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Category: Economy
July 16, 2025
Economy

Another Tariff Win as American Industrial Output Surges.

PULSE POINTS

❓WHAT HAPPENED: U.S. industrial production rose significantly more than expected in June, increasing by 0.3 percent month-over-month (MoM), surpassing the anticipated 0.1 percent MoM growth.

👤WHO WAS INVOLVED: The U.S. manufacturing and industrial sectors.

📍WHEN & WHERE: The data reflects industrial activity for June 2025 across the United States.

🎯IMPACT: The data indicates a stronger-than-expected performance in industrial production, with manufacturing output also rising, as President Donald J. Trump’s tariffs—designed to protect American businesses and producers from unfair foreign competition—come into force.

IN FULL

United States industrial production for June increased by 0.3 percent month-over-month, exceeding the expected 0.1 percent growth. Additionally, May’s previously reported 0.2 percent decline was revised upward to unchanged.

Year-over-year, industrial production rose by 0.73 percent, reflecting a steady improvement in the sector’s performance. Manufacturing output also showed positive momentum in June, increasing by 0.1 percent compared to expectations of no growth. This lifted the year-over-year growth in manufacturing output to 0.8 percent. Capacity utilization saw a modest uptick in June, but continues to remain in a broader downtrend, signaling that certain challenges may persist within the industrial space.

The jump in industrial production follows a number of major American companies announcing they are reshoring significant swaths of their production capacity to the United States. In June, Micron Technology announced it would make a $200 billion investment to expand its American chip manufacturing operations. Meanwhile, General Motors (GM) announced plans to invest $4 billion in U.S. plants over the next two years, while also shifting production of two vehicle lines away from Mexico in response to President Trump’s tariff policies, which are designed to stop American jobs from flowing to comparatively low-wage, low-regulation economies, where tariff and non-tariff barriers against U.S. products are often far stiffer than vice versa.

The National Pulse reported earlier on Wednesday that the June Producer Price Index (PPI) data indicated that inflationary pressures remain subdued, with headline and core PPI both printing cooler than expected. Notably, the PPI data further undermines claims by critics of President Donald J. Trump’s tariffs, who claim that the trade duties would accelerate inflation—including embattled Federal Reserve Chairman Jerome Powell.

In addition, Trump’s tariffs have seen record trade duty revenues, while in May, the measures cut the U.S. trade deficit in half.

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July 16, 2025
Economy

Trump Denies He Is Firing Fed Chair Powell, Contradicting GOP Lawmakers.

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump reportedly asked House Republicans whether Federal Reserve Chairman Jerome Powell should be fired, with many in the room expressing support.

👤WHO WAS INVOLVED: President Trump, Federal Reserve Chair Jerome Powell, and House Republicans, including Rep. Anna Paulina Luna (R-FL).

📍WHEN & WHERE: The discussion occurred Tuesday night in the Oval Office during a meeting with House Republicans.

💬KEY QUOTE: “I think he’s terrible. You talk to the guy, it’s like talking to a… nothing. It’s like talking to a chair.” – Donald Trump

🎯IMPACT: A firing would likely trigger legal challenges.

IN FULL

President Donald J. Trump gauged support for a potential move to fire Federal Reserve Chairman Jerome Powell while meeting with a group of congressional Republicans at the White House on Tuesday night. Republican lawmakers, for the most part, are believed to have expressed support for possibly removing Powell, though the specific means of how it would be accomplished remain unclear. “I think he’s terrible. You talk to the guy, it’s like talking to a… nothing. It’s like talking to a chair,” Trump is reported to have said.

Representative Anna Paulina Luna (R-FL) posted on X (formerly Twitter) that she had heard Powell’s firing was imminent. “Hearing Jerome Powell is getting fired! From a very serious source,” she wrote, later adding, “I’m 99% sure firing is imminent.” However, President Trump later said he is “not planning on doing anything” with respect to Powell, despite being “very concerned” about him. Notably, a firing would likely result in legal challenges and could have significant effects on financial markets, which may have dissuaded Trump from removing Powell.

The legal basis for firing a Federal Reserve chairman remains untested, as The Federal Reserve Act stipulates such actions can only be taken “for cause.” The Supreme Court has signaled that it believes that the President “may remove without cause executive officers who exercise [executive power] on his behalf, subject to narrow exceptions,” which could possibly allow for the Federal Reserve chairman’s removal despite congressional restrictions—but the central bank chief could well be deemed a special case, making this a risky approach to ousting him.

Another potential option could be to demote Powell, leaving him in place as a member of the central bank’s Board of Governors while elevating another Fed governor, such as Christopher Waller or Michelle Bowman.

