How to actually feed America

Here is an interesting piece that was shared with me by Prof. Gitter on how food bank system operates. There are clear parallels between the food bank system and economic systems that we have covered in class this semester. Happy reading.

Trump and South Korean Tariffs

 The Trump administration has finalized a major trade agreement with South Korea, leading to a significant reduction in U.S. tariffs on imported goods, including automobiles. The new deal states that the general tariff rate on imports from South Korea will be cut from 25% down to 15%. This reduction was possible due to South Korea fulfilling a commitment within the trade structure by implementing a $350 billion investment package into select American industries.

The tariff reduction is set to deliver a substantial financial boost to South Korean auto manufacturers, most notably Hyundai and Kia, who have seen profits decrease because of the 25% tariffs. Recent forecasts predict the lower rate could save the companies billions, allowing them to improve their business operations.Furthermore, while the agreement softens financial strain to the South Korean economy, the required investment from South Korea into American industries strengthens the economic relationship between the two. 

Source: https://www.cnbc.com/2025/12/03/trump-south-korea-tariffs-vehicles-hyundai-gm.html

Delayed tariff impact starting to hit

Tariffs may result in job losses in 2026.

The newest wave of tariffs is finally showing up in the economy, and a lot of companies are basically saying the same thing: expenses are rising, margins are growing tight, and if this keeps up, they may have to slash employment moving into 2026. When input prices rise and demand falls, payroll is one of the first areas organizations cut to reduce costs.

Manufacturing has already been struggling for several months. Tariffs' increased import costs aren't helpful, and many businesses aren't confident enough to grow or recruit. Some are even prepared for probable layoffs next year if things don’t improve.

The problem is that tariffs affect consumers as well as enterprises. Higher production costs usually translate to higher pricing, and people are already feeling stretched. If customers draw back, that can create a loop of weaker demand and increased pressure on firms to cut costs.

Potential Consequences for 2026. If tariffs keep piling on:

- Hiring might even stall
- There may be layoffs in some industries

- Consumer spending might decrease
- Inflation might continue to be higher than anticipated

Tariffs began as a trade tactic, but they are evolving into something that could actually affect the labor market and the economy as a whole in the coming year.

Link

Shutdown Ends, Uncertainty Continues: How Washington's Standoff Hit the U.S. Economy

The biggest economic story this period has been the end of the record-long U.S. government shutdown. After 43 days, Congress finally approved a funding package on November 12th, and agencies reopened the next morning. Nearly 750,000 federal employees began returning to work, with back pay scheduled to roll out over the following week. While markets reacted with relief, the shutdown created lasting disruptions: delayed economic data, stalled regulatory decisions, and financial strain for households that went more than a month without pay. The deal only funds agencies through late January, leaving another standoff possible, especially as Congress now faces a new fight over expiring health-care tax credits. For now, the economy is moving again, but the uncertainty highlighted how sensitive growth and consumer confidence are to political brinkmanship.

Article: Government shutdown now over as federal agencies reopen and employees return to work By Kaia Hubbard and Caitlin Yilek

Link: https://www.cbsnews.com/live-updates/government-shutdown-latest-trump-signs-funding-federal-agences-opening/