Tariffs & Trade Wars: Latest News and Updates
As part of our work — advising American companies, multinational corporations and governmental agencies — we are closely monitoring the Trump administration’s tariffs and the global trade war that has spiraled in the last few weeks. This a fast-developing and fluid situation and we will do our best to keep you updated.
MAY 29, 2025 UPDATE: The U.S. Court of International Trade “blocked most of President Donald Trump's tariffs in a sweeping ruling on Wednesday, May 28, 2025, that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners.” The Trump administration immediately appealed the decision and the “federal appeals court is allowing Trump’s tariffs to stay in place, issuing a stay of a U.S. court ruling yesterday that blocked several of the tariffs from going into effect.” Click below for more information and select articles curated by the TBG Global Advisors team. Bookmark this page and check back regularly for new updates.
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Reuters — US Court Blocks Most Trump Tariffs, Says President Exceeded His Authority
May 29, 2025 — “A U.S. trade court blocked most of President Donald Trump's tariffs in a sweeping ruling on Wednesday that found the president overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners.
The Court of International Trade said the U.S. Constitution gives Congress exclusive authority to regulate commerce with other countries that is not overridden by the president's emergency powers to safeguard the U.S. economy.
Court cites that Constitution grants Congress power to regulate international commerce
Markets cheer ruling, dollar and global stocks rally
Trump administration files notice of appeal, questions authority of the court
Tariffs on autos, steel and aluminum remain in place
"The court does not pass upon the wisdom or likely effectiveness of the President's use of tariffs as leverage," a three-judge panel said in the decision to issue a permanent injunction on the blanket tariff orders issued by Trump since January. "That use is impermissible not because it is unwise or ineffective, but because [federal law] does not allow it."
Financial markets cheered the ruling. The U.S. dollar rallied following the court's order, surging against currencies such as…” (Click here to continue.)
BBC — US Markets Up in Early Trading After Court Ruling; What You Need to Know; Court Ruling a Blow to Trump but Tariffs’ Battle to Continue
May 29, 2025 —
What are the tariffs?
“Broadly speaking, Trump has increased tariffs in three ways:
A 10% tariff on almost every country - plans for some higher country-specific rates had already been paused
Higher rates for Mexico, Canada and China, linked to stopping the illegal flow of fentanyl into the US
Industry-specific tariffs, applying an additional 25% rate on steel, aluminium and cars
What has the court ruled?
It has effectively blocked the first two - the blanket 10% and fentanyl-related tariffs - arguing that it was not a legally valid move to use the emergency powers Trump cited when implementing them.
What happens now?
Experts are still grappling with what the implications will be. The ruling gives the Trump administration 10 days to take the steps needed to comply with the decision.
But the White House says it's appealing the ruling, meaning it will go to a higher court.”
What has the court ruled?
It has effectively blocked the first two - the blanket 10% and fentanyl-related tariffs - arguing that it was not a legally valid move to use the emergency powers Trump cited when implementing them.
What happens now?
Experts are still grappling with what the implications will be. The ruling gives the Trump administration 10 days to take the steps needed to comply with the decision.
But the White House says it's appealing the ruling, meaning it will go to a higher court. (Click here to continue)
CNBC — U.S. and China Agree to Slash Tariffs for 90 days in Major Trade Breakthrough
“The U.S. and China on Monday agreed to suspend most tariffs on each other’s goods in a move that shows a thawing of trade tensions between the world’s two largest economies.
The deal means “reciprocal” tariffs between both countries will be cut from 125% to 10%. The U.S.′ 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%.
“We had very productive talks and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process,” U.S. Treasury Secretary Scott Bessent said in a news conference.
The U.S. and China on Monday agreed to temporarily suspend most tariffs on each other’s goods in a move that shows a major thawing of trade tensions between the world’s two largest economies.
The trade agreement means that “reciprocal” tariffs between both countries will be cut from 125% to 10%. The U.S.′ 20% duties on Chinese imports relating to fentanyl will remain in place, meaning total tariffs on China stand at 30%.
The breakthrough comes after U.S. and China trade representatives…” (Click here to continue)
US Treasury Secretary Scott Bessent (R) and US Trade Representative Jamieson Greer hold a news conference in Geneva on May 12, 2025, to give details of "substantial progress" following a two-day closed-door meeting between US and China top officials aimed at ending the tariff war.
Reuters — Reactions to US-China Tariff Cuts
“ Stocks and the dollar surged on Monday after the United States and China said they had agreed on a 90-day pause on tariffs and reciprocal duties would drop sharply, giving investors some confidence that a full-scale trade war may have been averted.
U.S. Treasury Secretary Scott Bessent, speaking after talks with Chinese officials in Geneva, told reporters the two sides had reached the deal that was outlined in a joint statement and that reciprocal rates would drop by 115 percentage points.
Charles Wang, Chairman, Shenzen Dragon Pacific Capital Management Co., Shenzhen:
"The result of the China-U.S. talks is certainly good news. Both sides have returned to reason and common sense. However, neither has changed the tough stance based on deliberation of national interest.
"The U.S. side has kept the 20% tariffs based on its hegemony and excuse over Fentanyl. In addition, if no deal is reached after 90 days, long-term tariffs will be 54% on Chinese exports and 34% on U.S. exports. That would be semi-decoupling.
