Trump tariffs kick in at highest rates since Great Depression

Our live coverage of the Trump administration’s tariff news has concluded for the day. Please scroll through the posts below to learn about today’s developments.

After threatening India with a combined 50% tariff rate – set to take effect later this month – President Donald Trump said he’s not keen on engaging in more negotiation talks with India.

“Not until we get it resolved,” he told reporters today in the Oval Office.

As of today, most goods from India are being charged a minimum 25% tariff. Trump this week threatened an additional 25% tariff if India doesn’t cease purchasing oil from Russia by August 27.

Traders work on the floor at the New York Stock Exchange on Wednesday.

US stocks closed mixed today as the onset of President Donald Trump’s widespread tariff regime weighed on investor sentiment.

The Dow closed lower by 224 points, or 0.51%. The S&P 500 fell 0.08%. Meanwhile, the Nasdaq rose 0.35% and closed at a record high after fluctuating between gains and losses.

Stocks opened higher before mostly turning lower as investors assessed the implications of the tariffs. The Dow rose as much as 305 points, or 0.69%, before erasing its gains.

The average effect tariff rate on US imports is now the highest since the 1930s, according to the Budget Lab at Yale.

Gold prices gained 1%. The yellow metal is a haven amid uncertainty.

As of this morning, 87% of companies in the S&P 500 had reported earnings for the second quarter, with 81% of those companies beating Wall Street’s expectations, according to FactSet.

As stocks have risen through earnings season, the bar for continued gains can be higher, according to Angelo Zino, technology analyst at CFRA Research.

“The market almost is trying to take a breather,” Zino said. “It’s one of those situations where you kind of have to digest some of that stuff.”

Elsewhere in markets, shares of pharmaceutical company Eli Lilly (LLY) tumbled 14% after results from trials for its weight-loss pill were slightly less impressive than Wall Street had expected.

Stephen Miran, chairman of the Council of Economic Advisers, outside the White House on June 17.

President Donald Trump said today he is nominating Stephen Miran to fill a vacancy at the Federal Reserve’s Board of Governors on a temporary basis.

Miran is currently the chair of the Council of Economic Advisers. He’s widely credited with creating the intellectual backbone of Trump’s expansive tariff policy and has been a critical voice in support of the president’s economic agenda since assuming his role.

If confirmed by the Senate, Miran’s arrival would likely bring another voice at the Fed in support of lower interest rates. At the Fed’s July meeting, policymakers voted to hold borrowing costs steady for a fifth consecutive time, but more than one Fed governor dissented on the decision for the first time in more than three decades.

Read more here.

President Donald Trump speaks to reporters on Tuesday.

President Donald Trump has remade the global trading system. He’s just getting started.

Trump’s “reciprocal” tariff regime went into effect just after midnight, solidifying the new world order fueled Trump’s long-standing – and oft-doubted – aspiration to reorient seven decades of global commerce.

But the days leading up to this moment provide a window into a president who advisers tell CNN is increasingly emboldened, confident and unyielding in his belief that his unprecedented use of tariffs for, well, just about everything, hasn’t carried any downside.

It’s a view corporate executives, foreign leaders and a veritable phonebook worth of economists would hotly dispute, citing an array of warning signs in underlying economic data, earnings calls and geopolitical maneuvering. Trump is unbowed and set to aggressively expand his imprint on a new global system of trade in the weeks ahead.

Trump’s reciprocal tariffs are now in place, as are tariff-laden bilateral trade frameworks with countries that make up roughly 60% of the world’s gross domestic product. Steel, aluminum, copper, auto and auto parts sector tariffs are active as well. Soaring sector-based levies on semiconductors, pharmaceuticals, lumber, critical minerals, aircraft, poliysilicon and trucks are in process and will be rolled out in the coming weeks. The exact dates appear almost entirely up to Trump and his trade teams. The actual rates for those sector tariffs? Same, but by all accounts, only moving upward by the week with Trump recently setting the level for chips and semiconductors at “approximately 100%”and threatening up to 250% for pharmaceuticals.

Read Mattingly’s full analysis here.

