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Trump tariffs live updates: Democrats say tariffs have cost each American household an extra $1,200; Trump floats 'some' additional carveouts
Yahoo Finance Updated
Fri, December 12, 2025 at 5:41 AM EST
3 min read
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President Trump unveiled $12 billion in aid to US farmers, as the agricultural sector deals with the fallout from his sweeping tariff policies.
The sector has been hit particularly hard from the president's ever-changing trade policies, as farmers have struggled to sell crops and been hit by higher costs. Soybean exports have come in particular focus, with trade slowing to a crawl as China virtually halted its purchases before the countries agreed to a trade truce in October.
Trump said the money for farm relief would come from a "small portion" of tariff-related revenues. Despite welcoming the support, US farmers have said they need more than a $12 billion aid package to fully offset low crop prices and lost export opportunities due to Trump's trade war.
The farm bailout comes amid an increased push on Americans' price concerns. In an interview published Tuesday, Trump allowed he may look for "some" additional carveouts, weeks after his administration slashed tariffs on items like beef, coffee, and bananas.
The push to reduce food prices comes in the wake of electoral wins for Democrats across a number of key state and local races where candidates stressed affordability concerns. Trump has also in recent weeks floated the possibility of a tariff "dividend" for many Americans in the form of a $2,000 check.
The US Supreme Court is poised in the weeks ahead to decide the legality of the majority of those tariffs. The president invoked the International Emergency Economic Powers Act (IEEPA) to levy blanket tariffs on goods from other countries. As he has publicly braced for the high court's decision, Trump has claimed the "full benefit" of tariff policies would take effect soon, arguing that foreign buyers who stockpiled inventory would be forced to buy more goods.
Read more: What Trump's tariffs mean for the economy and your wallet
What else to know about Trump's tariffs:
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Following Trump's admission that Americans are paying "something for tariffs." The Democrats estimate that on average, US households have paid nearly $1,200 in additional costs due to Trump's tariffs.
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Indonesia said that it hopes to conclude its trade agreement with the US by the end of 2025. This week, reports emerged that the trade deal between Washington and Jakarta was at risk of collapse due to Indonesia's failure to implement its side of the agreement.
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Trump threatened to impose an additional 5% tariff on Mexico if it doesn't provide additional water to help US farmers. Trump accused Mexico of violating a treaty that outlines water sharing between the countries.
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Trump gave the green light on Monday for Nvidia (NVDA) to sell some of its more powerful H200 chips to China. The US president said that China's Xi Jinping had responded "positively" to the move.
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Several US companies, such as Costco (COST), have filed lawsuits and claims to the US government for tariff refunds in the belief Trump's tariffs will be struck down by the US Supreme Court. If the courts rule against Trump's tariffs, the president may be forced to repay billions of dollars in collected revenue from imports, according to a report in the New York Times.
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Today at 9:13 AM UTC Jenny McCall
Americans are paying for tariffs, and it's around $1,200
President Trump said last month that the American people are "paying something" for tariffs.
Well, now it seems the Democrats have tallied up what the actual cost is.
Democrats on the bicameral Joint Economic Committee (JEC) have estimated that, on average, US households are paying nearly $1,200 in additional costs due to Trump's tariffs.
The Hill reports:
Indonesia targets concluding tariff deal with US by year end
Indonesia said that it hopes to conclude its trade agreement with the US by the end of 2025. This week, reports emerged that the trade deal between Washington and Jakarta was at risk of collapse due to Indonesia's failure to implement its side of the agreement.
Growing tensions between the US and Indonesia have threatened to unravel ties between the two countries, which led Jakarta to say it will send a delegation to Washington next week to discuss the matter and finalise what was agreed upon by leaders on July 22.
Coordinating Minister for Economic Affairs Airlangga Hartarto spoke to Trade Representative Jamieson Greer on Thursday.
Bloomberg News reports:
Emerging markets are shrugging off Donald Trump’s tariffs
The FT reports:
Trump's tariffs intensify strain on US farmers, Deere warns
Deere (DE) has warned that President Trump's tariffs are backfiring on US farmers, prompting some to delay replacing outdated or old equipment.
The FT reports:
Trump, Modi speak as US-India trade talks inch forward
President Trump and India's Prime Minister Narendra Modi have spoken in a bid to ease trade tensions between the two sides. Modi said the conversation was "warm and engaging" and added that they had "reviewed the progress for bilateral relations and had also discussed regional international developments."
Trump imposed 50% tariffs on India, 25% of which was due to India's purchase of Russian oil. Hints that both sides were trying to reconcile and restart trade negotiations emerged earlier this week, with the arrival of US officials in New Delhi.
Bloomberg news reports:
Thu, December 11, 2025 at 3:07 PM UTC Jake Conley
US trade deficit narrows in September to hit smallest margin in more than 5 years
The US trade deficit narrowed in September to its smallest margin in more than five years, as exports increased healthily and imports grew slightly.
The deficit shrank by 10.9% to $52.8 billion, according to data released by the Department of Commerce on Thursday, marking the lowest level seen for the measure since June 2020.
