WASHINGTON (AP) – For weeks, President Donald Trump promised the global economy would change with him on Friday New tariffs. It was a deadline covered in iron, and administrative authorities assured the public.
But when it comes to Trump I signed the order On Thursday night, the new tariffs were imposed on 68 countries and the European Union, with the start date of import tax penalties being receased for seven days, allowing customs schedules to be updated. The change could welcome news to countries that have yet to reach deals with the US, but inject new uncertainty into consumers and businesses to see what will happen when.
Trump has pledged that tax hikes on nearly $3 trillion in goods imported into the US will mark the arrival of new wealth, launch a new factory work cavalry, reduce the budget deficit and treat America with more respect.
The vast tariffs risk putting America’s global position at stake as allies feel forced into unfriendly transactions. As a tax on raw materials used by US factories and basic goods, tariffs also exert new inflationary pressures and could hinder economic growth.
Despite Trump’s enthusiasm, questions swirl around tariffs
When the clock was etched into Trump’s voluntary deadline, few were resolved other than the president’s resolve to collect taxes he had spoken about for decades. The very legality of tariffs is The US Court of Appeals heard the debate on Thursday Whether Trump can declare “urgent” under the 1977 law and claim tariffs and avoid Congressional approval is about whether Trump has surpassed his authority.
Trump was fierce as he was waiting for what he would do.
“Taxes make America great and rich again,” he said Thursday morning in the Society of Truth.
Others saw policies that were carelessly constructed by the US president. This can gradually impose harm over time, eroding America’s power and prosperity.
“The only thing we certainly know on Friday morning is that US import taxes are historically high and complicated, and these transactions are so vague and unfinished that the policy uncertainty continues to rise very much.” “The rest is very TBD.”
New tariffs announced in the spring build what was announced
Trump initially placed a deadline for his previous Friday. April’s “liberation day” tariff And as a result Stock market panic. After his unusually high tariff rates were announced, it led to fears of the recession, urging Trump to impose a 90-day negotiation period. When he failed to create sufficient trade deals with other countries, he extended his timeline and sent letters to world leaders who simply listed rates, prompting many hasty agreements.
Swiss imports will be taxed at a higher tax rate (39%) than the 31% threatened by Trump in April, but Liechtenstein thought that the tax rate had been reduced from 37% to 15%. Countries not listed on Thursday night orders will be charged a baseline 10% tariff.
Trump has negotiated a trade framework with the EU, Japan, South Korea, Indonesia and the Philippines over the past few weeks. He said there was an agreement with other countries on Thursday, but he rejected those names.
Thursday started with a tactile, charming sensation
The EU was awaiting a written agreement on a 15% tariff transaction. Switzerland and Norway were one of dozens of countries that didn’t know what their tariff rate was, but Trump agreed after a call on Thursday morning to keep Mexico’s tariffs at 25% for the 90-day negotiation period.
European leaders are facing blowback over what appears to be caves by Trump, despite claiming that this is merely the beginning of talks and highlighting the importance of maintaining American support for the Ukrainian fight with Russia. Canadian Prime Minister Mark Carney has already shown that his country can no longer rely on the US as an ally, and Trump refused to speak to him on Thursday.
India could no longer benefit from efforts to pivot manufacturing from China at the 25% tariff announced by Trump on Wednesday. The Trump administration has been trying to challenge China’s manufacturing control, but it is separate in long trade talks with the country, facing 30% tariffs and claiming a 10% retaliation rate in the US
Big companies came in the week warning that tariffs will start squeezing them financially. Ford Motor Co. said it expects a $2 billion net hit in revenues from tariffs this year. French skincare company Yon-ka warns about job freezes, reduced investments and rising prices.
It is unclear whether Trump’s new tariffs will survive the legal challenge
A federal judge on Thursday sounded skeptical of Trump using 1977 law to declare a US trade deficit, a national emergency that justifies tariffs in almost every country on the planet.
“You’re looking for unlimited powers,” U.S. Federal Circuit Court of Appeals Judge Todd Hughes told Justice Department attorneys representing the administration.
The judge did not take control immediately, so the case is expected to eventually arrive at the Supreme Court.
The Trump White House has pointed to rising federal revenues as a sign that tariffs will reduce the fiscal deficit, with $127 billion in customs and obligations being collected this year, about $70 billion more than last year.
New tariffs threaten to raise inflation rates
There are no signs yet that tariffs will lead to more domestic manufacturing jobs. Currently, the US economy has 14,000 manufacturing jobs less than in April.
On Thursday, one of the key inflation measures known as the Personal Consumption Expense Index showed prices rose 2.6% in the 12 months that ended in June.
With a higher inflation outlook from tariffs, the Federal Reserve refrained from further reductions in its benchmark rate. This is Truth Social, a Truth Social called “Total Loser” by Fed Chairman Jerome Powell.
But ahead of Trump’s tariffs, Powell appears to suggest that tariffs have put the US economy and much of the world in an unknown state.
“There’s still a lot of uncertainty to resolve it,” Powell told reporters Wednesday. “So, yes, we’re learning more and more. We don’t feel very close to the end of that process. It’s not something we judge, but it feels like there’s more to it.”
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AP writer Paul Wiseman contributed to this report.
