Trump early Friday at Joint Base Andrews told reporters that he would notify 10 to 12 nations a day over the course of the next five days, detailing their new tariffs in letters that the White House would begin sending on Friday. In most cases, the new rates would go into effect August 1, Trump said.
“They’ll range in value from maybe 60% or 70% tariffs to 10% and 20% tariffs, but they’re going to be starting to go out sometime tomorrow,” Trump said. “We’ve done the final form, and it’s basically going to explain what the countries are going to be paying in tariffs.”
… It’s not clear yet which countries would receive the letters, but Trump has called out certain trading partners for driving too hard of a bargain, including the European Union and Japan.
Money to „come into the US“ (translation: money to flow from US consumers to the government) imminently:
But Trump appeared to adjust that timeframe on Friday. Asked if countries would be afforded any flexibility with the tariff deadline, Trump said, “not really.” “They’ll start to pay on August 1. The money will start to come into the United States on August 1, in pretty much all cases,” Trump said.
I’m reminded of the phrase “whistling past the graveyard” when I try to interpret the Wall St reaction to Trump tariff “policy”. My impression is that the traders on the Street believe that there will be mucho deregulation, even if it is via there simply being no enforcement by the SEC of any existing laws. So much of Wall St has to be just giddy over Trump being large and in charge. We all seen how the GFC played out, it took a year or more before the Wall St trader’s actions showed that it was beginning to dawn on them that there might be a problem.
So Trump will go high ( 70% tariff’s payed by foreign Countries ! Happy Days are here again !! ), that’ll probably get knocked down to 10% or so. This is still a price inflation hit to US consumers. Trump can lie all he wants about how foreign Countries will be the ones paying it, not US consumers. And factor in the recent decline in the US Dollar on top of the Trump tariff taxes, and inflation is going to hit people in the wallet.
They didn’t the last time, it was a monstrous loss if I recall correctly. He had one big chart and he held it up and the market tanked. This time he’s doing it across several days, except I believe he has even less credibility now given that he’s made deals with, um not Canada, not Mexico, and not China, which account for the huge majority of our trade.
Actually there have been deals with almost no one, or if there are they’re being kept in the hip pocket to roll out with a triumphant flourish, which we will all ignore. Except for the ones with the penguins, we will all get a chuckle if we sign a deal with the penguins.
Rather than the stock market I’m thinking more about the bond market, about which I know little - except I’ve been reading how Liz Truss ended her career almost overnight thanks to it. (We don’t have the same levers to pull so I’m not anticipating the kind of regime change which happened there, obvioiusly.) If the bond market reacts to the B.B.B. as it ought to - considering the deficit busting numbers within (not to mention the trickery of holding off the cuts until later) - then we might see some (more) backpedaling. If not, I don’t see why the market won’t roar ahead unless and until the employment numbers start to crater or other tells show up somewhere in the numbers.
It’s about the bonds, and therefore about the (T) bills, and therefore about the Fed, at least that’s what I’m thinking.
Hmmm so they do not pay taxes on their Tips but they pay taxes on everything they buy but it fluctuates from country to country. The Rich get a lower tax rate, Social Security recipients get a lower tax on their Social Security. So who is left to pay taxes? Ahhhhhh the middle class. LOL taking another one for the team.
As to be expected, round 2 tariffs are being dished out even-handed and well considered, to make countries that run a trade surplus with the US see the light.
Take poster child Brazil, deservedly facing 50% tariffs as of next month. What cheaters!! Wait…
And unlike the other 21 countries, the US ran a $6.8 billion trade surplus with Brazil last year, meaning the US exported more goods to there than it imported from there.
So if the reason is not cheating…
In the letter posted on Truth Social, Trump alleged Lula is undertaking a “Witch Hunt that should end IMMEDIATELY!” over charges against its right-wing former president, Jair Bolsonaro. Bolsonaro, who has bragged about his closeness with Trump, is facing trial for allegedly attempting to stage a coup against Lula.
Probably because of his “90 deals in 90 days!” bluster.
He was put in tariff talk time out. Reporting suggests we have 3 “deals”. None of them formally documented in detail. Seems like they missed their mark.
fwiw, my post on this thread, showing that the “liberation day” tariff rate for Brazil was only 10%, has been purged as " Your post was flagged as inappropriate: the community feels it is offensive, abusive, to be hateful conduct or a violation of our community guidelines"
30% tariffs for EU and Mexican imports (as of the time of this writing):
In his letters to the EU and Mexico, Trump said that all imports were subject to the 30% tariff, excluding “Sectoral Tariffs,” such as the 25% auto tariff.
Von der Leyen said in a statement that the EU remains “ready to continue working towards an agreement” by the August 1 deadline. But, she said, a 30% tariff on EU exports would hurt supply chains, businesses and consumers on both sides of the Atlantic. The EU “will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required,” von der Leyen wrote.
