Economic News:
Concerns over Federal Reserve independence drew attention after President Donald Trump announced he would remove Fed Governor Lisa Cook, citing mortgage fraud allegations; Cook responded by filing a lawsuit to block the firing, and a Fed spokesperson said the central bank would comply with any court ruling. Meanwhile, Governor Christopher Waller, who had supported a 25-basis-point cut at the Fed’s most recent meeting, reaffirmed Thursday that he will back another cut in September and expects further reductions over the next three to six months, citing rising risks to the labor market and slowing economic activity. On the data front, July’s core personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose 0.3% from June—matching expectations—while personal spending and income increased by 0.5% and 0.4%, respectively; separately, the Bureau of Economic Analysis revised second-quarter GDP growth upward to 3.3% from 3%, driven by stronger business investment and consumer spending.
What We’re Showing:
Under the second Trump administration, new tariff levels have been applied to over 80 countries, with rates ranging from 10% to 50%. The U.S. President argues that persistent trade deficits and unfair foreign trade barriers harm American industries and threaten national security, even in cases where the U.S. runs a trade surplus with some of these countries. This infographic visualizes the new tariff landscape, highlighting how different trading partners are affected. The data for this visualization comes from CNN and the White House.
High Tariffs, Even on Surplus Partners
India and Brazil both received the highest tariff rate of 50%. Despite the U.S. running a $7 billion goods surplus with Brazil in 2024, it received the steepest rate. In addition to claims that trade with Brazil has been unfair to the United States, Trump has used tariffs to pressure Brazil’s judiciary over a criminal case involving former President Jair Bolsonaro, which the Republican has called a “political execution.”
Similarly, on August 26, 50% tariffs took effect against India as a penalty for its purchases of Russian oil and weapons. Meanwhile, other major trade partners with large U.S. deficits saw relatively moderate tariffs. For instance, Vietnam ($123 billion deficit), Taiwan ($74 billion), and Japan ($69 billion) were all placed in the 15–20% range. The European Union received a 15% tariff on most goods, despite a massive $236 billion deficit.
North American Neighbors Hit Hard
At the beginning of the year, President Trump threatened to impose tariffs of 25% on Mexican imports and 35% on Canadian imports. He justified these threats as part of his strategy to curb illegal immigration, reduce the flow of fentanyl into the United States, and address the U.S. trade deficit with both countries.
On August 1, he raised tariffs to 35% on Canadian goods not covered by the United States–Mexico–Canada Agreement (USMCA), while Mexico received a 90-day extension before any increase takes effect. Since goods that meet USMCA rules of origin are exempt, the vast majority of Canadian exports—over 85–95%—still enter the U.S. duty-free. Combined, the two countries accounted for over $230 billion in trade deficits with the U.S in 2024.
