trump Archives - US Tariff News

US Tariffs Update: EU postpones countermeasures by 90 days

The tariff between the US and China remains unsettled as US President Donald Trump on Wednesday increased the tariff on Chinese products by 125%. Within a few hours, China retaliated and implemented 84% tariff on imports from the US.

China’s Foreign Ministry said that this US strategy ‘will not win the support of the people and will finally fail. China made it clear that it does not want to fight, but will not be afraid of America’s threats. However, the Chinese Ministry of Commerce said that the door is open for talks and is expected to find a solution from the US on the basis of ‘mutual honor’ and ‘Win-Win Cooperation’.

Meanwhile, Trump has given 90 days exemption in tariffs for 75 countries, including India but China has been excluded from it. Trump hoped that there would be a good agreement soon.

Talking to reporters at the White House, Trump praised Chinese President Xi Jinping and called him ‘one of the smartest people in the world’ and said, ‘We will make a good compromise.’ He indicated that he is ready for a direct conversation with Xi and said, “There will be a time when we will get a phone call from China and everything will move forward rapidly.”

EU postpones countermeasures

European Commission Chairman Ursula von Der Leyen announced that the European Union (EU) would give a break of 90 days on imposing anti -anti -counter tariffs against the US. The decision has come after tariff pose announced by US President Donald Trump, in which he has reduced the fee on other countries except China to 10%.

South Korea’s Acting President Holds First Call With Trump Amid Tariff Tsunami

Acting President Han Duck-soo of South Korea held his first phone conversation with U.S. President Donald Trump on Tuesday, breaking days of diplomatic silence following the stunning ouster of President Yoon Suk Yeol, whose abrupt imposition of martial law last year plunged the country into political turmoil.

The call marked the first direct communication between the allies since the Constitutional Court last week upheld Yoon’s impeachment, removing him from office just four months after his controversial national security order shocked the public and ignited fierce protests.

Officials in Seoul said the leaders discussed ways to maintain bilateral cooperation amid regional security tensions and economic uncertainty — including fallout from Trump’s protectionist trade policies and North Korea’s ongoing weapons activity.

The leadership vacuum in South Korea had raised concerns in Washington and beyond, with key diplomatic initiatives, including joint military planning and economic talks, potentially stalled. Han, who stepped in as caretaker president following Yoon’s removal, is now tasked with maintaining continuity until a new head of state is elected.

Earlier Tuesday, the South Korean government formally set June 3 as the date for a special presidential election, in line with constitutional requirements mandating a vote within 60 days of a vacancy. That day will also be recognized as a temporary public holiday, officials confirmed.

As South Korea navigates this transition, all eyes will be on the June election — and on how Acting President Han manages relations with the United States in the meantime.

“Waiting For A Call” Says Trump But Beijing Still Seen Reluctant

Wall Street staged a resilient rebound Tuesday, clawing back some of last week’s historic losses as hopes flickered that President Trump might leave the door open for dialogue with Beijing—even as his administration prepares to implement the most aggressive tariff package in modern U.S. history.

The market’s response underscored both its deep anxiety and its reflexive optimism in the face of trade brinkmanship. The S&P 500 and Nasdaq closed firmly in the green, snapping a multi-session losing streak that had erased trillions in value amid fears that a full-scale trade war with China was no longer hypothetical but imminent. Shares in Europe followed suit, rising off 14-month lows, with investors latching onto the faintest signal that economic logic might still temper political will.

President Trump’s comments, delivered with characteristic vagueness, suggested he was “waiting for a call” from China and that a deal “will happen.” However, senior officials in his administration quickly moved to downplay expectations, saying trade talks would prioritize allies like Japan and South Korea—countries already in the throes of delicate negotiations over tariff exemptions and quotas.

For now, Beijing appears in no mood to indulge the White House’s on-again, off-again overtures. Chinese officials denounced Washington’s tactics as “blackmail” and promised retaliation. While the Ministry of Commerce has been tight-lipped about specific countermeasures, signs point to a policy of strategic endurance rather than capitulation. China’s stance reflects a growing belief in Beijing that the U.S. tariffs are less about economic leverage and more about domestic political theater.

Back in the U.S., companies are moving quickly to adapt. Chipmaker Micron informed clients it would begin passing on a “tariff surcharge” as early as Wednesday. Apparel firms have frozen hiring plans, and importers of consumer goods are revising supply chains and pricing models at breakneck speed. Running shoes manufactured in Vietnam, for instance, are projected to leap from $155 to $220 once the 46% tariffs kick in.

