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Trump’s Alarming 41% Tariff on Syria: Economic Stranglehold or Political Leverage?

Syria Faces Further Economic Strain Amid Highest Global U.S. Tariffs Despite Recent Sanctions Lift

Date: August 6, 2025

The Trump team sets a 41% tariff on Syrian goods. This tariff rate is the highest in the world. President Trump lifted U.S. limits on Syria just a few months ago. The new tax and the lifted rules now work side by side in a surprising way.

A Complex Economic Landscape for Syria

Syria carries the label of a terrorism supporter since 1979. The U.S. set strong limits in 2004 and pushed them further in 2011 when the government acted harshly against protestors. Years of civil war, harmful fighting among groups, and the rise and fall of ISIS have left Syria hurt. Its markets, banks, and services now suffer under these heavy burdens.

In May 2025, at the Ritz-Carlton in Riyadh, President Trump announced a full removal of U.S. limits. Many saw this as a sign that Syria might soon heal. Yet only three short months later, the high tariff casts doubt on that hope. U.S. trade with Syria is very small. In 2023, exports hit about $11.3 million, while imports stayed near $1.29 million. The steep tariff now sends a strong and clear signal.

Impact on Reconstruction and Trade

Experts say Syria needs help to rebuild. The transitional government, led by President Ahmed al-Sharaa, looks for steady support from abroad. Over two-thirds of Syria’s power grid is down, and major cities like Aleppo and Damascus face long blackouts. Relief groups plan energy projects. One project from Qatar aims to supply gas to over 5 million people. The new tariff may cut off the chance for better U.S. trade and slow down fresh investment.

Giorgio Cafiero, CEO of Gulf State Analytics, notes that the high rate stops any chance for solid trade ties with the United States. He sees the measure as direct pressure on Damascus to shift its politics. His view is that U.S. goals include pushing Syria to adjust its stance, such as moving toward a different kind of relation with Israel, which still acts in Syrian areas.

The Symbolism Behind the Tariff

The high rate may not hurt trade numbers much, yet it speaks loudly. The tariff works like a firm hand that keeps Syria in check. U.S. adjustments later may depend on choices made in Damascus. H.A. Hellyer, a senior fellow at the Royal United Services Institute, warns that Syria’s recovery teeters on a thin line. He says one misstep could push Syria back into deeper conflict and pain.

International and Diplomatic Dimensions

After limits fell, delegations from the U.S., Gulf states, and others visited Syria. Qatar and Saudi Arabia stay active in builds and aid works. Fahad Al-Sulaiti, director general of Qatar Fund for Development, says U.S. contacts work with them to support Syria’s fragile state. U.S. envoy Tom Barrack voices strong backing for Syria’s transitional government. No clear word has come from the State Department or the White House on why the tariff makes sense in Syria’s case.

Conclusion

The 41% tariff on Syria follows soon after removing old U.S. limits. This mix of actions shows a U.S. approach that holds both care and doubt for Syria’s new government. Even if the tax may not hurt trade right away, its strong message could affect Syria’s steps toward lasting calm and rebuild. As Syria works to recover from years of damage, experts urge a united international effort that avoids mixed signals.

For ongoing coverage and analysis of Syria and global economic policies, subscribe to CNBC PRO or join the Investing Club.

Bitter Cost: How 39% Tariffs on Swiss Luxury Goods Will Impact U.S. Consumers’ Wallets

Chocolate, Skincare, and Timepieces: How 39% U.S. Tariffs on Swiss Goods Will Impact Prices

Published: August 5, 2025

U.S. consumers love Swiss products like fine chocolates, quality skincare, and luxury watches. They now face higher prices. The new 39% tariff on Swiss goods takes effect this Thursday unless negotiators reach a fast deal. Here, each word pair links closely to make the text clear and easy to follow.

