Today's News: Trump Threatens New Tariffs, Sowing More Trade Confusion

President Trump is implementing sweeping, often unpredictable tariffs on a wide range of trading partners, including Canada, Brazil, and India.

Terrence Dorsey

Jul 11, 2025

Photo: Haiyun Jiang for The New York Times

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Date: July 10-11, 2025
Topic: President Trump’s Escalating Tariff Policies and Global Trade Uncertainty
Summary: President Trump’s administration is implementing sweeping, often unpredictable tariffs on a wide range of trading partners, including Canada (35%), Brazil (50%), and India (200% on pharmaceuticals). These tariffs are frequently linked to non-trade-related grievances, such as Brazil’s treatment of former President Bolsonaro or Canada’s fentanyl crisis, rather than solely economic factors. This chaotic approach, characterized by sudden announcements and shifting terms, is creating significant global trade uncertainty. While some financial markets have shown complacency, economists warn of potential inflationary pressures and delays in interest rate cuts. Trading partners are grappling with how to respond, ranging from frantic negotiations to retaliatory threats.

Sources

Key Points

Unpredictable and Chaotic Tariff Implementation: Multiple sources describe President Trump’s tariff policy as lacking organization, structure, and predictability. Negotiations are abruptly ended or changed, and announcements are often made through social media. The New York Times highlights the “labyrinthine” nature of talks, while NBC News notes the failure to deliver on “90 deals in 90 days.”
Tariffs Tied to Non-Trade Issues: A consistent theme is the use of tariffs as leverage for political or non-economic grievances. Tariffs are linked to issues like Brazil’s treatment of former President Jair Bolsonaro or Canada’s alleged fentanyl flow, departing from traditional trade motivations.
Widespread Tariff Threats and Impositions: Articles confirm the imposition or threat of significant tariffs across various countries. Specific rates mentioned include 35% on Canada, 50% on Brazil, and a potential 200% on Indian pharmaceutical products.
Global Uncertainty and Economic Impact: The policies are creating considerable uncertainty for international commerce, hindering planning for businesses and countries. The New York Times calls this uncertainty “poison” for the global economy, while The Wall Street Journal discusses its potential to muddy the inflation outlook and delay interest rate cuts.
Mixed Market Reactions: While some articles report initial stock market drops following tariff announcements, others note a degree of investor complacency. CNN describes investors as “increasingly nonchalant” and embracing the “TACO trade” (Trump Always Chickens Out), while NBC News points out that despite record highs, the market experienced a rapid 20% drop after earlier tariffs.

Unique Highlights

The New York Times uniquely details the precariousness of negotiations with the European Union, mentioning their readiness with $100 billion in retaliatory tariffs targeting specific “red states.” It also provides in-depth reporting on the contested “deal” with Vietnam, stating that Vietnamese officials had not agreed to Trump’s announced terms and that he renegotiated mid-call, surprising both sides.
CNN offers specific financial market details, including the daily performance of the Dow, S&P 500, and Nasdaq, and discusses the concept of the “TACO trade” (Trump always chickens out) to describe investor sentiment. It also highlights the broader market context, such as the start of earnings season, strong economic data, and the surge in AI/tech stocks like Nvidia reaching a $4 trillion market value, along with Bitcoin’s record highs.
NBC News includes direct quotes from President Trump dismissing inflation concerns and expressing indifference to Hasbro’s warnings about rising toy prices. It also uniquely reports on President Trump’s comments regarding the Russia-Ukraine war, including a purported “new deal” where NATO would pay 100% for U.S. weapons sent to Ukraine, and details of the “One Big Beautiful Bill Act” and Democratic reactions to it.
Fox Business provides direct excerpts from President Trump’s letter to Canadian Prime Minister Mark Carney, explicitly linking the 35% tariff to Canada’s alleged failure to stop fentanyl flow and its retaliatory tariffs. It also mentions President Trump’s offer to waive tariffs if Canada manufactures products within the U.S. and highlights Canada’s “extraordinary Tariffs” on dairy farmers.
The Washington Post directly refutes President Trump’s claims about fentanyl flow from Canada, citing U.S. Customs and Border Protection data that “less than 1 percent of fentanyl seized at or near U.S. land borders in the 2024 fiscal year came from Canada.” It also details Canada’s efforts to mollify Trump, including a $950 million border security plan and the appointment of a “Fentanyl Czar.”
The Wall Street Journal uniquely focuses on the monetary policy implications, quoting Chicago Fed President Austan Goolsbee on how tariffs “muddied the inflation outlook” and could delay interest rate cuts. It also mentions the White House’s pressure on Federal Reserve Chair Jerome Powell regarding cost overruns at the Fed’s D.C. headquarters.
The Wall Street Journal provides a historical and legal context for President Trump’s tariff use, explaining how it breaks from post-World War II global economic precedent (GATT/WTO). It discusses the legal risks, citing a U.S. Court of International Trade ruling against many of Trump’s tariffs and an upcoming appeals court case. It also quotes Senator Rand Paul criticizing the chaotic nature of the policies.

Contrasting Details

Market Reaction to Tariffs:
- CNN suggests a growing “complacency” among investors, noting that global stock markets had “largely shrugged off Trump’s tariff threats this week” and that losses from the Canadian tariff were “relatively contained” compared to earlier turmoil.
- NBC News, while acknowledging the S&P 500 closed at a record high on Thursday, contrasts this by stating that after President Trump’s initial global tariffs on April 2, the S&P 500 experienced “one of its fastest 20% drops on record.” This highlights a significant difference in market volatility between different phases of tariff announcements.
- The Wall Street Journal (Tariff Threats) notes that anxiety about tariff-driven price increases “calmed substantially” after President Trump paused tariffs in April, leading the Federal Reserve to consider easing rates, implying a period of market calm before the latest threats.
Justification for Tariffs on Canada:
- Fox Business states that President Trump’s letter explicitly blames Canada’s “failure to stop the drugs [fentanyl] from pouring into our Country” as a direct reason for the 35% tariff.
- The Washington Post directly contradicts this justification, stating that “There is little evidence to support Trump’s claim that traffickers are smuggling significant amounts of fentanyl across the northern border,” and citing U.S. Customs and Border Protection data that “Less than 1 percent of fentanyl seized at or near U.S. land borders in the 2024 fiscal year came from Canada.” The Washington Post also points out that President Trump has offered other, sometimes contradictory, justifications, such as the trade deficit and dairy tariffs.
Impact on Inflation:
- NBC News quotes President Trump dismissing inflation worries, stating, “If you look at the numbers, inflation’s gone down,” and expressing that he does not “care about their prices” in response to warnings from Hasbro’s CEO.
- The Wall Street Journal (Tariff Threats) presents a contrasting view from Chicago Fed President Austan Goolsbee, who indicates that the latest tariffs “have further muddied the inflation outlook” and “could spark fresh concerns about inflation,” potentially forcing the Federal Reserve to delay interest rate cuts.

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