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Consumer Daily Reports

But tariffs may start showing up as inflation in the second half of 2025

By Mark Huffman Consumer News: U.S. companies are mostly absorbing the cost of tariffs of ConsumerAffairs
July 23, 2025
  • Many U.S. companies, including GM, Walmart, and Home Depot, are currently absorbing tariff costs, sacrificing profits to shield consumers from price hikes.

  • Despite this buffer, rising tariffs on imports from China, Vietnam, and the EU are driving up prices on electronics, clothing, and household goods.

  • Economists warn that by late 2025, these tariff-related pressures may push more costs onto consumers, potentially fueling a fresh wave of inflation.



The White House has announced that the U.S. and Japan have agreed to a trade deal, cutting tariffs on Japanese goods from 25% to 15%. In return, Japan will provide $550 billion in loans and investments to the U.S.

Thats good news for U.S. companies that import products from Japan, who so far are absorbing much of the tariff costs, reducing their profit margins. For example, Junes Consumer Price Index showed new car prices actually dipped during the month. General Motors is one automaker eating much of the tariffs.

GM reports tariffs on imported cars and auto parts took a $1.1 billion bite out of its second quarter profit, reducing net income by 35%. The question is, how long is that sustainable?

While tariffs are typically paid by importers, the cascading costs often end up with end users. In June and July, major retailers reported price increases of 5% to 15% on a wide range of products, attributing the hikes to new duties imposed on goods from China, Vietnam, and the European Union.

Where tariffs are boosting prices

Consumers are beginning to see the effects of tariffs when they shop for electronics. A 15% tariff on Chinese-manufactured components is pushing up the price of laptops, tablets, and gaming consoles.

Textile and clothing imports from Southeast Asia now face duties up to 18%, raising costs on everyday items like jeans, shirts, and activewear at retailers where those costs are being passed on to consumers. Tariffs on steel and aluminum have increased costs for appliances and furniture, particularly those made with imported parts.

One reason the inflationary effects of tariffs have not been greater is some retailers have so far, at least not passed the added cost to retail prices. Walmart has acknowledged rising input costs due to tariffs but has largely absorbed these expenses to avoid pushing the burden onto shoppers. Company statements confirm that its capacity to shield customers, while limited, has been substantial so far.

In June, Home Depot said it would absorb all tariff costs as long as it could. And as noted above, GM has opted to eat the extra costs to preserve its market share. Some retail economists say American retailers may be forced to pivot in the second half of 2025 and add at least some of the cost of tariffs to the price consumers pay.




Posted: 2025-07-23 12:27:53

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Consumer News: Why feeling lonely — not just being alone — can affect your cognition

Fri, 25 Jul 2025 22:07:07 +0000

A recent study explored the relationship between feeling connected and memory loss

By Kristen Dalli of ConsumerAffairs
July 25, 2025
  • Older adults who feel lonely even if socially active show faster memory decline when experiencing hearing loss.

  • Researchers analyzed data from over 33,000 Europeans over nearly two decades, grouping them by isolation/loneliness profiles.

  • Hearing impairment worsened both memory and verbal fluency, especially in people feeling lonely but not isolated.


Hearing loss is common in later life, and its often linked to cognitive decline,including dementia risk.

Butits not only about losing sound some older adults stay socially active but feel lonely inside.

A University of Geneva study shows that this mismatch being socially connected but emotionally alone can make hearing loss even more damaging to memory.

We found that people who were not socially isolated but who felt lonely saw their cognitive decline accelerate when they were deaf, researcher Matthias Kliegel said in a news release.

The study

The researchers analyzed data from Europes SHARE (Survey of Health, Ageing and Retirement in Europe) dataset. The study followed over 33,000 participants aged around 61 years old over nearly 18 years.

Using multilevel models, the team examined how selfreported hearing impairment (level and worsening over time) related to two cognitive domains: episodic memory (immediate and delayed recall) and executive function (verbal fluency).

Critically, participants were grouped into three profiles combining objective isolation and subjective loneliness:

  1. Socially isolated and lonely

  2. Not socially isolated but feeling lonely (lonelyinthecrowd)

  3. Isolated but not feeling lonely

The results

The study showed that the more severe the hearing loss and especially the faster its progression the greater the decline in both memory and verbal fluency. Additionally, the cognitive decline was nonlinear: memory slipped faster as hearing worsened.

