It was quite a whirlwind week for President Donald Trump’s trade agenda. From extending the deadline for reciprocal tariffs to penning letters announcing new levies on commodities, countries, and industries, it is addictive. Just when everyone thought the dog days of summer would be a quiet period to allow the world to take a breather, the White House pulled everyone back into the trade saga.
A Big Bowl of Tariffs
Forget watching CNBC or reading The Wall Street Journal. All the action is on Truth Social.
After weeks of senior administration officials stating that Trump would be sending letters to world leaders informing them of their tariff rates, the president followed through and posted these letters on the social media platform. Scores of countries were assigned double-digit levies, from the Philippines (20%) to Cambodia (36%).
The letters were nearly identical. The president noted that the United States would "perhaps, consider an adjustment" and the tariffs could "be modified, upward or downward, depending on our relationship with your Country. You will never be disappointed with The United States of America."
While the tariffs were expected for minor trading partners, economic observers and governments were taken aback by the punitive import duties for the major economies, especially Brazil (50%), Canada (35%), Japan (25%), and South Korea (25%). Surprisingly, there was little reaction on Wall Street, or, at the very least, not comparable to the bloodbath in March and April.
As for the Great White North, Trump noted that the levies could be much higher if Ottawa chooses to retaliate. Remember, the 35% levies are in addition to all sectoral tariffs, such as steel, aluminum, and automobiles. “If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 35% that we charge,” Trump said in the July 10 letter. “Goods transshipped to evade this higher tariff will be subject to that higher tariff.”
Canadian Prime Minister Mark Carney refrained from taking a combative tone, writing on X that his government will defend the nation's businesses and workers, "and will continue to do so as we work towards the revised deadline of August 1." Does this guarantee a recession in Canada? The economic outlook does not appear promising.
As for Brazil, US consumers could be forced to pay more for their cup of java, or importers will need to search elsewhere to satisfy their customers’ caffeine fixes. Brazil is the top source for Arabica (the good stuff) and Robusta (the mediocre) beans, accounting for about one-third of domestic consumption. This is followed by Colombia, Vietnam, Honduras, and Peru.
Will these countries negotiate better trade agreements? Is Trump bluffing ahead of August 1? Summertime, when the living is supposed to be easy, will leave the world on edge.
Don’t Be Metal-Dramatic
During a White House Cabinet meeting, Trump abruptly announced to reporters that he would implement a 50% tariff on all copper imported into the United States, triggering an 11% spike in prices of the industrial metal.
Senior administration officials have noted that the purpose behind the Trumponomics 2.0 trade agenda is to rebuild and reshore manufacturing. The problem is that while US miners produce more than one million metric tons per year, they cannot mine enough to satisfy domestic demand, especially as the country invests heavily in artificial intelligence, robotics, and an all-of-the-above energy strategy. This is why the United States depends on places like Peru and Chile.
It should be interesting to see how the White House navigates this substantial hurdle.
Meanwhile, the president also confirmed that he intends to institute a 200% levy on pharmaceutical imports. "If they have to bring the pharmaceuticals into the country. They’re going to be tariffed at a very, very high rate, like 200%. We’ll give them a certain period of time to get their act together," Trump stated.
Unlike copper, it is more plausible that the United States can stimulate the domestic pharmaceutical industry. However, even before the tariffs were introduced, the sector had been ballooning domestically and is one of the largest in the world. This is because businesses are integrating artificial intelligence, automation, and smart manufacturing into their operations.
What’s next on the list? Experts believe Trump will next impose tariffs on semiconductors.
White House Shrugs Off Tarifflation
The White House Council of Economic Advisors released a new report determining that prices of imported goods have declined between December 2024 and May 2025. Study authors say this confirms that economists' worries that Trump's tariffs would rekindle the inflation flame were overblown.
"CEA’s directional findings using this method of analyzing the PCE are consistent across core goods (excluding food and energy), durables (which last for at least three years), and nondurables," the report reads. "The import contribution to inflation includes both the direct impact of imported final goods for consumption and indirect effects of imported intermediate inputs."
In a July 8 interview with CNBC's "Squawk Box," Stephen Miran, a top White House economic advisor, compared the odds of tariff-fueled inflation to a meteor striking the planet.
"Rare events happen. We get pandemics or meteors or whatever. There’s just no evidence thus far of it happening," Miran said. "I don’t mean to be dismissive. All I mean to say is that prediction is difficult, and we should always speak in terms of odds and possibilities. I don’t have a crystal ball telling me the future, and neither does anyone else."
X and Truth Social
If news buffs wish to remain on top of the latest trade news, they will need to stay tuned to Truth Social and X for more. White House Press Secretary Karoline Leavitt, at a recent press briefing, stated as much. Lo and behold, Trump was uploading the letters like a social media account manager posting memes. What is next on the trade front? Hit the refresh button on X to find out.
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