San José, CA – After a weekend of negotiations in Geneva, Switzerland, Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng announced on Monday, May 12 that the United States would roll back its tariffs on Chinese imports by 115%, from 145% to 30%.
The Chinese agreed to match this tariff reduction, reducing China’s tariffs on U.S. goods from 125% to 10%. China did not agree to any of the U.S. trade demands and many U.S. news reports had to admit that China did well, with one headline from Bloomberg News reading, “Xi Defiance Pays Off as Trump Meets Most China Trade Demands.”
San José, CA – Two U.S. economic reports showed that the manufacturing sector shrank in April, despite (or more likely because of) Trump’s trade war – one that is meant to increase manufacturing in the United States.
San José, CA – Look out – while the storybook villain who stole Christmas presents was green, the real life villain is orange. Donald Trump is coming for our holiday shopping season.
He is trying to brace Americans for hard times to come, saying that you might only get two dolls for Christmas instead of 30. Now, I didn’t know anyone who got 30 dolls for Christmas when I was growing up, but maybe having a multi-millionaire father gave Trump a different gift experience as a child.
San José, CA – One of the biggest issues that propelled Donald Trump to a comeback victory in 2024 was the economy and inflation in particular. While Trump hammered at the issue, saying that he was going to make America affordable again, Biden, Harris and most Democrats tried to deny that there was a problem, repeating over and over that the economy was in great shape.
San José, CA – Once again, President Trump backed off in his trade war. On Tuesday, April 22, President Trump said that he would not fire Jerome Powell, chair of the Federal Reserve Bank, and that the current 145% tariffs are “not sustainable”. This led to a rally in U.S. stocks and bonds, and the U.S. dollar rose as investors showed signs of relief.
San José, CA – Can the Trump administration win its trade war with China? This question is coming up more and more. On one hand, the Trump administration uses simple math to argue that the United States has the upper hand. Their logic is that since the United States has a large trade deficit with China in goods – that is the United States buys a lot more, almost $300 billion more from China in 2024, than China buys from the United States – then tariffs can reduce China’s exports a lot more than China can reduce U.S. exports.
San José, CA – On Wednesday, April 9, one week after President Trump declared a universal 10% tariff and for all the countries that the United States ran trade deficits with, he announced even higher tariffs of up to 50%. Even while members of his administrators were saying the tariffs were going to stick, Trump blinked and declared a 90-day pause for all countries except China.
At a Beijing press conference, April 9, Foreign Ministry Spokesperson Lin Jian responded to questions about the 104% tariffs the Trump administration has placed on Chinese goods.
San José, CA – Over the last few days, since President Trump’s latest tariffs were announced on April 2, comments have often called them “bizarre,” “weird” or similar terms. But there is a method to what might seem to be Trump’s madness.
The tariff rates announced were calculated on the basis of the U.S. trade deficit with each country, or how much more the United States imports from said country than the amount of U.S. goods it buys. This was often dismissed as “nonsense,” but it reflects President Trump’s longstanding obsession with U.S. trade deficits.
San José, CA – Why are so many Republicans in Congress going along with Trump’s tariffs? For decades the Republican Party has been a party of free trade and “lower” taxes, so why the support, or at most silence, from Republicans in Congress?
San José, CA – The day after President Trump levied tariffs on virtually every country in the world, the People’s Republic of China, or PRC, hit back. The PRC matched Trump’s tariff of 34% announced on Thursday with the same 34% tariff on imports from the United States. These are mainly soybeans and other foods, electrical machinery, petroleum and civilian aircraft. In addition, China put restrictions on exports of seven rare earth metals to the United States that are used in making lasers, wind turbines, radar other technology goods.
San José, CA – On Thursday, April 3, one day after Trump’s newest tariffs announcement, prices did start to fall as candidate Trump promised. The only problem is that it was the prices of stocks, not groceries.
San José, CA – On Monday, March 10, U.S. stock markets fell. The S&P 500, which includes 500 of the largest U.S. corporations, dropped 2.7% for the worst trading day of the new Trump administration. The NASDAQ, which is over-weighted in technology stocks, fell even more, dropping 4% as high-flying technology stocks continued their descent to earth. Both the broader market and the technology sector were led down by a 15% drop in Tesla share prices, bringing that stock down about 50% from its high just months ago.
San José, CA – At the stroke of midnight on Tuesday morning, President Trump’s trade war was launched against the three largest trading partners of the United States. Canada and Mexico were hit with across the board 25% tariffs, with the exception of Canadian energy products: oil and electricity, which were given 10% tariffs. China was hit with an additional 10% tariff, bringing the total rate to 20% with the initial 10% tariffs back in February.
San José, CA – On Thursday, February 13, President Trump signed another executive order, this time to study implementing his plan for “reciprocal tariffs.” While many businesses and financial investors breathed a sigh of relief that these would not go into effect until April, the Trump administration will use this time to try to define many policies of other countries as tariffs – even when they are not.
San José, CA – On Monday, February 10, President Trump signed an executive order raising tariffs, or taxes on imports, to 25% on steel and aluminum. The tariffs are to start on March 4. While his first round of tariffs on Canada, Mexico and China was based on a “national emergency” of refugees and drugs coming into the country, the latest tariff order used a “national security” rationale. They are seen as less likely to be suspended as the first round was.
San José, CA – On Wednesday, February 12, the Department of Labor said that inflation as measured by the Consumer Price Index, or CPI, rose in January as compared to December of 2024. The monthly increase in prices was one half of one percent, as compared to 0.3% in December. This was the highest monthly increase in prices in over a year. Compared to a year ago, prices were up 3%, but if January’s increase continued for the rest of the year, the inflation rate would be 8%.
San José, CA – On Monday, February 3, after a drop in U.S. stocks, President Trump relented and paused his 25% tariffs on Canada and Mexico for 30 days. Stocks bounced back, recovering most of their initial losses.
San José, CA – On Saturday, February 1, Trump continued his flurry of executive orders, this time targeting trade with Mexico, Canada and China. Unlike Trump’s first term in office, where he targeted imports of intermediate goods - that is, manufactured goods that are used to make other goods, like steel - these are broad tariffs covering all goods, from raw material like crude oil, to intermediate goods, to final goods that are sold to consumers, like cell phones.
San José, CA – On Friday, September 13, the Biden administration announced a further escalation of the U.S. trade war with China. Tariffs—taxes on imports—of electric cars from China will be increased to 100%. This is meant to protect legacy U.S. auto makers from competition from Chinese electric vehicle or EV manufactures.