Among the groups, all lonely or isolated participants performed worse cognitively than those neither lonely nor isolated. The worst-off were isolated and lonely individuals scoring up to 0.45 points lower in immediate recall. Next were the isolated-but-not-lonely and then the nonisolated-but-lonely, with 0.24 and 0.23 point deficits, respectively.

Most strikingly, for non-isolated but lonely people, hearing impairment had a stronger negative effect on episodic memory than for others. For this group, a modest worsening of hearing translated into steeper memory loss. The effect was domain-specific: memory dropped more sharply than verbal fluency for the same hearing decline.

Why It Matters

These findings spotlight a nuanced risk: feeling lonely despite having friends can leave older adults more vulnerable to cognitive decline when their hearing worsens.

The results point toward simple interventions like addressing hearing loss early with hearing aids that may help reduce loneliness and preserve cognitive health, especially for those socially engaged yet emotionally isolated.

These individuals are already socially integrated, so its a matter of removing a sensory barrier in order to reinforce their engagement and protect their cognitive health, researcher Charikleia Lampraki said in the news release.


Read More ...


Consumer News: Diet, not exercise, is likely the primary factor behind obesity, study finds

Fri, 25 Jul 2025 22:07:07 +0000

New global data show extra calories not inactivity drive bodyfat gains

By Kristen Dalli of ConsumerAffairs
July 25, 2025
  • Rising obesity in more developed countries tracks closely with higher caloric intake not a drop in physical activity.

  • A study of over 4,200 adults across 34 global populations measured energy use and body fat using goldstandard methods.

  • After adjusting for size and lifestyle, diet (especially ultraprocessed food) explains most excess body fat not differences in total energy expenditure.


When you hear obesity described as a consequence of inactivity, it might seem obvious: people eat too much and move too little.

However, a groundbreaking new study from Duke University flips that mindset.

The research found that as countries develop, people tend to eat more but they dont necessarily burn fewer calories. In fact, daily energy expenditure stays similar or even increases.

That means that the real culprit behind rising obesity is diet not lounging on the couch.

Despite decades of trying to understand the root causes of the obesity crisis in economically developed countries, public health guidance remains stuck with uncertainty as to the relative importance of diet and physical activity, researcher Herman Pontzer said in a news release.

This large, international, collaborative effort allows us to test these competing ideas. Its clear that changes in diet, not reduced activity, are the main cause of obesity in the U.S. and other developed countries.

The study

This global analysis involved more than 4,200 healthy adults aged 1860, from 34 populations spanning six continents, covering huntergatherers, pastoralists, farmers, and urban industrial dwellers.

Researchers measured total energy expenditure (TEE) using doubly labeled water, a goldstandard method that directly captures how many calories your body burns, including resting and activity metabolism.

They also measured body fat percentage and BMI, and tied economic development to United Nations Human Development Index (HDI), which reflects education, longevity, and income levels. All data were carefully adjusted for differences in body size and composition to make fair comparisons across diverse groups.

The results

The study found that total and basal energy expenditure declined only modestly as little as 611% with economic development, and those differences explained just about 10% of the rise in body fat and BMI seen in wealthier populations.

Meanwhile, dietary intake rose sharply in more developed settings. In populations with detailed food data, higher percentages of ultraprocessed foods in the diet strongly correlated with higher body fat regardless of energy expenditure levels.

Researchers emphasize that physical activity still matters, but that eating more especially processed, calorie-dense foods is driving modern obesity.

Diet and physical activity should be viewed as essential and complementary, rather than interchangeable, the researchers wrote.


Read More ...


Consumer News: Popular ice cream bars recalled in 9 states over Listeria risk

Fri, 25 Jul 2025 22:07:07 +0000

Recalled products include chocolate crunch cake and strawberry shortcake bars

By News Desk of ConsumerAffairs
July 25, 2025

  • More than 100,000 ice cream bars recalled due to potential contamination.

  • Products include fan favorites like chocolate crunch cake and strawberry shortcake bars.

  • FDA urges consumers in nine southern states to check freezers and discard affected items.


