Spain's 12-month EU-harmonised inflation rises to 2.7% in July
The 12-month EU-harmonised inflation was in line with expectations of analysts polled by Reuters.
Core inflation, which strips out volatile fresh food and energy prices, was 2.3% year-on-year in July, above 2.2% in June, the INE data showed.
Spain's 12-month national inflation also rose to 2.7%, from 2.3% in June. Analysts polled by Reuters expected a 2.6% rate.
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The Guardian
38 minutes ago
- The Guardian
More than 60 countries scramble to respond to Trump's latest tariffs
More than 60 countries around the world are scrambling to respond to the latest wave of US tariffs announced by Donald Trump, which came into force on Thursday. Industry representatives in rich and poor countries warned of job losses as the tariffs upended a decades-old world trading system with rates ranging from 10% to 39%, 40% and 41% for Switzerland, Brazil and Syria. All over the globe, leaders were attempting to put contingencies in place after Trump's tariff threats turned to reality at a minute past midnight Washington time. The Brazilian government said it was planning a state aid plan for companies affected. The president, Luiz Inácio Lula da Silva, said the duties were 'unacceptable blackmail'. Switzerland said it was seeking new talks with the US after a last-gasp mission to Washington by its president, Karin Keller-Sutter, failed to stop a 39% tariff blow that industry group Swissmem described as a 'horror scenario'. In a statement after an emergency meeting with Keller-Sutter, the Swiss cabinet said the tariffs would 'place a substantial strain on Switzerland's export-oriented economy'. 'For the affected sectors, companies and their employees, this is an extraordinarily difficult situation,' Keller-Sutter told reporters. Taiwan is also continuing talks with the US. Its president, Lai Ching-te, said the 20% rate imposed on the key Washington ally was 'temporary'. Ireland, which is locked into an EU-US deal setting the tariff ceiling at 15%, said it would publish a new plan for diversifying an economy that relies heavily on US multinationals including Intel, Pfizer and Johnson & Johnson, all in Trump's crosshairs. Despite a last minute reprieve from Trump for Lesotho with tariffs dropping from 50% to 15%, the impoverished African nation said it was already hurting. Textile industry players in the country – which produces jeans and other garments for US companies including Levi and Walmart – said the uncertainty around tariffs over the past few months had already devastated the sector, with orders cancelled and jobs cut. Laos, which, like Brazil and Myanmar, was hit with a 40% rate, was among those handed a steep increase in import duties because of a trade imbalance with the US. 'A 40% tariff is just a nail in the coffin for any industry trying to ship to the United States,' Johannes Somers, the executive chair of the garment manufacturing firm Diep Vu, told Agence France Presse. 'We estimate about 20,000 workers or more could be impacted,' added Xaybandith Rasphone, the head of the Association of the Lao Garment Industry. The sweeping 'reciprocal' rates were announced by the White House a week ago, just before a previous 1 August deadline was due to elapse. Just before the tariffs came into effect at midnight, Trump claimed on social media that billions of dollars would start flowing into the US as a result. However, while the customs duties make countries' exports more expensive and less competitive, they are payable on import and usually passed on to the customer. 'The only thing that can stop America's greatness would be a radical left court that wants to see our country fail,' the president wrote in capital letters, referencing an ongoing case in the US court of appeals, which is considering whether he exceeded his authority in imposing the tariffs. Some trading partners had already secured reductions through negotiations or by striking deals, including the UK, Thailand, Cambodia, Vietnam, Indonesia, the Philippines, Japan, South Korea, Pakistan and the EU. The EU is the only trading partner where its baseline rate of 15% will include previous tariffs. It means, for example, cheeses that are normally hit with import duties of 14.9% will be taxed at 15% and not 29.9%. However, the deal has only been implemented in part with tariffs of 27.5% still being imposed on EU car imports while the details of the US-EU deal are being finalised. Hildegard Müller, the president of the German car industry federation, said the EU-US deal had 'brought no clarity or improvement' to the industry. 'The sectoral tariffs on cars and automotive parts of 27.5%, which have been in effect since April and May respectively, remain in place and place a significant burden on German automakers and automotive suppliers, as well as on transatlantic trade. 'It is important that the promised agreement is reached now and the relief measures are implemented promptly,' she said. India's 25% tariff rate could rise to a total of 50% after Trump signed an executive order on Wednesday imposing an additional levy in retaliation for the country's purchase of oil from Russia. Delhi has 21 days to respond. Trump has threatened to use the same tactic on other countries that supply Russia.
