President Donald Trump imposed sweeping new tariffs on imports from across the world, escalating an aggressive trade policy aimed at spurring domestic manufacturing in the United States.
In addition, Trump took separate action on July 31 to raise tariffs on Canadian goods from 25% to 35%.
U.S. stock futures are lower on August 1, ahead of the the release of July’s jobs report, due at 8:30 a.m. ET. The report is expected to show the economy added 100,000 jobs, according to a Dow Jones survey of economists. The unemployment rate is seen edging up to 4.2% from 4.1% in June.
The new tariff rates, which will go into effect in seven days, come before an Aug. 1 deadline Trump gave about 180 countries to either reach trade deals or face higher import duties.
Trump had twice set earlier deadlines for new tariffs before backing down. The seven-day window on the newly announced import duties could give some trading partners a window for continued talks.
In April, the president and his advisors said they were confident of negotiating deals with dozens of countries. White House trade advisor Peter Navarro had predicted “90 deals in 90 days,” but the haul was much lighter: U.S. negotiators made eight trade deals in 120 days before Trump ordered the new tariffs.
Follow along with USA TODAY’s stocks, trade and economic news.
China and Mexico not part of Trump’s tariff blast
Not included in Trump’s order are two of the United States’ largest trading partners, China and Mexico.
Trump and Chinese officials have discussed extending a 90-day tariff truce that the two sides struck in May in which both countries held off on imposing massive, triple-digit tariffs on imports on one another.
Trump on July 31 said he’s giving Mexico another 90 days to come to a long-term agreement with the United States to avoid higher tariffs. In the meantime, Mexican imports will still be levied with a 25% tariff that Trump imposed over the flow of fentanyl from the country.
-Joey Garrison
Trump tariffs put a new spin on the Canadian Old-Fashioned
An Old-Fashioned without Kentucky bourbon?
Oh, Canada.
Starting in February, bars and liquor stores in Canada removed bourbon and other U.S.-made spirits and wines from their shelves to protest President Donald Trump’s tariff policies and his unwelcome suggestion that our northern neighbors become the 51st U.S. state.
Trump’s overtures have not gone over well in French-speaking Quebec or the other Canadian provinces. Canadians have found all kinds of ways to let the American president know what he can do with his scandaleux proposition. Some are proudly flying their country’s red-and-white Maple Leaf flag. Others are wearing T-shirts that declare “Canada Is Not For Sale.”
-Michael Collins
Read on: Wait a bluegrass-pickin’ minute: Canadians are making Old-Fashioneds without Kentucky bourbon?
Trump wants the Fed board to sideline Powell in long-running interest rate spat
President Trump said the Federal Reserve board should seize control if Fed Chair Jerome Powell continues to refuse to lower interest rates.
More: Who is Federal Reserve Chair Jerome Powell?
“Jerome ‘Too Late’ Powell, a stubborn MORON, must substantially lower interest rates, now. if he continues to refuse, the board should assume control, and do what everyone knows has to be done!” Trump said in a post on Truth Social.
The U.S. central bank held interest rates steady on July 30 and Federal Reserve Chair Jerome Powell’s comments after the decision undercut confidence that borrowing costs would begin to fall in September, stoking Trump’s ire.
The latest policy decision was made by a 9-2 vote, which passes for a split outcome at the consensus-driven central bank, with two Fed governors dissenting for the first time in more than 30 years.
-Reuters
Fed dissenters say unemployment fears drove their votes to lower interest rates
The two Federal Reserve governors who favored an interest rate cut at the U.S. central bank’s policy meeting this week said on Friday they did so largely due to rising concerns about the job market, amid expectations that any price increases related to trade tariffs will not lead to lasting price pressures.
“With economic growth slowing this year and signs of a less dynamic labor market, I saw it as appropriate to begin gradually moving our moderately restrictive policy stance toward a neutral setting,” Vice Chair for Supervision Michelle Bowman said in a statement. “In my view, this action would have proactively hedged against a further weakening in the economy and the risk of damage to the labor market,” she said.
Governor Christopher Waller said in a separate statement that “with underlying inflation near target and the upside risks to inflation limited, we should not wait until the labor market deteriorates before we cut the policy rate.” Waller said the job market is nearing stall speed and the Fed’s rate target should be closer to its neutral level.
-Reuters
This article originally appeared on USA TODAY: Trump’s new tariffs hit trading partners, stock markets: Live updates
