Trump’s Tariffs Slash Rates, Markets Plunge
Trump’s new tariffs spark relief and market turmoil.
US President Donald Trump’s latest tariff adjustments, ranging up to 41% on imports from numerous countries, elicited mixed reactions globally as some nations secured lower rates through negotiations, while others faced disappointment after missing the August 1 deadline. Effective August 7, the new tariffs have left financial markets unsteady, with the US dollar weakening and Asian benchmarks like South Korea’s Kospi falling nearly 4%.
Canada expressed regret as its tariff rose to 35% from 25%, with Prime Minister Mark Carney disputing Trump’s claims of inadequate drug trafficking control, noting Canada accounts for just 1% of US fentanyl imports. Switzerland, hit with a 39% tariff, lamented the increase from 31%, vowing to pursue negotiations. New Zealand’s Trade Minister Todd McClay criticized a 15% tariff hike, warning it could strain exporters already grappling with a $1.1 billion trade surplus with the US.
Japan cautiously welcomed a 15% tariff deal, with Chief Cabinet Secretary Yoshimasa Hayashi urging swift implementation, particularly for auto exports. Taiwan’s President Lai Ching-te, facing a reduced 20% tariff, remains hopeful for further cuts. Cambodia’s Deputy Prime Minister Sun Chanthol celebrated a drop to 19% from 49%, pledging zero tariffs on US goods and Boeing aircraft purchases.
Also Read: Trump Hikes Tariffs on Canada to 35%
Thailand and Bangladesh also saw relief, with tariffs lowered to 19% and 20%, respectively. However, China’s fate remains uncertain post failed Stockholm talks, with no word on extending an August 12 tariff pause. As global markets brace for Trump’s next move, uncertainty continues to rattle investors.