The Independent
an hour ago
- The Independent
Trump's tariffs are now in place. Alcohol, a cup of joe, and Toyotas are about to cost a whole lot more
President Donald Trump 's global tariffs, ranging from 10 to 50 percent, took effect on Thursday, igniting fear among consumers, companies, and investors about potential price hikes. Everyday items ranging from coffee to Toyotas, home furnishings to Gap jeans, are expected to become more expensive as companies adjust their prices to counteract the impact of tariffs. While the president has asked companies to absorb the cost of tariffs, many cannot forever. Even luxury items such as Range Rovers, French wines, or Rolex watches are likely to raise prices as they face 10 percent, 15 percent, and 39 percent tariffs, respectively, from the president. While Trump wants tariffs to promote domestic production and purchasing, Americans will most likely bear the cost. Economic experts agree that sweeping tariffs on goods from countries could lead to supply chain issues, price spikes, or even inflation. Here are some of the goods expected to cost more. Alcohol Consumers of French, Italian, or Spanish wines, Scotch whiskey, and aperitifs such as Aperol, can expect to see the price of their favorite alcoholic beverage rise due to the 15 percent tariff on the European Union. The E.U. is a major exporter of wines and spirits to the U.S. In 2024 alone, the E.U. accounted for $3.4 billion worth of imported spirits. Despite pleas from the beverage industry, the president's trade deal did not create exemptions for alcohol, which will likely drive up the price of imported wine or liquor – either in stores or restaurants. 'Without productive negotiations reducing reciprocal tariffs on wine and spirits, American wine retailers anticipate a significant decline in sales on top of the already difficult market, as well as significant job losses and subsequent business closures,' Tom Wark, the executive director of the Association of Wine Retailers, said. A letter to the president from the Toast Not Tariffs Coalition, a group of 57 associations representing the U.S. alcohol industry and related industries, said tariffs on the E.U. could result in 25,000 American job losses, and nearly $2 billion in lost sales. Diageo, the maker of Guinness, Bailey's, Johnnie Walker, and more, said the company expects to see a $200 million slump as a result of the tariffs. Cars and car parts Already, consumers have seen cars and car parts become more expensive over the last few months as a result of Trump's tariffs because the U.S. relies heavily on its trading partners for auto parts. Cox Automotive, an industry service and technology provider, expects the sticker price of vehicles to rise anywhere from four-to-eight percent by the end of the year. That means the average car price would be above $50,000. While the president struck several deals with countries, many of them still make imported vehicles more expensive. Imported cars from the U.K., such as Range Rovers, are subject to a 10 percent tariff. Japan, which sells more cars to the U.S. than any other country, is facing a 15 percent tariff rate, which is expected to cause major disruption. Toyota said on August 7 it expects a $9.5 billion profit loss for the year. "It's honestly very difficult for us to predict what will happen regarding the market environment," Takanori Azuma, Toyota's head of finance, said. But given that many car parts are imported from Japan, the tariffs are likely to hurt U.S. carmakers as well. General Motors projects a $4 billion loss, Stellantis, the maker of Jeeps, said it anticipates tariffs will add $1.7 billion in expenses, and Ford, which builds more cars in the U.S. than any of its rivals, said it expects tariffs to cause a $2 billion loss this year. Clothing Clothing is expected to see one of the most significant price increases since the U.S. is the largest single importer of apparel, and much of it comes from countries in Asia. 'The 2025 tariffs disproportionately affect clothing and textiles, with consumers facing 40% higher shoe prices and 38% higher apparel prices in the short-run,' the Budget Lab at Yale, a nonpartisan policy research center, said in a recent analysis. Shoes and apparel could remain 19 percent and 17 percent higher, respectively, in the long run, the report added. Vietnam, one of the largest exporters of appear to the U.S., has agreed to a 20 percent tariff. Brands such as Nike, Adidas, Zara, and Gap manufacture much of their clothing in Vietnam. While many can absorb some of those costs, even raising prices 10 percent would make a $65 pair of shoes $71.50, without tax. Bjorn Gulden, the CEO of Adidas, said the tariffs 'will directly increase the cost of our products for the U.S.' Other countries that are high producers of clothing face significant tariffs as well. Bangladesh has a 20 percent tariff, while Indonesia and Cambodia both face a 19 percent tariff. India, also a large producer of apparel, faces a steep tariff of 25 percent and Trump has threatened to increase that to 50 percent by the end of August if the