TrumpTariffs

#TrumpTariffs
For now, John Leonard, a former top official at the US Customs and Border Protection Agency (CBP), told the BBC that there would not be any changes at the border and that tariffs would still have to be paid.
If the White House is unsuccessful in its appeal, the CBP would then issue directions to its officers to refund the payments, he said.
The original ruling also raised questions about ongoing trade talks between the US and other countries. The White House had argued in court hearings that its negotiating position would be weakened if the court struck down the tariffs.
Paul Ashworth, from Capital Economics, said the ruling "will obviously throw into disarray the Trump administration's push to quickly seal trade 'deals' during the 90-day pause from tariffs".
He predicted other countries "will wait and see" what happens next.
What could the ruling mean for the UK-US tariff deal?
The UK and US governments agreed a deal to reduce tariffs on some goods traded between the countries earlier this month.
It included the lowering and removal of import taxes on some of the UK's main exports to America, such as cars, steel and aluminium.
That aspect of the deal is not impacted by the Court of International Trade's ruling, but the blanket 10% tariff on most other UK goods entering the US has now been called into question.
How that part of the deal could change remains uncertain, with the agreement between both governments yet to be implemented.
The UK government has not commented on the court ruling but said it was working to ensure British businesses can benefit from the deal "as quickly as possible".

#TrumpTariffs The inclusion of Lutnick in this week's meetings with China is "a welcome addition", according to Swetha Ramachandran, fund manager at Artemis, since he is "behind some of the very harsh export controls of technology to China".

She told the BBC's Today programme: "Some of the focus certainly seems to be on rare earths where China, of course, has dominance in terms of producing.

"They mine 69% of the rare earths globally that are quite essential to technology development in the US so I think there are enough chips on the table here that could make it acceptable for both sides to walk away with desired outcomes."

As well as Lutnick, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer is meeting Chinese officials in London.

When Trump announced sweeping tariffs on imports from a number of countries earlier this year, China was the hardest hit. Beijing responded with its own higher rates on US imports, and this triggered tit-for-tat increases that peaked at 145%.

In May, talks held in Switzerland led to a temporary truce that Trump called a "total reset".

It brought US tariffs on Chinese products down to 30%, while Beijing slashed levies on US imports to 10% and promised to lift barriers on critical mineral exports. It gave both sides a 90-day deadline to try to reach a trade deal.

But the US and China have since claimed breaches on non-tariff pledges.

Greer said China had failed to roll-back restrictions on exports of rare earth magnets.

Beijing said US violations of the agreement included stopping sales of computer chip design software to Chinese companies, warning against using chips made by Chinese tech giant Huawei and cancelling visas for Chinese students.

On Saturday, the Chinese Ministry of Commerce said it had approved some applications for rare earth export licences, although it did not provide details of which countries were involved.

Trump said on Friday that Xi had agreed to restart trade in rare earth materials.

But speaking on Sunday, Mr Hassett told CBS News that "those exports of critical minerals have been getting released at a rate that is, you know, higher than it was, but not as high as we believe we agreed to in Geneva".
Prior to talks with the US, He met UK Chancellor Rachel Reeves on Sunday where the vice premier said China and the UK should maintain and deepen communication and cooperation across economics and finance, according to a report by state broadcaster CCTV.

China wants to build a new embassy at Royal Mint Court, a building complex close to the City of London which is home to the UK financial industry. Beijing bought the site in 2018.

The US has reportedly raised concerns about the proposed embassy's proximity to sensitive infrastructure underpinning banks and institutions.

The UK is in talks to finalise an agreement with the US over tariffs, which must be signed by 9 July or British exports of steel will face higher taxes when they reach American ports.

Economists have warned that Trump's trade policy will impact the global economy.

The Organization for Economic Co-operation and Development said it now expected worldwide economic growth to be a "modest" 2.9%, down from a previous forecast of 3.1%.

It blamed a "significant" rise in trade barriers and warned that "weakened economic prospects will be felt around the world, with almost no exception".

New data released by Bejing on Monday showed China's exports in May were lower than analysts expected.

China's exports in dollar terms increased by 4.8% compared to the same time last year.

