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.
San José, CA – On Thursday, July 31, President Trump tweeted that he would be imposing new tariffs, or taxes, on the $300 billion of Chinese goods not covered by his 25% tariffs. U.S. stocks took an immediate dive, giving up all of their 300-point gain to drop 280 points for the day. They continued to fall on Friday, leading to the worst week for U.S. stocks all year.
San José, CA – On Tuesday, May 7, the Dow Jones Industrial Average (DJIA) fell almost 500 points, or close to 2%. This came following President Trump’s tweets on Sunday threatening to escalate the trade war with China on Friday if he couldn’t get a trade agreement done. While the U.S. stock market largely shrugged off this news on Monday, statements by his economic advisors convinced investors that his threats are for real.
_Tariffs on an additional $200 billion of Chinese imports includes Christmas lights _
San José, CA – While most Americans won’t have a ‘white Christmas’ this year, many of us will be looking forward to the displays of lights on many homes and businesses. Now the Trump administration’s escalating trade war with China threatens to dim this coming holiday celebrations – or at least make them more expensive.
San José, CA – On June 19, stock markets around the world fell in reaction to U.S. President Trump’s promise to escalate the U.S. trade war with China. The Japanese Nikei index fell almost 2% along with other Asian markets. In Europe, Germany’s export-oriented economy meant its stocks were hit the hardest, with the German DAX index down more than 1%. The world sell-off ended in New York City, with the Dow Jones industrial average down more than 1%, bringing the average to below its starting point for the year.
San José, CA – On Friday, June 15, President Trump signed orders to place tariffs (taxes) on $34 billion of imports from China beginning July 6. The office of the U.S. Trade Representative (USTR) will be imposing tariffs on another $16 billion of imports from China in the near future for a total of $50 billion in imports facing 25% taxes. This represents another turnaround in trade from a few weeks ago, when Trump’s Commerce Secretary Steve Mnuchin said that the trade war was “on hold” after initial negotiation with the Chinese government, which had offered to increase purchases of U.S. goods and further open the Chinese economy to foreign investments.
San José, CA – On Friday, June 1, new U.S. tariffs of 25% on steel and 10% on aluminum imported from Canada, Mexico and the European Union (EU) went into effect. These countries supply about half of U.S. steel imports. All of the countries responded with counter-tariffs on U.S. exports that will start in a month or less. In addition, the other countries are going to be filing suit with the World Trade Organization (WTO), charging that the U.S. reason of “national security” is just a fig leaf to cover U.S. violation of WTO rules.
San José, CA – On March 22, the U.S. stock market staggered with the Dow Jones Industrial Average falling more than 700 points or almost 3%. That day, President Trump had fired an opening salvo of trade restrictions aimed at China by announcing steep tariffs on $60 billion of imports from China. He promised that this was just the first of many restrictions on Chinese goods in what could be a new trade war with China.
