Several major retailers will report earnings in the coming week, which may give a first glimpse into how President Trump’s tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe’s Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST).
During Walmart’s first-quarter earnings call, CEO Doug McMillon said the tariffs would result in higher prices, but didn’t elaborate. A few days later, Trump posted to Truth Social that the company should “eat the tariffs” and not blame them for raising prices. This week’s earnings reports should show how much Walmart and the other retailers have fared.
On Friday, Trump said he would unveil tariffs on semiconductor imports over the next couple of weeks as he prepares to expand his tariff agenda to different sectors.
“I’ll be setting tariffs next week and the week after on … chips — chips and semiconductors,” he told reporters.
Trump has already suggested he could set tariffs on chip imports around 100%. On Friday, he floated an even bigger number. “I’m going to have a rate that is going to be 200%, 300%,” he said.
The president has also promised duties on pharmaceutical imports in the near future.
Tariffs have starting to show up in economic data for the first time in a significant way. Wholesale inflation surged in July, rising by its fastest pace in around three years and stunning market observers.
So far, inflation data has shown little impact since Trump began rolling out sweeping duties in the spring. But as the tariffs become more engrained in the US economy, economists expect more data points to align with the Producer Price Index report — perhaps most notably in next month’s Consumer Price Index.
Earlier this month, Trump unveiled “reciprocal” tariffs on dozens of US trade partners (which you can see in the graphic below).
The next negotiations to watch are Canada, Mexico, and China in the coming months.
The tariffs are also facing legal limbo. Multiple challenges to Trump’s tariffs are pending in US federal courts. The one garnering the most attention is a case heard by an appeals court in July. The Court could nullify or uphold the duties at any time.
Here are the latest updates as the policy reverberates around the world.
LIVE1687 updates
Candidates at Iowa State Fair hear from voters about Trump tariffs
(Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump’s tax law, shot on a John Deere tractor under the blazing August sun.
In it, Nunn, one of the nation’s most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child’s speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill’s provisions temporarily cutting taxes on tips and overtime.
Economic issues — namely, Trump’s tax package and his tariff war with countries that buy much of Iowa’s agricultural products — will be front and center in Nunn’s race, and he’s eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa’s two swing districts as must-wins in their push to take back the House majority.
Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually “costs.”
Tariffs’ impact on Walmart, other retailers’ earnings about to come into focus
Several major retailers will report earnings this week, which may give a first glimpse into how President Trump’s tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe’s Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST).
The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs’ impact, with a particular focus on Walmart, The Street reminds us:
Trump’s trade war not likely to cause recession, Moody’s economist says
Economist Justin Begley of Moody’s Analytics tells USA Today that President Trump’s economic policies won’t cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn’t in stagflation yet, Begley said, “but it’s edging that way,” he adds:
Commerce department applies 50% steel, aluminum tariffs to more products
(Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies.
In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products.
The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said.
The levies on the goods on the expanded list go into effect on August 18.
Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump’s trade policies.
Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan’s survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July.
“Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused,” Joanne Hsu, the university’s Surveys of Consumers director, wrote. “However, consumers continue to expect both inflation and unemployment to deteriorate in the future.”
Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan’s Consumer Sentiment Index fell to 58.6 from 61.7 a month ago.
President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%.
Applied Materials’ shares sink on weak China demand, tariff risks
Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks.
China’s economy lags in July under pressure from tariffs and a weak property market
China’s economy lagged in July as factory output and retails sales slowed and house prices dropped, according to data released on Friday. President Trump’s tariffs have added to uncertainty on exports and are looming over the world’s second-largest economy. Concerns linger despite Trump extending a pause in sharp hikes in import duties for 90 days, beginning Monday, following a 90-day pause that began in May.
An interesting spot from this week’s inflation data: Prices for the reliable, potassium-heavy banana have jumped to their highest price ever recorded.
Banana prices peaked around $0.64 per pound in the post-COVID inflation wave and then went on a slow downward trajectory. That is, until April 2025, when President Trump announced his first wave of sweeping tariffs. Prices are now hovering near $0.66 per pound.
As the Yale Budget Lab chief Ernie Tedeschi noted on X, the average tariff rate on banana imports went from virtually nothing to very much something as Trump imposed tariffs on most US trading partners.
That’s nuts!
Tapestry forecasts annual profit below estimates on tariff pain
Tapestry (TPR) stock fell 8% before the bell on Thursday after the Coach handbag maker forecast annual profit below estimates. The company cited higher costs due to tariffs that have hit its margins.
Tariff confusion drives record volume at Los Angeles Port
(Bloomberg) — The Port of Los Angeles said it handled the highest container volume in its 117-year history last month, as uncertainty over President Donald Trump’s tariffs drives shippers to front-load cargoes.
Already the busiest port in the country, LA moved more than 1 million twenty-foot equivalent units (TEUs) in July, an 8.5% increase from a year ago, the operator said on Wednesday. That includes containers entering and exiting its terminals, with loaded imports rising by a similar percentage to nearly 544,000 TEUs. The total volume handled was 14.2% higher than in June.
Pharma tariffs are likely weeks away, Reuters reports
US tariffs on pharmaceutical imports are coming but not imminent, Reuters reported Wednesday, citing unnamed sources. Trump has previously warned duties on the drug industry could reach as much as 250%.
Swiss say tariffs could raise costs for US F-35A jets
The original price of the 36 fighter jets Switzerland is buying from the United States could go up by more than $1 billion due to the impacts of tariffs.
AI boom could help manufacturers adapt to global tariff landscape
Mark Bendeich of Reuters details how the confluence of supply chain disruption from Trump’s tariff policy and the rise of AI software solutions is leading to increased innovation among manufacturers.
Richard Howells, SAP vice president and supply chain specialist, emphasized that the uncertainty surrouding Trump’s trade policy is driving the technology push.
“That’s how it was during the financial crisis, Brexit and COVID,” Howells stated. “And it’s what we’re seeing now.”
GE Appliances to invest over $3B in US, moving from China and Mexico
GE Appliances will move production of its refrigerators, gas ranges and water heaters from China and Mexico, investing over $3 billion to expand plans in five US states.
