Morning Business Report: Trump threatens steep tariffs as consumers, companies adapt to economic pressures

President Donald Trump announced today that his administration will begin notifying countries of unilateral tariffs that could reach as high as 70%.

(LILAMAX)- President Donald Trump announced today that his administration will begin notifying countries of unilateral tariffs that could reach as high as 70%. The move signals a major escalation in his trade strategy. Trump said he has already signed letters to 12 nations, laying out the various tariff levels they will face on exports to the United States. The “take it or leave it” offers are expected to be sent out today. Treasury Secretary Scott Bessent added that the U.S. is on the verge of securing several trade deals, with announcements anticipated by the end of the week.

As trade tensions rise, companies and consumers alike are making adjustments. Major brands such as PepsiCo, Campbell’s, and Mondelez are introducing smaller-sized snacks — which tend to offer higher profit margins — at lower price points to appeal to budget-conscious shoppers.

Meanwhile, a report from First Insight Consulting finds that many consumers are turning away from name brands altogether, opting instead for more affordable store-label groceries.

Wall Street responded positively to a robust June jobs report. The Dow jumped more than 300 points Thursday, and the S&P 500 hit a new record high. Markets closed early in observance of the Independence Day holiday and remained closed on Friday.

But not all economic indicators are upbeat. The youngest members of Generation Z are facing a tough summer job market. Teen unemployment rose to 13.4% in May — a full percentage point higher than the same time last year. Outplacement executive Andy Challenger says companies are cutting back on seasonal hiring as they wait to gauge the impact of the new tariffs. Only about one million new summer jobs are expected for teens, marking a 15-year low.

Even wedding bells are ringing on a tighter budget. A new survey by Talker Research on behalf of JJ’s House reveals that 22% of engaged couples describe their wedding budget as “modest,” while 16% say they’re planning with the “bare minimum.” Just 5% are planning extravagant celebrations. On average, couples expect to spend one-third of their combined annual income on the big day.