Evelyn Reynolds

“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump wrote on social media platform Truth Social.
Some of the steepest duties include Syria’s 41%, and Laos and Myanmar’s 40% rate, while Switzerland — after being unsuccessful in a last-minute scramble for a deal — is facing 39% tariffs.

U.S. President Donald Trump’s so-called “reciprocal” tariffs took effect on Thursday, imposing higher duties on many of the country’s trading partners’ exports to the U.S.
“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump wrote on social media platform Truth Social.

In an earlier post Trump had said the tariffs were targeting “COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS.”

India’s $434 billion merchandise exports engine: What’s at stake as Trump doubles tariffs to 50%

Trump last week — ahead of his Aug. 1 tariffs deadline — rejigged the tariff rates and pushed back the deadline to Aug. 7.
Some of the steepest duties include Syria’s 41%, and Laos and Myanmar’s 40% rate, while Switzerland — after being unsuccessful in a last-minute scramble for a deal — is facing 39% tariffs.
Swiss negotiators this week travelled to Washington D.C. for talks after the country’s higher rate came as a surprise to many, but so far, no deal appears to have been agreed. An update is expected from the Swiss government later on Thursday.

Switzerland is in a uniquely difficult position when it comes to tariffs. Here’s why

Separately, Brazil and India are both now facing duties of 50%. While Brazil’s tariffs appear to have kicked in, India’s rate is at 25% for now, and will rise to 50% later this month, according to an executive order signed Wednesday. Trump said his tariffs on India are related to its current purchases of Russian oil.

Other countries and regions, meanwhile, have been able to strike trade agreements with the U.S. This includes the European Union, Japan and South Korea — which all now face 15% tariffs — as well as the U.K., which negotiated a 10% rate.
Others, including China and Mexico, remain in limbo. China is engaged in something of a trade truce with the U.S. for now, while previously announced rates for Mexico are on pause.

‘This game is not over’

Trump’s latest tariff announcements — including higher duties on India and threats of 100% tariffs on chips — show “this game is not over,” according to Bill Papadakis, macro strategist at Lombard Odier.
“There has been some optimism building recently because the overall level of uncertainty has come down,” he told CNBC’s “Europe Early Edition” on Thursday, pointing out that several deals have been made and Trump has walked back some of his threats.
“But we shouldn’t be overly optimistic either,” he warned, as the impact of tariffs on economic growth and inflation is not yet clear.
Beat Wittmann, chairman and partner at Zurich-based Porta Advisors, noted that sharp duties like the ones faced by India and Switzerland should not come as a surprise.
“You just watch how Trump is treating neighbors, Canada, and then you can imagine all the rest. So welcome to this new world,” he told CNBC’s “Squawk Box Europe.”
Wittmann also weighed in on Switzerland, as it scrambles to lower its tariff rate.
“What should Switzerland do? Realize that we live in a world of policymakers and these other three superpowers — China, EU and the U.S., and all the rest — are in various degrees, takers,” he said.
“So the only thing you can do is short-term accommodate, be flexible, be adaptive. But you know, structurally, you have to become stronger yourself and more independent.” More

In an interview with CNBC on Tuesday, the president likened billions of dollars’ worth of investment in the U.S. — to the “signing bonus” baseball players typically get when they join new teams.
The loquacious president frequently uses business and deal-making terminology during speeches and interviews.

First Lady Melania Trump (C) looks on as U.S. President Donald Trump as he dons his MAGA hat before greeting members of the military and their families during the Military Family Picnic on the South Lawn of the White House in Washington, DC, on July 4, 2025.
Brendan Smialowski | Afp | Getty Images

Say what you like about U.S. President Donald Trump’s leadership style and policies, but he has a way with words.
Trump’s love of deal-making and former career as a real estate magnate are both well-known, with the loquacious president often peppering his speeches and interviews with business-related terminology. Now, he’s turning to the sports world for inspiration when discussing the U.S.’ recent trade deals with global trading partners.

