In a frenetic 24 hours for the President, Donald Trump has launched fresh tariffs on the US’ trading partners as the US government looks to be marching towards shutdown.
The White House has said it will charge a 10 per cent tariff on foreign softwood lumber and timber, used in a wide variety of building materials, as well as a 25 per cent tariff on kitchen cabinets, vanities and upholstered wooden furniture.
The fresh levy is set to come into effect October 14 and jump to 50 per cent for cabinets and 30 per cent for upholstered furniture on January 1.
US neighbour Canada, which is the biggest lumber exporter to America accounting for 24 per cent in 2024, is likely to be the biggest victim of the fresh tariffs.
The country is already teetering on the edge of recession after its growth figures for the quarter that ended June 30 showed the economy declined 1.6 per cent on an annualised basis
It follows yesterday evening, where the President renewed his threat to impose a 100 per cent tariff on “any and all” films produced outside the USA.
He framed the plans as an effort to “revive” Hollywood but did specify when or how the tariff would be implemented.
On the new lumber tariffs, Trump said the import of wood products into the US “threaten[s] to impair national security,” by eroding the capacity of its domestic industry.
“Because of the state of the United States wood industry, the United States may be unable to meet demands for wood products that are crucial to the national defense and critical infrastructure,” Trump said.
The UK has been among the biggest beneficiaries of the expansion of Hollywood productions beyond the US, generating billions for Britain’s economy. Just last week, Comcast-owned Sky announced the expansion its Studios Elstree business in a £2bn boost to the economy.
The new levy offensive comes as Trump and top Democratic congress members enter a stalemate on a Federal funding package.
The President requires seven Democratic senate votes to pass the bill to keep funding going up until November 20.
Yesterday, Trump hosted a meeting with the Democrats’ House of Representatives and Senate leaders – Hakeem Jefferies and Chuck Schumer – but failed to reach an agreement.
“I think we’re headed to a shutdown,” Trump’s Vice President JD Vance said.
Following the talks Trump took to Truth Social to post an AI-generated video of Jefferies and Schumer, in which the latter is depicted as arguing undocumented immigrants were entitled to free healthcare.
Trump’s turmoil weighs on dollar
The political tension in Washington has weighed on the dollar, with the DXY index – which tracks the dollar against a basket of currencies – tumbling 0.2 per cent to 97.71.
This has led to gold smashing yet another record high closing in on $3,900 after just passing $3,800 yesterday.
AJ Bell investment director Russ Mould said: “Gold continued to glitter amid the uncertainty – touching new record highs above $3,850 per ounce and edging closer to the $4,000 mark.
“The precious metal has doubled in price in two years, driven higher by a cocktail of central bank buying, geopolitical risks and concern about government debt in the developed world.”
Trump also closed the book on another major saga as the President accepted a $24.5m (£18.22m) payout from YouTube following a lawsuit that stemmed from the platform’s suspension of his channel after the January 6 riots.
YouTube had defended its actions, arguing the suspension was for violating rules against inciting violence.
The President has said $22m of the YouTube funds will go towards restoring the National Mall and building a new White House ballroom.
Taking to his TruthSocial platform, Trump hailed the payout as a win for “free speech”, sharing an AI-generated image of Youtube chief Neal Mohan handing him a cheque.
AI-generated image posted to Trump’s TruthSocial.