement, which received preliminary court approval on Monday, significantly expands consumer relief.

Interest rates must now match

In addition to the $425 million restitution fund, the settlement requires Capital One to match interest rates between its 360 Savings and 360 Performance Savings accounts going forward.

State officials estimate that the change will provide an additional $530 million in future interest payments to consumers nationwide, effectively dismantling the two-tier system at the center of the lawsuit.

The Office of the Attorney General said it will voluntarily dismiss its case against Capital One if the revised settlement receives final court approval and takes effect.

Final approval of the settlement is still pending, but if approved, payments to affected consumers would follow under the terms set by the court.

Consumer News: ICE is watching you, and spending billions doing so
Mon, 12 Jan 2026 23:07:07 +0000

ICEs ballooning budget fuels major expansion of surveillance technology

By James R. Hood of ConsumerAffairs

January 12, 2026

Immigration and Customs Enforcement is set to receive $28.7 billion in fiscal year 2025, nearly triple its 2024 funding
The agency is projected to receive at least $56.25 billion more over the following three years
Civil liberties groups warn the funding surge will dramatically expand ICEs already vast domestic surveillance capabilities

U.S. Immigration and Customs Enforcement is preparing for a massive expansion of its surveillance and data-collection operations after receiving one of the largest budget increases of any federal law enforcement agency under the current administration.

ICEs fiscal year 2025 budget stands at $28.7 billion, nearly three times what the agency received in 2024. Budget projections indicate at least an additional $56.25 billion will be allocated to the agency over the following three years, placing ICEs overall funding on par with the defense budgets of many nations, according to a report from the Electronic Frontier Foundation.

By comparison, the agencys annual funding would rank it as the 14th most well-funded military force in the world, between Ukraine and Israel, according to global military spending figures. While ICE is a civilian law enforcement agency, critics argue its scale, resources and operational scope increasingly resemble those of a national security force.

ICEs role within DHS

ICE operates under the U.S. Department of Homeland Security, which oversees a wide range of agencies with missions extending far beyond immigration enforcement. DHS components include the Cybersecurity and Infrastructure Security Agency, which focuses on protecting critical infrastructure, and the Federal Emergency Management Agency, which coordinates disaster response.

ICE serves as the enforcement arm of the federal immigration system. According to the agency, its mission is to protect America through criminal investigations and enforcing immigration laws to preserve national security and public safety.

The agency carries out that mission primarily through two divisions: Enforcement and Removal Operations, which handles detention and deportation, and Homeland Security Investigations, which conducts criminal investigations related to immigration, trade, financial crimes and national security.

Surveillance reaches far beyond undocumented immigrants

Although ICEs mandate centers on immigration enforcement, the agencys surveillance activities have extended well beyond undocumented immigrants, according to civil rights advocates and investigative reports.

Advocacy groups and legal organizations have documented cases in which ICE investigations and enforcement actions involved individuals with work permits, asylum seekers, lawful permanent residents, naturalized citizens and, in some cases, U.S. citizens by birth.

Those concerns have fueled criticism that ICEs intelligence-gathering practices lack adequate oversight and safeguards, particularly when data collected for immigration enforcement is used in broader criminal or intelligence investigations.

A vast data dragnet already in place

ICEs surveillance capabilities were detailed in a 2022 report by Georgetown Laws Center on Privacy and Technology, which described the agency as operating one of the most expansive domestic surveillance networks in the country.

According to the report, ICE had scanned drivers license photos for approximately one in three adults in the United States and had access to drivers license data for roughly three-quarters of the adult population. The agency also had the ability to track the movements of drivers in metropolitan areas home to three in four adults.

The report found that ICE could locate roughly 75% of U.S. adults using utility records and other commercially available data. Much of that information was obtained not through warrants but by purchasing data from private companies or accessing state and local government databases.

Between 2008 and 2021, ICE spent an estimated $2.8 billion on surveillance, data collection and data-sharing programs, according to the Georgetown analysis.

A new era of surveillance spending

The scale of ICEs new budget dwarfs its previous surveillance investments. The agencys 2025 funding alone is roughly ten times the amount it spent on surveillance technologies over the prior 13 years combined.