In a Tuesday interview with CNBC, the president likened billions of dollars’ worth of investments in the U.S. — pledged by Europe and Japan as part of their recent trade deals with Washington — to the “signing bonus” baseball players typically get when they join new teams.
“We’re taking in trillions of dollars,” Trump told CNBC’s “Squawk Box,” noting “people love the tariffs, they love the trade deals, and they love that foreign countries aren’t ripping us off anymore.”
“If you look at Japan, we’re taking in $550 billion, and that’s like a signing bonus that a baseball player would get. He would get slightly less than that … But they give a signing bonus of a million dollars, or $2 million or $20 million, or whatever the hell they give today,” he said.
“So I got a signing bonus from Japan of $550 billion. That’s our money. It’s our money to invest, as we like.” He also noted the European Union’s pledge to both invest in the U.S. and  buy $750 billion worth of American energy.

The EU and U.S. announced a trade deal in late July with the agreement bringing import tariffs down to 15%. In addition, Washington said the EU “will purchase $750 billion in U.S. energy and make new investments of $600 billion in the United States, all by 2028.”

No other information was forthcoming on the promised investment, however. When CNBC anchors on Tuesday asked for more clarity, Trump said, “the details are $600 billion to invest in anything I want, anything, I can do anything I want with it.”
Asked what would happen if the investments did not come through, Trump said, “Well, then they pay tariffs at 35%. No, no. They brought down their tariffs.”
Speaking anecdotally, the White House leader said that representatives from other nations had asked why the EU had received a lower levy.
“And I said, ‘Well, because [the EU] gave me $600 billion.’ And that’s a gift — that’s not a loan. There’s nothing to pay back. They gave us $600 billion that we can invest in anything we want.”
Similarly, the U.S.’ trade deal with Tokyo stated emphatically that “Japan will invest $550 billion directed by the United States to rebuild and expand core American industries.”

The White House said the funds will be targeted toward “the revitalization of America’s strategic industrial base,” including energy infrastructure and production, semiconductor manufacturing, critical minerals mining, pharmaceutical and medical production and commercial and defense shipbuilding, as the U.S. looks to reduce its reliance on foreign-made goods, materials and suppliers. More

The Trump administration has hit Syria with the highest tariff rate of any country in the world: 41%.
Just months prior, President Trump had announced the lifting of all U.S. sanctions on the war-torn country.
The tariffs could be a way to pressure Damascus into normalizing relations with Israel, which has been attacking and occupying parts of Syria, one analyst suggested.

U.S. President Donald Trump meets with Syrian President Ahmed al-Sharaa in Riyadh, Saudi Arabia, in this handout released on May 14, 2025.
Saudi Press Agency | Via Reuters

In May, speaking to a rapt crowd in the Ritz-Carlton Riyadh, U.S. President Donald Trump stunned listeners by announcing he would be ordering the full lifting of U.S. sanctions on Syria, many of which had been in place for decades.
“Now, it’s their time to shine … Good luck Syria,” Trump said.

Less than three months later, the Trump administration hit Syria with the highest tariff rate of any country in the world: 41%.
Syria has very little trade with the U.S. because of long-held sanctions, but some trade between the two does exist. In 2023, Syria exported $11.3 million worth of goods to the U.S., according to the Observatory for Economic Complexity, and imported $1.29 million worth of American goods, technically giving the U.S. a trade deficit with the impoverished Middle Eastern country.
Trump says the levies his administration imposes — which were based on a widely criticized calculation applied to each country in April using trade deficit figures — are meant to address trade imbalances. He has not commented specifically on the case of Syria.
But as it faces the specter of rebuilding its devastated state after 13 years of war under a new government with a very shaky hold on power, the country needs all the help it can get, regional analysts say — not further punishment.
“After years of devastating civil war, the country is in urgent need of substantial foreign direct investment to begin the long and difficult process of reconstruction and development,” Giorgio Cafiero, CEO of risk consulting firm Gulf State Analytics, told CNBC.

“While the recent lifting of many U.S., U.K., and EU sanctions was a welcome development for Damascus’ economic ambitions, Washington’s imposition of steep tariffs now threatens to restrict any potential for meaningful trade with the United States.”

