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NDTV
12 hours ago
- Business
- NDTV
US Tariff Expansion Begins, Targeting EU, Asia, And More
President Donald Trump began imposing higher import taxes on dozens of countries Thursday just as the economic fallout of his monthslong tariff threats has begun to cause visible damage to the US economy. Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States. "I think the growth is going to be unprecedented," Trump said Wednesday. He said the US was "taking in hundreds of billions of dollars in tariffs," but did not provide a specific figure for revenues because "we don't even know what the final number is" regarding the rates. Despite the uncertainty, the White House is confident that the onset of his tariffs will provide clarity about the path for the world's largest economy. Now that companies understand the direction the US is headed, the Republican administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power. So far, however, there are signs of self-inflicted wounds to the U.S. as companies and consumers brace for the impact of the new taxes. Hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after the initial tariff rollout in April, said John Silvia, CEO of Dynamic Economic Strategy. "A less productive economy requires fewer workers," Silvia said. "But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences." Many economists say the risk is that the American economy is steadily eroded. "It's going to be fine sand in the gears and slow things down," said Brad Jensen, a professor at Georgetown University. Trump has promoted the tariffs as a way to reduce America's persistent trade deficit. But importers tried to avoid the taxes by bringing in more goods before the tariffs took effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. Total construction spending has dropped 2.9% over the past year. The economic pain is not confined to the US. Germany, which sends 10% of its exports to the US market, saw industrial production sag 1.9% in June as Trump's earlier rounds of tariffs took hold. "The new tariffs will clearly weigh on economic growth," said Carsten Brzeski, global chief of macro for ING bank. The lead-up to Thursday fit the slapdash nature of Trump's tariffs, which have been rolled out, walked back, delayed, increased, imposed by letter and renegotiated. Trump on Wednesday announced additional 25% tariffs to be imposed on India because of its purchases of Russian oil, bringing its total import taxes to 50%. A leading group of Indian exporters said that will affect nearly 55% of the country's outbound shipments to America and force exporters to lose long-standing clients. "Absorbing this sudden cost escalation is simply not viable. Margins are already thin," SC Ralhan, president of the Federation of Indian Export Organizations, said in a statement. The Swiss executive branch, the Federal Council, was expected to meet Thursday after President Karin Keller-Sutter and other Swiss officials returned from a hastily arranged trip to Washington in a failed bid to avert 39% US tariffs on Swiss goods. Import taxes are still coming on pharmaceutical drugs, and Trump announced 100% tariffs on computer chips. That could leave the U.S. economy in a place of suspended animation as it awaits the impact. The president's use of a 1977 law to declare an economic emergency to impose the tariffs is under a legal challenge. Even people who worked with Trump during his first term are skeptical, such as Paul Ryan, the Wisconsin Republican who was House speaker. "There's no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions," Ryan told CNBC on Wednesday. Trump is aware of the risk that courts could overturn his tariffs. In a Truth Social tweet, he said, "THE ONLY THING THAT CAN STOP AMERICA'S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!" The stock market has been solid during the tariff drama, with the S&P 500 index climbing more than 25% from its April low. The market's rebound and the income tax cuts in Trump's tax and spending measure signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. On the global financial markets, indexes rose across much of Europe and Asia, while stocks were slipping on Wall Street. But ING's Brzeski warned, "While financial markets seem to have grown numb to tariff announcements, let's not forget that their adverse effects on economies will gradually unfold over time." Trump foresees an economic boom. American voters and the rest of the world wait, nervously. "There's one person who can afford to be cavalier about the uncertainty that he's creating, and that's Donald Trump," said Rachel West, a senior fellow at The Century Foundation who worked in the Biden White House on labor policy. "The rest of Americans are already paying the price for that uncertainty."
New Indian Express
17 hours ago
- Business
- New Indian Express
Trump's new tariffs go into effect as US economy shows signs of strain
WASHINGTON: US President Donald Trump began imposing higher import taxes on dozens of countries Thursday just as the economic fallout of his monthslong tariff threats has begun to cause visible damage to the American economy. Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States. 'I think the growth is going to be unprecedented,' Trump said Wednesday. He said the US was 'taking in hundreds of billions of dollars in tariffs,' but did not provide a specific figure for revenues because 'we don't even know what the final number is' regarding the rates. Despite the uncertainty, the White House is confident that the onset of his tariffs will provide clarity about the path for the world's largest economy. Now that companies understand the direction the US is headed, the Republican administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power. So far, however, there are signs of self-inflicted wounds to the US as companies and consumers brace for the impact of the new taxes. Risk of economic erosion Hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after the initial tariff rollout in April, said John Silvia, CEO of Dynamic Economic Strategy. 'A less productive economy requires fewer workers,' Silvia said. 'But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.' Many economists say the risk is that the American economy is steadily eroded. 'It's going to be fine sand in the gears and slow things down," said Brad Jensen, a professor at Georgetown University. Trump has promoted the tariffs as a way to reduce America's persistent trade deficit. But importers tried to avoid the taxes by bringing in more goods before the tariffs took effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. Total construction spending has dropped 2.9% over the past year. The economic pain is not confined to the US. Germany, which sends 10% of its exports to the US market, saw industrial production sag 1.9% in June as Trump's earlier rounds of tariffs took hold. 'The new tariffs will clearly weigh on economic growth,' said Carsten Brzeski, global chief of macro for ING bank.
