Trump's new tariffs on global imports

What happened: President Trump, undeterred by the Supreme Court's ruling against his previous tariffs, imposed new duties on global imports, targeting over 80 countries. The tariffs, ranging from 10% to 12.5%, took effect on Friday, August 5, and include exports from the EU, China, UK, and Canada. The move is expected to increase costs for U.S. consumers, with back-to-school shopping expenses projected to rise by nearly 8% for school supplies and almost 11% for packed lunches.

Market impact: The new tariffs drive up costs for U.S. households and businesses, with consumers bearing the brunt of increased prices for imported goods. Retailers and importers face higher costs, potentially leading to reduced profit margins or passed-on costs to consumers. U.S. businesses with significant imports from targeted countries may see their valuations repriced, as investors anticipate the impact of higher costs on earnings.

What to watch next: On September 15, the U.S. Department of Commerce is set to release its report on the economic impact of the new tariffs, providing insight into the potential magnitude of their effect on the U.S. economy. Additionally, the U.S. Court of International Trade will hear arguments in the lawsuit challenging the new tariffs on October 1, which could determine their legal fate and provide clarity on their long-term impact.