The U.S. trade deficit surged in July, exceeding $78 billion, marking a significant 32.5% increase from the previous month. This widening gap reflects the ongoing impact of President Trump’s tariffs on the global economy, with imports rising nearly 6% as businesses and consumers stocked up ahead of new tariffs. Small business owners have reported increased costs and challenges in selling products abroad due to tariffs on imported components, impacting their competitiveness. Furthermore, tariffs appear to have negatively affected the “Made-in-the-USA” brand, as indicated by declining global favorability ratings for the United States.
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Following President Trump’s signing of the One Big Beautiful Bill, new polling indicates a significant public backlash, with a majority of Americans opposing the sweeping budget measure. A YouGov/Economist poll revealed that 53 percent of Americans disapprove of the bill, reflecting a rise in opposition since its unveiling. The controversial provisions of the bill include cuts to Medicaid and increased funding for immigration enforcement. The Congressional Budget Office estimates the bill will add trillions to federal deficits, and a majority of Americans expect it will hurt average Americans.
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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
President Trump announced on Monday that reciprocal tariffs on imports from at least seven countries will be reimposed starting August 1, after initially pausing them in April. Letters were sent to various leaders, including Japan and South Korea, outlining the new tariff rates, which include a 24% tariff for Japan and a 25% for South Korea. These tariffs are aimed at correcting trade deficits and come with warnings against retaliatory duties. The letters also state that these tariffs may be modified. U.S. financial markets reacted negatively to the news.
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Despite a recent 90-day trade truce, the potential for sector-specific tariffs remains a significant threat to the newly established trade agreement. President Trump’s belief that tariffs will reduce trade deficits and boost domestic jobs contradicts expert consensus. Economists widely argue that such tariffs would harm American consumers through higher prices and reduced spending. The assertion that trade deficits represent a net loss for the U.S. is also disputed by prominent institutions.
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Contrary to Trump’s assertions, economists widely disagree that tariffs reduce trade deficits or stimulate domestic job growth. Instead, experts argue that tariffs harm American consumers through higher prices and reduced spending. The Harvard Kennedy School further contends that the trade deficit itself is not inherently problematic, as American investments abroad largely offset foreign earnings within the U.S. Therefore, the economic impact of tariffs is overwhelmingly negative for the American economy.
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Contrary to Trump’s assertions, tariffs are not an effective solution for trade deficits, which are not equivalent to subsidies for other countries. Economists widely refute the claim that tariffs will boost domestic job creation and manufacturing. Instead, experts argue that tariffs harm the U.S. economy by increasing prices and reducing consumer spending. The Harvard Kennedy School further contends that America’s trade deficit is not a significant concern, as U.S. investments abroad largely offset foreign earnings within the country.
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President Trump defended his universal tariffs, arguing that they will ultimately benefit the U.S. economy, despite potential short-term price increases. He used examples of children’s possessions, suggesting that fewer dolls and pencils are needed, implying that consumers will adapt to higher prices. Trump dismissed concerns about empty shelves and economic recession, maintaining that the tariffs will ultimately lead to prosperity. He also hinted that some tariffs may remain permanent to incentivize domestic production. The White House further clarified that these comments highlight a preference for higher-quality, domestically produced goods over cheaper imports.
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Despite Trump’s desire for the US to produce its own cars, Canadian Prime Minister Carney emphasized the strong economic ties between the two countries, highlighting Canada as the US’s largest trading partner and a major player in the automotive sector. Carney underscored that 50% of Canadian-made cars contain American parts, making the relationship unique and requiring careful negotiation. Trump acknowledged the friendly nature of the discussion, contrasting it with past disputes. The meeting aimed to address tariff concerns through ongoing dialogue.
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Despite a 5.2 trillion yen ($37 billion) overall trade deficit for the fiscal year, Japan reported a substantial 9 trillion yen ($63 billion) surplus with the U.S. This surplus, however, comes amidst ongoing trade tensions and threatened U.S. tariffs on Japanese goods, including automobiles and auto parts. While Japanese exports increased by 5.9%, a weaker yen inflated import costs. March saw a smaller surplus than February, suggesting potential vulnerability despite the current U.S. trade surplus.
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John Q. Hosedrinker 
Matt Underwood