US tariffs Archives - Page 2 of 2

Avocados to Alcohol, Beer to Coffee, Beef to Cheese, Basmati Rice to Olive Oil — All Prices To Go Up Now

Enter any Supermarket, you will find all food prices shooting up. Food industry analyst Phil Lempert estimates that about 40,000 items — nearly half of all supermarket products — may be impacted by new tariffs, either directly or through ingredients.

The tariffs, part of President Trump’s push for reciprocal trade, aim to counteract what he called decades of unfair treatment by other nations. The plan includes higher duties on goods from the so-called “Dirty 15,” nations with high trade surpluses and barriers to U.S. exports. Here is an estimate of what goes up as there is no price going down:

Fruit Prices Mixed; Avocados Likely Safe

Imported fruits from Guatemala, Costa Rica, and Peru — all subject to new 10% tariffs — may rise in price, with Lempert warning of potential supply issues due to perishability. However, avocados, 87.6% of which are sourced from Mexico, will remain tariff-free as Mexico avoided inclusion on the White House’s list of affected countries.

Vegetables from Key Partners May Be Spared
Vegetables are largely imported from Mexico (69%) and Canada (20%), both of which escaped the latest tariffs. However, produce from other listed nations — like Guatemala, Peru, and China — could see cost increases. The USDA notes that fresh vegetable imports grew 200% between 1998 and 2020, indicating growing reliance on international supply chains.

Seafood Prices Set to Jump
Up to 85% of seafood consumed in the U.S. is imported. Countries like Vietnam (46% tariff), India (26%), Indonesia (32%), and Chile (10%) are key suppliers and were all hit by tariffs. “The U.S. seafood industry can’t cover that shortfall,” said Andy Harig from the Food Industry Association, warning of price hikes in seafood aisles.

Coffee Imports Face 10% Tariffs

The U.S., the world’s largest coffee importer, gets over 60% of its roasted coffee from Brazil and Colombia, both hit with 10% tariffs. Prices could rise, especially for Latin American beans which dominate the market.

Alcohol, Especially Wine and Beer, to Take a Hit

Imported alcohol is expected to be “clobbered,” Lempert told NPR. The EU faces 20% tariffs, affecting wine from France, Spain, and Italy. Beer imports from the Netherlands and Ireland were also targeted. Aluminum tariffs may further inflate canned beer prices, even for Mexican brands like Modelo and Corona, which otherwise escaped tariffs.

Skyrocketing Olive Oil and Cheese Costs

Spain, Italy, and Greece — the top sources for olive oil — face 20% tariffs, driving up already high prices. Lempert warned prices will go “even higher.” Cheeses like brie, Gouda, and Parmigiano-Reggiano from the EU could also become pricier due to similar duties.

Barring U.S. beef, which is domestically sourced, historic high prices and reduced cattle herds may cause slight increases. Rice is also mostly homegrown, though jasmine and basmati varieties from Thailand and India — both facing tariffs — could see modest price bumps.

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.

Tariffs Shake Up U.S. and Canadian Farm Equipment Industry

A recent farm show in Regina, Canada witnessed many farmers hesitant to buy new equipment like tractors and harvesters, leave alone new-tech machinery. Apparent are worries about tariffs making already expensive machines even more costly, following US-China retaliatory measures.

Some of these machines, like combines, cost more than $800,000. If tariffs suddenly raise prices, farmers say it could hurt their budgets badly, reports Reuters after interviewing several farmers [resent at the farm show. Although Canada avoided some broad U.S. tariffs, it still faces extra charges on things like steel, aluminum, and cars that don’t meet trade rules under the U.S.-Mexico-Canada Agreement. Farmers aren’t sure if the new tariffs apply to farm equipment, and sorting it all out could take weeks.

In the meantime, farmers are holding off on purchases. Some equipment companies, like Case IH, have already laid off workers in the U.S. due to falling demand. Canadian farmers and equipment sellers say the uncertainty is making it risky to buy or sell anything right now.

Bill Prybylski, who leads a Saskatchewan farmers’ group, said many farmers are nervous about spending, even as they admire new equipment at shows.

Derek Molnar from rockpicker-maker Degelman Industries said manufacturers don’t know how the tariffs will affect them either. Since machines are often ordered months in advance, unexpected tariffs could mean big losses.

Manitoba farmer Gunter Jochum said he’s waiting to buy new equipment. Like many farmers, he buys machines from various countries, including the U.S., Germany, and Canada.

Kip Eideberg from the Association of Equipment Manufacturers said about 30% of U.S. farm equipment is sold abroad, with Canada as the top buyer. He warned that tariffs could raise prices, hurt jobs, and mess up the supply chain.

In Saskatchewan, Honey Bee’s general manager Jamie Pegg said they may cut back on production to avoid having too much unsold equipment.