That refreshing ice cream bar in your freezer may come with more than just a chill. The U.S. Food and Drug Administration (FDA) has announced a recall of over 100,000 frozen dessert bars produced by Richs Ice Cream, citing potential contamination with Listeria monocytogenes, a bacteria that can cause serious illness.

The recall affects ten different varieties of ice cream treats, all sold under the Richs Ice Cream label, and has been issued in nine states across the South: Alabama, Georgia, Florida, Texas, Virginia, Tennessee, South Carolina, Oklahoma, and Louisiana.

Recalled products include:

  • Chocolate Crunch Cake Bar (H-0284-2025)

  • Strawberry Shortcake Bar (H-0285-2025)

  • Rich Bar (H-0286-2025)

  • Crumbled Cookie Bar (H-0287-2025)

  • Orange Cream Bar (H-0288-2025)

  • Fudge Frenzy Bar (H-0289-2025)

  • Cotton Candy Twirl Bar (H-0290-2025)

  • Savagely Sour Blue Raspberry Bar (H-0291-2025)

  • Savagely Sour Cherry Bar (H-0292-2025)

  • Cool Watermelon Bar (H-0293-2025)

Consumers are urged to check their freezers immediately for any of the products listed above and dispose of them if found.

Health risks and symptoms

The recall is classified as a Class II recall, meaning the product may cause temporary or medically reversible health issues, though the chance of serious consequences is considered low. Still, Listeria can be dangerous, particularly for pregnant women, older adults, and people with weakened immune systems.

Symptoms may include:

  • Fever

  • Diarrhea

  • Muscle aches

  • Nausea

  • Headache

  • Flu-like symptoms

If you have consumed any of the recalled products and experience these symptoms, seek medical attention immediately.

What to do

If you live in one of the affected states and have recently purchased Richs Ice Cream bars, take the following steps:

  1. Check your freezer for the listed products and matching recall numbers.

  2. Do not eat any recalled bars, even if they look or smell normal.

  3. Discard the product or return it to the place of purchase, if applicable.

  4. Contact your healthcare provider if you feel unwell after consuming the product.

Consumers with questions about the recall can visit the FDAs official website for the latest updates or contact Richs Ice Cream directly.

Summer treats are meant to bring joynot illness. A quick check of your freezer today could prevent an unpleasant health scare tomorrow.


Read More ...


Consumer News: Consumers in survival mode as economic pressures mount - KPMG

Fri, 25 Jul 2025 22:07:07 +0000

Shoppers are cutting back as they fear the effects of inflation and tariffs

By Truman Lewis of ConsumerAffairs
July 25, 2025

  • Nearly 4 in 10 households report lower income; over 70% expect a recession by next year.

  • Shoppers are cutting back across nearly all spending categories, except essentials like groceries and car-related expenses.

  • Tariffs, inflation, and shrinking savings are pushing consumers toward discounts, thrift, and smarter buying choices.


As summer 2025 winds down, U.S. consumers are facing tough financial decisions, according to KPMGs latest Consumer Pulse report. With inflation climbing, household incomes shrinking, and renewed fears over tariffs, Americans are spending less, saving less, and thinking twice before making non-essential purchases.

This isnt just belt-tightening its a complete rethink of value, said Duleep Rodrigo, KPMGs Consumer and Retail Sector Leader. Todays consumer wants purpose behind every dollar spent.

The report, based on a survey of over 1,500 consumers, found that 39% of households say their income has dropped, nearly double the number from last summer. At the same time, over 70% believe a recession is coming within the next year, leading to widespread spending cutbacks.

With tariffs back in the headlines, many consumers blame them for rising prices on food, clothing, electronics, and cars. Nearly 80% expect prices to go even higher, and half say theyre already cutting back or actively looking for deals to manage the impact.

Tariffs are no longer background noise theyre showing up on grocery receipts, said Heather Rice, KPMGs Consumer and Retail Tax Leader.

Smarter, sharper spending

Consumers arent necessarily giving up on spending theyre just getting smarter. The report shows a shift toward value-first behavior:

  • 50% of shoppers are cutting back overall

  • 49% are chasing discounts and promotions

  • Thrift store apparel spending is up 2%

  • Fast food visits are up 26%, while casual dining is down 38%

Only two categories are seeing growth: groceries and automotive.