Exports rose 3% to $289.3 billion in the month, while imports rose by a much softer 0.6% to $342.1 billion. The month saw noted strength in consumer goods exports, which reached a record high in September, while on the other side, imports of automotive vehicles, engines, and other parts fell to their lowest level since November 2022.
The real goods deficit narrowed by 5.6% on the month, equal to $4.7 billion. Making up that figure, real exports of goods gained 4.2% against a gain in nominal goods exports of 4.9%, while real imports of goods gained 0.7% equal to a gain of 0.7% in nominal goods imports.
Notably, the US' trade deficit with China — a longtime preoccupation of the Trump administration and President Trump personally — shrank to $11.4 billion from a previous $15.4 billion, a change of roughly 25%.
US can replicate revenues if Supreme Court rules against IEEPA tariffs: Greer
US Trade Representative Jamieson Greer said on Wednesday that the US will other measures to recreate the $200 billion in revenues it is collecting under tariffs if the Supreme Court shuts down the use of the International Emergency Economic Powers Act that the Trump administration is currently using.
Reuters reports:
How Trump’s tariffs forced China to pivot – and export more
- Thu, December 11, 2025 at 12:58 AM UTC Grace O'Donnell
Tariff revenue dipped slightly in November after Trump pulled back on grocery store duties
Yahoo Finance's Ben Werschkul reports:
Wed, December 10, 2025 at 9:52 PM UTC Brett LoGiurato
Powell says tariffs have caused inflation 'overshoot'
Fed Chair Jerome Powell on Wednesday pointed to President Trump's tariffs as the reason for the current overshooting of the central bank's 2% inflation target.
"It's really tariffs that are causing most of the inflation overshoot," Powell said, while emphasizing that the central bank expects the tariffs to represent a "one-time" increase in prices.
"Our job is to make sure that it is," he added.
Powell also declined to weigh in on a reporter's question over the impacts of a potential Supreme Court decision striking down Trump's most sweeping tariffs.
Read our live blog for the latest updates and analysis on the Fed.
China must fix economic imbalances as trade surplus hits $1T: IMF
US farmers say Trump's $12 billion aid package won't cover losses
US farmers have said they need more than a $12 billion aid package to fully offset the low crop prices and lost export opportunities resulting from President Trump's trade war.
Trump introduced the aid package for farmers this week, with the industry welcoming the support, saying it would help them prepare for the next planting season. However, the industry suggested that it is a fraction of farm losses and will not rescue the flagging farm economy.
US farmers have faced steep losses this year due to Trump's tariffs, saddled with low crop prices and higher costs for labor and inputs, such as fertilizers and seeds, and coupled with the decline in exports of crops like soybeans, which have dropped due to Trump's trade dispute with China.
Reuters reports:
How China Inc is marching into Vietnam amid US tariffs
US-Indonesia trade deal at risk of collapse
The trade deal between the US and Indonesia is in danger of collapsing, The Financial Times reported Wednesday, citing people familiar with the matter. US officials have grown increasingly frustrated at what they view as Jakarta reneging on the terms of the agreement reached in July.
The trade deal states that Indonesian goods will face a US tariff rate of 19%. Indonesia will also eliminate tariff barriers on over 99% of US products exported to Indonesia across sectors such as agriculture, health products, seafood, and technology.
However, the report said that Jakarta is slow to implement the deal.
The FT reports:
- Tue, December 9, 2025 at 7:31 PM UTC Grace O'Donnell
Trump says his farm bailout 'would not be possible without tariffs.' His critics agree.
Yahoo Finance's Ben Werschkul reports:
Trump suggests he may cut 'some' additional tariffs amid affordability push
President Trump defended his sweeping tariff policies, but suggested in an interview on Tuesday that he may allow for "some" additional carveouts after moves to slash duties on goods that were surging in price.
In an interview with Politico, Trump was asked whether he'd consider cutting tariffs on other consumer staples. In recent weeks, his administration has slashed duties on coffee, beef, and bananas, in a bid to address Americans' concerns over price pressures.
Trump said he would "on some, and on some I’ll increase tariffs." He said the breaks he approved recently amid a voter outcry against elevated prices on groceries in particular were "very small carveouts."
"It's not a big deal," he said.
Trump’s tariffs are not reducing the trade deficit
One of the key questions being asked is whether President Trump's tariffs are helping to close the trade deficit. For the FT's senior trade writer Alan Beattie, the answer is no.
The FT reports:
Chinese premier cites damage from US tariffs, as China's surplus surpasses $1T
China's Premier Li Qiang said on Tuesday that tariffs have dealt a "severe blow" to global economies. These latest remarks from Beijing come as China's trade surplus surged past $1 trillion.
The AP reports:
Trump approves Nvidia H200 chips for sale to China
Nvidia (NVDA) has been given the go-ahead from President Trump to sell some of its more powerful H200 chips to China.
Yahoo Finance tech editor Daniel Howley reports on the latest developments surrounding Nvidia's chip sales to China.
Trump eyes tariffs over Canadian fertilizer, Indian rice
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