Consumers, already jittery, are starting to react in familiar ways. Panic-buying is emerging in some parts of the country, as price-conscious households brace for sticker shock across a wide range of essentials and durable goods. The surge in bulk buying of canned goods and pantry staples is eerily reminiscent of early pandemic behavior and reflects the broader uncertainty permeating the American middle class.

Global supply chains, long accustomed to political turbulence, are being tested in new ways. U.S. manufacturers reliant on parts from Asia are accelerating offshoring strategies, hedging not only against tariffs but against the volatility of executive policymaking. China, meanwhile, is moving production lines to Southeast Asia and boosting domestic demand as a shock absorber.

Even diplomatic channels are shifting. With Europe facing tariffs on autos, metals, and now potentially agricultural products, Brussels is reportedly drawing up a countermeasure list that includes soybeans and sausages. While officials say they remain open to negotiation, the bloc is clearly preparing for escalation.

In a particularly sharp turn, European pharmaceutical executives warned Commission President Ursula von der Leyen that the continued tariff threats could accelerate investment migration to the United States, undermining Europe’s ambitions to remain a global biotech hub.

The irony is stark. A White House intent on reshoring American industry may inadvertently spark a transatlantic corporate exodus—just not in the direction many in Washington anticipated.

Markets may have found their footing temporarily, but there is little conviction behind the bounce. Wall Street is, as ever, pricing in the possibility of a last-minute reversal by a president who has made unpredictability a governing principle. Whether that hope is a bet or a mirage remains to be seen.

After China, EU Gears Up With $28 Billion Retaliatory Tariff Hit on US Goods

The European Union is poised to slap retaliatory tariffs on up to $28 billion (€25 billion) worth of U.S. imports within days, escalating trade tensions with Washington following sweeping new duties from President Donald Trump. Reuters reports the bloc will target a wide range of American products — including meat, cereals, wine, wood, clothing, chewing gum, dental floss, vacuum cleaners, and even toilet paper.

The move in response to Trump’s 25% tariffs on EU steel, aluminium, and vehicles, as well as 20% reciprocal tariffs taking effect Wednesday on nearly all other goods has made the long-time ally furious and frustrated.

The European Commission, which oversees the bloc’s trade policy, will unveil its proposed countermeasures to EU member states late Monday. The move comes as European Commission President Ursula von der Leyen blasted the U.S. levies as a “major blow to the world economy” but signaled openness to negotiations, saying the EU remains “always ready” to talk.

Trump’s latest tariff package hits approximately 70% of EU exports to the U.S., worth €532 billion ($585 billion) last year. Additional duties on copper, pharmaceuticals, semiconductors, and timber are reportedly still in the pipeline.

The EU response shows a vivid revival of hostilities that first erupted during Trump’s first term, when the U.S. imposed similar tariffs citing national security concerns under Section 232. At that time, the EU responded with duties on $3.4 billion in American exports, targeting iconic products like Harley-Davidson motorcycles, bourbon, and Levi’s jeans. That standoff was largely diffused under the Biden administration, with a temporary suspension of the tariffs in 2021, but the new wave under Trump’s second term is re-igniting economic tensions.

President Ursula von der Leyen also condemned the fresh duties as a “major blow to the world economy,” though the Commission has yet to formally announce its full response. “We are always ready to talk,” she added, hinting at a potential diplomatic track, even as the EU moves to finalize its hit list.

In 2024, EU exports to the United States totaled €532 billion ($585 billion), with top sectors including industrial machinery, pharmaceuticals, vehicles, and agricultural products. Roughly 70% of those exports now face some form of U.S. tariff under the new measures, with further duties on semiconductors, timber, and copper reportedly under consideration.

The 27-member EU trade ministers will meet Monday in Luxembourg for the first bloc-wide political discussion since Trump’s announcement to assess the damage and chart a coordinated response.

US Tariffs Fallout: Signals of Retaliation, Recession, Rebuke, Restive Recourse Emerge

Global equities extended their sharp decline on Friday after China unveiled a new wave of retaliatory tariffs against the United States, deepening concerns over a full-blown trade war and its economic repercussions.

