Everyday Americans will foot the bill for 60% of the cost of Trump’s tariffs, bank warns: Live updates

President Donald Trump‘s plans for 100% tariffs on computer chips that aren’t made in the U.S. are stoking confusion among businesses and trading partners — boosting stocks for leading semiconductor companies while leaving smaller producers scrambling to understand the implications.

The U.S. imports a relatively small number of chips because most of the foreign-made chips in a device — from an iPhone to a car — were already assembled into a product, or part of a product, before it landed in the country.

American consumers are now facing the highest tax on imported goods since 1933, with an average levy of 18.6 percent taking effect under President Donald Trump’s tariff policies. This significant increase has been highlighted by the Budget Lab at Yale, a non-partisan policy research centre.

The Budget Lab estimates that the trade war initiated by the U.S. this year will result in short-term price increases of 1.8 percent. This is equivalent to an estimated loss of $2,400 in income for the average American household, according to the group’s findings.

The analysis is based on the effects of all U.S. tariffs and foreign retaliation implemented in 2025 and through Wednesday, including a 50 per cent tariff rate on India.

The Budget Lab’s projections assume that the Federal Reserve will not react to these tariffs, meaning the real income adjustment will primarily occur through increased prices rather than changes in nominal incomes. If the Federal Reserve were to intervene, the group noted, the adjustment could instead manifest as lower nominal incomes.

With reporting from the AP

Russia and India have reaffirmed their commitment to a “strategic partnership” during bilateral security talks in Moscow, a day after President Donald Trump announced higher tariffs on Indian imports. The move by Washington was in response to India’s purchases of Russian oil.

On Thursday, India’s national security adviser, Ajit Doval, met with Sergei Shoigu, secretary of Russia’s Security Council. Both officials emphasised the importance of their countries’ relations.

Doval later met President Vladimir Putin at the Kremlin, with official footage showing the two men shaking hands. Shoigu, Kremlin foreign policy adviser Yuri Ushakov, and India’s Ambassador to Russia, Vinay Kumar, also attended the meeting. Interfax news agency quoted Doval as saying that New Delhi “was looking forward to a visit from President Vladimir Putin by the end of the year.”

The Kremlin did not disclose what they discussed.

With reporting from Reuters

In a conference call with investors on Tuesday to discuss second-quarter earnings, Bourla said, “We have serious discussions in the industry,” according to BioPharma Dive.

How are countries reacting to high tariffs imposed by President Donald Trump?

“There’ll be some supply chain rearrangement. There’ll be a new equilibrium. Prices here will go up, but it’ll take a while for that to show up in a major way,” said William Reinsch, a senior fellow and trade expert at the Center for Strategic and International Studies in Washington.

Countries with punishingly high duties, such as India and Canada, “will continue to scramble around trying to fix this,” he added.

Switzerland’s President Karin Keller-Sutter stated on Thursday that talks with the U.S. would continue after she returned empty-handed from an 11th-hour trip to Washington aimed at preventing the crippling U.S. import tariff on Swiss goods.

A last-minute effort by South Africa to improve its offer in exchange for a lower tariff rate also failed. The trade negotiating teams of both countries will have more discussions, according to South African President Cyril Ramaphosa’s office.

Vietnam announced on Thursday that it would continue talks with the U.S. as it seeks to lower tariffs further, following negotiations that resulted in a reduction from 46% to 20%, down from the duty Trump imposed on imports from the Southeast Asian country in April.

Meanwhile, Brazil’s President Luiz Inacio Lula da Silva told Reuters on Wednesday that he would not humiliate himself by seeking a phone call with Trump, even as he said his government would continue cabinet-level talks to lower a 50% tariff rate.

Indian Prime Minister Narendra Modi also expressed defiance, saying he would not compromise the interests of the country’s farmers.

There were signs that some nations were joining forces to confront Trump, with Brazil’s Lula saying he would call the leaders of India and China to discuss a joint BRICS response to tariffs.

India announced on Wednesday that Modi would visit China for the first time in seven years.

Meera Pandit, J.P. Morgan Asset Management global markets strategist, joined CNBC’s Squawk on the Street to discuss how she expects President Donald Trump’s tariffs could impact profitability, consumer behavior, and more.

She said the bank expects around 60 percent of the costs of tariffs to be passed on to American consumers, while companies retain 40 percent.

Pandit noted that tax cuts could provide a tailwind for consumer and corporate profitability in the coming year. However, she expressed concern about the potential inflationary effects of these policies, influenced by the Federal Reserve’s reaction to the weakening job market and rising goods costs.

Despite a possible shift in inflation trends towards services, growth and inflation are expected to remain linked, potentially keeping inflation elevated in the first half of the next year.

President Donald Trump’s top trade negotiator, Jamieson Greer, said the U.S. was working to reverse decades of policies that had weakened U.S. manufacturing capacity and workforce, and that many other countries shared concerns about macroeconomic imbalances.

“The rules of international trade cannot be a suicide pact,” he wrote in a column published by The New York Times.

“By imposing tariffs to rebalance the trade deficit and negotiating significant reforms that form the basis of a new international system, the United States has shown bold leadership,” Greer said.

Eight major trading partners, accounting for approximately 40% of U.S. trade flows, have reached framework deals for trade and investment concessions with Trump, including the European Union, Japan, and South Korea, which will reduce their base tariff rates to 15%.

Britain won a 10% rate, while Vietnam, Indonesia, Pakistan, and the Philippines secured rate reductions to 19% or 20%.

Spoiler: It’s the U.S. importer who pays a tax on what they buy from overseas, not the foreign exporter.

Commerce Secretary Howard Lutnick said on Thursday he expects the country to collect $50 billion a month in tariff revenues or more — up from $30 billion last month — as higher levies on imports from dozens of countries take effect.

“And then you’re going to get the semiconductors, you’re going to get pharmaceuticals, you’re going to get all sorts of additional tariff money coming in,” Lutnick said in an interview with Fox Business Network.

President Donald Trump’s higher tariffs on imports from dozens of countries took effect on Thursday, raising the average U.S. import duty to its highest in a century, with countries facing tariffs of 10% to 50%.

Much of the cost of the new taxes on imports is expected to be passed on to American consumers.