The Hindu
a day ago
- Business
- The Hindu
Trump's broad tariffs go into effect just as U.S. economic pain is surfacing
President Donald Trump began imposing higher import taxes on dozens of countries Thursday (August 7, 2025) just as the economic fallout of his monthslong tariff threats has begun to cause visible damage to the U.S. economy. Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10% or higher. Products from the EU, Japan and South Korea are taxed at 15%, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20%. Mr. Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the United States. 'I think the growth is going to be unprecedented,' Mr. Trump said Wednesday (August 6, 2025). He said the U.S. was 'taking in hundreds of billions of dollars in tariffs,' but did not provide a specific figure for revenues because 'we don't even know what the final number is' regarding the rates. Despite the uncertainty, the White House is confident that the onset of his tariffs will provide clarity about the path for the world's largest economy. Now that companies understand the direction the U.S. is headed, the Republican administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance America as a manufacturing power. So far, however, there are signs of self-inflicted wounds to the U.S. as companies and consumers brace for the impact of the new taxes. Hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline after the initial tariff rollout in April, said John Silvia, CEO of Dynamic Economic Strategy. 'A less productive economy requires fewer workers,' Mr. Silvia said. 'But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.' Many economists say the risk is that the American economy is steadily eroded. 'It's going to be fine sand in the gears and slow things down,' said Brad Jensen, a professor at Georgetown University. Mr. Trump has promoted the tariffs as a way to reduce America's persistent trade deficit. But importers tried to avoid the taxes by bringing in more goods before the tariffs took effect. As a result, the $582.7 billion trade imbalance for the first half of the year was 38% higher than in 2024. Total construction spending has dropped 2.9% over the past year. The economic pain is not confined to the U.S. Germany, which sends 10% of its exports to the U.S. market, saw industrial production sag 1.9% in June as Trump's earlier rounds of tariffs took hold. 'The new tariffs will clearly weigh on economic growth,' said Carsten Brzeski, global chief of macro for ING bank. The lead-up to Thursday (August 7, 2025) fit the slapdash nature of Mr. Trump's tariffs, which have been rolled out, walked back, delayed, increased, imposed by letter and renegotiated. Mr. Trump on Wednesday (August 6, 2025) announced additional 25% tariffs to be imposed on India because of its purchases of Russian oil, bringing its total import taxes to 50%. A leading group of Indian exporters said that will affect nearly 55% of the country's outbound shipments to America and force exporters to lose long-standing clients. 'Absorbing this sudden cost escalation is simply not viable. Margins are already thin,' S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. The Swiss executive branch, the Federal Council, was expected to meet Thursday (August 7, 2025) after President Karin Keller-Sutter and other Swiss officials returned from a hastily arranged trip to Washington in a failed bid to avert a 39% U.S. tariffs on Swiss goods. Import taxes are still coming on pharmaceutical drugs, and Mr. Trump announced 100% tariffs on computer chips. That could leave the U.S. economy in a place of suspended animation as it awaits the impact. The president's use of a 1977 law to declare an economic emergency to impose the tariffs is under a legal challenge. Even people who worked with Mr. Trump during his first term are sceptical, such as Paul Ryan, the Wisconsin Republican who was House speaker. 'There's no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions,' Ryan told CNBC on Wednesday (August 6, 2025). Mr. Trump is aware of the risk that courts could overturn his tariffs. In a Truth Social tweet, he said, 'THE ONLY THING THAT CAN STOP AMERICA'S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!' The stock market has been solid during the tariff drama, with the S&P 500 index climbing more than 25% from its April low. The market's rebound and the income tax cuts in Mr. Trump's tax and spending measure signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. Global financial markets took the new tariffs in stride, with Asian and European shares and U.S. futures mostly higher. But ING's Brzeski warned: 'While financial markets seem to have grown numb to tariff announcements, let's not forget that their adverse effects on economies will gradually unfold over time.' Mr. Trump foresees an economic boom. American voters and the rest of the world wait, nervously. 'There's one person who can afford to be cavalier about the uncertainty that he's creating, and that's Donald Trump,' said Rachel West, a senior fellow at The Century Foundation who worked in the Biden White House on labour policy. 'The rest of Americans are already paying the price for that uncertainty.'