Container ships are seen at the container terminal at Lianyungang port, in China's eastern Jiangsu province on July 24.

Although President Donald Trump and his administration have celebrated several “trade deals,” in most cases, they’re not exactly deals, per se, but rather rough sketches of ones that could take months, or even years, to finalize — assuming they don’t fall apart.

Over the past five months, Trump announced eight trade agreements. Of those, only two — with the United Kingdom and China — have been formalized. The agreement with China, which significantly lowered tariff rates both countries imposed on one another’s goods, expires on August 12. If both countries fail to act, rates could spike again.

Most agreements Trump announced involve trading partners committing to purchasing more American products, like oil, cars, Boeing airplanes, defense equipment and agricultural goods. They also involve hundreds of billions of dollars worth of investments in American businesses.

But it’s unclear if the United States and other trading partners involved in agreements are on the same page about many of the proposed terms. For instance, Japan’s Prime Minister Shigeru Ishiba and a lead Japanese trade negotiator, Ryosei Akazawa, both recently said many key details are still being worked out and are telling a vastly different story from Trump, who earlier this week said the country agreed to buy Ford F-150s.

US Trade Representative Jamieson Greer walks to the West Wing of the White House in Washington, DC, on August 1.

US Trade Representative Jamieson Greer, in an op-ed in The New York Times today, said the former trade system hurt the United States by taking away industrial jobs and economic security, while countries like China were able to make “needed reforms.”

With today’s tariffs in place and with deals in process, “the United States has laid the foundation for a new global trading order.”

In the op-ed, he seemed to blame the decline of American manufacturing squarely on free trade agreements.

While the US slashed trade barriers, Greer said other countries implemented measures from wage suppression to currency manipulation to “artificially boost exports to the United States. This approach made the United States and a handful of other economies the consumers of last resort for countries pursuing beggar-thy-neighbor economic policies.”

“We subordinated our country’s economic and national security imperatives to a lowest common denominator of global consensus. This approach harmed American workers, their families and communities by undermining a manufacturing sector,” Greer wrote.

Greer also touted how the new agreements come with investment commitments to the US and upgraded labor standards around the world. He doubled down on the US economy being in an emergency, Trump’s legal logic for imposing the tariffs, though that is being challenged in federal court.

Stocks in Europe and Asia mostly closed higher on Thursday despite President Donald Trump’s tariff campaign.

Europe’s benchmark Stoxx 600 index gained 0.92% and posted its best day in two weeks. Germany’s DAX gained 1.12% and France’s CAC 40 rose 0.97%.

Stocks got a boost as investors welcomed reports of a potential upcoming meeting between Trump and Russian President Vladimir Putin.

Trump in recent weeks has ratcheted up pressure on Moscow to reach a ceasefire in its war on Ukraine. The president this week threatened an additional 25% tariff on US imports from India as punishment for the country importing Russian oil and gas.

A potential peace deal between Russia and Ukraine would be “positive for European consumers and risk sentiment,” Mohit Kumar, chief strategist and economist for Europe at Jefferies, said in a note.

The Polish zloty gained 0.44% against the euro as investors bet a potential ceasefire would bode well for economies in Eastern Europe.

Meanwhile, in Asia: Japan’s Nikkei 225 rose 0.65%, Hong Kong’s Hang Seng rose 0.69% and South Korea’s Kospi gained 0.92%.

Taiwan’s benchmark index soared 2.37%. The index was boosted by Taiwan Semiconductor Manufacturing Company, which jumped 4.89% and hit a record high.

Trump this week announced an upcoming 100% tariff on semiconductors, with potential exemptions for companies that develop manufacturing in the United States. Analysts expect minimal headwinds for TSMC as the chip giant has committed to US-based operations.

“We see almost no impact to TSMC,” analysts at Citi said in a note.

Employees work on the production line of glass panels for mobile phones at a factory in Zunyi, Guizhou province, China, on March 6, 2023.

President Donald Trump has said that tariffs won’t lead to higher prices. But the United States economy seems to disagree: Inflation, which has remained fairly tame, is slowly creeping up in part because of tariffs that were already in place before Thursday.