Beijing announced a 34% tariff on a wide range of American goods, prompting another market selloff that capped one of the worst weeks for financial markets since the pandemic. Major indexes confirmed milestone losses, with the tech-heavy Nasdaq Composite entering a bear market, and the Dow Jones Industrial Average sliding into correction territory.

Adding to the market turbulence, China introduced export controls on key rare earth materials and expanded its so-called “unreliable entities” list to include several U.S. firms, some of which are involved in arms sales to Taiwan — a move seen as a pointed political signal amid heightened geopolitical tensions.

President Donald Trump, for his part, stood firm on trade policy, signaling no intention of reversing course. The White House downplayed the financial fallout, while Trump himself remained largely out of public view, issuing defiant messages from his Florida estate, calling this “a great time to invest” and reiterating his belief that the U.S. will “win” the trade confrontation.

For the week, U.S. equity benchmarks suffered substantial losses: the S&P 500 dropped more than 9%, the Nasdaq declined over 10%, and the Dow Jones slid nearly 8%. The Russell 2000 index of smaller companies fell nearly 10%, underscoring the breadth of investor concern.

In response to the deepening standoff, economists at J.P. Morgan raised the probability of a global recession to 60%, citing elevated uncertainty, weakened business sentiment, and the prospect of slowing trade.

“This kind of back-and-forth trade policy leads to a risk-off environment,” said Stephane Ekolo, a market strategist in London. “Investors are bracing for the possibility of sustained economic disruption.”

Notably, dissent over the tariffs emerged within Republican ranks. Senator Ted Cruz warned the measures could inflict significant economic damage and prove politically costly. While he expressed hope that tariffs might ultimately secure better trade terms, he cautioned against a prolonged standoff, calling it a “terrible outcome.”

Cruz, however, continued to back Trump legislatively, voting against a recent Senate measure that would have blocked tariffs on Canadian imports.

At the Federal Reserve, Chair Jerome Powell acknowledged the impact of the trade escalation during remarks to business journalists, saying the size of the new tariffs was “larger than expected” and could increase inflationary pressures while dampening growth. He emphasized the Fed would remain data-dependent but reaffirmed a focus on maintaining inflation expectations.

Meanwhile, markets in other regions also faltered. In Canada, employment data showed the first net job loss since 2022, with rising uncertainty causing companies to delay hiring decisions. In Japan, Prime Minister Shigeru Ishiba labeled the situation a “national crisis,” as financial stocks plunged, driving Tokyo’s market toward its worst performance in years.

European officials expressed frustration over the U.S. trade stance. EU Trade Commissioner Maros Sefcovic said he held an “honest” discussion with American officials, reiterating that the tariffs were harmful and unjustified. Internal divisions across the bloc, however, remain, with some nations urging caution while others push for immediate retaliatory action.

French President Emmanuel Macron urged businesses to halt new U.S. investments, while Finance Minister Eric Lombard warned against tit-for-tat tariffs, noting the risk of higher consumer costs in Europe.

As American tariffs take effect — with most imports facing a 10% surcharge starting Saturday — analysts say prices for everyday items could rise significantly. Some estimates suggest that luxury electronics like smartphones could surge to nearly $2,300 if companies pass on tariff-related costs to consumers.

Despite the sharp market drop, the U.S. labor market remained strong in March, with job growth exceeding expectations, according to government data released Friday. Still, some analysts warned that a sustained trade war could erode business confidence and eventually weigh on hiring.

While markets await further developments, the uncertainty shows little sign of abating.

French Cognac Producers Grapple with Crisis as US Tariffs And Global Slowdown Take Toll

Cognac producers in southwestern France are facing mounting economic pressure as a wave of new U.S. tariffs deepens the challenges already posed by declining global demand and earlier Chinese trade retaliation.

The latest blow came with U.S. President Donald Trump’s decision to impose a 20% tariff on all European goods, including French cognac, a move that threatens the backbone of France’s nearly $3 billion spirits export industry. The United States remains the largest market for cognac, accounting for roughly half of global sales.

Producers like Christophe Fillioux, whose family-owned estate has operated for five generations, are now making difficult decisions. He recently uprooted sections of his vineyard and plans to remove more next year as part of a broader industry-wide response aimed at adjusting to the downturn. “The future is very uncertain. It’s hard to plan anything right now,” said Fillioux, standing in a vineyard planted by his father in 1980.