country does not stop importing Russian oil. While the U.S. also imports a large portion of clothing from China, which is still negotiating a trade deal, Trump's decision to get rid of the de minimis exemption will make it more costly for consumers to purchase cheap clothing from stores like Shein or Temu. The U.S. relies heavily on Brazil to import coffee for the 165 million people who need their daily caffeine fix, but Trump's 50 percent tariff threatens the long-term availability and price of the drink. "When people go to their local coffee shop, whether it's Starbucks or something else, by and large they will likely be buying some form of Brazilian coffee," Monica de Bolle, senior fellow at the Peterson Institute for International Economics, told NPR. "A 50 percent tariff will kill that market." Household products: appliances, cookware, furniture Everyday household items made with steel or aluminum, such as cookware, appliances, furniture, and more, are likely going to be impacted by Trump's steep 50 percent industry tariffs. The U.S. relies heavily on its trading partners, particularly Canada and Mexico, for steel and aluminium imports. Nearly half of the aluminum used in the U.S. is imported, while less than a quarter of steel is imported. But that doesn't mean consumers won't see price increases. One small business, Heritage Steel, a family-owned cookware manufacturer in Tennessee, told NBC News that they recently received a tariff bill of $75,000 on an order of handles – and they're anticipating higher bills in the future. Since the U.S. does not have many specialized steel manufacturers, Heritage Steel imports approximately 75 percent of its raw material. Unlike other cookware manufacturers, they only import raw material and create their products in the U.S. Danny Henn, the vice president of operations for Hertiage Steel, told NBC News that the company wants to keep its products moderately priced, but at the same time, cannot absorb the new price of steel. They've raised their prices approximately 15 percent to make up for it. 'We're happy and proud to be a provider of really high-quality cookware, but one that's more affordably priced than some of the others on the market,' Henn said. 'We want to continue to offer the best price we can, given our constraints.' Watches Although imported watches are not an everyday essential, luxury wristwatches made in Switzerland are likely to see significant price increases thanks to the 39 percent tariff imposed on the country on Thursday. That means Americans looking to purchase a watch from recognizable brands such as Rolex, Breitling, Patek Philippe, Omega, or TAG Heuer may have to pay significantly more. An analysis of the impact, conducted by Bob's Watches, a secondhand watch retailer, found that a $9,900 stainless steel Breitling could rise to $11,080.
The Independent
2 hours ago
- The Independent
What US consumers can expect from new tariffs on imported goods
American businesses and consumers soon will have a better idea of how President Donald Trump 's foreign trade agenda might affect them now that the United States has imposed higher tariffs on products from dozens of countries. It's been nearly 100 years since the nation had an overall import tax rate as high as the one set Thursday. But the individual impact on business costs and consumer prices could vary as much as the tariffs applied to goods of nearly 70 U.S. trading partners, from complicated economies like the European Union to the small African nation of Lesotho. Exports from a majority of them are getting taxed at 15%. For a handful of countries in Asia, the rate is 19%. Products from the rest are subject to taxes of 20% to 50%. Meanwhile, a 55% tariff on Chinese-made goods is scheduled to take effect next week if a U.S.-China trade deal is not agreed on before then. Businesses in the U.S. and abroad have been dealing in various ways since February with Trump's fluctuating tariffs on specific products and countries. Many automakers appeared to have absorbed the costs for now. But recent government data indicated that retail prices for groceries, furniture and appliances started creeping up in June. Because tariffs are a tax on imports, economists have expected U.S. consumers to foot at least part of the bill eventually. The country-specific round enforced Thursday, together with the president's earlier tariffs on specific sectors such as automobiles and steel, will increase prices 1.8% in the short term, the Budget Lab at Yale estimated. That's the equivalent of a $2,400 loss of income per U.S. household, according to the non-partisan policy research center The projections were based on an analysis of duties implemented this year through Wednesday, as well as a doubling of the levy on items made in India that Trump said would be implemented near the end of August. "Retailers have been able to hold the line on pricing so far, but the new increased tariffs will significantly raise costs for U.S. retailers, manufacturers and consumers,' Jonathan Gold, Jon Gold, vice president of supply chain and customs policy at the National