Richard Murphy Explains A Crash Is Coming Due To The Latest Trump Tariff Annoucements

13th July 2025

President Trump on Saturday released letters imposing new 30 per cent tariffs on imports from Mexico and the European Union, dashing hopes for deals that would avoid such punishing levies.

The tariffs, which are set to take effect Aug. 1, are a significant escalation in Mr. Trump's trade battles, aimed squarely at two of America's closest and most pivotal trading partners.

Trump is now threatening to impose all the tariffs he proposed in April.

Then he backed away and was mocked with TACO - Trump Always Chickens Out

Now, he can't retreat and retain any credibility.

So, when's the inevitable financial crash? A thread...

we need to ask: what are politicians doing to prepare for this?

There are some very important point in his article such as the fall of the dollar, rising interest rates, falling stock market values affecting things like pension investments.

We all need to be prepared for what may be coming in two weeks.

Read the full item HERE

What were the announcements?
Donald Trump has recently announced a sweeping set of new tariffs targeting multiple countries, escalating trade tensions on a global scale. Here's a breakdown of the key developments:

🇺🇸 Tariffs on the European Union and Mexico
30% tariffs on imports from both the EU and Mexico, effective 1 August 2025.

The EU has responded firmly, warning of retaliatory measures if the U.S. proceeds.

Mexico's President Claudia Sheinbaum expressed hope for a resolution before the deadline.

Tariffs on Additional Countries
Trump has sent formal letters to seven more countries, announcing new tariff rates:

Philippines: 20%

Sri Lanka, Algeria, Iraq, Libya: 30%

Brunei, Moldova: 25%

These follow earlier letters to 14 countries, including:

Japan, South Korea, Malaysia, Kazakhstan: 25%

South Africa, Bosnia and Herzegovina: 30%

Indonesia: 32%

Bangladesh, Serbia: 35%

Cambodia, Thailand: 36%

Laos, Myanmar: 40%

Sector-Specific Tariffs
Copper: 50% tariff announced

Pharmaceuticals: Threat of a 200% tariff, though details remain vague

Strategic Goals
Trump claims these tariffs are part of a broader strategy to:

Address the U.S. trade deficit

Push for reciprocal trade relationships

Encourage foreign companies to manufacture in the U.S.

Global Reactions
The EU, Japan, and South Korea are actively negotiating to avoid escalation3

BRICS nations have voiced strong opposition, especially after Trump floated an extra 10% tariff on BRICS-aligned countries

Here's how Trump's latest tariffs are expected to affect the USA, UK, and EU, based on recent analyses and reactions:

United States
Mixed economic impact:

Higher consumer prices: Yale's Budget Lab estimates households could pay $2,400 more per year due to price hikes on imported goods like clothing, electronics, and copper.

GDP decline: Projected to shrink by 0.7% in 2025, with long-term losses of up to $110 billion annually if tariffs persist.

Unemployment uptick: Expected to rise by 0.4%, especially in sectors reliant on imports.

Manufacturing boost: Domestic production may increase by 2%, especially in protected industries.

Political fallout:

Polls show growing economic uncertainty among Americans, with many cutting back on purchases due to tariff-related inflation.

United Kingdom
Economic strain:

Industrial production hit: Goldman Sachs forecasts a 3% drop, one of the sharpest among major economies.

Copper and pharma sectors vulnerable: Trump’s proposed 50% copper tariff and potential 200% pharma tariff could disrupt UK exports.

Financial sector risk: The Bank of England warns that the UK’s large financial sector makes it especially sensitive to global shocks5.

Government response:

UK diplomats are being deployed to boost exports and forge new trade links to offset losses.

The Bank of England expects 3.6 million households to face higher mortgage costs due to broader economic uncertainty.

European Union

Trade disruption:
30% blanket tariff on EU goods starting August 1 could severely impact exports in automotive, machinery, agriculture, and pharmaceuticals.

Germany is particularly exposed due to its export-heavy economy.

Retaliation brewing:

EU leaders, including Ursula von der Leyen and Emmanuel Macron, have warned of proportional countermeasures.

Trade ministers are meeting to decide whether to impose tariffs on €21 billion of US imports.

Economic outlook:

Analysts expect a 0.3% GDP decline across the EU, with Germany potentially seeing a 0.4% drop.

Some sectors may benefit from diverted demand away from China, but overall growth is expected to slow.