Background on the Tariff Dispute

News last week shocked many. Switzerland now risks one of the highest U.S. tariff rates. Politicians, analysts, and businesses expected a lower rate. They had seen the European Union use a 15% tariff and the United Kingdom use a 10% rate.
A U.S. trade deficit with Switzerland hit $38.3 billion in 2024. A large part of this gap ties to Swiss gold refining. Gold and silver pass quickly through Switzerland for processing before they move around the world. Imports of these metals do not pay the exchange tariffs.
Pharmaceuticals form another important sector. These products now do not pay tariffs. Ongoing U.S. probes under Section 232 could change rules for some medical devices and drugs later.

Key Sectors Impacted by the Tariffs

Luxury Watches

Swiss watches rank as top exports. In 2024, U.S. buyers spent 4.37 billion Swiss francs ($5.4 billion) on these timepieces. To be called “Swiss-made,” a watch must have at least 60% of its production cost in Switzerland and must be designed there. Experts worry a 39% tariff will push prices high:

  • Paul Altieri, CEO of Bob’s Watches, said the price of a Rolex Submariner might jump from $10,000 to almost $14,000.
  • Jean-Philippe Bertschy of Vontobel said mid-range Swiss watches may suffer more. Shops and makers could face longer waits and higher costs.
  • Top brands such as Rolex, Patek Philippe, and Audemars Piguet may cope better, even though they have long waiting lists.

Coffee Products

Nestlé sees mixed results. Most of its U.S. items come from local plants, so they feel little change. Its Nespresso line is made in Switzerland and could see a small price rise. North American sales of Nespresso grew in early 2025. This growth shows that even small hikes can matter.

Skincare and Beauty Products

Swiss brands in skin care and beauty include:

  • La Prairie (with caviar-based anti-aging creams)
  • Valmont (used in spa treatments)
  • Mavala (in nail care)

Analysts from Lombard Odier say Swiss firms normally cope with tariffs of 10% to 15% without big profit loss. A 39% tariff creates a hard challenge. Galderma, which makes injectable skin products and Cetaphil facewash, produces most of its goods outside Switzerland. This practice keeps it clear of current tariffs but may change in later reviews.

Luxury Goods

High-end jewelers like Cartier and Van Cleef & Arpels face rising costs. Bank of America Securities shows that 7% of Richemont’s input costs are affected by the tariff. Richemont has warned that higher tariffs may lead to increased prices and lower demand. Some luxury brands may see a slight lift if a higher price tag adds to their rare image. Still, most will feel the impact.

Chocolate Industry

Swiss chocolates are well known around the world. The 39% tariff, along with a stronger Swiss franc, may drive prices up by as much as 55%. Small and medium-sized Swiss chocolate makers, such as Camille Bloch and Läderach, may lose many customers if they cannot produce in the U.S. Some giants like Lindt & Sprüngli and Barry Callebaut own U.S. facilities, which helps them cope, but smaller firms do not have that option.
Roger Wehrli from Chocosuisse reminds us that chocolate must be made in Switzerland to keep the “Swiss chocolate” mark. Toblerone had to change its packaging after moving some of its work to Slovakia in 2023. —

What’s Next?

Swiss negotiators work fast to stop the tariffs from starting this Thursday. They know that high tariffs could hurt growth, jobs, and stock values. Economists warn that long tariffs may shake consumer demand and change old trade links, especially in top product groups.
U.S. buyers should get ready for a rise in prices on Swiss goods, from luxury watches and skin products to chocolates and coffee. The coming days will show if negotiators cut the tariff or lessen its effects.

For ongoing coverage and updates on the U.S.-Swiss tariff matter, stay tuned to CNBC.

Trump’s Fed Chair Candidates: Bessent Bows Out as Four Contenders Emerge for the Role

Trump Narrows Federal Reserve Chair Candidates, Treasury Secretary Bessent Steps Aside

Trump reduced the list of Fed Chair candidates when he announced on CNBC’s Squawk Box that Scott Bessent will not try to lead the central bank. The President said Bessent will stay at the Treasury Department. This choice cuts the list to four candidates.

Bessent Opts to Stay as Treasury Secretary

Trump spoke with high respect for Bessent. Still, Bessent chose to remain in his current role. Last night, Trump asked him, “Is this something you want?” Bessent replied, “Nope, I want to stay where I am. I want to work with you.” Trump called this response an honor. Bessent was once seen as a top choice for the influential role, but he is out of the running now.