A collapsed state

Syria had been designated a state sponsor of terrorism by the U.S. government since 1979. U.S. sanctions were imposed on the country in 2004 and again in 2011, after the regime of then-President Bashar Assad launched a brutal crackdown on anti-government uprisings.
In the roughly 14 years since, the country has been devastated by civil war, sectarian violence and brutal terrorist attacks, with the Islamic State taking over parts of the country in 2014 and a subsequent Western-led bombing campaign to eradicate the extremist group.

A drone view shows Damascus city, after fighters of the ruling Syrian body ousted Syria’s Bashar al-Assad, Syria, December 13, 2024. 
Yosri Aljamal | Reuters

The toppling of the Assad regime during a shock offensive by anti-Assad militia groups in December 2024 stunned the global community and brought about the prospect of a new beginning for the devastated country. Syria’s new President Ahmed al-Sharaa — a former al-Qaeda member who describes himself as reformed — currently leads the country’s transitional government.
Syria remained under myriad international sanctions, but those imposed by the U.S. were the most severe, as they applied to third parties as well, deterring other countries and groups from transacting with the country.
Most recently, since Trump’s official lifting of sanctions in June, Syria has hosted delegations from several countries including the U.S. and wealthy Gulf states pledging support and investment for reconstruction. At the same time, it’s been beset by outbursts of sectarian violence in different parts of the country and volleys of Israeli bombings.
More than two-thirds of Syria’s electricity grid is non-functional, according to aid organizations, with major cities like Aleppo and Damascus facing blackouts for more than 20 hours a day. In many rural and conflict-ridden areas, there is no power at all. 
“This isn’t an economy that is struggling as much as it’s an economy that seems to be almost constantly over the last few months, on the verge of collapse, unless very active steps are taken in order to buttress it and give it a chance to recover,” said H.A. Hellyer, a senior fellow at the Royal United Services Institute in London.
“So any step that deviates from that, I think, is very dangerous.”
Qatar recently announced a project by which its development fund will purchase gas and provide it to Syria — transported via Azerbaijan and Turkey — to support more than 5 million people, with the expectation of improving daily power supply by as much as 40%.
Fahad Al-Sulaiti, the director general of Qatar Fund for Development, described how Damascus will need to lean heavily on aid from Qatar, Saudi Arabia, and the United Nations — particularly now that tariffs will harm the possibility of developing beneficial trade ties with the U.S. He also said Qatar was in close contact with the U.S. government to enable support for Syria.
“We work very closely with our partners in the United States. That’s why from day one … we work very close with the Treasury Department … we’re taking with them to create a good economic system,” Al-Sulaiti told CNBC.

A ‘leash’ on Syria’s new government?

Economic observers note that the 41% tariff itself will have little actual impact on Syria’s devastated economy, since bilateral trade between the two countries is so negligible.
“But the symbolism behind this decision carries far greater weight than the trade figures suggest,” Cafiero said.
“The fact that Syria was singled out for the highest tariffs — even after the easing of most sanctions — sends a clear and calculated message from the Trump administration: Washington is willing to loosen its economic grip on a post-regime change Syria, but only under conditions defined by the White House.”

One interpretation, Cafiero suggested, is that the tariffs could be a way to pressure Damascus into normalizing relations with Israel, which has been attacking and occupying parts of Syria.
“In this sense,” he said, “the economic policy resembles a kind of ‘leash,’ designed to be adjusted in response to the political behavior of the al-Sharaa government and broader developments on the ground.”
Security analysts warn that instability in parts of the country could tip it back into outright war and far greater humanitarian crisis if it does not get the support — economic, humanitarian and diplomatic — that it needs.
U.S. envoy to Syria, Tom Barrack, has expressed his and Washington’s full support for Syria and the Al Sharaa government, and recently announced U.S. and Qatari-backed investment initiatives into the country.
It is not clear whether he supports his administration’s imposition of tariffs on the country; the State Department and White House did not respond to CNBC requests for comment.
Ultimately, the tariffs themselves may have limited immediate economic consequences, but “their psychological and diplomatic impact should not be underestimated,” Cafiero cautioned. “My read is that they reflect Washington’s intent to retain leverage over Syria’s future.” More

