#TrumpTariffs

Here’s what’s going on with #TrumpTariffs:

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📢 Latest Developments

New tariff orders: Former President Trump announced letters sent to 14 countries—including Japan, South Korea, Myanmar, Laos, South Africa, Malaysia, Bangladesh, Indonesia, Cambodia, Serbia, Tunisia, Bosnia & Herzegovina, and Kazakhstan—informing them of reciprocal tariff rates ranging from 25% to 40%, effective August 1, 2025, marking a delay from the original July 9 deadline .

Delay confirmed: The White House officially announced on July 7 that the start of heightened tariffs would be moved from July 9 to August 1, giving nations an extension to negotiate .

Market reaction: US markets dropped sharply—Dow plunged over 600 points—as the announcement spilled into sectors like tech and automotive . However, markets stabilized somewhat by July 8 as investors digested the news and anticipated further negotiations .

Global tension: China, in particular, threatened backlash, and Trump even suggested an additional 10% tariff on BRICS-aligned countries, calling them “anti‑American” .

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📄 Background & Context

This follows the April 2 "Liberation Day" tariffs, imposing a 10% broad-based reciprocal tariff on most imports, part of sweeping protectionist measures under emergency powers .

Legal pushback ensued: A May 28 court ruling struck down that authority under IEEPA—but the ruling was stayed pending appeal, meaning tariffs remain active while the case moves forward .

In the new round, average US applied tariff rates peaked around 27% in early 2025 before retreating to about 15.8% in June .

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🌍 Why This Matters

1. Consumers & businesses will pay more: Tariffs mean higher costs on imported goods, an impact felt across industries—from autos to electronics—feeding into inflation. Fed Chair Powell warned that such costs hit US consumers hard .

2. Global trade instability: These sweeping tariffs are destabilizing global markets, with fears of causing a recession if countries retaliate or if supply chains are disrupted