Tag Archive for: Economic News

Trump vs. Goldman: The Economic Fallout of Rising Tariff Inflation

Economists Warn of Rising Tariff-Driven Inflation as Trump Criticizes Goldman Sachs

Tariffs and inflation now drive many talks. Economists on Wall Street agree that tariffs will raise consumer prices soon. Recent consumer price data look upbeat. Tariffs, however, will push prices up. Goldman Sachs said prices affected by tariffs will increase. This view upset many, including former President Donald Trump. Many experts share this warning.

Goldman Sachs Faces Backlash Amid Broad Consensus

Goldman Sachs sparked conflict when its economists showed that tariffs will hit consumers harder in the second half of 2025. Trump shared his anger on Truth Social. He told CEO David Solomon to fire the economist behind the study or to leave the job himself.

Goldman Sachs economist David Mericle spoke on CNBC. He said, "If we fired every economist who shares this view, Wall Street would soon have many empty seats." His words keep market views close and simple.

Wall Street Economists See Inflation Creeping Upward

Many economists see a steady rise in prices. Companies use up cheaper stocks and then pass on the high cost of tariffs. Tariff rates climbed from 3% to almost 18% this year. Soon, consumers will see higher bills.

• Michael Feroli of JPMorgan Chase says tariffs may take 1% off the economy and add 1% to 1.5% to inflation.
• Brian Rose, a senior economist at UBS, sees core inflation stop falling as tariffs push store prices higher; he notes that slowing shelter costs and a consumer check might limit the jump.
• Pantheon Macroeconomics watches core inflation climb 1 percentage point, reaching 3.5% by year-end.
• PNC chief economist Gus Faucher sees core PCE inflation rising above the Fed’s target soon.

Most experts see no wild inflation. They expect a slow rise of 0.3% to 0.5% each month. This rise may place core inflation in the low- to mid-3% range.

Impact on Federal Reserve Policy and Consumer Spending

The rise in inflation will affect the Fed’s plans. With price pressures growing, many economists think:

• The Fed may wait to cut rates, starting later as the job market drops and if inflation seems brief.
• Higher prices may slow down how much people spend. This change could also slow economic growth for the rest of the year.
• JPMorgan projects that tariffs might lower GDP growth by nearly 1%, while the Blue Chip Economic Indicators report shows about 0.85% growth in the second half of 2025. —

Near-Term Concerns and Inflation Stickiness

Some risks may push inflation higher. On August 29, the tariff break for goods under $800 ends. This rule change may raise retail prices.

Other worries are that some prices move slowly. Rent, insurance, and home items change over longer periods. The Cleveland Fed measured sticky-price CPI inflation at a 3.8% yearly rise. This level is the highest since May 2024. It shows that price increases persist in some areas, even when food and energy do not change as much.

BNP Paribas notes that inflation may spread. Service prices also show upward moves. The key worry for the Fed is if high prices will stay for a long time.

Summary of Expert Views on Tariff Inflation Effects

• Tariffs may drive inflation up by 1 to 1.5% and reduce GDP by about 1%.
• Core inflation may rise slowly, reaching about 3.5% by year-end.
• The Fed may hold off on rate cuts until it sees that price rises are short-lived.
• Ending tariff breaks might push store prices higher.
• Slow shifts in some prices could lead to lasting cost increases.

Conclusion

Experts share one clear message. Tariffs seem set to push inflation higher soon. This shift will challenge both buyers and policy makers. Trump’s anger at Goldman Sachs shows the tight politics around this trend. Yet, the firm’s forecast fits many Wall Street views. In the coming months, buyers should get ready for modest price hikes, especially for items hit by tariffs. Investors and policy makers now watch as these changes shape economic growth and Fed moves.

For continual updates on inflation, tariffs, and market reactions, stay tuned to CNBC.

Goldman Sachs Defends Tariff Impact Prediction Amid Trump’s Criticism: Consumers to Feel the Pinch

Goldman Sachs Stands Firm on Forecast: Consumers to Bear Most Tariff Costs Despite President Trump’s Criticism

Goldman Sachs now backs its view. The bank expects that US buyers will cover most tariff costs. This idea comes amid sharp talk from President Trump. He questioned the bank’s study and its team of economists.