U.S. President Donald Trump said Tuesday that Russia’s economy “stinks” and lower oil prices will hammer Russia’s war machine.
The comments come as relations between Moscow and Washington hit a low ebb.
Russia’s economy has labored under the weight of international sanctions as well as homegrown pressures, also largely resulting from war, such as rampant inflation and high food and production costs

(COMBO) This combination of pictures created on February 21, 2020 shows US President Donald Trump delivers remarks at a Keep America Great rally in Phoenix, Arizona, on February 19, 2020. Russian President Vladimir Putin delivers a speech during a ceremony in Jerusalem on January 23, 2020 commemorating the people of Leningrad during the Second World War Nazi siege on the city.
Jim Watson | Afp | Getty Images

The rift between Moscow and Washington looks set to deepen after U.S. President Donald Trump said Tuesday that Russia’s economy “stinks” and that lower oil prices will hammer President Vladimir Putin’s oil-funded war machine.
“Putin will stop killing people if you get energy down another $10 a barrel. He’s going to have no choice because his economy stinks,” the president told CNBC’s “Squawk Box.” on Tuesday.

The comments come after relations between Moscow and Washington, which remained cordial at the start of Trump’s second term in office despite the ongoing war, soured in recent weeks.
Trump has appeared to lose patience with Putin given Russia’s apparent reluctance to pursue a ceasefire or peace deal with Ukraine. Last Monday, the president said he was cutting from 50 days to less than two weeks his deadline for Putin to reach a peace deal with Ukraine or face big “secondary tariffs” on Moscow’s trade partners.
That prompted former Russian President and high-ranking Russian official Dmitry Medvedev to respond on social media that each new ultimatum that Trump makes about Russia to force an end to its war on Ukraine “is a threat and a step towards war.”
“Not between Russia and Ukraine, but with his own country,” Medvedev wrote on X. Trump said Friday that he had ordered two nuclear submarines “to be positioned in the appropriate regions” in response to Medvedev’s comments.
Russia, one of the world’s top oil exporters, has used revenues from oil exports to largely fund its war machine in Ukraine, which it invaded in 2022. Ukraine’s Western partners have used sanctions and restrictions to try to stifle those revenues, but countries like India and China have continued to buy discounted Russian crude.

This has infuriated Trump and he has, in the last few days, threatened India with steep tariffs if it does not stop buying Russian oil. The president threatened a 25% duty on Indian exports, as well as an unspecified “penalty” last week, accusing New Delhi of buying discounted Russian oil and “selling it on the Open Market for big profits.”
On Tuesday, Trump told CNBC that the tariff threshold could be hiked above 25% in the next 24 hours.
“India has not been a good trading partner … so we settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil, they’re fueling the war machine, and if they’re going to do that, I’m not going to be happy,” Trump said.
Russia earlier Tuesday weighed into the spat, with the Kremlin saying that India was free to choose its own trading partners and that Trump’s tariff threats were “attempts to force countries to stop trade relations with Russia.”
“We do not consider such statements to be legitimate,” Kremlin press secretary Dmitry Peskov continued, speaking to reporters Tuesday.
“We believe that sovereign countries should have, and have the right to choose their own trade partners, partners in trade and economic cooperation. And to choose those trade and economic cooperation regimes that are in the interests of a particular country.”

Oil prices declined to around the mid-$65 a barrel mark on Tuesday as traders assessed the announcement by OPEC and its oil-producing allies on Sunday that they would hike output, amid potential weaker global demand.
After Trump’s comments on Tuesday, Brent crude futures were down 83 cents, or 1.2%, to $67.92 a barrel, while U.S. West Texas Intermediate crude slipped 87 cents to $65.41.
Meanwhile, dark clouds certainly appear to be gathering on the horizon when it comes to Russia’s war-focused economy. It has labored under the weight of international sanctions as well as homegrown pressures, also largely resulting from war, such as rampant inflation and high food and production costs that even Putin described as “alarming.” Russia’s Economic Development Ministry also predicts that economic growth will slow from 4.3% in 2024 to 2.5% this year. More

Switzerland is facing potential U.S. tariffs of 39% if a deal is not struck by Thursday.
Consumers will mostly be familiar with the Alpine country’s high-end products, from Rolex watches to premium beauty products.
Chocolate and coffee are among the other products likely to see price hikes.

