Hey fam 👋, US President Donald Trump stirred the pot in his August 5 CNBC interview, dropping news about hefty new tariffs on goods from the Chinese mainland, India, and the European Union. Markets reacted with a cautious vibe as investors weighed the hit to global trade.
Digging into the numbers 🔢
Trump said "reciprocal" tariffs would kick in on August 7, with extra duties on Indian imports following within 24 hours. Semiconductor imports? Brace for new taxes announced "within the next week or so." And pharmaceuticals could see rates climbing to as high as 250% over 18 months. Yep, you read that right—250%!
Experts warn these moves could mess with supply chains, driving up costs when companies renew contracts this fall. "When input prices rise, consumer goods follow," noted Senator Rand Paul in The Hill. Expect your grocery bill to feel the squeeze soon.
Is a deal still on the table? 🤝
Despite the tough talk, Trump remains open to talks with the Chinese mainland. "We’re getting very close to a deal," he said, hinting at potential face-to-face meetings if progress continues. Will this be the plot twist we need for a trade truce?
For now, markets will stay on alert, watching every tweet and TV interview. One thing’s clear: in the game of global trade, the stakes have never been higher. Stay tuned for updates as this story unfolds! 🌍💼
Reference(s):
cgtn.com