Tariff Impact on Consumers: Goldman’s Projection

In a CNBC interview on Squawk on the Street, economist David Mericle stuck to the bank’s view. He said the data shows tariffs will come hard by fall. Mericle explained that US buyers will pay about two-thirds of the extra cost.

“If the April tariffs act like the ones from February, our plan shows buyers face about two-thirds of the cost by fall,” said Mericle.

The President’s Response

On his social media site, Truth Social, President Trump spoke out on Tuesday. He told CEO David Solomon to “get a new economist” or quit. Trump called the bank’s view off track.

Still, Mericle ignored these claims. He stood by the bank’s models. A report by economist Elsie Peng, which sparked the president’s anger, noted that exporters and businesses have so far picked up most tariff costs. This balance will soon shift more to US buyers.

Economic Insights and Inflation Projections

The bank’s numbers show that tariff-driven price hikes could push the PCE price index to about 3.2% by the end of 2025. This index is the inflation tool favored by the Fed. At one time, the core PCE rate was 2.8% in June, while the Fed still aims for 2%.

Mericle added, “A US company shielded from global rivals can raise its prices and see gains.” His estimates sit well with those from other top economists.

Future Policy and Market Implications

Mericle said that even with rising prices, the president may see some relief in the form of Fed rate cuts. He described the rise as a one-time price jump. This change will not force the Fed to shift from its focus on jobs.

Recent data points—small gains in the consumer price index and a soft July nonfarm payroll report—make markets think that rate cuts may come at later Fed meetings in 2025. ### Summary of Key Points:

  • Goldman Sachs sees US buyers covering about two-thirds of tariff costs by fall 2025.
  • President Trump openly rejected Goldman’s forecast and called for a change in leadership.
  • Tariffs may lift the key Fed inflation measure to near 3.2% by year-end.
  • Even if prices grow, Goldman expects some rate cuts because of job market needs.
  • The debate shows a clear divide between economic views and political opinions.

For updates on market moves, inflation, and Fed plans, stay tuned to CNBC.

Fed Nominees Dispute Tariffs as Inflation Cause, Align with Trump’s Economic Strategy

Fed Board Contenders Miran and Bullard Say Trump’s Tariffs Do Not Drive Inflation

In recent talks, two top economists and leading Fed candidates, Stephen Miran and James Bullard, argued that Trump’s tariffs do not add to inflation. They link their view with Trump’s own claim that tariffs do not push prices higher. This claim has stirred debate among economists and decision makers.

Tariffs and Inflation: Diverging Perspectives

Miran, who serves on the White House Council of Economic Advisers and is picked to finish a short term as a Fed governor, told CNBC that there is “no proof that any tariff raised prices.” He noted that forecasts of harm from tariffs did not come true when the years passed.

Bullard, a former head of the St. Louis Federal Reserve and a likely candidate to take over as Fed Chair, voiced a similar idea. He said that data shows “Trump’s aggressive tariffs have not driven inflation.” Bullard explained that price jumps lately seem to be one-time changes rather than a slow and steady rise.

Fed Policy and Interest Rate Outlook

Each economist skipped a direct vote on future rate moves. Bullard hinted that the FOMC might cut rates again as soon as September 2025. He said the Fed could lower its key rate by one full point within one year. This plan would bring rates near a “neutral” level.

Bullard mentioned that the Fed stopped cutting rates because of uncertain tariff effects. Now, with half a year of new data, he sees the taxes as having small and short-term effects on price levels instead of causing a lasting rise.

Inflation Data and Market Reactions

The discussion followed a report from the Bureau of Labor Statistics. The report noted that the Consumer Price Index (CPI) increased by 2.7% for July 2025. Although this is above the Fed’s goal of 2%, it is lower than what Wall Street expected. This news has sparked new debates on the tariff’s role in price movements.

Federal Reserve Independence Amid Political Pressure

Both Miran and Bullard stressed the need for the Fed to work without outside influence. Their remarks came while tensions grew between Trump and Fed Chair Powell. Trump has often taken aim at the Fed and pressed for strong rate cuts. After the recent CPI report, Trump posted on his social media and demanded a 3 percentage point rate cut. He blamed slow policy moves for the current issues.

Bullard replied in a measured tone, noting, “He has his view. Many have their view.” His words remind us that the Fed needs to consider many points of view.