Premium collection of dark, milk and white chocolates.
Anna Kurzaeva | Moment | Getty Images

U.S. buyers of Swiss products, from luxury watches and skincare to artisan chocolates, could soon face sharp price rises if negotiators are unable to strike a deal to avert 39% tariffs due to come into effect on Thursday.
The announcement last week that Switzerland faces one of the highest U.S. tariff rates in the world stunned many politicians, analysts and businesses, who had thought the country was close to negotiating a deal similar to those of the European Union and U.K., which got baseline rates of 15% and 10% respectively.

The U.S. has a hefty trade deficit with Switzerland, totaling $38.3 billion in 2024. The Swiss government points out that the gap is in part because of the latter’s status as the world’s biggest center of gold refining, with huge quantities of the precious metal passing through the country for processing before it is sent around the world. Both gold and silver were exempted from the White House’s “reciprocal tariff” policy launched in April.
The U.S. is also a major importer of Swiss pharmaceuticals, an industry that has been mired in confusion over the tariff rates it will face, and medical devices. Pharma products are currently exempt from the 39% levies, though sector-specific tariffs may yet come under the U.S.’s separate Section 232 investigation.
But consumers will mostly be familiar with the Alpine country’s high-end products, from Rolex watches to premium skincare and beauty products. Sales could be rocked if the 39% tariffs remain in place for an extended period — something Swiss negotiators are currently scrambling to avoid, as economists warn of a massive hit to growth, jobs and stocks.

Watches

The U.S. was the biggest overseas market for Swiss watches in 2024, with exports totaling 4.37 billion Swiss francs ($5.4 billion), according to the Federation of the Swiss Watch Industry.
To qualify as Swiss-made, at least 60% of a watch’s production cost must be Swiss-based, while its technical development must be conducted in the country.

“Swiss watches have long been a cornerstone of the U.S. market, and a 39% tariff would be a real shake-up,” Paul Altieri, founder and CEO of online resale platform Bob’s Watches, told CNBC.
“Suddenly, every import would carry a hefty extra cost, and dealers would face tough choices — absorb the tariff, eat into margins, or pass it on to customers. You’d likely see longer lead times as brands and retailers realign logistics, and higher sticker prices across the board.” The retail price of a Rolex Submariner could jump from $10,000 to nearly $14,000, he noted.
For Swiss watch businesses, a 39% tariff would be “devastating,” Jean-Philippe Bertschy, head of Swiss equity research at Vontobel, told CNBC’s “Squawk Box Europe” on Tuesday.

“They increased the prices already in spring by an average of 5 to 10%, I think another hit will be quite difficult for the U.S. consumer for sure, especially for the entry into the mid-segment level.” In a research note, Vontobel flagged Swatch as vulnerable to a tariff hit, with shares falling 2.3% on Monday.
“For the luxury watches, for the brands like Rolex, Patek Philippe and Audemars Piguet, you have some long waiting lists. So I think it’s going to be more comfortable for these companies to increase the prices,” Bertschy continued.
“You have very limited measures to take. You can, of course, increase efficiencies and to try to do some other measures to counter U.S. tariffs, but overall, very challenging for the industry.”

Coffee

Consumer goods giant Nestlé is one of Switzerland’s biggest firms. The company says that it faces a minimal direct impact from tariffs because it produces more than 90% of what it sells in the U.S. locally.
That’s generally the case for consumer staples such as instant coffee or bottled water which are high-volume, low-ticket items, James Edwardes Jones, managing director of consumer research at RBC Capital Markets, told CNBC’s “Squawk Box Europe.”
Its popular Nespresso coffee brand, known for at-home coffee machines and capsule pods, could, however, be among those goods exposed to higher rates and therefore price hikes.
“In Nestle’s case specifically, Nespresso is all manufactured in Switzerland and then exported around the world, so it seems likely that will be caught in a small way,” Edwardes Jones added.
Nestle did not immediately respond to CNBC’s request for comment on the impact of Swiss levies. The company does not specify the level of its U.S. sales for Nespresso, but its half-year results showed North America grew at a “strong double-digit rate.”

