Tariff gambit shifts to August. Then what?
ING THINK aloud10 Juli 2025

Tariff gambit shifts to August. Then what?

President Donald Trump this week delayed the planned 9 July tariff hikes on US imports, notifying 22 countries that rates could rise as much as 50% on 1 August.

The White House had paused these measures for 90 days to pursue trade deals, but since Trump’s so-called Liberation Day announcement on 2 April, only three agreements have been reached.

ING’s Inga Fechner says the new deadline, which Trump has described as firm, but not 100% firm, prolongs the uncertainty for business and consumers around the world. James Knightley says this is weighing on US economic growth - with GDP forecasts for 2025 markedly lower than at the start of the year.

For now at least, markets are taking the news in stride, having recovered from the extreme volatility seen in April. But Padhraic Garvey says tariff-induced inflation and worries about fiscal sustainability present a difficult backdrop for US Treasuries.

In this week’s THINK aloud, a replay of our live webinar, we look at the future of so-called reciprocal tariffs, potential sector-specific tariffs, the legal uncertainties ahead, the threat of retaliation and the broader impact on the global economy and financial markets.

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