tradewars

Tariffs imposed by former President Donald Trump are now hitting American consumers hard, as rising import costs force companies to raise prices on everyday goods.

Price hikes are already here

Procter & Gamble, the maker of Tide detergent and Bounty paper towels, announced it will raise prices on a quarter of its U.S. products by 5% starting next week, according to a memo shared with major retailers like Walmart. And they’re not alone—many producers are preparing similar increases as tariffs cut into their margins.

Consumer goods stocks are falling behind

While tech stocks are driving markets higher, consumer staples companies are under pressure. Since the April 2 “Liberation Day” tariff announcement, the following stocks have dropped:

🔹 P&G –19%

🔹 Nestlé –20%

🔹 Kimberly-Clark –11%

🔹 PepsiCo –7%

Meanwhile, the S&P 500 has climbed over 13% in the same period.

Shoppers turning away from expensive brands

Companies like Nestlé report weaker sales as consumers opt for cheaper alternatives. Many are no longer willing to pay premium prices, especially with inflation rising.

The full impact has yet to arrive

Reuters estimates that between July 16 and 25, companies may incur $7.1 to $8.3 billion in extra costs. Car makers like Ford and GM have already taken hits worth billions. Some companies stockpiled ahead of the tariffs, but economists warn that when inventories run out—likely by late 2025 or early 2026—consumers will feel the full impact through higher inflation.

Brands are already adjusting prices

EssilorLuxottica, the maker of Ray-Ban, has raised prices. So has Swatch, which lifted retail prices by 5% after April's tariff news. CEO Nick Hayek said luxury watch buyers are less price-sensitive and often shop abroad to avoid taxes.

“You can do that with watches, not with cars or heavy machinery,” Hayek explained.

New tariffs hit EU, UK, Japan

According to new deals:

🔹 EU imports – 15% tariff

🔹 Japan – 15% tariff

🔹 UK exports – 10% tariff

🔹 Brazil, Canada, South Korea – may face even higher rates without bilateral deals

As a result, the average U.S. import tariff is now 18.2%, the highest in over 100 years (Yale’s Budget Lab).

Administration: “Billions flowing to the treasury”

Trump’s team claims the tariffs are bringing trillions into federal coffers. In reality, importers pay at the border and pass on those costs down the supply chain—ultimately to consumers.

Real impact: $2,400 loss per household

Yale researchers estimate the tariffs have already raised consumer prices by 1.8%, effectively cutting annual household income by $2,400.

Trump reportedly considering rebate checks

Under growing pressure, Trump is reportedly weighing direct “rebate” checks funded by tariff revenue, targeted at lower-income groups. With midterm elections approaching, such checks could become politically timely.

🔹 Summary:

Trump’s tariffs are bringing billions into the U.S. Treasury, but American consumers are footing the bill. Companies are raising prices, brand sales are declining, and households face hidden taxation through inflation. The real pain will likely be felt in 2026, once stockpiled goods run out.

#TRUMP , #Tariffs , #Inflation , #TradeWars , #worldnews

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🔹 Donald Trump has been trying to get in touch with China’s President Xi for weeks — with no success.

🔹 Beijing is holding back due to concerns about Trump’s unpredictable behavior.

🔹 US-China tensions are escalating over tariffs, tech restrictions, and visa bans.

Donald Trump insists his personal relationship with President Xi should be enough to fix the ongoing US-China trade dispute. But reality paints a different picture — Xi hasn’t answered his calls. According to sources inside the White House, Trump has been trying to reach out for weeks with zero response.
Officials still hope a phone call might happen — maybe even this Thursday — but China has yet to confirm anything. When asked, the Chinese embassy in Washington simply said, “We have no comment,” maintaining total silence.
This lack of communication reveals just how distant the two sides have grown. And with rising tensions between the world’s top two economies, silence is adding more fuel to the fire.

Beijing Doesn’t Trust Trump — and That’s the Issue
CNN reports that Chinese officials are actively avoiding a call with Trump. The reason? They don’t trust him. They’ve seen how Trump handled private talks in the past — like the pressure he put on Ukraine’s Zelensky or South Africa’s Ramaphosa — and want to avoid a similar incident involving Xi.
Trump made those private moments public, turning them into awkward international headlines. China doesn’t want to risk the same thing happening — not even during a secure phone call.
Still, Trump keeps telling people he expects to speak with Xi “soon.” He’s said it in spring, last week, and even yesterday. But Beijing doesn’t work like his team does. Every meeting with Xi, even informal ones, are scripted down to the last detail — from timing and translation to flower arrangements.
People who’ve worked with Xi say he sticks to prepared talking points and rarely goes off-script. In fact, when he did make a spontaneous remark during a meeting with Biden, US officials saw that as an unusual sign of respect.
Trump’s direct and spontaneous deal-making style clashes with Xi’s tightly controlled approach. And that mismatch is making real communication nearly impossible.

Trade War Heats Up as Talks Stay Frozen
White House press secretary Karoline Leavitt said this week that Trump is “deeply involved in every policy decision,” especially regarding China. That includes the growing trade dispute, which escalated after Trump returned to office.
He raised tariffs up to 145%. China responded by slowing exports of critical minerals — especially materials vital to magnet production — and allegedly backtracked on agreements from earlier Geneva talks.
The two sides had agreed to lower some tariffs. That didn’t last. The US accused China of breaking the deal and blocking key shipments. Instead of progress, tensions grew worse.
Trump has since added new measures: canceling student visas for Chinese nationals and banning software exports used in advanced chip design. All this was meant to pressure Xi, but so far it hasn’t worked.
A senior White House official recently said, “Both trade teams have agreed this needs to go to the top.” Trump reportedly wants to confront Xi about the mineral issue and remind him that China has more to lose than the US if the deal fails — a belief strongly held within Trump’s inner circle.
Treasury Secretary Scott Bessent said over the weekend, “I’m confident that once President Trump and Chairman Xi talk, this will be resolved.” But that assumes Xi ever returns the call.
Trump hasn’t given up. Yesterday, he posted on Truth Social:

“I like President XI of China, always have, always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”

That pretty much sums it up — Trump wants action, and Xi isn’t even picking up the phone.

#TRUMP , #china , #usa , #Geopolitics , #TradeWars

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“