Now with a whole new tranche of higher tariff rates in place, Americans could see even higher prices on many goods.

Among those are:

Electronics: While many fully assembled electronics shipped from overseas are exempt from “reciprocal” tariffs, many components needed to manufacture them domestically are not.

Clothing, toys and shoes: There aren’t currently across-the-board tariff exemptions for these goods, which the US heavily imports, leaving them vulnerable to steep price increases given the latest rates. For instance, economists at the Yale Budget Lab estimate current tariffs could cause clothing prices to increase by 36.6% over the next two to three years if rates are left unchanged.

Read more here.

A farmer harvests sugarcane in a field on July 9 in Kyathanahalli village, near Pandavapura, Karnataka state, India. Agriculture and dairy remain key roadblocks in the India-US trade deal, with New Delhi wary of undercutting millions of smallholder farmers.

US President Donald Trump warned yesterday that more punishment was coming for countries buying Russian energy products. He also said that he will soon be imposing a 100% tariff on all imported chips and semiconductors.

An early rally faded and US stocks are under pressure this afternoon as investors assessed Trump’s latest round of tariffs.

Trump has said that tariffs won’t lead to higher prices. But the United States economy seems to disagree. You can find out what items could get more expensive due to these tariff hikes. The list includes clothing, cars, beauty products and footwear.

Here’s what to know:

US cabinet reactions: US Commerce Secretary Howard Lutnick said today that the US could soon generate as much as $50 billion per month in tariff revenues, as the new and expanded import levies begin to take effect worldwide. Meanwhile, Treasury Secretary Scott Bessent said that with the trade deals “largely done,” the Trump administration is shifting its economic focus to addressing the cost-of-living crisis in the US.

Tariffs on India: Trump, critical of what he sees as India’s protectionist trade policies as well as its continued purchases of Russian oil, slapped a 25% tariff on India that went into effect today. Indian Prime Minister Narendra Modi defended his decision not to bow to US trade threats and face steep tariffs as a result. “For us, the interest of our farmers is our top priority. India will never compromise on the interests of farmers, fishermen and dairy farmers. I know personally I will have to pay a heavy price for it, but I am ready for it,” he said. Goods from India could also be subject to an additional 25% tariff slated to take effect on August 27.

International reactions:

Traders work on the floor of the New York Stock Exchange on Thursday.

An early rally faded and stocks were under pressure Thursday afternoon as investors assessed President Donald Trump’s latest round of tariffs.

The Dow was down 385 points, or 0.87%. The S&P 500 fell 0.45%. Meanwhile, the Nasdaq dipped into the red and fell 0.1%.

The Dow had risen as much as 305 points, or 0.69%, earlier before turning lower. The S&P and Nasdaq had risen as much as 0.7% and 1.12%, respectively, before erasing their gains.

Nineteen companies in the 30-company Dow index were in the red. Salesforce (CRM), Visa (V) and Caterpillar (CAT) fell 4.2%, 3.2% and 3%, respectively, leading the index lower.

The Nasdaq was in part boosted by Apple (AAPL), which rose 2.8% after gaining 5.09% on Wednesday. The tech giant is up 8.3% this week and on track for its best week since May 2022. Apple shares are still down more than 12% this year.

Apple got a boost this week after the White House announced smartphones would be exempt from tariffs on imports from India, and the tech company will avoid tariffs on semiconductors because of its pledge to develop production in the United States.

“We believe there is the potential for Apple gaining smartphone market share in the US if competitors are exposed to tariffs while iPhones were to remain exempt,” analysts at Bank of America said in a note.

Treasury Secretary Scott Bessent attends a press conference on July 29.

Treasury Secretary Scott Bessent on Thursday reinforced his call to overhaul the Bureau of Labor Statistics (BLS), saying that the integrity of US economic data is at risk and pointing to broader dysfunction in the federal government.

“I actually think that cleaning up the BLS was something that should have been done long ago, and I agree that the, the efficacy and the believability of our economic projections are very important,” Bessent told MSNBC.

The secretary questioned the timing and coherence of the economic signals.