Context: Fed Leadership Changes on the Horizon

Miran is set to serve out the rest of former Governor Adriana Kugler’s term after her exit. Meanwhile, Bullard is considered among several names to fill the gap when Jerome Powell’s chairmanship ends in May 2026. —

Key Takeaways:

  • Miran and Bullard dismiss the idea that tariffs cause ongoing inflation.
  • July 2025 data shows a CPI rise of 2.7%, which cools some earlier fears.
  • Bullard sees a chance for Fed rate cuts to start by September, to ease borrowing.
  • Both stress that the Fed must work free from political pressure.
  • A shift in Fed leadership may change the future path of U.S. monetary policy.

As the Fed moves through these changes, the views of candidates like Miran and Bullard will be closely watched for clues to the future direction of U.S. money policy.

July 2025 Inflation Report: CPI Rises 2.7% as Tariff Effects Remain Modest, Fed Rate Cuts Likely Ahead

Consumer Price Index Inflation Report for July 2025 Shows Moderate Rise Amid Tariff Concerns

Published August 12, 2025 – Updated 3 Minutes Ago

The U.S. Bureau of Labor Statistics released the July 2025 Consumer Price Index report. The report shows prices rose by 0.2% over the month on a seasonally adjusted basis and by 2.7% over the past 12 months. The report gives a lower annual figure than market predictions of a 2.8% increase. Tariff worries came up, but the numbers stayed near expectations.

Core Inflation Trends

When experts remove food and energy from the count, the core CPI rose by 0.3% in July. This increase matches predicted numbers. Year-on-year, the core index reached 3.1%. That annual rise is the highest since February 2025, and the monthly jump is the largest since January. Fed officials study the core numbers to check ongoing price pressure and future trends.

The report shows that shelter costs moved up by 0.2%. Food prices held steady. Energy prices fell by 1.1%. In transportation, the price for new vehicles did not move, while used vehicles rose by 0.5%. Prices for transportation services and medical care both grew by 0.8%.

Market Reaction and Federal Reserve Outlook

After the report came out, stock market futures climbed and Treasury yields dropped. Traders put more money on a Fed rate cut as soon as September. This shift suggests that the market views the price rise as acceptable. The CME Group’s FedWatch tool shows that the odds for a rate cut in September have grown. It has also raised the chance for another cut in October. The odds now stand at about 67%, compared to 55% the day before.

Impact of Tariffs on Inflation Data

Tariffs on many imported goods have raised concerns among economists about their impact on price stability. The report shows that tariff effects can be seen but are not very strong. For instance:
• Prices for household furnishings went up by 0.7% after a 1.0% increase in June.
• Apparel prices increased by only 0.1%.
• Core commodity prices moved up by 0.2%.
• Canned fruits and vegetables, a group sensitive to tariffs, did not show any increase.

A former White House economist, Jared Bernstein, who worked under President Joe Biden, noted in a CNBC interview that the tariff figures show in the data but do not push prices to extreme levels now.

Challenges Affecting CPI Data Reliability

The BLS now faces problems with budget cuts and fewer staff. These cuts have stopped data collection in several cities. The bureau now uses estimates for many price groups. Critics say these changes lower the trust in the CPI readings. The debate has grown after President Trump criticized the bureau and made changes to its leadership. Trump fired the last commissioner following a weak July job report and nominated E.J. Antoni, a known critic of the BLS. This move has made the discussion about the data more heated.

Broader Economic Context and Future Outlook

Ellen Zentner, Chief Economic Strategist at Morgan Stanley Wealth Management, said, "Inflation is on the rise, but it did not grow as much as some feared. In the short term, markets may welcome these data because they keep a September rate cut possible while the labor market shows weakness." She warned that price pressures from tariffs might still grow over time.

A key issue is whether tariffs cause a one-time change in price levels or start a steady rise over time. Most experts expect a one-time shift. Still, the spread of tariffs keeps concerns alive.

The Fed pays attention to the Commerce Department’s personal consumption expenditures price index, as well as the CPI and the upcoming producer price index reports, to guide policy moves.

Additional Inflation and Wage Data

In similar figures, inflation-adjusted hourly earnings grew by just 0.1% in July, which means a 1.2% gain over the year. This small wage growth might affect how much consumers spend and slow down overall growth.