Retail Federation trade group, said in an emailed statement to The Associated Press. Here's what to know about the tariffs and where U.S. consumers are most likely to notice effects: How we got here Trump unveiled sweeping import taxes on goods coming into the U.S. from 66 countries, the European Union, Taiwan and the Falkland Islands in April. He said the 'reciprocal' tariffs were meant to boost domestic manufacturing and restore fairness to global trade. The president paused the country-specific tariffs a week later but applied a 10% tax to most imports. In early July, he began notifying countries that their exports would be subject to higher tariffs on Aug. 1 unless they reached trade deals. A week ago, he pushed the start date to Thursday. In the meantime, Trump announced a 35% tariff on imports from Canada, but delayed action on Mexico while negotiations continued. However, a free trade agreement reached with Mexico and Canada during Trump's first term shields most of those countries' products from punishing duties. The president also ordered a 50% tariff on goods from Brazil. This week, he signed an executive order to take India's tariff rate from 25% to 50% for its purchases of Russian oil. The timing gives India and Russia a chance to negotiate with the Trump administration. Other duties not specific to countries remain in place, such as a 50% tariff on imported aluminum and steel announced in June. Trump also threatened 100% tariffs on computer chips that aren't made in the U.S. The administration has said tariffs are still coming on imported pharmaceutical drugs. Tariffs are already impacting prices The U.S. Commerce Department reported on July 31 that prices rose 2.6% in June, up from an annual pace of 2.4% in May. Earlier in July, the government reported that its primary inflation measure, the Consumer Price Index, also ticked higher in June as the cost of furniture, toys and other frequently imported items increased. Shoppers should be prepared to pay more for clothes and shoes because the combined tariffs 'disproportionately affect clothing and textiles,' according to the Budget Lab at Yale. It estimates that shoe prices will go up 39% temporarily and stay 19% above where they are now. For apparel, the Budget Lab put the comparable figures at 37% and 18%. Overall, Americans face an average tax of 18.6% for imported products, the highest rate since 1933, the research center said. Food and drink prices will climb The tariffs will almost certainly result in higher food prices, according to an analysis by the nonpartisan Tax Foundation. The U.S. simply doesn't make enough of some products, like bananas or coffee, to satisfy demand. Fish, beer and liquor are also likely to get more expensive, the foundation said. The U.S. Wine Trade Alliance and other alcohol industry trade groups sent a letter to Trump that warned a 15% tariff on European wines and spirits could result in more than 25,000 American job losses and cost the industry nearly $2 billion in lost sales. 'Mr. President, we need toasts, not tariffs, as we head into the most important season for our industry,' read the letter dated Wednesday. Wine distributors and retailers avoided price increases before now by accelerating shipments from France and other EU countries earlier in the year. But with the EU's tariff rate raised to 15% on Thursday, customers may see European wines costing 30% more in September, U.S. Wine Trade Alliance President Ben Aneff said. Car prices hold steady — so far Some automakers already raised prices to counteract tariffs. Luxury sports car maker Ferrari said last week it was waiting for more details of Trump's trade deal with the EU before scaling back a 10% surcharge it put on most vehicles in the U.S. For the most part, automakers waited for details instead of passing on tariff costs to consumers. But that could change. General Motors said on July 22 that the impact of the tariffs could get more pronounced in the third quarter of the year. GM has estimated the tariffs will cost it $4 billion to $5 billion this year. Toyota reported Thursday a 37% drop in profits in the April-June quarter, cutting its full-year earnings forecasts largely because of Trump's tariffs. Still a clouded picture Even with so many new tariffs kicking in, the tariff situation remains fluid. Trump's use of an emergency powers law to implement tariffs is being challenged in the courts. The case is expected to wind up before the U.S. Supreme Court. Moreover, the tariffs on goods from China haven't been finalized. Consumers may start seeing more effects when the administration ends a tax exemption for small parcels sent from other countries. Trump last week signed an order to suspend the 'de minimis" exemption that has allowed shipments valued at $800 or less to enter the U.S. duty-free. International e-commerce companies have widely used the rule to avoid paying customs charges. Trump withdrew the exemption in early April for goods shipped from China and Hong Kong tariff-free. It is now set to be eliminated for low-value packages from every country on Aug. 29. ___
