All articles tagged with #commerce department
The Commerce Department revised U.S. fourth-quarter GDP growth down to 0.5%, signaling a softer end to the year and potentially influencing the 2026 outlook and Federal Reserve policy as spending and investment cooled.
U.S. retail sales were unchanged in December, missing economists’ expectations of about 0.4% growth and reversing November’s gain. The flat month came as furniture and miscellaneous stores fell (-0.9% each) while home improvement rose 1.2%, and the control group slipped 0.1%. The report, seasonally adjusted but not inflation-adjusted, was delayed by last year’s government shutdown. Despite slower hiring and stubborn inflation, Americans haven’t slashed spending, but December’s stagnation suggests consumer activity may be nearing a spending ceiling.
Geely, which controls Volvo, plans to build cars in the U.S. via Volvo’s South Carolina plant, but a new Commerce Department rule requires that all software and connectivity tech be free of Chinese control. Software for model years 2027+ must be certified, with per-model/year authorizations, and hardware bans begin for 2030; no waivers have been issued yet. Volvo may help navigate approvals, but Geely would need to prove software origin and data governance for every model/year before selling in America.
November’s trade data show the U.S. deficit widening to $56.8 billion as imports rose 5% and exports fell 3.6%, reflecting ongoing volatility from tariff policies and the reversal of earlier deficits.
The Trump administration announced up to $277 million in direct funding and up to $1.3 billion in loans to USA Rare Earth to bolster domestic supply chains for rare earth minerals and magnets, taking about 16 million shares plus a warrant for 17.6 million more as part of broader government equity stakes in private firms. The effort, aiming to reduce China’s dominance in critical materials, includes a Texas mine slated for 2028 and an Oklahoma magnetics project, and comes amid scrutiny over Cantor Fitzgerald’s ties to Commerce Secretary Lutnick.
The Commerce Department plans a $1.3 billion loan and $277 million in federal funding to USA Rare Earth, in exchange for 16.1 million shares and 17.6 million warrants that would give the government an 8%–16% stake once warrants are exercised. The deal, part of a push to build a Western rare earth supply chain, funds the company’s magnet plant in Stillwater, Oklahoma, and the Round Top mine in Texas, with total project costs around $4.1 billion and about $3.5 billion already secured from cash, private funding, and the government package. Disbursement is 2026–2028 based on milestones, and the agreement is subject to final approvals; the company has already raised $1.5 billion from private investors. Shares rose more than 20% on the news.
A potential US government shutdown could halt key economic data releases, including the September jobs report, construction, and trade data, impacting economic assessments and Social Security adjustments, with delays depending on funding resolution.
The U.S. Commerce Department is reviewing Harvard's compliance with federal rules regarding patents from federally funded research, threatening to seize patents worth hundreds of millions if Harvard fails to provide required disclosures by September 5, citing concerns over non-compliance with the Bayh-Dole Act.
A Chinese American working for the U.S. Commerce Department is unable to leave China after failing to disclose his employment on his visa application, and is caught in China's exit ban practices used as coercion, according to sources.
The Commerce Department confirmed a $6.1 billion grant for Micron Technology to build two chip factories in New York and Idaho, as part of the Biden administration's efforts to distribute funds under the Chips and Science Act. An additional $275 million preliminary grant was announced for expanding a facility in Virginia.
The Biden administration has reduced Intel's CHIPS Act grant by at least $500 million, bringing it to under $8 billion. This decision accounts for Intel's separate $3 billion contract with the U.S. Department of Defense for semiconductor manufacturing, as reported by The New York Times.
Commerce Secretary Gina Raimondo is working to allocate nearly all of the $50 billion from the CHIPS Act before Donald Trump assumes office, aiming to solidify the Biden administration's tech legacy. This effort is part of a broader strategy to secure bipartisan-supported programs against potential rollbacks by a Republican administration. Raimondo is confident that the bipartisan nature of the CHIPS Act, focused on national security, will protect it from significant changes under Trump. The Commerce Department has shifted towards high-tech and national security under her leadership.
Donald Trump has announced his intention to nominate Howard Lutnick, a Wall Street investor and campaign donor, to lead the Commerce Department. Lutnick, CEO of Cantor Fitzgerald and co-chair of Trump's transition team, will also oversee the US Trade Representative's office if confirmed. This appointment positions Lutnick to implement Trump's proposed tariffs, including a 60% tariff on Chinese imports. Lutnick, a major Trump supporter, has never held a government position before and was previously considered for Treasury Secretary.
Kaspersky is closing its U.S. operations after the Commerce Department banned its software, citing national security risks due to the company's Russian connections. The decision impacts fewer than 50 employees and follows a thorough investigation by the U.S. government. Kaspersky denies being a security threat and argues the ban is based on geopolitical concerns rather than verified risks.
Kaspersky is shutting down its U.S. operations following a Commerce Department ban on its software, citing national security risks due to the company's Russian connections. The decision impacts fewer than 50 employees and ends nearly 20 years of Kaspersky's presence in the U.S. The company disputes the security threat claims, arguing the ban is based on geopolitical concerns rather than verified risks.