Skincare

Switzerland’s world-renowned beauty and skincare products could also be subject to price hikes as brands not included in a pharmaceutical tariff exemption look to offset higher import costs.
That could be most notable for companies that pride themselves on Swiss production, such as caviar-based anti-aging skincare brand La Prairie, spa supplier Valmont and nail care business Mavala, none of which responded to CNBC’s request for comment.
“While Swiss firms can generally weather a 10-15% tariff without major margin erosion or demand loss, 39% sets the bar much higher,” Lombard Odier said in a Monday note.
Lausanne-headquartered Galderma, whose products include injectable aesthetics and Cetaphil facewash, meanwhile, said that it does not produce in Switzerland and is currently largely excluded from global tariffs under pharma exemptions.
However, its large production capacity in the European Union, U.K. and Canada could be subject to higher levies, potentially hitting consumer costs.

Luxury

Higher import duties are also seen pushing up the price of luxury goods, including Richemont-owned high-end jewelry brands Cartier and Van Cleef & Arpels.
BofA Securities said in a note Tuesday that 7% of Richemont’s input costs would be exposed to higher Swiss tariffs, likely adding to higher consumer prices. “Price increases would be the most obvious way to mitigate the headwind,” the analysts wrote.

Cartier, a unit of Cie. Richemont SA, luxury watches sit on display in a store front.
Bloomberg | Getty Images

Richemont did not respond to CNBC’s request for comment on the 39% rate, however it flagged in its first-quarter earnings that tariffs could lead to “increased prices,” which could impact consumer demand.
Lombard Odier noted that a “small fraction” of luxury exports could see demand for their products increase with price, but broadly price hikes were set to hurt consumer demand.

Chocolate

Roger Wehrli, director of Swiss chocolatiers’ manufacturing association Chocosuisse, said a 39% tariff rate would be passed on via prices and cause a steep loss of U.S. business for many of the group’s members. The recent appreciation of the Swiss franc against the U.S. dollar, which causes imports to become more expensive, means the effective price increase would be closer to 55%, he noted.
The main impact will be on small- and medium-sized businesses that are unable to utilize U.S. production sites like big multinationals can, Wehrli said. Industry juggernauts Lindt & Sprüngli and Barry Callebaut already have factories stateside, while smaller Chocosuisse members such as Camille Bloch and Läderach produce exclusively in Switzerland.
“There’s another specific problem with producing in the United States,” Wehrli continued.
“If you want to label your chocolate as Swiss then it has to be produced in Switzerland. That’s a quality sign in the international market, so you will more or less lose your customers if it’s not Swiss origin anymore,” Wehrli told CNBC.
These rules of origin forced Toblerone, owned by U.S. group Mondelez International, to change its packaging in 2023 to refer to itself as being “established in Switzerland” rather than “Swiss chocolate” after it moved some of its production from the Swiss capital Bern to Slovakia. CNBC has contacted Mondelez for comment on the impact of tariffs on Toblerone in the U.S. More

President Donald Trump told CNBC that he has narrowed the field of potential Fed chairs to four candidates, a list that does not include Treasury Secretary Scott Bessent, who has taken himself out of contention.
Among the likely candidates remaining are former Governor Kevin Warsh and Kevin Hassett, the National Economic Council director and a key Trump advisor. Both have advocated for lower rates.

President Donald Trump told CNBC on Tuesday that he has narrowed the field of potential future Federal Reserve chairs to four candidates, a list that does not include Treasury Secretary Scott Bessent.
While the president did not disclose who is in contention, he revealed that Bessent, previously considered a leading candidate, has taken himself out of contention.