Consumers are still buying, but theyre buying with purpose, Rodrigo said. Relevance, trust, and tangible value are driving decisions.

One-trip summer, wellness still a must

Even as budgets tighten, some spending remains sacred. Nearly 58% still plan summer travel, but theyre spending 7% less per trip and sticking to domestic destinations. Its a one trip instead of two mindset, with restaurants and shopping trimmed to preserve the getaway.

Health and wellness also remain a priority:

  • Fitness and mental health are top concerns, especially for younger consumers

  • 38% say theyre drinking less alcohol

  • Use of GLP-1 medications for weight loss or health is slowly rising, with 9% currently using them and 6% planning to start

Wellness is evolving, not disappearing, said Julia Wilson, KPMGs Consumer Strategy Leader. People are changing habits and focusing on what actually works.

Smarter tech use, sharper expectations

Digitally, shoppers are moving toward direct-to-consumer (D2C) channels for basics like clothing, food, and personal care. They expect secure payments, fast shipping, and hassle-free returns. While social media shopping is growing, skepticism around advertising and data use is high:

  • 43% are uncomfortable with companies using AI to analyze their personal data

  • Only 34% say theyre OK with it

Consumers are open to tech but only if it respects their privacy, said Sam Ganga, KPMGs AI and Cloud Leader. Trust and transparency are make-or-break.

The bottom line

Consumers in 2025 are not just spending less theyre spending smarter. With shrinking incomes, rising prices, and a looming recession, theyre focused on what matters: value, relevance, and results. Brands that respond with empathy, clarity, and real utility are the ones most likely to survive the shift.


Read More ...


Consumer News: Tik-Tok-fueled scam drains $17 million from NYC ATMs

Fri, 25 Jul 2025 22:07:07 +0000

The fraud spree lasted only 72 hours but cost $17 million

By Truman Lewis of ConsumerAffairs
July 25, 2025

  • A glitch in New Yorks Summer Youth Employment Program (SYEP) cards allowed massive ATM withdrawals totaling $17 million in just three days.

  • Some teens reportedly sold their cards for $1,000 each, as social media spread the scam rapidly.

  • City officials say no taxpayer money was lost, but investigations into how the scam worked are still ongoing.


A fast-moving scam tied to New York Citys youth jobs program allowed people to withdraw tens of thousands of dollars from ATMs money they were never supposed to access in a fraud spree that lasted less than 72 hours and totaled $17 million.

The scheme involved prepaid payment cards issued to thousands of participants in the Summer Youth Employment Program (SYEP) a city initiative that gives teens and young adults their first job experience. Normally, the cards are used by participants who dont have bank accounts to collect modest weekly earnings. But between July 11 and 13, the cards inexplicably unlocked unlimited cash, with some users pulling out $10,000 to $40,000 per ATM, $200 at a time.

Word of the glitch spread quickly on TikTok and Instagram, where some users bragged about the windfall and offered to buy cards for $1,000 apiece. Were printing money right now, one man said in a now-removed video. Another urged SYEP workers to hit me up to join in, according to a New York Times report.

City officials believe some young participants were unknowingly drawn in and exploited by older scammers who took advantage of their inexperience with money and financial tools.

Massive impact, few details

Of the programs 100,000 total participants, about 30,000 received cards rather than direct deposits. Authorities dont yet know exactly how many cards were abused or how the system failed so catastrophically. But by early Sunday, the cards were deactivated, and the scam was halted.

The NYPD Financial Crimes Task Force and the Department of Youth and Community Development are now investigating. ATM companies, like ATM World Corp, say their machines were heavily hit, with one store losing $43,000 in a single location. CEO Youssef Mubarez described people standing at machines for over an hour, withdrawing cash continuously.

Teaching moments,unanswered questions

City officials emphasized that no taxpayer funds were lost and said the financial institutions behind the cards will likely bear the loss. Still, questions remain about how such a large vulnerability went unnoticed.

SYEP includes financial literacy training, and the city had posted Instagram warnings telling students to safeguard their cards and personal information. But with social media fueling the fraud, that advice came too late for many.

For now, the citys biggest youth jobs program meant to introduce young people to the world of work is left dealing with a very grown-up financial mess.


Read More ...


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