Trump tariffs live updates: Possible tech, auto exemptions in focus as Trump team sows confusion

Key Points

  • President Trump has maintained that tariffs will soon hit phones, computers, and major consumer tech products, despite initial reports of exemptions.
  • The US-China trade war has intensified with China raising its duties on US imports to 125% from 84%, while the US tariffs on Chinese imports have ballooned to 145%.
  • Trump is considering exemptions on auto tariffs and has announced upcoming tariffs on pharmaceuticals.
  • The effective US tariff rate is estimated to be the highest in over 100 years, potentially pushing inflation near 5% and slowing economic growth.
  • A new study suggests that consumers ultimately bear the cost of tariffs as businesses pass along higher costs.

Summary

President Trump's tariff policies have created significant uncertainty in global trade, particularly affecting consumer tech products, automobiles, and pharmaceuticals. Despite initial reports suggesting exemptions for smartphones and computers, Trump clarified that these products would still face tariffs, albeit under different categories. The ongoing US-China trade war has escalated, with China retaliating by increasing tariffs on US goods to 125%, while US tariffs on Chinese imports have reached 145%. This conflict has not only impacted investor sentiment but also led to a potential economic slowdown and inflation concerns, with the Federal Reserve warning of possible 5% inflation if tariffs remain high. Additionally, a study indicates that consumers are likely to bear the brunt of these tariffs as businesses pass on increased costs. The situation has led to strategic shifts among businesses, with some like Spanish olive oil producers rushing exports to the US to avoid future tariffs, and others like Constellation Brands facing sales challenges due to the economic environment shaped by these policies.

yahoo
April 14, 2025
Stocks
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