“Well, I love Scott, but he wants to stay where he is,” Trump said during a “Squawk Box” interview. “I asked him just last night, ‘Is this something you want?’ [Bessent said], ‘Nope, I want to stay where I am. He actually said, ‘I want to work with you.’ It’s such an honor. I said, ‘That’s very nice. I appreciate that.'”
The news follows Fed Governor Adriana Kugler’s surprise announcement Friday that she is resigning effective this Friday. The move allows Trump to install another of his appointees to the Fed Board of Governors at a time when the White House is aggressively pushing the central bank to lower interest rates.
Among the likely candidates remaining are former Governor Kevin Warsh and Kevin Hassett, the National Economic Council director and a key Trump advisor. Both have advocated for lower rates. Fed Governor Christopher Waller also is thought to be in the running.
“Both Kevins are very good, and there are other people that are very good, too,” Trump said, adding that Kugler’s resignation “was a pleasant surprise.”
Current Chair Jerome Powell’s term ends in May 2026. He has been a frequent target of Trump’s criticism, and there has been speculation that the president would name a “shadow chair” who could help undermine Powell until his term expires. Trump did not commit to taking that approach but conceded that it is “a possibility.”

Trump nominated Powell for the Fed job in 2017, during his first term as president. The Senate then confirmed Powell the following February. Trump alleged Tuesday that Powell told him, “Sir, I’ll keep interest rates so low. I’m a low interest rate person.”
The Fed last week voted to hold its benchmark interest rate steady in a range between 4.25%-4.5%. Markets expect the Fed to approve its next cut in September. The central bank lowered its policy rate a full percentage point from September through December 2024, moves that Trump has said were politically motivated to help Democratic presidential nominee Kamala Harris.
Click here to watch the CNBC TV livestream. More

Russia on Tuesday commented on the growing dispute between the U.S. and India over purchases of Russian oil.
Trump’s tariff threats were “attempts to force countries to stop trade relations with Russia,” the Kremlin said.
India and Russia’s trade relationship has grown since the invasion of Ukraine in 2022.

Russia’s President Vladimir Putin bids farewell to India’s Prime Minister Narendra Modi following their meeting at the Kremlin in Moscow, Russia July 9, 2024. 
Gavriil Grigorov | Via Reuters

Russia on Tuesday weighed into the growing spat between India and the U.S., with the Kremlin saying New Delhi is free to choose its own trading partners.
Washington and India’s leadership are at loggerheads over imports of Russian oil, with U.S. President Donald Trump threatening New Delhi with much steeper tariffs if it continues to purchase the commodity from Russia.

The Kremlin, an important trading partner of India’s and one which had stayed silent as the spat erupted in the last few days, commented Tuesday that Trump’s tariff threats are “attempts to force countries to stop trade relations with Russia.”
“We do not consider such statements to be legitimate,” Kremlin Press Secretary Dmitry Peskov continued, speaking to reporters Tuesday.
“We believe that sovereign countries should have, and have the right to choose their own trade partners, partners in trade and economic cooperation. And to choose those trade and economic cooperation regimes that are in the interests of a particular country.”
The dispute between Trump and New Delhi is being closely watched by investors after Trump threatened on Monday that he would be “substantially raising” the tariffs on India, although he did not specify the level of the higher tariffs. The president had threatened a 25% duty on Indian exports, as well as an unspecified “penalty” last week.
He also accused India of buying discounted Russian oil and “selling it on the Open Market for big profits.”

On Tuesday, Trump told CNBC’s “Squawk Box” that the tariff threshold could be hiked above 25% in the next 24 hours.
“India has not been a good trading partner … so we settled on 25%, but I think I’m going to raise that very substantially over the next 24 hours, because they’re buying Russian oil, they’re fueling the war machine, and if they’re going to do that, I’m not going to be happy,” Trump said.

India hit back at the U.S. later on Monday, accusing it and the European Union of hypocrisy.
“It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them],” the foreign ministry said in a statement.
Western countries have used sanctions and import restrictions as a way to stifle Moscow’s oil export-generated revenues that fund its war machine against Ukraine. However, some of Russia’s trading partners, particularly India and China, have continued their purchases of discounted Russian crude that their economies largely rely on.
India and Russia’s trade relationship has grown since the invasion of Ukraine in 2022; Russia became India’s leading oil supplier after the war began, with imports increasing from just under 100,000 barrels per day before the invasion — 2.5% of total imports — to more than 1.8 million barrels per day in 2023 — 39% of overall imports, the U.S. Energy Information Administration said earlier this year.
— CNBC’s Lim Hui Jie contributed reporting to this story. More