This comes as the region’s growers were already reeling from Chinese tariffs imposed in retaliation for EU duties on electric vehicles. Shipments to China, the second-largest cognac market by volume, have dropped by over 50% since last October.

The situation may worsen: Trump has floated the possibility of further tariffs of up to 200% on European wine and spirits, escalating tensions amid the ongoing trade disputes.

Global Slump and Overcapacity

The current crisis is exacerbated by an earlier expansion in production during the post-pandemic boom, when global demand for luxury goods spiked. Many growers invested heavily, often through loans, to meet the anticipated surge. Today, many of those same producers are struggling under debt as sales decline.

Industry body BNIC (Bureau National Interprofessionnel du Cognac) has responded by cutting production limits for the third consecutive year — now just half of 2022 levels — citing a “dramatically weakened” global economic climate. “We’re doing our best to manage the fallout with banks and local governments,” said BNIC President Florent Morillon, acknowledging that external factors beyond the control of producers have triggered the crisis.

In the Cognac region, the industry — from vineyard workers to barrel-makers — supports around 70,000 jobs, many of which are now at risk. Layoffs have begun, and local leaders warn of rising unemployment.

Changing Tastes, Rising Costs

Even before the latest tariffs, cognac’s popularity in the U.S. was beginning to wane due to price hikes and changing consumer preferences. While the U.S. remains a key market, especially for mid-range bottles priced between $36–$60, analysts note that American drinkers are increasingly shifting toward alternatives like tequila and whiskey. “Cognac hasn’t expanded beyond niche demographics in the U.S.,” said Thomas Mesmin, a Paris-based luxury industry consultant. “The big brands still rely on a few core cities and loyal customer bases.”

Still, the cultural connection between cognac and the U.S. — particularly its historic popularity among Black American communities and high-profile partnerships in entertainment and sports — has helped maintain visibility in the market. But experts warn that brands may struggle to absorb the tariff cost without losing customers. “Even a $1 or $2 price increase could cause disruption in today’s environment,” Morillon said.

Fourth-generation grower Pascale Dupuy, 67, said he expects his income to fall by 40% this year after major buyers like Remy Martin slashed contracts. His daughter has shown little interest in continuing the family business, raising concerns about the long-term future of small, independent cognac estates. “It’s just one more problem in a growing list,” he said. “I don’t know if it’s worth continuing anymore.”

As producers explore new markets in Asia and Africa to offset losses, many remain uncertain about how long the downturn will last or whether the industry can recover from the combined shocks of tariffs, shifting demand, and overproduction.

Netanyahu Rushes to Meet Trump After 17% Tariffs Imposed on Israeli Goods

Israeli Prime Minister Benjamin Netanyahu is expected to meet U.S. President Donald Trump on Monday to discuss the recently announced tariffs. This impromptu visit, as reported by three Israeli officials and a White House official, could mark the first by a foreign leader to negotiate a deal to remove tariffs.

The surprise invitation by Trump came during a phone call on Thursday with Netanyahu, who is currently visiting Hungary. The Israeli leader raised the tariff issue during the call, prompting the U.S. President to extend an invitation for an in-person meeting.

However, Netanyahu’s office has yet to confirm the visit, which is also likely to include discussions on Iran and Israel’s ongoing conflict with the Palestinian militant group Hamas in Gaza. The new tariff policy announced by Trump imposes a 17% tariff on unspecified Israeli goods exports to the United States. This move could significantly impact Israel’s exports of machinery and medical equipment, according to an Israeli finance ministry official.

Global Trade Landscape Amid Tariff Tensions

The U.S. is Israel’s closest ally and largest single trading partner, and this new policy could strain the longstanding trade relationship between the two countries. In response to the U.S. tariff policy, Israel had already moved to cancel its remaining tariffs on U.S. imports on Tuesday. The two countries had signed a free trade agreement 40 years ago, and about 98% of goods from the U.S. are now tax-free in Israel.

The global trade landscape is also being reshaped by other countries’ reactions to Trump’s tariffs. For instance, Jaguar Land Rover has paused shipments to the U.S. as Trump’s tariffs come into force. Similarly, Nissan Motor is considering shifting some domestic production of U.S.-bound vehicles to the U.S. to mitigate the impact of Trump’s tariffs.