Privacy advocates warn that the influx of funding will accelerate ICEs adoption of advanced surveillance tools, including biometric identification systems, real-time location tracking, predictive analytics and artificial intelligence-driven data analysis.

While agencies such as the National Security Agency and the Federal Bureau of Investigation are often most closely associated with domestic surveillance, experts say ICEs expanding reach deserves equal scrutiny.

With this level of funding, ICE is positioned to build one of the most comprehensive domestic surveillance machines in U.S. history, the Georgetown report warned, noting that much of the agencys data collection operates outside traditional criminal justice oversight frameworks.

ICE officials have defended their practices as lawful and necessary for enforcing immigration laws and protecting public safety. Civil liberties groups, however, argue that the agencys growing technological footprint poses significant risks to privacy, due process and constitutional protectionsparticularly as its surveillance increasingly affects Americans with no connection to immigration violations.

As ICEs budget continues to climb, those debates are likely to intensify, raising new questions about how far immigration enforcement should extend into the daily lives of people living in the United States.

Consumer News: Senators working to restore Obamacare subsidies
Mon, 12 Jan 2026 23:07:07 +0000

The subsidies expired last year and politicos fear the voters' wrath in November

By James R. Hood of ConsumerAffairs

January 12, 2026

Senate Republicans say they are nearing a bipartisan deal to revive expired Affordable Care Act subsidies, though abortion coverage remains a major obstacle.
The emerging framework would extend the enhanced subsidies for two years, add income caps and impose new antifraud measures.
Any agreement would need broad Republican support and buy-in from the White House to clear both chambers of Congress.

Senate Republican negotiators say they are closing in on a deal with Democrats to extend and overhaul enhanced Affordable Care Act subsidies that expired at the end of last year, as rising insurance costs add pressure on lawmakers ahead of the midterm elections.

The developing framework would extend the enhanced subsidies for two years while adding new eligibility limits, antifraud provisions and other changes designed to attract Republican support. Abortion-related language, however, remains a significant sticking point and could derail the negotiations.

Republicans outline a narrower, temporary extension

Sen. Bernie Moreno (R., Ohio), who is leading the talks alongside Sen. Susan Collins (R., Maine), said lawmakers are close to finalizing a framework and could release legislative text as early as Monday. Moreno said his goal is to craft a proposal that can win support from more than half of Senate Republicans.

Republicans have long opposed the enhanced ACA subsidies, which Democrats enacted in 2021 and allowed to expire at the end of last year. But with premiums rising sharply for millions of Americans, some GOP lawmakers have backed a short-term extension to buy time for broader healthcare changes.

Sen. Jeanne Shaheen (D., N.H.), a lead Democratic negotiator, said a draft proposal should be ready soon but declined to provide details.

House action adds urgency to Senate negotiations

The talks are intensifying as the House prepares to vote Thursday on a three-year extension of the enhanced subsidies. Four centrist Republicans crossed party lines last month to support the Democratic-backed bill, despite opposition from House Speaker Mike Johnson (R., La.).

An identical measure failed in the Senate last month, but negotiators could amend a House-passed bill if a compromise emerges. Senate negotiators are expected to meet Thursday with House members eager to strike a deal.

Abortion coverage remains a central dispute

Several Republicans warned that abortion policy remains a major hurdle. Senate Majority Leader John Thune (R., S.D.) said talks have been productive but unresolved issues remain, including whether to impose new restrictions on abortion coverage in ACA plans.

Theyre working hard trying to find something that threads those various needles, Thune said, but as of right now, Im not aware at least that theres a landing spot just yet.

Johnson has also pointed to abortion language as a deal-breaker for many Republicans, saying the GOP will not authorize taxpayer funding for abortion services. Under current law, ACA subsidies can be used to purchase plans that cover abortion, though enrollees are required to pay separately for that portion of coverage. Antiabortion groups argue that the structure still indirectly subsidizes abortion.

President Trump told House Republicans this week that they should be a little flexible on abortion policy, comments that some Democrats viewed as a positive signal. His press secretary later said Trump was urging flexibility from both parties to reach a healthcare deal, though Trump has previously opposed extending the ACA subsidies and instead favors health savings accounts.