At the same time imports dropped by 3.4%, which was much worse than the 0.9% fall predicted.
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#TrumpTariffs

The re-election of Donald Trump to the U.S. presidency in January 2025 marked the re-ignition of a trade policy characterized by aggressive tariff implementation. These "Trump Tariffs," often framed as a tool to protect domestic industries and rebalance trade deficits, have sent ripples through the global economy, prompting both concern and adaptation.
The Return of Tariffs: A Broad-Brush Approach
Upon taking office in January 2025, the average effective U.S. tariff rate stood at approximately 2.5%. However, under President Trump's directives, this rate has surged significantly, reaching an estimated 27% at its peak with the "Liberation Day tariffs" and standing at around 15.1% as of June 1, 2025. This represents the highest average tariff rate in over a century.
The tariffs are not limited to a few specific goods or countries; they broadly impact a vast array of imports from nearly every trading partner. Key measures include:
* A 10% Baseline Tariff: A universal 10% tariff has been imposed on most goods imported into the U.S. from almost all countries.
* Reciprocal Tariffs: Higher "reciprocal tariffs," ranging from 11% to 50%, were unveiled for dozens of nations and blocs, including the EU, UK, Canada, and Mexico. While these were temporarily suspended for most countries for 90 days to allow for trade talks, they remain a significant threat.
* Targeted Tariffs: Specific duties have been levied on steel (now at 50% for most countries, up from 25%), aluminum (now 25%, up from 10%), and automobiles (25% on foreign-made cars, engines, and parts).
* China Escalation: The trade war with China has escalated further, with baseline tariffs on Chinese imports reaching as high as 145%. China has retaliated with tariffs up to 125% on U.S. goods and export restrictions on critical rare earth minerals.
* Canada and Mexico: Tariffs of 25% were imposed on Canada and Mexico, though indefinite exemptions were later granted for goods compliant with the United States-Mexico-Canada Agreement (USMCA).
* "Fentanyl" and "De Minimis" Concerns: Tariffs have also been linked to efforts to curb drug trafficking, with 25% tariffs imposed on goods from Mexico, Canada, and China tied to these concerns. The "de minimis" exemption, which allowed small-value shipments to enter the U.S. duty-free, has also been restricted for Chinese goods.
Economic Fallout: A Mixed Bag
The economic impact of the Trump Tariffs is a subject of intense debate, but consensus among economic organizations points to a net negative effect:
* Slower Economic Growth: Organizations like the OECD and the Congressional Budget Office (CBO) project a significant slowdown in economic growth for both the U.S. and the global economy. The U.S. GDP growth is forecast to nearly halve in the next two years due to "rising trade costs" driven by these levies.
* Increased Costs and Inflation: Tariffs are taxes paid by importers, which are often passed on to consumers in the form of higher prices. This can contribute to inflation and reduce the purchasing power of households.
* Supply Chain Disruptions: The tariffs, and the uncertainty surrounding them, are causing "significant disruptions" to global supply chains, leading to transportation delays, higher freight costs, and potential shortages. This forces businesses to consider costly onshoring or re-evaluation of their global manufacturing footprints.
* Reduced Trade and Investment: Global trade growth is expected to slow substantially, and the uncertainty is projected to hold back business investment. Customs data from May 2025 already showed a sharp plunge in China's exports to the U.S.
* Government Revenue vs. Economic Cost: While the CBO estimates that the tariffs could cut U.S. deficits by $2.8 trillion over 10 years, this comes at the cost of shrinking the economy and reducing household wealth. Many economists argue that tariffs are an inefficient way to generate revenue and harm overall economic performance.
* Retaliation and Trade Wars: The imposition of tariffs has often triggered retaliatory measures from other countries, leading to escalating trade disputes and further disrupting global commerce.
Legal Challenges and Future Uncertainty
The legal standing of some of the tariffs has been challenged. In May 2025, the U.S. Court of International Trade permanently enjoined two sets of tariffs (the "fentanyl" tariffs and reciprocal tariffs), ruling them illegal. However, the government has appealed this decision, and the tariffs remain in place pending the outcome of the appeal.
The future of the Trump Tariffs remains uncertain. While recent trade talks, such as those in London in June 2025, have aimed to de-escalate tensions and potentially lower some tariffs (especially with China), the underlying philosophy of using tariffs as a primary foreign policy and economic tool persists.
For businesses and consumers worldwide, the ongoing #TrumpTariffs represent a significant factor influencing pricing, supply chains, and economic stability. Their long-term effects on global trade patterns and the international economic order will continue to be a subject of close observation and analysis.