A third path, with groundwork already being laid, would be to build a case for malfesence or ethical breaches on Powell’s part, allowing for his removal “for cause.” The National Pulse reported last week that President Trump named three key figures in his White House to the National Capital Planning Commission, who subsequently announced an investigation into the lavish, over-budget renovations Powell has authorized for the Federal Reserve’s Washington, D.C. headquarters. Should the National Capital Planning Commission uncover malfeasance, this could be used as justification for Powell to be fired.

Trump has repeatedly expressed dissatisfaction with Powell, accusing him of failing to act quickly enough to cut interest rates. However, while President Trump confirmed that he discussed firing Powell with lawmakers while speaking with the press at the White House on Wednesday, he cautioned that he was “more conservative” on the matter than congressional Republicans.

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July 16, 2025
Economy
News

Inflation Stats Beat Forecasters’ Expectations, Undermining Tariff Critics.

PULSE POINTS

❓WHAT HAPPENED: Producer Price Index (PPI) data for June showed cooler-than-expected inflation, with headline and core PPI remaining unchanged month-over-month.

👤WHO WAS INVOLVED: U.S. Bureau of Labor Statistics, economists, and market analysts monitoring inflation trends.

📍WHEN & WHERE: June data released in the United States, reflecting national economic trends.

🎯IMPACT: Inflationary pressures appear to be easing, with energy prices deflating and core PPI cooling, despite critics of President Donald J. Trump’s tariffs repeatedly predicting rises.

IN FULL

The latest Producer Price Index (PPI) data for June indicates that inflationary pressures remain subdued, with headline and core PPI both printing cooler than expected. Month-over-month, both measures were unchanged, falling below the anticipated 0.2 percent increase. This comes despite repeated warnings from critics of President Donald J. Trump’s tariffs that the import levies, designed to shield American producers from unfair foreign competition, would drive inflation up.

Headline PPI increased by 2.3 percent year-over-year, a decline from the revised 2.7 percent in May and below the 2.5 percent forecast. This marks the lowest annual increase since September 2024. Meanwhile, core PPI, which excludes food and energy, dropped to 2.6 percent year-over-year, its lowest level since March 2024.

For services, prices edged down 0.1 percent in June, reversing a 0.4 percent increase in May. Other notable decreases were seen in automobile retailing and airline passenger services.

Tariff critics have repeatedly insisted that President Trump’s import levies would reignite inflation, with Jerome Powell, Chairman of the Federal Reserve, using this as an excuse to delay cutting interest rates. However, the new PPI stats show once again that this “tariff-flation” does not appear to be materializing.

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July 15, 2025
Economy
News

DOGE Cancels Billions in Federal Contracts.

PULSE POINTS

❓WHAT HAPPENED: The Department of Government Efficiency (DOGE) announced it has terminated federal contracts worth up to $2.8 billion, including $407 million in savings from 230 contracts cut last week.

👤WHO WAS INVOLVED: DOGE, established by President Donald J. Trump, along with various federal agencies such as the Department of Health and Human Services (HHS) and the Department of Labor (DOL).

📍WHEN & WHERE: Updates were shared on July 12 via DOGE’s social media and website, with actions spanning across federal agencies nationwide.

🎯IMPACT: DOGE claims its initiatives have saved $190 billion to date, equating to $1,180 per taxpayer, while the Senate debates additional spending cuts.

IN FULL

The Department of Government Efficiency (DOGE) has revealed a significant initiative to cut federal spending, announcing that it has terminated contracts totaling as much as $2.8 billion. According to DOGE’s latest update, published on July 12, a total of 230 contracts were eliminated just last week, generating $407 million in savings.

Among the contracts recently canceled were a U.S. Department of Agriculture project described as a “Mexico sustainable landscapes consultant” and a Treasury Department program involving “mentoring, evaluation, learning specialist services in Haiti.” DOGE posted screenshots of the project descriptions on its official social media platforms to highlight examples of what it deemed unnecessary expenditures.

According to information provided on DOGE’s website, its ongoing work has resulted in estimated savings of approximately $190 billion since its inception. This figure translates to an average of $1,180 saved per taxpayer. The agency’s public database reports that around 11,700 federal contracts and 15,500 grants have been terminated to date, each category contributing roughly $44 billion in cuts. However, there have been some questions as to how legitimate some of these savings were during the period when Elon Musk fronted the agency.

As DOGE continues its cost-cutting mission, broader fiscal policy is also in focus. The U.S. Senate is preparing to vote on a proposed package of spending reductions, which includes a rescission of $9.4 billion from programs related to public broadcasting and foreign aid. President Donald J. Trump has voiced strong support for the plan, particularly targeting taxpayer funding for public media outlets.