The Remaining Contenders

Trump did not name all four candidates but mentioned a few well-known figures:

  • Kevin Warsh – former Fed Governor known for favoring lower interest rates.
  • Kevin Hassett – the director of the National Economic Council who often supports rate cuts.
  • Christopher Waller – a current Fed Governor who is said to be competing.

Trump spoke well of both Kevins, calling them “very good” candidates. He also referred to other strong prospects. In addition, Fed Governor Adriana Kugler resigned effective this Friday. Trump called Kugler’s exit a “pleasant surprise” because it frees up a seat for someone from Trump’s circle.

The Fed Chair Position and Interest Rate Policies

The current Chair, Jerome Powell, will finish his term in May 2026. Powell was nominated by Trump in 2017 and was confirmed by the Senate. Trump often criticizes Powell for the way he handles interest rate policies. In a remark, Trump said, “Sir, I’ll keep interest rates so low. I’m a low interest rate person.”
Right now, interest rates sit in the 4.25%-4.5% range. Markets expect the next rate drop to come in September. This fits with Trump’s long-held view in favor of looser monetary rules.

Speculation on a “Shadow Chair”

Trump did not rule out the idea of naming a second, backup chair for the Fed. Though he did not say he would make that move, he noted that it remains “a possibility.”

The administration now readies itself to fill key positions at the Federal Reserve. This move may align the central bank closer to the White House’s economic plans in an election year.

For real-time updates and live coverage, CNBC viewers can tune into the Squawk Box livestream and check detailed reports on the changing Fed leadership.

Source: CNBC, August 5, 2025

July Jobs Report Shows Evidence of Economic Slowdown: What It Means for the U.S. Economy Ahead

July Jobs Report Highlights Sharp Slowdown in U.S. Economy

The July jobs report fuels debate over the U.S. economy. Its data shows a weak labor market. The report hints that growth fades more than standard counts show.

Key Takeaways from the July Jobs Report

  • Nonfarm payrolls increased by only 73,000, a number that falls well short of modest forecasts.
  • The job numbers for May and June drop. The three‐month average sits at 35,000 – less than one third of last year’s pace.
  • The soft labor market makes it seem that the economy cools down more than GDP numbers reveal.

Luke Tilley, Chief Economist at Wilmington Trust, said,
"We see a slow down across our economy. I ask if it may turn into a recession."
He sees a 50% chance of a recession. He ties long tariff effects to lower spending by consumers and businesses. In Q1 2025, spending accounted for 68% of all activity.

Tariff Effects and Price Changes

Tilley points out tariffs set under President Donald Trump make imports cost more. This fact cuts spending on travel, fun, and leisure. The result is that price rises stay low despite the extra fees.

Mixed Signals: GDP Growth vs. Weak Job Numbers

GDP grew at a seasonally adjusted annual rate of 3% in Q2 2025, yet the first half of the year averaged only about 1.2% growth. Consumer spending barely grew by 1%. A boost in Q2 came when imports dropped. Firms had moved many orders forward in Q1 from the threat of higher fees.

Economists stay cautious:

  • Gus Faucher, Chief Economist at PNC, expects slow growth later in 2025 and early 2026 but does not call a recession. He points out that higher tariff fees add risk.
  • Goldman Sachs sees growth dropping to nearly 1% in the last two quarters. This drop comes from weaker job gains, extra fees, lower spending, and cuts in cash help.

Political and Policy Views

White House staff say the economy stays sound and expect fixes with President Trump’s One Big Beautiful Bill Act.

After the report, President Trump attacked the data. He called the figures "FAKED" and "RIGGED" on social media and fired the head of the Bureau of Labor Statistics.

Kevin Hassett, National Economic Council Director, noted the revised numbers with care. He stressed that basic strengths still exist and there is hope for the rest of the year.

Fed Watch: Rates and Outlook

The Federal Reserve kept interest rates steady. Fed staff see the labor market as strong but may relook if new data shows more weakness.

