Trump's Trade Chaos -2025
There were two trade deadlines this week.
Both involved many twists and turns and were very close to the deadline. However, only one was definite, and that was for a game.
That was Major League Baseball’s.
President Trump’s trade deadline, on the other hand, proved to be more flexible. Trump has threatened and delayed tariffs for months, seemingly because of his own stock market.
Usually, set an arbitrary deadline of Aug. 1 after Wall Street balked at his poster-board long list of threatened tariffs against countries all over the world in April.
Moreover, it would be Aug. 1 – or else, saying the deadline "stands strong and will not be extended.”
Furthermore, Mexico got another '90-day reprieve' from 30% tariffs on imports. It’s a place where a lot of vehicles, auto parts, and a ton of the groceries Americans buy come from. Actually, it’s '12 tons of horticultural goods, or $24 billion worth, as of 2023, up from about three tons or $7 billion 25 years ago.
Trump’s previously imposed tariff hikes are already having effects – not just on the stock market, but also on inflation.
“Services inflation has continued to ease while increased tariffs are pushing up prices in some categories of goods,” Federal Reserve Chairman Jerome Powell already mentioned.
Apart from that, Trump has tried to browbeat Powell into lowering rates, but the inflation worries are the core reason why the Fed hasn’t done so.
Translation: So far, when it comes to Trump’s tariffs, they haven’t been a home run.
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