Tariffs are leaving their mark on the U.S. economy beyond trade, as a measure of activity in the vast services sector hit stall-speed in July, with businesses saying the swarm of new import taxes is driving up costs and making business planning more difficult.

The U.S. trade deficit narrowed in June on a sharp drop in consumer goods imports, and the trade gap with China shrank to its lowest in more than 21 years, the latest evidence of the imprint on global commerce President Donald Trump is making with sweeping tariffs on imported goods.

The US trade gap narrowed in June, government data showed Tuesday, as imports pulled back more than exports while businesses grappled with President Donald Trump's tariffs on allies and competitors

"The key channel by which secondary tariffs on buyers of Russian energy could impact the global economy would be through the level of energy prices," says Kieran Tompkins from the consultancy Capital Economics. If the tariffs work, they will cut the flow of Russian oil and gas to global markets.

US President Donald Trump signaled Tuesday that fresh tariffs on imported pharmaceuticals and semiconductors could be unveiled within the coming week, in his ongoing push to reshape global trade.

President Trump on Tuesday threatened to impose tariffs of up to 250 percent on pharmaceutical imports, the highest rate he’s discussed to date. “We’ll be putting a, initially small tariff on pharmaceuticals,