In Europe, Italy’s economy minister Giancarlo Giorgetti warned against the imposition of retaliatory tariffs on the United States in response to Trump’s tariff announcement. He called for a de-escalation with the U.S., highlighting the potential damage that a policy of counter-tariffs could cause.

The tariff announcement has sent shockwaves through global stock markets, wiping out $5tn in stock market value for S&P 500 companies by Friday’s close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds.

The current situation has increasingly been resonating the 1930s, when the U.S. imposed the Smoot-Hawley Tariff Act, which raised tariffs on over 20,000 imported goods. This move was met with retaliatory tariffs from other countries, leading to a significant reduction in global trade and contributing to the severity of the Great Depression.

However, Trump remains unrepentant, stating that his policies will never change. The 78-year-old Republican, who was spending a long weekend golfing at his course in Palm Beach, Florida, is banking on the theory that the might of the world’s biggest economy will force foreign companies to manufacture on U.S. soil, rather than continue to import goods.

Otherwise, the impromptu meeting between Netanyahu and Trump could have far-reaching implications for global trade. The outcome of their discussions could either escalate or de-escalate the current trade tensions, with potential impacts on economies worldwide.

Consumers Rush to Buy Laptops As US Begins Collecting Trump’s 10% Tariff

US customs authorities began enforcing a sweeping new 10% tariff on imports from dozens of countries early Saturday, marking a seismic shift in global trade policy and intensifying fears of a worldwide economic slowdown.

The levy, announced by former President Donald Trump earlier this week, took effect at 12:01 a.m. ET (0401 GMT) at all U.S. seaports, airports, and customs facilities. The baseline tariff is the centerpiece of Trump’s unilateral overhaul of post-World War Two trade norms, which were built on mutual agreements and negotiated tariffs.

“This is the single biggest trade action of our lifetime,” said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House adviser. Speaking at a Brookings Institution event Thursday, Shaw predicted that the new tariff regime will evolve as countries seek negotiations. “But this is huge. This is a pretty seismic and significant shift in the way that we trade with every country on earth,” she added.

The announcement sent shockwaves through global financial markets, wiping out $5 trillion in market value from S&P 500 companies by Friday’s close—a record two-day loss. The Dow Jones and Nasdaq also suffered steep declines, while commodity prices plunged and investors poured into safe-haven government bonds.

Wall Street’s rout is the steepest since the March 2020 pandemic-driven selloff and has reignited fears of a looming global recession.

Who’s Hit — and Who’s Not

Among the first countries affected are Australia, Britain, Colombia, Argentina, Egypt, and Saudi Arabia, which now face the immediate 10% tariff. A U.S. Customs and Border Protection bulletin issued to shippers initially caused confusion, suggesting no grace period. However, a revised bulletin confirmed a 51-day grace period for goods already in transit before the Saturday deadline. These shipments must arrive in the U.S. by May 27 to avoid the new duty.

The policy includes significant exemptions. Goods such as crude oil, pharmaceuticals, semiconductors, petroleum products, uranium, titanium, and lumber—representing roughly $645 billion in 2024 imports—are excluded from the tariff. Many of these sectors, however, remain under review for possible national security-related tariffs.

Products already covered by separate national security duties—such as steel, aluminum, automobiles, trucks, and auto parts—are also excluded.

Higher Reciprocal Tariffs Coming Next

The 10% baseline tariff is only the first phase. Beginning Wednesday, the administration will implement a set of “reciprocal tariffs” ranging from 11% to 50%, targeting countries based on the duties they impose on U.S. goods.

Under the new schedule:

European Union imports will face a 20% tariff.
Chinese goods will be hit with an additional 34% duty, raising total U.S. tariffs on China to 54%.
Vietnam, which benefited from supply chain shifts away from China during Trump’s first term, will face a 46% tariff. Hanoi has agreed to open discussions with Washington following the announcement.
Canada and Mexico are exempt from the new duties due to existing 25% tariffs tied to the U.S. fentanyl crisis for non-compliant goods under the USMCA rules of origin.

Trump’s move has sparked both praise from protectionist trade advocates and criticism from economists who warn of inflationary pressures and disrupted global supply chains. Analysts say the policy could act as a de facto tax on U.S. consumers and businesses, compounding economic risks at a time of fragile global recovery.

As the U.S. enforces its most aggressive trade action in decades, countries around the world are expected to respond, potentially setting off a new era of retaliatory tariffs and trade realignment.