Summary of Key Figures:

  • CPI Monthly Increase (July): +0.2%
  • CPI Annual Increase: +2.7% (forecast was 2.8%)
  • Core CPI Monthly Increase: +0.3%
  • Core CPI Annual Increase: +3.1%
  • Shelter Costs Monthly Increase: +0.2%
  • Energy Prices Monthly Change: -1.1%
  • Used Vehicles Monthly Increase: +0.5%
  • Average Hourly Earnings Monthly Change: +0.1%
  • Average Hourly Earnings Annual Change: +1.2%

The July CPI report comes at a key point as the Federal Reserve weighs a possible interest rate cut while inflation risks and changes in the labor market persist. Market players and policymakers will watch the next data releases to see how tariffs and other factors shape the inflation picture.

Trump-Putin Talks: A Strategic Win for Moscow Amid Economic Struggles and Market Impacts

Trump-Putin Talks Mark Significant Victory for Moscow, Impacting Economy and Markets

Global interest grows. Putin and Trump meet in Alaska this Friday. This meeting wins for Moscow, its weak economy, and world markets. It seeks to end the war in Ukraine—a conflict that hurts both nation ties and money flows.

A Symbolic Win for Putin and Russia

The meeting shows a clear sign of power. Richard Portes, who leads the economics studies at London Business School, says the mark is strong. This time, since 2007, Putin meets on U.S. soil with no limits or other sides present.
Portes said, "This win is big for Putin… No limits and no Ukraine or any European side. This is a win."

Ukraine’s Exclusion Sparks Concern

Ukraine is not in this talk. Leaders in Kyiv, like President Volodymyr Zelenskyy, wait on an invite. They worry that their voice will be lost. Kyiv says no choice about its fate comes without it. In Europe, leaders ask hard to see Ukraine join. The U.S. seems to think about inviting Zelenskyy too.

Economic Context: Russia’s War Economy Under Strain

Russia wins some ground on the battlefield in southern and eastern Ukraine. Yet, its money matters are weak. Sanctions and high inflation—9.4% in June 2025—hurt its funds. The war makes a large budget gap. Oil and gas cash falls with low prices and the limits. Money work stays poor, even as field wins rise.
Portes said, "Putin begins with strong field actions but weak money power."

Potential Implications for Sanctions and Territorial Concessions

Russia, with a strong field, seeks fast relief from limits and some land in Ukraine. Kremlin voices also see new work and sales chances from a warmer U.S.-Russia tie, in Alaska and the Arctic. Yet, the U.S. may not back more limits. Washington talks of "secondary limits" against Russia’s trading friends like India. Trump has not started extra limits even as calls for more come in.

Market Reactions: A Mixed Picture

World markets react with hope to the talk news. Stocks in Europe and the U.S. rise on Friday. Yet, defense stocks drop as the idea of peace may bring less money for arms.

  • Defense Shares Falling: German firms Rheinmetall and Hensoldt lose nearly 4% and 1.5%. Similar drops hit Italy’s Leonardo and France’s Thales.
  • Gold Prices Decline: Gold, a safe spot, slips by about 1% as political tensions ease.

Christopher Granville, managing director at TS Lombard, sees a win on both sides for Europe’s defense names. He explains:
• If the talks break, the war goes on. New arms then will be needed.
• If a deal holds, Russia’s strong field still pushes Europe to buy arms.

Granville tells traders, "Buy on that drop," expecting long gains for defense groups no matter what happens with the talks.

Looking Ahead

The Trump-Putin meet in Alaska sits at a key turn. The talks serve as a sign for Russia. Yet, eyes stay fixed on real steps—especially for Ukraine and for what U.S. will do with Moscow’s limits. As events shift, global markets and politics stay alert and hopeful for a deal that keeps safety and money matters in careful balance.

For ongoing updates on the Trump-Putin talks and their global impact, stay tuned to CNBC and other trusted news sources.

The U.S.-China Trade Truce: A Crucial Deadline Approaches Amid Rising Tensions and Strategic Negotiations

U.S.-China Tariff Truce Extension Hangs in the Balance as Deadline Nears

The deadline nears. The United States and China sit at a table. They share a tariff truce. The trade deal stands on a thin line. The agreement, born in May, will end on Tuesday. The two leaders now face the risk of trade tensions rising.

