In a recent post, it was announced that India will face a 25% tariff plus a penalty starting August 1st due to high tariffs and trade barriers, as well as India’s significant reliance on Russian military equipment and energy purchases, particularly in light of the ongoing conflict in Ukraine. This decision follows the historical trend of limited trade between the two countries due to India’s trade practices. The implementation of this policy will impact trade relations. The process of establishing new trade agreements typically requires extensive negotiations and comprehensive analysis of the other country’s trade practices.
Read More
Following the US’s imposition of tariffs, French Prime Minister Gabriel Attal has criticized the US-EU trade relationship, labeling a potential agreement as “submission.” Attal argued that the US tariffs are a threat to European sovereignty and economic interests. He emphasized the need for Europe to stand its ground and avoid being forced into a trade deal that would disadvantage the continent. The Prime Minister declared the current situation a difficult moment for Europe, signaling a clear stance against the US’s trade policies.
Read More
China says it will remove all tariffs on African exports to boost trade, and the first thing that springs to mind is the strategic game being played. It’s a move that seems designed to position China as a central economic powerhouse. This kind of long-term thinking, focused on building influence, is a stark contrast to what we sometimes see elsewhere. This allows China to build relationships and create dependencies through favorable trade terms.
What does this mean in practice? Well, China is essentially importing raw materials from Africa. Considering all the resources like oil, minerals, and agricultural products, this move makes Chinese products cheaper by lowering the cost of their inputs.… Continue reading
Almost 30% of German companies postpone US investments, survey shows, and this paints a complex picture of international business in a time of economic and political uncertainty. It seems that a significant chunk of German businesses are hitting the pause button on their plans for expansion and investment in the United States. This hesitation could eventually translate into cancelled investments, essentially drying up funding for projects that could have boosted the American economy.
The data indicates a substantial shift in sentiment. Approximately 29% of German companies have reduced their investments, alongside the nearly 30% postponing new ones. When we add the 15% that have cancelled investments outright, we see a large portion of German companies are taking a more cautious approach to the U.S.… Continue reading
U.S. customs duties revenue exceeded $100 billion for the first time this fiscal year, largely due to increased tariffs imposed by the Trump administration. The Treasury Department reported $113 billion in customs-duty revenue year-to-date, accompanied by a $27 billion overall surplus in June, contrasting with a deficit from the previous year. These tariffs, aimed at boosting domestic production and addressing trade imbalances, have been applied to various trading partners, including China, Brazil, and Japan, although the fluctuating nature of these policies introduces uncertainty regarding future revenue. Treasury Secretary Scott Bessent suggests the US could collect over $300 billion in tariffs by the end of the year.
Read More
Following President Trump’s threat to impose significant tariffs on EU imports, French President Emmanuel Macron urged the EU to prepare for a trade war and defend its interests. While other European leaders like those in Italy, the Netherlands, Germany, and Ireland called for a measured response, the influential Federation of German Industries saw Trump’s announcement as a warning. EU ambassadors are scheduled to meet to discuss tactics, with potential divisions in approach expected at an upcoming trade ministers’ summit. This comes after Trump’s previous claims of unfair EU duties on US imports, despite evidence to the contrary, raising concerns among MEPs about the long-term implications of such tariffs.
Read More
South Africa says Trump’s 30% tariff is based on inaccurate trade view, and honestly, it’s hard to disagree. It’s not a new revelation, either. His trade policies, like so many of his other pronouncements, seem to be constructed from thin air, a reality tailored to benefit him. It’s become pretty clear that inventing a narrative that suits his needs is just part of his strategy. So, when South Africa raises concerns, it’s less of a shock and more of a “Here we go again.”
From what I understand, South Africa’s core concern is that the tariffs don’t reflect a realistic picture of trade dynamics.… Continue reading
The Trump administration’s recent announcement of new tariffs targeting imports from South Korea, along with other nations, appears to contradict any overarching goals of trade policy. These tariffs, seemingly in violation of the existing U.S.-Korea Free Trade Agreement (KORUS), undermine a deal that has benefited both countries by increasing trade and investment. This action raises questions about the administration’s intentions, as it undermines the potential to lower trade barriers or renegotiate deals, especially since the existing deal, KORUS 2.0, was renegotiated and considered “fair and reciprocal.” Furthermore, this move could jeopardize future trade negotiations, as other countries may hesitate to make deals with an administration that does not respect agreements it makes.
Read More
The U.S. dollar has experienced its worst start to a year since 1973, primarily due to President Trump’s trade policies, concerns about growing public debt, and questions surrounding the Federal Reserve’s independence. The dollar’s decline coincides with the Senate’s consideration of Trump’s tax-cutting bill, which is projected to significantly increase the deficit. Trump’s approach to trade, characterized by reciprocal tariffs and pressure on the Fed to lower interest rates, has contributed to the dollar’s weakness. Furthermore, Trump has openly criticized Federal Reserve Chair Jerome Powell, raising concerns about the central bank’s independence and potentially influencing monetary policy, which could further erode the dollar’s value.
Read More
Wall Street traders have nicknamed President Trump “TACO” (Trump Always Chickens Out), reflecting his pattern of issuing tariff threats, causing market drops, then retreating. This nickname, however, may backfire; one expert predicts Trump will maintain tariffs to counter the perceived insult. Trump’s furious reaction to the nickname underscores its impact and his sensitivity to criticism of his trade tactics. The ongoing legal challenge to his reciprocal tariff policy adds further economic uncertainty.
Read More
John Q. Hosedrinker 
Matt Underwood