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New US Trade Policy: China Hit Hardest as Trump Implements 54% Total Tariff

President Trump unveiled a comprehensive new tariff strategy that combines a universal 10% tax on all imported products with additional “reciprocal” levies targeting specific trading partners. China will face the steepest total tariffs at 54% (a new 34% levy on top of an existing 20% duty), while the European Union will be charged 20% and Japan 24%.

Trump described these as approximately half of what these nations charge the US. The baseline 10% tariff takes effect Saturday at 12:01 a.m. Eastern, with the reciprocal tariffs following on April 9. Additionally, goods compliant with the US-Mexico-Canada Agreement will continue receiving preferential treatment. The announcement comes amid other tariff implementations, including new 25% duties on foreign-made cars and certain auto parts.

While supporters view the tariffs as essential for boosting American manufacturing and jobs, economists warn they could accelerate inflation at a time when consumers are already struggling with high prices.

Gold price outlook August 2026: chart showing gold's correction and recovery, with Jobs, CPI, and PPI data releases marking the turning point
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Gold Price Outlook August 2026: What Three Data Prints in One Week Mean for Your Metals

Gold is up 10% in August from near $4,000 — its best monthly gain since January. Three data prints in one week flipped the September rate-hike calculus: jobs, CPI, and PPI all came in soft. Hike odds fell from 50% to 31%. Central banks bought a quarterly record 288.9 tonnes in Q2 even as prices fell. Here is what it means for gold holders — and what to watch before the September 15–16 FOMC.

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Gold bar resting on a crumpled supermarket receipt on a checkout counter, with a blurred retail store aisle in the background — illustrating how falling consumer sentiment and rising inflation expectations are driving gold prices higher in August 2026.
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Gold Rebounds to $4,392 as Sentiment Crashes to 51 and Inflation Expectations Rise

The University of Michigan’s August Consumer Sentiment Index fell to 51 — missing the 54.5 consensus and ending two months of improvement — while inflation expectations rose to 4.3%. The simultaneous drop in growth confidence and rise in price expectations creates a stagflation signal that limits the Federal Reserve’s options and extends gold’s tailwind heading into September.

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Latest News

Gold bar resting on a crumpled supermarket receipt on a checkout counter, with a blurred retail store aisle in the background — illustrating how falling consumer sentiment and rising inflation expectations are driving gold prices higher in August 2026.
News

Gold Rebounds to $4,392 as Sentiment Crashes to 51 and Inflation Expectations Rise

The University of Michigan’s August Consumer Sentiment Index fell to 51 — missing the 54.5 consensus and ending two months of improvement — while inflation expectations rose to 4.3%. The simultaneous drop in growth confidence and rise in price expectations creates a stagflation signal that limits the Federal Reserve’s options and extends gold’s tailwind heading into September.

Read More »

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