America In Focus: New tariffs, soaring gas, mortgages and a down week for Wall Street

The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store and gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses.

Here’s a snapshot of prominent economic data and news that occurred over the past week and what it potentially means for you.

President Donald Trump is going ahead with new double-digit tariffs on dozens of U.S. trading partners just as the clock ran out Friday on stopgap levies he imposed after a stinging defeat at the Supreme Court.

The United States will slap taxes of 10% to 12.5% on imports from 60 trading partners accounting for 99% of U.S. imports, charging that they have inadequately enforced bans on goods produced by forced labor.

The new tariffs will take effect just as temporary 10% worldwide tariffs expire at 12:01 a.m. Friday. Trump had turned to those temporary levies after the Supreme Court struck down his biggest and boldest tariffs in February.

Global crude prices leapt above $100 per barrel this week for the first time in two months and gasoline in the U.S. moved sharply higher.

U.S. gas prices rose above $4 a gallon Monday and continued to rise throughout the week as the U.S. and Iran launched more attacks.

According to motor club federation AAA, the national average for a gallon of regular gasoline rose to $4.11 on Friday, almost a dollar more than at this time last year and about 12 cents more than just last week.

Drivers in some states have been paying well over $4 a gallon for a while now. Prices vary between states due to factors ranging from nearby supply to differing tax rates.

U.S. applications for jobless benefits tumbled to the lowest level in more than five decades last week as layoffs remain historically low despite global economic uncertainty.

The number of Americans applying for unemployment benefits in the week ending July 18 declined by 22,000 to 187,000, the Labor Department reported Thursday. That’s the fewest number of weekly applications since the week ending Sept. 6, 1969, according to Labor Department data.

It’s also well below the 215,000 new applications forecast by analysts surveyed by the data firm FactSet.

Weekly filings for unemployment benefits are considered a proxy for layoffs and are close to a real-time indicator of the health of the U.S. job market.

The average long-term U.S. mortgage rate climbed this week to its highest level in nearly 12 months, pushing up borrowing costs for prospective homebuyers at a time when rising oil prices are already squeezing household budgets.

The benchmark 30-year fixed rate mortgage rate rose to 6.58% from 6.55% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.74%.

The rate has ticked higher three weeks in a row. Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. As rates rise, that can lead prospective home shoppers to delay buying a home, one reason U.S. home sales have been sluggish this year.

Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week. That average rate increased to 5.96% from 5.93% last week. A year ago, it was at 5.87%, Freddie Mac said.

U.S. markets declined this week, with stocks mixed on the final day of trading.

A number of notable companies, from Tesla and Google, to American Airlines, tumbled after posting largely positive quarterly results. The problems ranged from higher spending to cautions expectations for the rest of the year.

Also, heavy fighting in the Middle East again threatened to slow the global flow of oil and gas.

Brent crude, the international standard, jumped this week, as did U.S. benchmark crude. Before the Iran war began in late February, Brent crude was trading around $72 per barrel.

Ford Motor Co. recalled more than half a million Broncos because a wiring harness in the engine compartment can short circuit and increase the risk of fire.

Ford said that 565,691 Ford Broncos and Bronco Raptors, model years 2021-2026, are included in the recall. The automaker estimates that around 1% of those vehicles have the wiring harness defect. Ford said it is not aware of any reports of accidents or injuries related to the issue.

The problem is caused by insufficient protection on the wiring harness which can lead to exposed wires and short circuiting.

The Detroit automaker is far outpacing is peers with recalls this year.