What’s happening?
With a self-imposed trade deadline approaching, President Trump has enacted broad tariffs on imports from 69 countries – including key U.S. allies and trade partners – aiming to reduce trade deficits and boost domestic manufacturing.
Tariff Breakdown:
- Canada: 35% (up from 25%), citing lack of cooperation on fentanyl.
- Brazil: 50%, retaliation over Bolsonaro prosecution.
- India: 25%, over disagreements on agriculture and Russian oil.
- Mexico: Got a 90-day reprieve after last-minute negotiation.
- Others: 10%–41%, depending on country and product.
- China: Has until August 12 to reach a permanent deal.
Key Fallout:
- U.S. stock markets fell slightly, but the impact was muted compared to previous tariff rounds.
- Critics say the tariffs will raise consumer prices – furniture, vehicles, and clothing already saw June price hikes.
- Trump is facing legal challenges over his use of emergency powers to justify the tariffs under the 1977 International Emergency Economic Powers Act.
Global Reactions:
- Canada: PM Mark Carney calls decision “disappointing” and promises economic retaliation.
- India: Outrage from opposition parties, rupee slumps.
- Mexico: Avoided immediate tariffs, but must negotiate a broader pact in 90 days.
The Big Picture:
- While Big Tech is riding high on AI, showing clear business value for its massive spending…
…Trump’s aggressive trade policy is shaking up international relations, supply chains, and legal norms, just months before the U.S. elections.