“It is very important that all Republicans adhere to my Recissions Bill and, in particular, DEFUND THE CORPORATION FOR PUBLIC BROADCASTING (PBS and NPR), which is worse than CNN & MSDNC put together,” Trump posted on Truth Social. He has warned GOP lawmakers that failure to support the bill may cost them his endorsement.

Despite changes in leadership, including Musk‘s departure in May, who previously served as a special government employee and spokesman for the initiative, DOGE remains active.

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July 15, 2025
William Upton
Economy
TECH

Big Tech Just Made a Half-Billion-Dollar Commitment to U.S. Rare Earth Minerals.

PULSE POINTS

❓WHAT HAPPENED: A $500 million investment in the Mountain Pass, California, rare earth minerals mine has been announced by Apple.

👤WHO WAS INVOLVED: Apple, MP Materials, and the Trump administration.

📍WHEN & WHERE: July 15, 2025, in Mountain Pass, California.

💬KEY QUOTE: “This is a huge win for the President, who has the foresight to make this issue a priority.” — Senior White House official

🎯IMPACT: The agreement is a significant victory for President Donald J. Trump’s America First agenda and could signal Apple is inching away from China.

IN FULL

President Donald J. Trump has scored another major win for his America First agenda, with Apple announcing it is set to commit $500 million to developing the United States’ only current rare earth minerals mine in Mountain Pass, California, operated by MP Materials. The deal also signifies a significant commitment by the U.S. technology sector toward developing domestic supply chains, with other major Silicon Valley players expected to follow Apple’s lead.

Apple’s move comes after the company has been subject to extensive criticism over its business ties to China. Apple has been accused of investing tens of billions of dollars in developing a high-tech workforce for the Chinese Communist Party (CCP).

The agreement will also see Apple invest in two new recycling facilities at MP Materials’ Mountain Pass facility. These facilities will allow rare earth minerals to be re-extracted from electronics and reused in Apple products. One senior White House official told the media, “This is a huge win for the President, who has the foresight to make this issue a priority.”

Meanwhile, the Trump administration has also cleared the way for new rare earth mineral mining operations to commence. Last week, U.S. Energy Secretary Christopher Wright was in Ranchester, Wyoming, to celebrate the opening of the country’s first new rare earth mineral mine in 70 years, which will soon be operational. The Book Mine, operated by Ramaco Resources, is being billed as a key part of the continued decoupling of the U.S. from China.

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July 14, 2025
Economy
News

Trump Tariffs Cut Flood of Chinese Goods Into America.

PULSE POINTS

❓WHAT HAPPENED: China’s exports grew by 5.8 percent in June, up from 4.8 percent in May. However, exports to the U.S. are down 16 percent, as President Donald J. Trump pursues tariff policies intended to support American producers over Chinese exporters.

👤WHO WAS INVOLVED: President Trump, Chinese manufacturers, and global importers.

📍WHEN & WHERE: June 2025, with data released Monday, July 14, 2025, covering global trade activity.

💬KEY QUOTE: “Tariffs are likely to remain high and Chinese manufacturers face growing constraints on their ability to rapidly expand global market share by slashing prices.” – Zichun Huang, Capital Economics.

🎯IMPACT: China’s trade surplus hit $586 billion in the first half of 2025, but auto exports to Europe fell sharply due to higher European Union (EU) tariffs.

IN FULL

China’s export activity surged in June 2025, rising 5.8 percent year-on-year, an acceleration from May’s 4.8 percent increase, driven by a rush of overseas orders ahead of the looming resumption of steep U.S. tariffs set for August. Customs data released Monday also showed a 1.1 percent increase in imports, marking the first such gain this year and indicating a tentative rebound in domestic demand.

However, while overall trade expanded, exports to the United States continued to decline, down 16 percent from a year earlier. “Tariffs are likely to remain high and Chinese manufacturers face growing constraints on their ability to rapidly expand global market share by slashing prices,” said Zichun Huang, an analyst at Capital Economics.

Chinese auto exports to the European Union (EU) also slumped nearly 38 percent, largely due to the bloc imposing higher tariffs on electric vehicles—despite criticizing the Trump administration’s use of tariffs. Auto parts exports also took a hit, falling more than 23 percent.

Some firms are benefiting from the administration’s efforts to make it more expensive to buy from China rather than American manufacturers. Ford, for instance, has adopted a ‘From America, For America’ policy that has boosted quarterly sales.