Background and Current Status

In May 2025, the U.S. and China made a 90-day deal. They did so to slow down high trade duties. In April, some duties reached 145%. The truce cut tariffs and stopped new fines. This pause helped both sides talk toward a longer plan.

  • Tariff Situation:
    • The U.S. puts a 20% tariff on many Chinese shipments. This move follows fentanyl trafficking claims.
    • Many Chinese goods get an extra 10% tariff.
    • Selected items bear a 25% rate from the past U.S. policy.
    • American goods for China face tariffs above 32.6%, according to the Peterson Institute for International Economics.

After a meeting in Stockholm last month, Chinese voices sounded optimistic. Still, the U.S. now waits for a decision. President Donald Trump must choose on the extension. His pause makes new tariff hikes a real risk.

Trade and Economic Impact

Trade data shows a strain. China’s exports to the U.S. dropped for the fourth month. In July, they fell by 21.7% compared to last year. U.S. exports to China also fell by 10.3% during the first seven months of 2025. Experts see a future deal. They believe China might soon buy more American goods. They list these main sectors:

  • Energy
  • Agriculture (mainly soybeans)
  • Semiconductor equipment (under agreed conditions)

Julian Evans-Pritchard of Capital Economics thinks the next deal may look like a second version of the phase-one deal from 2020. The earlier promise broke down because of the pandemic. Trump has asked for a boost in Chinese soybean orders. In recent months, the orders have grown fast.

Upcoming Summit Prospects and Political Dynamics

Experts expect a meeting soon in Beijing. President Trump and President Xi Jinping may meet in the coming months. Ian Bremmer of Eurasia Group says the meeting might steady ties. Yet this does not signal friendlier feelings. Both banks seem to move toward economic separation as world trade shifts.

Other Points of Contention

Other issues make talks hard:

  • Semiconductor Export Controls:
    U.S. export rules for chips stir debate. Nvidia plans to sell its H20 chip in China again. Many see this as a small change, not a full easing of rules. U.S. voices split. Some worry about China using the chips for military work. Others note that too strict rules might push China to make its own chips.

  • Rare-Earth Metals Exports:
    Rare-earth elements help make tech products. China leads this market. It recently let more rare-earths and magnets pass to the U.S. A higher flow of these goods may affect future talks.

  • Secondary Tariffs on Russian Oil Purchases:
    The U.S. adds extra tariffs on nations buying Russian oil. India and maybe China face these charges. China buys a large part of Russia’s oil. This fact may make future talks tougher.

Outlook

An official move on the tariff truce is still unknown. The choice that Trump makes will shape U.S.-China trade in coming months.

Tensions brew on trade balances, export rules, and global plans. Global markets wait with bated breath. A high-level meeting between Trump and Xi might calm the tension. Yet both sides must work hard to guide this complex process.

This article will be updated as new information becomes available.

Treatonomics: How Economic Uncertainty is Fueling a Boom in Self-Care Spending and Joyful Experiences

The Rise of ‘Treatonomics’: From Lipsticks to Concerts, Consumers Seek Comfort in Uncertain Times

In times when the economy feels weak, prices rise and jobs seem unstable, a new trend spreads. People call this trend “treatonomics.” Many choose small joys to lift their day. They buy items like lipsticks and collectible dolls. They also spend on events like concerts. Each purchase helps them feel a bit happier.

What is Treatonomics?

Treatonomics shows a way of spending that stays real even when money is tight. It goes beyond the old idea that people buy small luxuries in hard times. Retail expert John Stevenson notes, “You may not buy a new sofa or dress, yet you might pick up new throw pillows or a lipstick. These small treats lift your mood without much cost.” Home décor, personal care products, and collectibles hold their ground even in hard times.

Everyday Luxuries Meet Life-Affirming Experiences

Unlike the focus on cheap items, treatonomics covers many parts of life. After the Covid-19 time, people care more about well-being and fun memories. They spend on concerts and similar events. Some even pay over $200 to see a favorite artist perform. Stevenson says, “People cut back on daily costs but choose a fun event when they can. They may buy cheaper groceries yet spend a lot on a concert weekend.”

What Drives the Treatonomics Trend?

Experts see several reasons behind treatonomics.

  • Joy Without Regret: Meredith Smith at Kantar explains that treatonomics is not about bad habits. It is about adding moments of joy to life. A small treat shows success amid hard times.

