#TrumpTariffs
Here’s a comprehensive update on the current state and impact of #TrumpTariffs:
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⚖️ Legal & Policy Developments
A U.S. federal appeals court recently upheld Trump-era tariff policies, permitting their collection during ongoing legal challenges—and set oral arguments for July 31. Trump praised the decision as a “great and important win” .
These tariffs originally included a sweeping 10% baseline duty on nearly all imports, plus additional levies targeting trade partners like China, Canada, and Mexico, justified by trade, security, and anti-drug trafficking narratives .
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📈 Economic & Market Impacts
Inflation remains moderate: May’s report shows core CPI at 2.8%, headline inflation at 2.4%, with some items rising (appliances), but others softening (vehicles, apparel) .
Business uncertainty: Fed surveys reveal companies stockpiling, delaying hiring and investment, and small firms reporting shrinking margins and unpredictable costs .
Markets jittery: U.S. import volume dipped in May; copper prices and other commodities showed volatility amid tariff strategy shifts .
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🍽️ Consumer & Sectoral Consequences
Canned foods to edge up 15%: Steel and aluminum tariffs (up to 50%) hit tin-can packaging, hurting low-income households and food banks .
Grocery prices rising: Beyond canned foods, higher metal, transportation, and packaging costs suggest broader inflation in food costs .
Farmers squeezed: Higher input costs (fertilizers, steel, machinery) and retaliatory cuts in exports (especially soybeans) are hitting independent farmers hardest, driving consolidation .
Equipment market shifts: New machinery sales face a decline; demand and prices for used equipment are rising amid investment caution .
Manufacturing & logistics’ pinch: Elevated steel/aluminum costs and new duties on trucks and parts are raising production costs and delaying projects .
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🌍 Global Trade & Retaliation
China: Tariffs on Chinese imports now hit ~145%, with anticipated Chinese retaliatory moves .