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July 12, 2025
Lauren Gallagher
Economy
News

Here’s How the ‘Trump Accounts’ for American Children in the One Big Beautiful Bill Act Will Work:

PULSE POINTS

❓WHAT HAPPENED: Starting in July 2026, all U.S. newborns from 2025 to 2028 will receive a $1,000 government-funded account to help with future financial needs. These accounts are similar to hybrid IRAs, allowing investments and contributions from family and employers. When the child turns 18, the account will convert to a traditional IRA, offering tax benefits and growth potential.

👤WHO WAS INVOLVED: U.S. President Donald J. Trump, Ian Berger, an analyst with Ed Slott and Company, and Cheryl Costa, a financial adviser in Framingham, Massachusetts.

📍WHERE & WHEN: United States, 2025-2028

💬KEY QUOTE: “To me, it’s a supercharged IRA.” – Cheryl Costa

🎯IMPACT: Newborns receive a $1,000 investment at birth to kickstart lifelong savings, encouraging early financial planning for families of all incomes. While it won’t cover immediate expenses, it lays the foundation for future wealth, especially when supplemented by additional contributions.

IN FULL

American newborns are eligible to receive $1,000 from the U.S. government starting this year through 2028, according to a provision included in the One Big Beautiful Bill Act. These new ‘Trump Accounts’ are intended to assist families with their children’s financial and economic needs.

The government will provide a one-time contribution of $1,000 to each account for U.S. citizens born between 2025 and 2028 who have been assigned Social Security numbers, aligning with Trump’s current term in office. According to financial experts, they are structured almost like hybrid individual retirement accounts.

There are no income restrictions for this contribution. Family members and employers can contribute up to $5,000 each year to the accounts. There’s no tax deduction for contributions made before a child turns 18, but funds provided by employers, up to $2,500 a year, won’t count as taxable income.

Money in the accounts must be invested in low-cost stock mutual funds or exchange-traded funds tracking a U.S. stock index, like the S&P 500. Withdrawals are permitted when the beneficiary turns 18, and from then on, the account will be converted to an IRA, subject to standard contribution limits and rules, according to Ian Berger, an analyst with Ed Slott and Company. Under Internal Revenue Service (IRS) rules, traditional IRA contributions are tax-deductible for those who qualify based on income and other factors.

Withdrawals from traditional IRAs before age 59½ are generally taxed as ordinary income, plus a 10 percent penalty, although this can be waived in certain circumstances, such as using the funds to pay for higher education, for the birth of a child, or to make a down payment on a first home. “To me, it’s a supercharged IRA,” said Cheryl Costa, a financial adviser in Framingham, Massachusetts, of the ‘Trump Accounts.’ The accounts are expected to launch in July 2026.

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July 9, 2025
Economy

Trump Tariffs Target Another Seven Nations.

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump issued tariff letters to seven countries on Wednesday. This follows his announcement on Monday of the imposition of trade duties on a number of countries, including Japan and South Korea.

👤WHO WAS INVOLVED: Countries targeted were the Philippines, Brunei, Moldova, Algeria, Libya, Iraq, and Sri Lanka.

📍WHEN & WHERE: Letters were sent on Wednesday, with tariffs set to begin August 1. Meanwhile, discussions with the European Union (EU) bloc and a number of individual nations remain ongoing.

💬KEY QUOTE: “You guys are going to fight, we’re not going to trade. And we seem to be quite successful in doing that.” – Donald Trump

🎯IMPACT: The tariffs aim to address trade imbalances and boost American manufacturing.

IN FULL

President Donald J. Trump has announced new tariffs targeting seven smaller U.S. trading partners, including the Philippines, Brunei, Moldova, Algeria, Libya, Iraq, and Sri Lanka. The tariffs, ranging from 20 percent to 30 percent, will take effect on August 1. Notably, the move follows the America First leader’s imposition of trade duties on Japan and South Korea this past Monday, along with a number of other nations.

The Trump administration has consistently contended that tariffs are a tool to address long-standing trade imbalances and bolster the U.S. economy. During a meeting with African leaders on Wednesday afternoon, Trump emphasized how his trade policies are also serving a key diplomatic purpose, highlighting his administration’s successful facilitation of peace deals between India and Pakistan, as well as Rwanda and Congo. According to Trump, trade “seems to be a foundation” for his success in settling foreign disputes, adding: “You guys are going to fight, we’re not going to trade. And we seem to be quite successful in doing that.”

The letters, posted on Truth Social, followed a 90-day negotiation period that saw the imposition of a 10 percent global tariff. Trump indicated there would be no extensions for the targeted countries. The tariffs are part of a broader strategy that includes recent import taxes of 25 percent on Japan and South Korea. The European Union (EU), a frequent focus of Trump’s trade grievances, has not yet received similar tariff letters.

