Trump sets new tariff rates as deadline nears

What happened

President Donald Trump Wednesday announced new tariff rates for South Korea, Brazil and India ahead of his self-imposed Friday deadline for trade deals. He also imposed a 50% tax on the import of copper products and ended an exemption for direct-to-consumer imports worth less than $800.

Citing the economic and inflationary risks of Trump's tariffs, the Federal Reserve Wednesday declined to lower interest rates and cast doubt on expected rate cuts in September.

Who said what

Wednesday's "flurry of trade activity" began with Trump announcing a 25% tax on imports from India plus an added "penalty" for New Delhi's war-funding purchase of Russian oil, The Associated Press said. Shortly after, Trump "slapped a 50% tariff on most Brazilian goods to fight what he has called a 'witch hunt' against former President Jair Bolsonaro," Reuters said, though he "softened the blow by excluding sectors such as aircraft, energy and orange juice," but not coffee or beef. Wednesday evening, Trump said South Korea had agreed to a 15% tariff, down from the 25% it faced under the "reciprocal" tariffs he unveiled in April.

The best thing for the economy would be for Trump to "finish his trade deals with the world so companies can finally figure out how to adjust their supply chains and what their future costs will be," The Wall Street Journal said in an editorial. But that "may be a forlorn hope," given that Trump "views tariffs as an all-purpose diplomatic tool. (See his 50% tariff on Brazil because it is prosecuting his friend.)"

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What next?

Following Wednesday's "dizzying series" of trade moves, the White House confirmed that Trump plans to sign executive orders today sharply raising tariffs on dozens of countries that have not reached deals, Politico said. And "unlike with his previous tariff deadlines, the White House insists Trump will follow through this time." As a result of the higher tariff costs, The Washington Post said, American consumers — whose "outlook on the economy" is already "the worst it has been in years" — will "see some household staples get pricier in the coming days."