  • Shifts in Life Goals: Many find that big life steps, like buying a house or getting married, have changed. Younger groups celebrate with smaller, fun events. They mark personal wins with events such as pet birthdays or a day for self-care.

  • Youthful Play: Millennials and Gen Z enjoy fun activities that remind them of childhood. This choice brings sales to items like special LEGO sets. Some even spend up to $1,000 on kits that spark a sense of wonder.

Consumer Confidence and Economic Outlook

Even with treatonomics strong, many remain cautious. In the UK, a consumer index fell a bit in July 2025. In the US, numbers creep up, yet most still feel less secure than in past years. This state of mind may last for years. Experts expect that treatonomics and fun spending will stay a part of everyday life.

What This Means for Brands and Consumers

Brands now face a changing scene. They must move quickly to meet new wants among buyers. The mix of regular luxuries with memorable events may split into small trends based on region and culture. At the same time, buyers find new ways to celebrate. From a new lipstick or a rare toy to nights filled with music and friends, these treats bring hope in uncertain days.

When the world feels unsure, treatonomics shows us one way to balance care with fun. Each treat—a small buy or a special night out—binds a simple act to a burst of joy. This trend helps people find a light moment even when times are tough.

Bank of England Cuts Interest Rates: What It Means for the Economy and Future Projections

Bank of England Cuts Interest Rates to 4% Amid Economic Balancing Act

On Thursday, August 7, 2025, the Bank of England cut its Bank Rate from 4.25% to 4%. The bank made this 25-basis-point cut with care and a steady pace. It aims to boost growth now while keeping prices in check.

Monetary Policy Committee Voting Split

The Monetary Policy Committee split its votes 5–4. Five members chose the cut. Four members preferred no change. This close vote shows that the members face a hard task. They try to weigh mixed signals from the UK economy.

Economic Context: Inflation, Jobs, and Growth

  • Inflation: The Consumer Price Index went up from 3.4% in May to 3.6% in June. Prices stay above the bank’s 2% goal.
  • Labor Market: The number of paid workers fell in seven of the last eight months. Unemployment edged up this year.
  • Economic Growth: The nation’s gross domestic product fell by 0.1% in May. The small fall shows weak growth.

Economists point to the labor market as a key factor. They see no single sign of a sharp job loss. Most job weakness appears in the hospitality field. That sector feels the effect of higher tax on wages and worker pay rolls.

Expert Forecasts on Future Rate Movements

Economists mostly see more rate cuts in the coming months.

  • Jack Meaning, chief UK economist at Barclays, sees further quarter-point cuts. He thinks the Bank Rate may fall to 3.5% by February 2026.
  • Ashley Webb, a UK economist at Capital Economics, expects even deeper cuts. She thinks rates could drop to 3.0% by 2026. Webb notes that as the labor market softens, wage growth and prices may slow to a 2% level.

Challenges Behind the Decision

The MPC looked at stubborn inflation and soft signals in jobs.
• The inflation numbers stay high and do not move quickly.
• Job numbers show slow decline, especially in sectors hit by new taxes and policy moves.
• Though fewer jobs are seen, the decline is not sharp enough to give a clear signal.

Summary

The Bank of England cut rates to 4% to push for growth amid steady inflation and a cooling jobs market. The close vote shows deep debate. Future data and bank talks will help us see how this balancing act moves on in the coming months.

For continued updates on economic policies and interest rate moves, stay tuned to CNBC and subscribe to our newsletters.

Trump’s Bold New Tariffs: A Game-Changer for U.S. Trade Relations

Trump’s ‘Reciprocal’ Tariffs Take Effect, Impacting Numerous U.S. Trading Partners

Published August 7, 2025

U.S. President Donald Trump set his planned "reciprocal" tariffs into motion. The new tariffs raise import duties from many trade partners. They aim to fix old trade differences. Trump claims some nations have used the United States for years.

Major Tariff Increases Across Multiple Countries

At midnight, tariffs on billions of dollars in goods reached U.S. markets. Trump posted on his social media site, Truth Social:
“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!”

Tariff hikes hit many countries. For example:

  • Syria gets a 41% duty.
  • Laos and Myanmar face a 40% rate.
  • Switzerland is hit with 39% after talks fell apart.
  • Brazil and India now face 50% (with India’s rate rising from 25% later this month).

