When US President Donald Trump sat down with CNBC on August 5, he signalled a step-up in trade tensions with bold tariff threats aimed at the Chinese mainland, India, and the European Union. Traders and business leaders watched closely as he laid out plans that could reshape global markets.
Trade policy in focus
He confirmed that reciprocal tariffs would take effect on August 7, with additional duties on Indian goods imposed within 24 hours. He also teased upcoming semiconductor tariffs "within the next week or so," and warned that pharmaceutical imports could face escalating levies potentially reaching 250 percent over 18 months.
These proposals have sparked worries about supply chain disruptions and rising production costs being passed on to consumers. "I've had retailers telling me their prices will have to change this fall as contracts renew," US Senator Rand Paul told The Hill. "When input prices rise, consumer goods follow. The proof will come in the next few months."
Despite the tough rhetoric, Trump hinted at a diplomatic backstop. "We're getting very close to a deal. We're getting along with the Chinese mainland very well," he said, leaving the door open for high-stakes negotiations.
As markets absorb these announcements, the next weeks will be critical in testing whether these trade measures steer the US toward a new deal—or ramp up global economic uncertainty.
Reference(s):
cgtn.com