"So today's news cannot be counted as being long-term positive. It's long-term positive plus 90 days of uncertainty."
Sheldon Macdonald, CIO, Marlborough, London:
“Our snap reaction is that this reduction is much bigger than expected. Yes, it’s only temporary, but the market is going to see this as confirmation that Trump doesn’t really want to cause the sort of disruption he has previously seemed to embrace.
“That said, if we assume the ‘steady state’ is 10% blanket tariffs and 30% on China, it’s still negative relative to the situation when Trump took over. It’s also still a negative for growth – just smaller than had been expected more recently – so there’s no ‘all clear’ on recession fears just yet.
“With positioning pretty ‘wrong way’ in a lot of assets, there’s potential for a bigger unwind. This could see risk assets up, the dollar up and a flatter yield curve. Conversely, safe-haven trades might soften. So once again we have sentiment, psychology and positioning in the driving seat rather than fundamentals.”
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NBC — Something Worse than Recession: Ray Dalio
“Bridgewater founder Ray Dalio said on Sunday that he’s concerned that the global monetary system will break down.
President Donald Trump’s tariff policies and growing U.S. debt are contributing to a new unilateral world order, Dalio said.
Dalio said the fallout from turmoil in bonds could be a more severe shock to the monetary system than the 2008 financial crisis.
Bridgewater founder Ray Dalio said on Sunday that he is worried that the turmoil resulting from President Donald Trump’s tariff and economic policies will threaten the global economy.
“Right now we are at a decision-making point and very close to a recession,” Dalio said on NBC News’ “Meet the Press.” “And I’m worried about something worse than a recession if this isn’t handled well.”
The hedge fund billionaire said he’s more concerned about trade disruptions, mounting U.S. debt and emerging world powers bringing down the international economic and geopolitical structure that has been in place since the…” (Click here to continue.)
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CNBC — These Household Items Have Gotten Pricier Since Trump’s Tariffs Announcement, New Report Finds
Not every day is a good day for Barbie, if prices for dolls in the U.S. keep rising amid President Donald Trump’s tariff policy announcements.
A series of household items including leggings, Barbie dolls power drills and washing machines have increased in price since Trump initially announced a sweeping set of global tariffs on April 2, according to an industry note issued by the Telsey Advisory Group on Tuesday.
Between April 16 and April 30, the price of a Target-exclusive Barbie doll increased by nearly 43% to $14.99, up from $10.49, Telsey reported. A Whirlpool washing machine at Lowe’s went up in price by nearly $82 to $599, over the same time frame.
Other notable price hikes include….”
CNN — What Trump’s Tariffs Mean for Fashion
“The global fashion industry was left stunned on Wednesday after US President Donald Trump announced the highest and most comprehensive tariffs in nearly a century, with the most severe levies reserved for some of the biggest apparel manufacturing hubs.
In an address from the White House rose garden, Trump announced a baseline tariff of 10% on all imported goods. However, tariffs were set significantly higher on roughly two dozen countries where the US runs a trade deficit, with many of the fashion industry’s biggest production centers among them.
Goods from Vietnam — the second-biggest apparel exporter to the US after China — will be subject to a 46% tariff, Cambodia will have a 49% duty and Bangladesh 37%. China will be subject to a new 34% tariff on top of the previously announced duties, raising its tariff rate to 54%, and the EU will be hit with…” (Click here to continue)
FOREIGN AFFAIRS — “Trade Wars Are Easy to Lose: Beijing Has Escalation Dominance in the U.S.-China Tariff Fight”
“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with,” U.S. President Donald Trump famously tweeted in 2018, “trade wars are good, and easy to win.” This week, when the Trump administration imposed tariffs of more than 100 percent on U.S. imports from China, setting off a new and even more dangerous trade war, U.S. Treasury Secretary Scott Bessent offered a similar justification: “I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos. What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”
In short, the Trump administration believes it has what game theorists call escalation dominance over China and any other economy with which it has a bilateral trade deficit. Escalation dominance, in the words of a report by the RAND Corporation, means that “a combatant has the ability to escalate a conflict in ways that will be disadvantageous or costly to the adversary while the adversary cannot do the same in return.” If the administration’s logic is correct, then China, Canada, and any other country that retaliates against U.S. tariffs is indeed playing a losing hand.
But this logic is wrong: it is China that has escalation dominance in this trade war. The United States gets vital goods from China that cannot be replaced any time soon or….” (Click here to continue)
REUTERS — “Impact of tariffs on developing countries could be 'catastrophic', says UN trade agency”
GENEVA, April 11 (Reuters) - Sweeping tariffs on imports imposed by U.S. President Donald Trump and countermeasures could have a "catastrophic" impact on developing countries, hitting even harder than foreign aid cuts, the director of the United Nations trade agency said on Friday.
Global trade could shrink by 3-7% and global gross domestic product by 0.7%, with developing countries the worst affected, the International Trade Centre said.
"It is huge," Pamela Coke-Hamilton, executive director of the International Trade Centre, told Reuters. "If this escalation between China and the U.S. continues it will result in an 80% reduction in trade between the countries, and the ripple effect of that across the board can be catastrophic."
Global markets remained in turmoil on Friday. Trump this week announced a…. (Click here to continue)