Other pointers suggest strain:

  • Housing data shows fewer buyers even as prices and mortgage rates stay high. A 30‐year fixed rate nears 7%.
  • Factory orders dropped by 4.8% in July, the largest fall since early 2024.
  • The Conference Board’s Employment Trends Index hit its lowest mark since late 2024. Experts like Jim Paulsen see these signals as ways to read a coming downturn.

Market Mood and Investor Views

The stock market shows strength amid these risks. The Dow Jones fell 1.7% over the past month, yet a Monday rally came as hopes grew for a lasting U.S.-EU tariff pact.

George Mateyo, Chief Investment Officer at Key Private Bank, said,
"There has been much calm as many expect good times to hold on. Still, doubt is high, and we advise clients to move funds from riskier areas."

Market views on Fed moves shift quickly. Chances of a rate cut in September now near 90% as key reports and Fed talks come up.

Conclusion

The July jobs report shows that the U.S. economy slows down. This news makes policy makers and investors watch close. A full recession is not a sure call, yet growth seems set to drop in the coming months. Tariff fees and lower spending add tension to the scene.

Stay tuned as more news comes in to help guide you through these uncertain times.

Goldman Sachs Predicts Housing Market to Drag Down Economic Growth by 8% in Coming Months

Housing Market to Remain Weakest Sector of U.S. Economy in Second Half of 2025, Goldman Sachs Predicts

Published August 4, 2025 — 9:05 AM EDT

The U.S. housing market shows slow growth. Goldman Sachs sees the market drag the economy in the year’s second half. Jan Hatzius, chief economist, states residential investment will drop by 8% compared with fall 2024. Each word links closely to its neighbor to help you read with ease.

Key Factors Behind Housing Market Weakness

• High mortgage costs squeeze buyers. Buyers pay more, and they sometimes pay upfront to lower their interest rate. This choice shows that home costs hurt purchase power.

• Fewer new families form as immigration slows. Measures by President Donald Trump on illegal crossings lower the pace at which households come together.

• Job data shows weak hiring. The July report on nonfarm payrolls falls short. Revised figures for May and June also count lower job growth.

Multifamily and Single-Family Construction Trends

• Builders of multifamily apartments hold back on new projects. Developer worries keep new apartment complexes low.

• Starts on single-family homes feel the pinch. Fewer new homes begin construction as builder hope declines.

Residential Investment as a Drag on Growth

Goldman Sachs sees building, renovating, and home repairs pull down economic growth. This part of the market moves jobs, spending, and related work. The slow pace sends ripples through other economic parts.

Economic Context and Outlook

Raising a broad concern, Goldman Sachs fits the slow housing market into the wider U.S. picture. Some parts of the economy run strong, but weak home buying power, fewer new families, and low hiring pull down activity. Policy makers and investors watch these shifts closely.

For those who need stable homes—prospective buyers, real estate builders, and construction teams—this news signals tougher days ahead without a clear fix soon.

Stay informed with CNBC for ongoing news on real estate and economic shifts.

Reported by Alex Harring, CNBC
Follow on Twitter: @alex_harring

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Trump Gains Leverage as Fed Governor Adriana Kugler Resigns, Opening a Seat for New Nominee

Fed Governor Adriana Kugler Resigns, Opening Door for Trump to Influence Interest Rate Policy

August 1, 2025 — U.S. monetary policy faces change as Fed Governor Adriana Kugler announced her resignation on Friday. Her exit opens a seat on the Fed’s Board of Governors and on the Federal Open Market Committee (FOMC), which sets the nation’s interest rates.

Key Details of Kugler’s Departure

  • Resignation Announcement: Kugler, 55, sent a letter to President Donald Trump stating she will return to Georgetown University as a professor this fall.
  • Term and Tenure: Her term was to end in January 2026. She was chosen in September 2023 by a Biden administration, filling the seat left by Lael Brainard.
  • Role on FOMC: As a Governor, Kugler held a voting seat on the FOMC. She took part in votes to decide monetary policy, such as changing interest rates.

Implications for Federal Reserve Policy

Kugler’s exit leaves a gap that President Trump may fill with a nominee who backs lower interest rates. Trump showed his support for this change and hinted he would pick someone who shares his views on monetary policy.

