With Iran war cooling, Trump is refocusing on tariffs

President Donald Trump has renewed threats to impose a 100% tariff on French wine and Champagne unless President Emmanuel Macron abandons a 3% digital service tax targeting US tech companies like Amazon, Alphabet, Apple, and Meta. The warning came ahead of the G7 Summit in France, where Trump has previously threatened 200% tariffs on French alcohol over Macron’s refusal to join his Gaza peace initiative. Trump has also vowed to increase tariffs on EU cars, citing alleged violations of last summer’s trade agreement. Separately, the US Trade Representative proposed tariffs starting at 12.5% on goods from Japan, China, and India over forced labor concerns, set to take effect after a 10% temporary tax expires next month. The White House dismissed suggestions that Trump’s tariff focus marks a pivot from Iran, stating he is merely upholding a long-held position. However, economists caution new tariffs could disrupt economic recovery, as businesses remain hesitant to hire amid lingering uncertainty. Last April’s tariffs paralyzed hiring, with job growth averaging fewer than 10,000 per month before rebounding to 188,000 monthly gains over the past three months. Inflation surged to 4.2% annually in May, driven by a 0.5% monthly rise, with energy costs accounting for 60% of the increase. Core inflation, excluding food and energy, remained stable at 2.9%, but economists warn tariffs could exacerbate price pressures. The Supreme Court struck down most of last year’s tariffs, but their lingering effects have delayed full economic recovery. Businesses, still recovering from trade disruptions, face renewed uncertainty as Trump’s proposed measures could further strain global supply chains.