Thu, 31 Jul 2025

Thu, 31 Jul 2025 Trump's global tariffs 'victory' may well come at a high price

The US president considers it a win - but if this all triggers a foundational realignment, the results may not break in his favour
Tariffs and Trade Agreements:
* The US has imposed tariffs on various countries, including China, Canada, Mexico, and the EU.
* The average tariff rate on US imports has increased from 2% at the beginning of the year to around 17%.
* The tariffs have generated significant revenue for the US government, with over $100 billion collected so far this year. Impact on the US Economy:
* The tariffs are expected to impact consumer spending and delay Trump's desired rate cut.
* Forecasts suggest that growth in the late spring will lose momentum over the rest of the year.
* The tariffs may also lead to a dent in consumer spending, particularly among lower-income Americans who have fuelled Trump's political success. Deal-Making:
* Many deals struck with foreign countries are verbal and unsigned.
* The details of some agreements, such as those related to pharmaceuticals and steel, remain unclear.
* China is still subject to a different deadline, and negotiations with Canada and Taiwan are ongoing. Long-term Consequences:
* History suggests that Trump's aim to return production and jobs to America may meet with limited success.
* Long-time trading partners like Canada and the EU could start looking to form economic and political connections that bypass what they no longer view as a reliable ally. Implications for Trump's Voters:
* The tariffs may lead to higher prices, less choice, and slower growth for American consumers.
* Trump's voters may still have to pick up the tab through these consequences. Additional Reporting:
* The article includes additional reporting from Michael Race, which provides further context and insights into the current state of international trade. Overall, this article provides a detailed analysis of the current state of international trade under Trump's administration, highlighting both short-term gains and long-term concerns.
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