Critics argue that the tariffs could worsen inflation and slow economic growth, though economic data has yet to show the traded duties producing any inflationary pressure. In fact, as The National Pulse noted in past reporting, tariffs have historically generated a degree of deflationary pressure.

Meanwhile, the Trump administration asserts that the measures will reduce trade deficits and encourage the return of manufacturing jobs to the United States.

America often finds itself at an unfair disadvantage competing against foreign countries where pay and conditions are poor, governments subsidise their producers, or American goods are themselves subject to punitive tariff and non-tariff barriers, if not a combination of all three.

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July 7, 2025
Economy
News

Trump Is Imposing Tariffs of Up to 40% on These Countries:

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump announced 25 percent tariffs on goods from South Korea and Japan, effective August 1, and tariffs of up to 40 percent on several other countries, mostly in Asia.

👤WHO WAS INVOLVED: President Trump, Japanese Prime Minister Shigeru Ishiba, South Korean leadership, South Africa, Burma (Myanmar), Laos, and others.

📍WHEN & WHERE: Announced on Monday via Truth Social; tariffs take effect on August 1.

💬KEY QUOTE: “We invite you to participate in the extraordinary Economy of the United States.” – Donald Trump

🎯IMPACT: The tariffs will increase pressure on Japan, South Korea, and the others to make concessions to the U.S., given the importance of the U.S. as an export market.

IN FULL

President Donald J. Trump has announced that the United States will impose 25 percent tariffs on goods from South Korea and Japan starting August 1. The announcement was made through letters to the leaders of both nations and posted on Truth Social. The tariffs will apply to all Japanese products entering the United States, separate from sectoral tariffs.

Later in the day, President Trump announced tariffs on additional countries. Malaysia, Kazakhstan, and Tunisia will face 25 percent tariffs, South Africa and Bosnia will face 30 percent, Indonesia faces 32 percent, Bangladesh and Serbia face 35 percent, Thailand and Cambodia face 36 percent, and Laos and Burma (Myanmar) face 40 percent. White House press secretary Karolin Leavitt explained, “It’s the President’s prerogative, and those are the countries he chose.”

Trump’s letters to the mostly Asian countries emphasized the importance of the trading relationship with the U.S. Trump invited them to participate in the U.S. economy, while stressing that the current balance of trade is unfair. The letters also warned that, should tariffs be raised on the U.S., punishing reciprocal measures will be added to the August 1 baseline rates.

The tariffs follow a 90-day pause on reciprocal tariffs, which had been set to expire on July 9. The later implementation date of August 1 gives businesses in both nations a brief window to adjust to the new trade conditions. It is also possible that the targeted countries, many of which depend heavily on exports, will now come to Trump with last-minute concessions.

President Trump’s tariff policies have already led to significant investments in U.S. manufacturing, and many nations, including the United Kingdom and Vietnam, have already reached deals with the U.S. to avoid heavier tariffs.

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July 7, 2025
Christopher Tomlinson
Economy

Trump Will Impose Higher Tariffs on Nations Collaborating With ‘Anti-American’ BRICS Bloc.

PULSE POINTS

❓WHAT HAPPENED: President Donald J. Trump has threatened an extra 10 percent tariff on countries considering allying themselves with the BRICS bloc.

👤WHO WAS INVOLVED: President Trump, the BRICS bloc, and countries allying themselves with it.

📍WHEN & WHERE: President Trump announced the move in July 2025.

💬KEY QUOTE: “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.” — President Trump

🎯IMPACT: The move could undermine attempts by the BRICS nations to create an alternative to the U.S. dollar as the global reserve currency.

IN FULL

President Donald J. Trump has threatened 10 to 15 countries with extra tariffs of 10 percent should they choose to ally themselves with the BRICS alliance of Brazil, Russia, India, China, and South Africa against U.S. trade interests. President Trump announced the move on Truth Social on July 6.

“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” President Trump wrote.

In a separate post, he stated that the United States would start delivering tariff letters to various countries beginning July 7. According to officials, countries are expected to negotiate trade deals by July 9, but tariffs are likely to start on August 1.

President Trump has long maintained that the BRICS bloc threatens American trade interests and the U.S. dollar’s status as the global reserve currency. In January, he threatened 100 percent tariffs on any country that participates in creating a BRICS currency to rival the dollar.

“We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy,” President Trump said at the time.

BRICS has expanded since its inception, with several other nations building ties with the group, including Saudi Arabia, Argentina, Egypt, and Iran. Considering their oil wealth, the Gulf States joining the alliance could be pivotal in creating an alternative reserve currency.

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