Business
Grocery Shoppers Will Feel the Tariffs First in Produce
Grocery shoppers are likely to feel the impact of the Trump administration’s sweeping new tariffs before April is over. And the first place they’ll feel it is in parts of the store where the inventory has to move fast.
In the produce aisle, food analysts said Thursday, expect small price increases on everyday purchases like bananas from Guatemala and grapes from Peru, countries whose exports to the United States will incur 10 percent tariffs when the new fees go into effect on Saturday. A separate round of reciprocal tariffs on 57 countries will follow on Wednesday.
The seafood counter may hold even worse surprises. Grocery stores sell a lot of shrimp from Vietnam, which President Trump hit with a 46 percent reciprocal tariff, and India, with a 26 percent reciprocal tariff.
Soon, analysts say, price hikes will arrive for staples like sugar and coffee, which is already priced at a historic high. Specialty coffee beans might eventually cost consumers 10 percent to 35 percent more than before the tariffs, bean buyers predicted.
Since the pandemic, grocery stores have been expanding their lines of lower-priced private-label products. Customers loved them as a way to navigate inflation, but tariffs will drive up costs.
“It was a bit of a refuge for consumers,” said Keith Daniels, a managing partner at the investment bank Carl Marks Advisors, who focuses on the food and grocery sectors. “Now that’s not going to be there.”
Still, he and some food executives said that because so much food on shelves in the United States is processed overseas or contains ingredients and packaging from several countries, predicting how tariffs will change food prices is difficult if not impossible.
Some of the cost of the tariffs is likely to be absorbed and not passed on to consumers, as retailers re-evaluate pricing strategies and determine how long the inventory they already have in the country might last.
Still, the opportunity for price gouging or other forms of manipulation are high, said Errol Schweizer, a veteran of the grocery industry who publishes The Checkout Grocery Update, a newsletter.
“Consumers won’t know if things are priced correctly or they are getting ripped off,” he said.
At all levels of the food business, just figuring out the additional paperwork will take time. Walmart requires suppliers to give advance notice of price increases and clear documentation for them. But some businesses have yet to set up systems for recording and paying tariffs.
“It will take a year for all those costs to ripple through, but in 12 months you will absolutely see higher prices across the board,” said Jeff Dunn, the executive chairman of Generous Brands and Bolthouse Fresh Foods.
Big food producers like Mondelez and Kraft Heinz are better equipped to absorb the impact of tariffs than smaller companies with relatively thin operating margins are. For those smaller players, staying afloat with the new tariffs will likely involve some fast, creative and strategic cost-cutting.
On Thursday, Paleovalley, a Colorado company that makes meat sticks and other products, was scrambling to mitigate the potential impact of the tariffs on imported monkfruit purée, an ingredient that is hard to source.
Ethan Frisch is the co-founder and co-chief executive of Burlap & Barrel, which imports spices from 30 countries and buys exclusively from small producers. It has a shipment of cinnamon already coming on a ship from Vietnam. The farmers and the shipping company have all been paid. He has no idea if he will have to pay a tariff.
Because of uncertainties like that, he has decided to scale back on other goods the company was planning to introduce later in the year, like an Advent calendar filled with spice samples from around the world tucked into festive packaging manufactured in China.
Yun Hai, a specialty food shop in New York City, buys directly from rice farms, soy sauce breweries and mills in Taiwan, then ships the goods over in bulk, supplying grocery stores and restaurants across the country. The new tariff on those foods, most of which have no local substitute, is 32 percent.
“We’re on the front line because we’re the importer,” said the company’s chief executive, Lisa Cheng Smith, whose most recent shipment of goods came in on Tuesday, just a day before the tariffs were announced. She plans to examine creative ways to reduce other costs by 32 percent without losing her business.
“We’re not going to panic and just raise our prices right away,” she said.
In the meantime, it might not be a bad idea to stock up, said Sam Silverstein, a reporter for the trade publication Grocery Dive.
“It’s harder to stockpile avocados than cans of soup,” he said, “which is another reason to grab something on the shelf if it’s offered at a good price.”
Tejal Rao contributed reporting.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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