#TrumpTariffs 🧭 Key Developments
1. New Tariff Agreements & Rates
US‑China deal: Agreed on a 55% total tariff on Chinese imports, combining existing and new levies, with China imposing 10% on US goods .
Steel & Aluminum: Tariffs raised to 50% under Section 232, taking effect June 4, 2025 .
2. Impact on Prices & Inflation
Consumer inflation modest so far: May CPI rose 0.1% monthly and 2.4% year‑on‑year; core CPI up 0.1%, but economists anticipate tariffs to raise inflation later .
Everyday items hit: Higher metal tariffs are expected to push up canned‐food prices by ~15% . Technology goods like smartphones and PCs may also become pricier as manufacturers pass costs to consumers .
3. Economic & Market Response
Markets jittery: The Dow dropped ~230 points after Trump threatened further unique tariffs; volatility spiked .
Global forecasters warn: The OECD now forecasts US GDP growth at 1.6% and inflation at 3.9% by year-end due to prolonged tariffs .
4. Legal & Political Pushback
Court challenge: A federal court in V.O.S. Selections v. US found that using IEEPA to impose “Liberation Day” tariffs is unconstitutional, blocking those tariffs .
Congress weighs in: Lawmakers introduced the Trade Review Act, aiming to require Congressional approval for major tariffs beyond 60 days .
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✍️ Summary
Impact Area What's Happening
🇨🇳 Trade Policy Major escalation with China (55% tariffs) and Europe (steel/aluminum)
📈 Prices & Inflation Still moderate, but upward pressure building on everyday goods
📉 Economy & Markets Growth forecasts down; stock volatility up
⚖️ Legal & Legislative Court blocks some tariffs; Congress seeks oversight
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🔮 Outlook
Inflation risk continues—while pre-tariff inventories are still in play, expect prices to rise later in 2025 as old stock depletes.
Legal uncertainty remains; the V.O.S. case challenges executive authority.
Congressional influence could reshape tariff processes if the Trade Review Act advances.