Nancy Malone, who works with Canadian machinery dealers, said the confusion is hurting business. She’s asking the Canadian government not to add more tariffs on U.S. farm machinery, hoping to protect local dealers and farmers.

‘Market Speaks’: China Blasts US Tariffs After Stocks Nosedive, Urges Dialogue

China issued a pointed response to sweeping new U.S. tariffs on Saturday, condemning the measures as economically reckless and politically damaging, while pointing to the global market selloff as proof of their destabilizing impact.

With stock markets around the world sliding sharply—Wall Street saw its worst week since the pandemic—Beijing warned Washington against using trade as a geopolitical weapon. The Chinese foreign ministry said the reaction from investors sent a clear message: “The market has spoken.”

Chinese Foreign Ministry spokesperson Guo Jiakun in a social media post accompanied by images of the week’s market rout, said:“Now is the time for the U.S. to stop making wrong choices.”

The escalating trade tensions stem from President Donald Trump’s latest round of 34% tariffs on Chinese imports, raising total duties on Chinese goods this year to 54%. The move also included shutting down a loophole that allowed small parcels from China to enter the U.S. untaxed.

Beijing Hits Back Hard

In retaliation, Beijing imposed mirror tariffs on U.S. exports and introduced restrictions on select rare earth materials, adding fuel to a trade conflict already straining the world’s two largest economies. These countermeasures triggered a steep global selloff, with the S&P 500 closing down 9% for the week.

In a statement carried by Xinhua, China’s state-run news agency, officials called the U.S. actions a threat to global economic stability and a violation of the principles underpinning international trade. “Tariffs should not be tools of suppression,” the statement read. “The United States must cease undermining China’s right to pursue legitimate development.”

China pledged to “take all necessary steps” to defend its sovereignty and development interests, adding that it would not hesitate to act again if provoked.

Hong Kong Stays Neutral

Chinese trade associations representing key sectors—including metals, electronics, textiles, and agriculture—issued coordinated statements denouncing the tariffs. Food industry leaders urged exporters to strengthen internal cooperation and pivot to new markets across Asia, Africa, and Latin America.

Meanwhile, Hong Kong’s Financial Secretary Paul Chan said the city would not impose any retaliatory measures of its own, stressing its position as a free port and open economy. “Maintaining the free flow of capital and goods is our core advantage,” Chan said in an interview with RTHK. “We remain committed to a rules-based global trade system.”

Otherwise, for now, the global response is clear: rising tariffs, deepening divides, and markets in freefall — with no resolution in sight.

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.

Jaguar Land Rover Stops US-Bound Shipments After Trump’s 25% Tariff on Vehicles

Jaguar Land Rover (JLR) has announced an immediate pause in shipments of its UK-manufactured vehicles to the United States, citing the need to reassess operations following President Donald Trump’s new 25% import tariff on cars and light trucks.

The British luxury carmaker, owned by India’s Tata Motors, confirmed the move on Saturday after a report by The Times revealed the temporary suspension. The halt is expected to last through April. “As we work to address the new trading terms with our business partners, we are taking some short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” JLR said in a statement.

The decision comes just days after the tariff took effect on April 3, sending shockwaves across global automotive supply chains.

The U.S. is JLR’s second-largest market after the EU, accounting for nearly a quarter of the company’s total sales. The automaker sells around 400,000 vehicles annually, including popular models such as the Range Rover Sport and Defender.

The impact of the tariff is expected to ripple across the UK auto industry, which employs over 200,000 people and counts the U.S. as a key export destination, according to the Society of Motor Manufacturers and Traders (SMMT).

The Times reported that JLR has sufficient inventory already in the U.S. to cushion short-term sales, as these vehicles will not be subject to the new tariffs.

Meanwhile, the British government is intensifying efforts to negotiate a trade deal with Washington amid rising concerns over the economic fallout from the escalating global tariff war.

Wary India Alerts Authorities of Possible Dumping of Cheaper Chinese Goods Post-US Tariff Surge

India has intensified its monitoring of imports from China to guard against a potential flood of cheap goods into its market, following the United States’ dramatic tariff escalation on Chinese exports.

The U.S. hike—part of a sweeping trade overhaul unveiled by former President Donald Trump—has raised tariffs on Chinese goods by an additional 34 per cent, taking the total duty to 54 per cent. The move has significantly narrowed China’s access to the world’s largest consumer market, prompting concerns that surplus goods may be diverted to other major economies, including India, at dumped prices.

Commerce Secretary Sunil Barthwal has reportedly convened several high-level meetings to assess the situation. “We are actively engaging with industry stakeholders to get a comprehensive understanding of potential risks and are developing a strategic response,” a senior government official told IANS.