“The other thing I can tell you is that like there’s something wrong here, because on Wednesday, the Federal Reserve voted not to cut rates. On Friday, the BLS had this massive downward revision. One of these is mistaken, so either the Fed economist did not see what the BLS did (or) the BLS data was corrupted,” he added.

White House officials began the week scrambling to find a permanent replacement after President Donald Trump fired BLS Commissioner Erika McEntarfer following a weaker-than-expected July jobs report and significant downward revisions of employment figures for May and June.

Trump has falsely claimed the BLS revised jobs numbers after the 2024 election to hide weaker numbers under former President Joe Biden.

President Donald Trump and Indian Prime Minister Narendra Modi attend a joint press conference at the White House in February.

In addition to President Donald Trump’s 25% reciprocal tariffs that went into effect Thursday, he announced an additional 25% tariff to punish India for importing Russian oil and gas.

CNN’s Phil Mattingly explains why the Trump Administration is playing hardball with the world’s fifth largest economy and one of America’s most important trading partners.

An employee counts inventory in a Walmart Supercenter on May 15, 2025 in Austin, Texas.

Tariff revenue may help boost manufacturing and the government’s financial situation. But it’s not necessarily coming pain-free.

Businesses have, for the most part, been absorbing the higher costs without raising prices. But that’s not the case for every business. Appliances, toys, consumer electronics tariffs and other goods that are sensitive to tariff changes are getting more expensive, recent inflation reports published by the government show. And many companies, including Walmart and Procter & Gamble, are warning of forthcoming price hikes.

The uncertainty tied to tariffs has also caused businesses to put off hiring more workers, leading to fewer job openings, several economic surveys indicate.

“Tariffs are going to have a negative economic effect on the American economy,” Tedeschi told CNN. The Yale Budget Lab estimates that Trump’s tariffs will shave half a point off US gross domestic product this year and next.

“That’s going to partly but not fully offset the amount of revenues that we raise from tariffs. Because if your economy is growing less than you thought, then, yeah, you raise this tariff revenue, but maybe you raise a little bit less in income taxes and payroll taxes as a result.”

Trump and his administration see it differently, however, arguing that the recently enacted mega tax cuts and spending bill, combined with the tariff revenue, will supercharge the US economy over time.

Traders work on the floor of the New York Stock Exchange at the opening bell on August 7.

US stocks were mixed Thursday morning as investors assessed corporate earnings results and reckoned with President Donald Trump’s plan for sweeping tariffs on US trading partners.

The Dow turned into the red and fell 265 points, or 0.6%. The index was weighed down by construction equipment company Caterpillar (CAT), which tumbled 3.6% after it was downgraded by analysts at Morgan Stanley.

The S&P 500 dipped into the red and hovered near the flatline. The Nasdaq came off its highest levels but held onto gains and was up 0.5%.

Shares in Ralph Lauren (RL) were down 9% after the company posted strong earnings but warned of an uncertain outlook, citing risks from tariffs.

“While our consumer trends remain consistent with recent quarters, we continue to take a more cautious view on the second half of the year,” Justin Picicci, chief financial officer at Ralph Lauren, said on the company’s earnings call this morning. “This is largely based on the potential impact of tariffs and related industry-wide price increases in the US.”

Premier of Ontario Doug Ford speaks during the Northeast Governors and Canadian Premiers moderated discussion on the impacts of President Trump's tariffs at the Massachusetts State House Library in Boston, Massachusetts, on June 16.

Ontario Premier Doug Ford, who has played a key role in trade negotiations with the United States, said Canada is seeking to ramp up trade with other partners after its southern neighbor imposed higher tariffs and relations have soured.

The tariffs on Canadian goods start at a minimum of 35%, unless they are compliant with the terms of the United States-Mexico-Canada agreement, in which case they face no tariffs.

“Canada is diversifying our trade. We’re seeing a 25% increase in trade with the European Union; the UK is up by 30%,” Ford told CNN’s Wolf Blitzer on Thursday.

“So as we’re diversifying and onshoring products, the American people are losing their jobs,” he said.

Ford said he expects Canada’s Prime Minister Mark Carney to meet with President Donald Trump in the near future.

