Tariff Surprise! Trump Changes His Mind Again! May Affect Over 70% of Countries and Regions Globally

President of the United States Trump said he may impose tariffs on more than 150 minor trading partners uniformly.

Trump stated on the 16th, He intends to impose tariffs uniformly on over 150 minor US trading partners. Adding to the more than 20 trading partners previously subjected to US tariffs, thus, Over 70% of countries and regions globally will face US tariff policies. 。

Trump told reporters at the White House that the US will send a notice to those countries that are not large and do not have much business dealings with the US, informing them of the tariff rates the US will impose on their products. These countries will face the same tariff rates.

Later that day, in an interview, Trump said that these minor trading partners may face a 10% to 15% tariff rate, but the US has not yet made a decision on this.

Trump recently sent letters to leaders of more than 20 trading partners, stating that tariffs ranging from 20% to 50% will be imposed on these trading partners starting August 1st. After postponing the deadline for the so-called "reciprocal tariffs" from July 9th to August 1st, Trump said that this date "will not change again". 。

Currently, the US is still engaged in a tug-of-war over tariffs with major trading partners such as the EU, Japan, Canada, and Mexico. Trump said that the US may impose a 25% tariff on Japanese imports as stated in the previous letter, and may soon reach a trade agreement with India.

The Federal Reserve Board released the US national economic situation survey report on the 16th, also known as the "Beige Book". The report stated that prices are rising across the US, and tariff pressure is increasing business costs , and inflation may accelerate in late summer this year. US media also warned that more tariffs would further push up prices.

According to the US Federal Reserve Act, the US is divided into 12 Federal Reserve districts, each with a Federal Reserve Bank. The Federal Reserve's "Beige Book" shows that from the end of May to early July, All Federal Reserve districts reported price increases . Businesses in all Federal Reserve districts reported pressure from tariffs increasing input costs, especially for raw materials used in manufacturing and construction.

The report said that although some businesses have delayed price increases due to customer price sensitivity, resulting in compressed profit margins, many businesses have passed on some of the costs to consumers through price increases or surcharges. The report emphasized that Businesses contacted by the Federal Reserve generally expect cost pressures to remain high in the coming months, increasing the likelihood of prices accelerating later this summer. 。

Although data released by relevant US departments and warnings from industry insiders continue to sound the alarm about the consequences of tariffs, according to previously released information from the US government, more new tariffs on multiple countries will begin to be imposed from August 1st. CNN warned that New tariffs will further push up prices. 。

Silver Rate Network Financial Analyst Stephen Kates said: Some things cannot be produced domestically in the US, and increased import costs will push up supermarket prices, directly affecting consumers' wallets. If we add new tariffs on top of the previous tariffs, it will undoubtedly add fuel to the fire.

Earlier this month, Trump announced that a 50% tariff will be imposed on all copper imported into the US starting August 1st. Copper is an important raw material in the manufacture of solar panels, This decision has put pressure on US solar energy companies. 。

Michael Allen is the CEO of a solar panel manufacturing company in Minnesota. Allen said, The news of the tariff on copper came too suddenly, catching businesses off guard. 。

Michael Allen said: "It's crazy. I haven't been able to sleep lately. Each (panel) has two (unrolled) 700-foot copper rolls. ”

Currently, over 60% of US copper imports come from Canada and Chile. In order to stockpile as much raw material as possible before the tariffs take effect on August 1st, Allen's company is stepping up its orders, but due to limitations in capital turnover and storage capacity, the company is under tremendous pressure.

Allen frankly admitted that the additional costs caused by tariffs will ultimately be passed on to consumers.

Paul Waller, a professor of commercial law at the University of Minnesota, said: Worst of all, it creates uncertainty. This is a microcosm of 500,000 small businesses in Minnesota, which are the backbone of Minnesota's economy. ”

On the 17th, according to Bloomberg News, Alcoa, the largest aluminum producer in the US, said, US tariff policies are increasing the company's production costs , and due to tariffs, the company's US customers are paying more for aluminum. 。

On March 4th, the US imposed a 25% tariff on products from Canada and Mexico. On March 12th, the US began imposing a 25% tariff on all imported steel and aluminum. From June 4th onwards, except for the UK, the US government raised tariffs on steel and aluminum products imported from all other trading partners from 25% to 50%.

Alcoa stated that due to the US government's tariff policies, in the first quarter of this year, tariff policies increased its production costs by $20 million; while in the second quarter of this year, the US tariffs on Canada increased Alcoa's production costs by $115 million.

According to Alcoa, approximately 70% of the aluminum it produces in Canada is sold to the United States. Its American customers are now paying "more than anywhere else in the world" for aluminum. US media outlets point out that the current US steel and aluminum tariffs are the highest since the 1930s, The highest tariffs the US has imposed on imported steel and aluminum will inevitably drive up prices for these materials, increasing production costs for manufacturers who use them and leading to higher prices for consumers. American consumers will ultimately bear the cost. Furthermore, some individuals in industries that use steel and aluminum as raw materials may lose their jobs due to rising prices.

The US's imposition of tariffs on multiple countries continues to face widespread opposition.

Brazilian Government Expresses Outrage Over Tariffs in Letter to the US

On August 16, the Brazilian government announced that its Ministries of Foreign Affairs and of Development, Industry, Trade and Services sent a letter to the US government expressing outrage over the 50% tariff imposed on Brazilian exports starting August 1. The letter stated that the US action would have a "negative impact" on key sectors of both countries' economies, jeopardizing the bilateral trade partnership. It reiterated Brazil's willingness to negotiate a mutually acceptable solution with the US.

UNCTAD Secretary-General: US Tariff Policy Creates Chaos in Global Supply Chains

According to US media reports on August 16, UNCTAD Secretary-General Rebeca Grynspan stated that the Trump administration's tariff policies have already increased costs and caused chaos in global supply chains. She warned that the US's actions would most severely harm the economies of the world's least developed countries, affecting their stability.

New York Fed President: US Tariff Policy Could Raise US Inflation by 1 Percentage Point

John Williams, president of the Federal Reserve Bank of New York, stated on August 16 that the impact of US tariff policies on its own economy is still in its early stages and will intensify in the coming months. He projected that US inflation will be pushed up by about 1 percentage point in the second half of this year and the first half of next year, potentially reaching 3% to 3.5% this year.