Swiss officials met in Washington D.C. They tried hard to make a deal when the 39% rate was set. No solution has been reached yet, and an announcement is expected from the Swiss government later on Thursday.

Varied Tariff Rates and Ongoing Negotiations

Different trade partners face different tariff rates. The European Union, Japan, and South Korea now have tariffs of 15%. The United Kingdom secured a rate of 10%. China still holds a temporary trade truce with the U.S. Tariffs for Mexico are paused as talks continue.

India’s exports total $434 billion. Tariffs on Indian goods will rise to 50% later this month. The administration cites India’s current purchase of Russian oil as the main reason for the increase.

Experts Warn on Economic Impact and Risks

Bill Papadakis, a macro strategist at Lombard Odier, shared his view on CNBC. He said,
“This game is not over.”
He warned that even with recent trade deals and pauses in some tariffs, these new duties might slow U.S. growth and nudge inflation upward.

Papadakis pointed out that Trump’s plans include a possible 100% tariff on semiconductor chips. Some earlier moves were held back after market reactions. The full effects of these tariffs will come into view only with time.

Looking Ahead

The Trump administration is now rearranging tariffs to show a firm stance on trade. This change aims to balance trade but may push up inflation, disturb supply lines, and test trade ties.

As Switzerland waits for further news and India prepares for higher duties, global markets watch closely to see how these new tariffs change international trade dynamics.

For live updates and in-depth coverage on ongoing trade developments, stay connected with CNBC.

Trump’s Trade Strategy Hits a Home Run: Tariffs and Investment Deals with a Baseball Twist

Trump’s Tariff Playbook Comes with a Baseball Twist

U.S. President Donald Trump spoke on CNBC. In his talk, he mixed trade talk with a baseball image. He compared global trade funds to the bonus a baseball player might get when signing with a team. Trump tied big money from trade deals to a familiar sports idea.

Tariffs, Trade Deals, & Baseball Bonuses

On CNBC’s Squawk Box this Tuesday, Trump noted large sums from recent trade deals with Europe and Japan. He spoke in short, clear phrases that link each idea tightly:

"We’re taking in trillions of dollars… people love the tariffs, they love the trade deals, and they love that foreign countries are not ripping us off anymore."

He named Japan next. For Japan, he explained that the U.S. would see about $550 billion in funds. He drew a direct link to a baseball bonus:

"If you look at Japan, we’re taking in $550 billion, and that’s like a signing bonus that a baseball player would get. He would get slightly less than that… He would get a million dollars, or $2 million or $20 million, or whatever they give today."

Trump made sure his words tied the investment to American control:

"So I got a signing bonus from Japan of $550 billion. That’s our money. It’s our money to invest, as we like."

European Union’s Commitment

The European trade deal shows similar connections. The agreement cuts import rates to 15% and sets up $750 billion in American energy sales by 2028. The EU also set aside $600 billion for new spending in the U.S. When asked for details, Trump stated:

"The details are $600 billion to invest in anything I want, anything, I can do anything I want with it."

He then tied these funds with tariff moves:

"Well, then they pay tariffs at 35%. No, no. They brought down their tariffs."

When others asked why the EU had a lower tariff, he said simply:

"Because [the EU] gave me $600 billion. And that’s a gift — that’s not a loan. There’s nothing to pay back. They gave us $600 billion that we can invest in anything we want."

Strategic Industrial Revitalization

The White House has said the funds target key sectors that revive America’s core industries. The focus connects clearly with several building blocks:

  • Energy infrastructure and production
  • Semiconductor making
  • Essential minerals mining
  • Drug and medical production
  • Both commercial and defense ship building

These steps tie U.S. efforts to lower foreign import needs and grow nearby manufacturing.

A Deal-Maker’s Vocabulary

Trump uses plain language shaped by his background in real estate and deal-making. His style uses clear, short links between words. His baseball “signing bonus” image makes big numbers and trade ideas feel close and clear.

Watch the full CNBC interview with President Donald Trump on Squawk Box for more on his trade path and future money moves.

Summary:
President Donald Trump talked about huge funds from Japan and the EU. He called these funds baseball bonuses like those seen in pro sports. The trade deals aim to boost U.S. industry and cut reliance on foreign sources, with every link between words kept close for easier understanding.