Irish Independent
a day ago
- Business
- Irish Independent
Trump and pharma industry discuss boosting medicine spending abroad to cut US prices, sources say
LATEST: Trump's broad tariffs are now officially in effect President Donald Trump has begun levying higher import taxes on dozens of countries, just as the economic fallout of his months-long tariff threats has begun to create visible damage for the US economy. Just after midnight, goods from more than 60 countries and the European Union (EU) became subject to tariff rates of 10pc or higher. Products from the European Union, Japan and South Korea are taxed at 15pc, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20pc. Mr Trump also expects the EU, Japan and South Korea to invest hundreds of billions of dollars in the US. 'I think the growth is going to be unprecedented,' Mr Trump said on Wednesday afternoon. He added that the US was 'taking in hundreds of billions of dollars in tariffs', but he could not provide a specific figure for revenues because 'we don't even know what the final number is' regarding tariff rates. Despite the uncertainty, the Trump White House is confident that the onset of his broad tariffs will provide clarity about the path of the world's largest economy. Now that companies understand the direction the US is headed, the administration believes it can ramp up new investments and jump-start hiring in ways that can rebalance the US economy as a manufacturing power. But so far, there are signs of self-inflicted wounds to America as companies and consumers alike brace for the impact of new taxes. What the data has shown is a US economy that changed in April with Mr Trump's initial rollout of tariffs, an event that led to market drama, a negotiating period and Mr Trump's ultimate decision to start his universal tariffs on Thursday. After April, economic reports show that hiring began to stall, inflationary pressures crept upward and home values in key markets started to decline, said John Silvia, chief executive of Dynamic Economic Strategy. 'A less productive economy requires fewer workers,' Mr Silvia said in an analysis note. 'But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences.' Even then, the ultimate transformations of the tariffs are unknown and could play out over months, if not years. Many economists say the risk is that the American economy is steadily eroded rather than collapsing instantly. 'We all want it to be made for television where it's this explosion – it's not like that,' said Brad Jensen, a professor at Georgetown University. 'It's going to be fine sand in the gears and slow things down.' Mr Trump has promoted the tariffs as a way to reduce the persistent trade deficit. But importers sought to avoid the taxes by importing more goods before the taxes went into effect. As a result, the 582.7 billion dollar trade imbalance for the first half of the year was 38pc higher than in 2024. Total construction spending has dropped 2.9pc over the past year. The lead-up to Thursday fit the slapdash nature of Mr Trump's tariffs, which have been variously rolled out, walked back, delayed, increased, imposed by letter and frantically renegotiated. The process has been so muddled that officials for key trade partners were unclear at the start of the week whether the tariffs would begin on Thursday or Friday. The language of the July 31 order to delay the start of tariffs from August 1 said the higher tax rates would start in seven days. On Wednesday morning, Kevin Hassett, director of the White House National Economic Council, was asked if the new tariffs began at midnight on Thursday, and he said reporters should check with the US Trade Representative's Office. Mr Trump on Wednesday announced additional 25pc tariffs to be imposed on India for its buying of Russian oil, bringing its total import taxes to 50pc. A top body of Indian exporters said on Thursday that the latest US tariffs will impact nearly 55pc of the country's outbound shipments to America and force exporters to lose their long-standing clients. 'Absorbing this sudden cost escalation is simply not viable. Margins are already thin,' SC Ralhan, president of the Federation of Indian Export Organisations, said. Import taxes are still coming on pharmaceutical drugs and Mr Trump announced 100pc tariffs on computer chips. That could leave the US economy in a place of suspended animation as it awaits the impact. The president's use of a 1977 law to declare an economic emergency to impose the tariffs is also under challenge. The impending ruling from last week's hearing before a US appeals court could cause Mr Trump to find other legal justifications if judges say he exceeded his authority. Even people who worked with Mr Trump during his first term are sceptical that things will go smoothly for the economy, such as Paul Ryan, the former Republican House of Representatives speaker, who has emerged as a Trump critic. 'There's no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions,' Mr Ryan told CNBC on Wednesday. 'I think choppy waters are ahead because I think they're going to have some legal challenges.' Still, the stock market has been solid during the recent tariff drama, with the S&P 500 index climbing more than 25pc from its April low. The market's rebound and the income tax cuts in Mr Trump's tax and spending measures signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. As of now, Mr Trump still foresees an economic boom while the rest of the world and American voters wait nervously. 'There's one person who can afford to be cavalier about the uncertainty that he's creating, and that's Donald Trump,' said Rachel West, a senior fellow at The Century Foundation who worked in the Biden White House on labour policy.