  • Trump’s Influence: Two Trump appointees, Christopher Waller and Michelle Bowman, recently opposed the decision to keep the Fed’s benchmark rate. They called for a rate cut. Kugler did not vote on this matter.
  • Allegations on Resignation: Trump said—with no proof—that Kugler left because she clashed with Fed Chair Jerome Powell over interest rate plans.
  • Kugler’s Policy Views: Known for her hawkish stance, Kugler favored holding rates steady until clear signals of inflation changes appeared, amid the effects of tariffs.

Comments from Federal Reserve Chair Powell

Fed Chair Jerome Powell thanked Kugler for her service. He noted her long experience and useful academic views during her term. Powell’s term ends in May 2026, though he might stay on the board afterward.

Wider Context and Future Outlook

  • The open seat gives President Trump more say over the Fed during a time when economic worries about inflation and growth are strong.
  • Trump said he prefers nominees who support cuts in interest rates. He also mentioned the idea of a "shadow chair" who could speak up on the board until Powell leaves.
  • Markets will watch closely because the Fed’s decisions about rates affect borrowing, investment, and the stability of the economy.

Adriana Kugler’s resignation marks an important moment for U.S. economic policy. It gives the Trump administration a chance to guide the future of interest rate policy during a challenging economic period.

Stocks vs. Bonds: Building Your Investment Portfolio

Introduction

Investing can feel overwhelming, especially for beginners trying to decide between stocks and bonds. Both offer unique opportunities to grow wealth, but they come with different risks and rewards. This blog provides a beginner-friendly comparison of stocks and bonds, explaining their roles in a portfolio and how to balance them based on your financial goals. Whether you’re saving for retirement or aiming for short-term gains, understanding these investment options is key to building a solid financial future.

What Are Stocks?

Stocks represent ownership in a company. When you buy a stock, you become a shareholder, owning a small piece of that business. Stocks are traded on exchanges like the NYSE or NASDAQ, and their prices fluctuate based on company performance, market conditions, and investor sentiment. For example, if you buy shares of a tech company like Apple and its value rises due to strong earnings, your investment grows. However, stocks are volatile—prices can drop suddenly due to market downturns or company-specific issues, making them riskier but with potential for high returns.

What Are Bonds?

Bonds are loans you make to a borrower, typically a government or corporation, in exchange for interest payments over a set period. When you buy a bond, you’re essentially lending money, and the issuer promises to repay the principal at maturity while paying you interest along the way. For instance, a U.S. Treasury bond might pay 3% interest annually and return your initial investment after 10 years. Bonds are generally less risky than stocks because they provide steady income and are often backed by reliable issuers, but they offer lower returns and can be affected by interest rate changes.

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Comparing Risks and Returns

Stocks typically offer higher returns but come with greater risk. Historically, the S&P 500, a stock market index, has averaged annual returns of about 10% before inflation, but it can experience sharp declines, like the 20% drop during the 2020 pandemic. Bonds, on the other hand, are more stable—U.S. Treasury bonds are considered safe because they’re backed by the government—but their returns are lower, often 2-5% annually. Corporate bonds may offer higher yields but carry more risk if the issuer defaults. Your risk tolerance and investment timeline will determine the right mix for you.

Building a Balanced Portfolio

Balancing stocks and bonds in your portfolio depends on your goals, age, and risk tolerance. A common rule of thumb is the “110 minus your age” strategy: subtract your age from 110 to find the percentage of your portfolio that should be in stocks, with the rest in bonds. For example, a 30-year-old might allocate 80% to stocks and 20% to bonds, while a 60-year-old might shift to 50% stocks and 50% bonds to reduce risk as retirement nears. Diversifying within each asset class—such as investing in a mix of tech and healthcare stocks or government and corporate bonds—further minimizes risk while optimizing returns.

Conclusion

Stocks and bonds each play a vital role in a well-rounded investment portfolio, offering a balance of growth and stability. By understanding their differences and aligning them with your financial goals, you can create a strategy that works for you. For more tips on building your portfolio, check out our videos at The Money Grower.