What the proposed framework would change

About 20 million Americans benefited from the enhanced ACA subsidies before they expired. The Moreno framework would restore those subsidies for two years and extend the ACAs open enrollment period, while adding several new restrictions.

Key provisions under discussion include cutting off subsidy eligibility for households earning more than 700% of the federal poverty level roughly $225,000 for a family of four and requiring enrollees to contribute at least $5 a month toward their coverage. That contribution could take the form of a $60 annual payment.

The plan would also impose penalties on insurers that deliberately sign people up fraudulently, including fines of $100,000 per violation. In the second year of the extension, enrollees would be given the option to place subsidy funds into prefunded health savings accounts.

Requiring a minimum monthly payment would mark a significant shift. Roughly 40% of ACA enrollees currently pay nothing toward their premiums, more than double the share before Democrats expanded the subsidies in 2021.

Whether negotiators can bridge the remaining political divides particularly over abortion will determine if the effort succeeds or joins previous failed attempts to extend the subsidies.

Consumer News: Walmart is lowering prices on thousands of health and wellness products
Mon, 12 Jan 2026 23:07:07 +0000

From digital health support to lower prices on essentials, Walmart wants to be your go-to for feeling good without breaking the bank

By Kristen Dalli of ConsumerAffairs

January 12, 2026

New Better Care Services bring easier access to health care support and nutrition guidance.
Price rollbacks on 1,000+ wellness products help stretch your budget on items that support your health.
Extra tools and resources help you make smarter, more personalized health and food choices.

If one of your New Years resolutions was to feel better physically and mentally Walmart just made that a whole lot easier.

The retail giant recently introduced Better Care Services, a new digital hub designed to centralize a range of health and wellness support in one place. Its part of Walmarts effort to make health care and everyday wellness less confusing and more affordable for shoppers.

We know that when health care feels hard, many people dont get the care they need. We can fix that, Kevin Host, senior vice president, health and wellness, pharmacy, said in a news release.

Better Care Services is about making wellness simple and affordable to fit into your life; were removing barriers so more people can get the care they deserve, right when they need it.

Getting the care you need

With Better Care Services, customers can connect instantly to a network of third-party providers for urgent care and behavioral health support, and even tap into LillyDirect services for managing conditions like diabetes and migraines.

After a same-day consultation, Walmarts pickup and delivery options including free delivery for Walmart+ members make it simple to get prescriptions and over-the-counter products quickly. Theres also a limited-time $15 discount on select telehealth consultations making it an especially welcome launch for anyone watching their budget.

But Walmart didnt stop at consultations. Because wellness is more than doctors and meds, the new hub also includes an AI-powered Nutrition Hub that offers personalized food recommendations and recipe ideas to help you eat smarter without spending more.

Big savings on wellness must-haves

Speaking of budgets, Walmart also rolled back prices on over a thousand wellness-focused products. The discounts cover a wide range of items, from healthy foods and supplements to fitness gear and over-the-counter essentials.

Shoppers can find deals on popular brands like Lemme vitamins, high-protein snacks, and even Oura wellness rings plus expanded affordable recipe options for specialty diets like keto, gluten-free, and high-protein eating plans.

Walmart also continues to expand its own private-label offerings with chef-inspired products under its bettergoods brand many items priced under $5 and has announced plans to phase out certain artificial ingredients in its store brands by next year.

Tips for shoppers: Make wellness work for you

Whether youre new to wellness goals or just want to shop smarter, here are a few ways to take advantage of Walmarts expanded health offerings:

Start with the digital tools: Explore Better Care Services early if you need health care support or ideas for healthier eating especially while the telehealth discount is available.
Watch for price rollbacks: Plan your shopping list around the wellness items with reduced prices to get the most value for your budget.
Try the Nutrition Hub: Use the AI-powered recommendations to find affordable, nutritious meals tailored to your goals.

With these new services and savings, Walmart is making it easier than ever to turn health goals into habits without overcomplicating your life.

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Consumer News: Main Street gears up for Trump tariffs' impact