a day ago
- Business
After walkbacks and confusion, U.S. tariffs kick in for dozens of countries
Just after midnight, goods from more than 60 countries and the European Union became subject to tariff rates of 10 per cent or higher. Products from the European Union, Japan and South Korea are taxed at 15 per cent, while imports from Taiwan, Vietnam and Bangladesh are taxed at 20 per cent. Trump also expects the European Union, Japan and South Korea to invest hundreds of billions of dollars in the U.S. I think the growth is going to be unprecedented, Trump said Wednesday afternoon. He added that the U.S. was taking in hundreds of billions of dollars in tariffs, but he couldn't provide a specific figure for revenues because we don't even know what the final number is regarding tariff rates. Canada and the U.S. have not come to renewed terms after a Trump-imposed deadline of Aug. 1, resulting in a 35 per cent import tax on some Canadian goods. The rate applies to goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA), which governs trade between the three countries. In addition to generalized tariffs, Trump has also threatened sector-specific duties. Import taxes are still coming on pharmaceutical drugs and Trump announced this week 100 per cent tariffs on computer chips. That could leave the U.S. economy in a place of suspended animation as it awaits the impact. Trump, including just before midnight on social media (new window) , has complained that countries, including allies, have taken advantage of the United States in trade over the years. But in the case of Canada and Mexico, it was Trump who signed off on CUSMA in his first term. LISTEN l CBC Politics reporter Aaron Wherry on Carney's tariff tightrope (new window) Effects expected to play out over months Trump has promoted the tariffs as a way to reduce the persistent U.S. trade deficit, although many economists believe that indicator alone does not signify economic weakness. There are signs of self-inflicted wounds for the U.S. economy as a result of Trump's plans, which recovered from the height of the coronavirus pandemic in stronger fashion than other G7 countries, albeit with similar inflationary pressures. Importers in general purchased more goods before tariffs have gone into full effect. As a result, the $582.7 US billion trade imbalance for the first half of the year was 38 per cent higher than in 2024. Total construction spending has dropped 2.9 per cent over the past year, and the factory jobs promised by Trump have so far resulted in job losses. A less productive economy requires fewer workers, said John Silvia, CEO of Dynamic Economic Strategy, in an analysis note. But there is more, the higher tariff prices lower workers' real wages. The economy has become less productive, and firms cannot pay the same real wages as before. Actions have consequences. The president's use of a 1977 law to declare an economic emergency to impose the tariffs is under challenge — and potentially headed to the Supreme Court. The impending ruling from last week's hearing before a U.S. appeals court could cause Trump to find other legal justifications if judges say he exceeded his authority. Still, the stock market has been solid during the recent tariff drama, with the S&P 500 index climbing more than 25 per cent from its April low. The market's rebound and the income tax cuts in Trump's tax and spending measures signed into law on July 4 have given the White House confidence that economic growth is bound to accelerate in the coming months. The ultimate transformations of the tariffs could play out over months, if not years. Many economists say the risk is that the American economy is steadily eroded rather than collapsing instantly. We all want it to be made for television where it's this explosion — it's not like that, said Brad Jensen, a professor at Georgetown University. It's going to be fine sand in the gears and slow things down. Even people who worked with Trump during his first term are skeptical that things will go smoothly for the economy, such as Paul Ryan, the former Republican House speaker. There's no sort of rationale for this other than the president wanting to raise tariffs based upon his whims, his opinions, Ryan told CNBC on Wednesday. I think choppy waters are ahead, because I think they're going to have some legal challenges. Slapdash process The lead-up to Thursday fit the slapdash nature of Trump's tariffs, which have been variously rolled out, walked back, delayed, increased, imposed by letter and frantically renegotiated. Trump has heralded frameworks to a deal, with few specific details available so far in my cases. India, for example, saw Trump on Wednesday announce an additional 25 per cent tariffs to be imposed effective Aug. 28, for its buying of Russian oil since the outbreak of war in Ukraine, bringing its total import taxes to 50 per cent. Absorbing this sudden cost escalation is simply not viable. Margins are already thin, S.C. Ralhan, president of the Federation of Indian Export Organizations, said in a statement. WATCH l 'Deep fog': Business plans affected by tariff uncertainty: India and the U.S. have had five rounds of negotiations on a bilateral trade agreement but haven't been able to clinch one so far, straining what had been a chummy relationship between the countries in Trump's first term. The process has been so muddled that officials for key trade partners were unclear at the start of the week whether the tariffs would begin Thursday or Friday. The language of the July 31 order to delay the start of tariffs from Aug. 1 said the higher tax rates would start in seven days. On Wednesday morning, Kevin Hassett, director of the White House National Economic Council, was asked if the new tariffs began at midnight Thursday, and he said reporters should check with the U.S. Trade Representative's Office. With files from CBC News