The Commerce Ministry has already been vigilant in sectors such as steel, where earlier U.S. tariffs had led to a surge in Chinese exports to other countries. Officials have now expanded the scope of surveillance to electronics, textiles, chemicals, and other sensitive sectors that could be vulnerable to dumping.

China’s Potential Redirection of Exports

With Chinese exporters now facing steep barriers in the U.S., Indian authorities fear that Beijing may attempt to offload its excess inventory at artificially low prices to maintain factory output—an act considered dumping under global trade norms.

“This is a classic case where trade diversion could lead to market distortions. We must ensure that Chinese overcapacity does not destabilize Indian industries,” the official said.

China, meanwhile, has retaliated against the U.S. tariffs with countermeasures including 34 per cent duties on all American goods, restrictions on rare earth metal exports, and sanctions on select U.S. defence-related companies.

India’s own exports to the U.S. account for only 4 per cent of its GDP, and the new 27 per cent U.S. tariff on Indian goods is expected to have a “limited impact,” according to an SBI Research report. In fact, the relatively lower tariff rate on Indian goods—compared to 34 per cent on China, 36 per cent on Thailand, and 46 per cent on Vietnam—may boost India’s long-term competitiveness in global markets.

The report noted that in electronics, where China now faces U.S. tariffs ranging from 54 per cent to 79 per cent, India could emerge as a preferred export partner. India shipped $9 billion worth of electronics to the U.S. between April and December in FY25, making it the country’s top export sector to the U.S.

However, short-term challenges remain, especially in textiles, where higher tariffs on competitors like Bangladesh, China, and Vietnam could initially lead to demand compression. India exported $7 billion worth of textiles to the U.S. in the same period, and while the sector may experience a temporary setback, experts believe it stands to gain in the medium to long term.

As global trade dynamics shift rapidly, India’s proactive stance underscores the need to protect domestic industries from unfair competition. Government agencies are expected to increase customs checks, evaluate import pricing patterns, and, if needed, initiate anti-dumping investigations.

Industry bodies have welcomed the government’s vigilance, emphasizing the importance of balancing open trade with protective mechanisms. “We support global trade but not at the cost of India’s manufacturing ecosystem,” said a representative from a leading industry federation.

As China recalibrates its export strategies under growing global pressure, India remains on high alert—not just to shield its markets, but potentially to seize emerging trade opportunities.

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.

Economists Warn of Recession as Trump’s Trade Policies Take Hold

April 5, 2025 — Leading global economists and brokerages are warning that the U.S. economy is on the brink of a recession, triggered by the sweeping reciprocal tariffs announced by former President Donald Trump. As the trade war escalates, the economic outlook for the world’s largest economy has darkened considerably.

In a sobering revision, JPMorgan Chase & Co. now forecasts U.S. real GDP to shrink by 0.3% for the year (measured Q4/Q4), slashing its previous projection of 1.3% growth. Michael Feroli, the bank’s chief U.S. economist, said the contraction is expected to weaken hiring and push the unemployment rate to 5.3%, up from its current 4.2%.

“We now expect real GDP to contract under the weight of the tariffs,” Feroli wrote in a note to clients. “If realised, our stagflationary forecast would present a dilemma to Fed policymakers.” Feroli expects the U.S. Federal Reserve to respond by initiating a series of rate cuts starting in June, continuing through each meeting until January 2026.

Other global banks are also slashing their outlooks. Citigroup has trimmed its growth forecast for the year to 0.1%, while UBS reduced its projection to 0.4%.

Jonathan Pingle, UBS’s Chief U.S. Economist, anticipates a steep drop in imports—over 20%—over the next few quarters. “This will push imports as a share of GDP back to pre-1986 levels,” Pingle noted. “The forcefulness of the trade policy action implies substantial macroeconomic adjustment for a $30 trillion economy.”

Markets have already begun to react sharply. In a brutal two-day selloff, the Dow Jones Industrial Average plunged over 2,000 points, the S&P 500 recorded its worst decline since the pandemic-led crash of March 2020, and the Nasdaq slipped into bear market territory, down more than 20% from its recent highs.

Despite the growing alarm among economists, Federal Reserve Chair Jerome Powell struck a cautious tone Friday, saying “it feels like we don’t need to be in a hurry” regarding rate adjustments. His comments followed March’s jobs report, which showed solid hiring but a slight rise in the unemployment rate to 4.2%.

The Trump administration’s tariff strategy, aimed at mirroring duties imposed by trading partners, is part of a broader effort to reset global trade terms. But critics warn the policy risks backfiring, shrinking U.S. trade volumes and weakening consumer spending just as inflation pressures persist.

With Wall Street reeling, central bankers divided, and recession risks rising, all eyes will now be on the Fed’s June meeting—and how deep the impact of the tariffs will go.