US Commerce Secretary Howard Lutnick listens during a television interview at the White House, on July 31.

US Commerce Secretary Howard Lutnick said Thursday that the United States could soon generate as much as $50 billion per month in tariff revenues, as the new and expanded import levies begin to take effect worldwide.

“I think we’re going to be heading towards $50 billion a month in tariff revenue that no one’s talked about except for the president,” Lutnick told Fox Business in an interview this morning.

The US government collected nearly $30 billion in tariff revenue last month and $100 billion since April, according to the Treasury Department. Last month, tariff revenue rose 242% from July 2024.

The surge in tariff revenue is expected to come not only from existing duties but also from upcoming tariffs targeting key sectors such as technology and pharmaceuticals, Lutnick said.

“And then you’re going to get the semiconductors, you’re going to get pharmaceuticals, you’re going to get all sorts of additional tariff money coming in,” Lutnick he added.

Lutnick suggested this aligns with the administration’s broader economic vision, citing a dramatic long-term goal.

“As the president says, this could continue to head towards and ultimately reach $1 trillion,” Lutnick said.

Crocs shoes are displayed in a Crocs store at the Great Mall Milpitas on May 7, 2024 in Milpitas, California.

Crocs, the maker of durable sandals and clogs, warned that tariffs and a pullback in consumer spending will hurt its revenue, sending shares down roughly 25%.

CEO Andrew Rees said in the earnings release Thursday that the “current operating environment is uncertain and challenging to predict.” The Colorado-based company has implemented $50 million in cost savings that has included decreasing promotions and inventory to “protect brand health in the marketplace.”

Crocs (CROX) previously said in May that it’s diversifying its sourcing, shifting away from countries affected by high tariffs, notably China, Vietnam and Cambodia.

Irish Tánaiste (deputy prime minister) Simon Harris during a visit at the White House in Washington in October 2024.

Ireland’s deputy prime minister has called for the country to “diversify” its export markets as fresh US tariffs kicked in for scores of countries Thursday.

Although the vast majority of Irish exports to the US have been subject, since August 1, to a maximum tariff of 15% agreed between the European Union and Trump, the American president has signaled in recent months that the US could implement taxes of up to 200% on pharmaceutical and alcohol imports – both key exports for Ireland.

Simon Harris, who is also Ireland’s minister for foreign affairs and trade, said he was eager to see more progress on trade talks on these vital sectors.

Major US drugmakers including Pfizer and Eli Lilly manufacture drugs in Ireland for US customers. Meanwhile, the US accounted for around 40% of Irish whiskey exports last year.

Ireland recorded a trade surplus of €50.1 billion ($58.3 billion) with the US in 2024.

“We must also look for other opportunities to diversify markets for Irish business,” Harris said in a statement. “While we want to continue to do business with the US and indeed want to grow business, it is important that we take every opportunity to identify new markets.”

Harris will release an action plan this month focused on diversifying Ireland’s markets.

Russia's President Vladimir Putin with India's National Security Advisor Ajit Doval in Saint Petersburg on September 12, 2024.

Senior Indian and Russian officials made comments Thursday celebrating their “strategic partnership,” the day after Trump announced an additional 25% tariff on India – going into effect later this month – as punishment for importing Russian oil and natural gas.

“We have a very special relationship, long relationship, and we highly value our strategic partnership,” India’s national security adviser Ajit Doval said in Moscow in comments broadcast by Russian news agency Sputnik.

Doval also noted that Russian President Vladimir Putin was set to visit India later this year. “We are very excited and delighted to learn about the visit of his excellency the President of Russia,” he said, adding that the dates were almost finalized.

Similarly, Sergei Shoigu, the secretary of Russia’s Security Council, described a relationship between the two countries based on “mutual respect,” “trust” and “the desire to advance a unifying agenda,” after meeting with his Indian counterpart in the Russian capital.

“For our country, the comprehensive strengthening of the special privileged strategic partnership with India is of primary importance,” Shoigu said in comments aired by Russian state broadcaster Zvezda.

“We are committed to further active cooperation in order to form a new, more fair and sustainable world order,” he added.