Markets tumbled on both sides of the Atlantic as Donald Trump unleashed a fresh wave of sweeping tariffs, ranging from 10% to 50%, due to take effect next week. Leaders of more than 60 countries are scrambling to secure trade deals with the US amid fears for jobs and economic stability.
The new rates, signed off by Trump, include 25% on Indian exports, 20% on Taiwanese goods, and 30% on South African products. Switzerland faces a 39% tariff, while the UK and Falkland Islands were given a relatively low 10% rate. The White House confirmed the tariffs will take effect on 7 August, offering a brief reprieve for negotiations.
Stock markets fell sharply, with Europe’s Stoxx 600 down nearly 2%, the UK’s FTSE 100 down 0.8%, and Wall Street’s Dow Jones and S&P 500 falling over 1%. The sell-off was worsened by weaker-than-expected US jobs data. The Swiss franc hit a six-week low, and the Canadian dollar faced its seventh straight weekly loss.
Switzerland and Taiwan are urgently negotiating to reduce their high rates. Canadian Prime Minister Mark Carney expressed disappointment over a 35% tariff on Canadian goods. South Africa’s President Cyril Ramaphosa pledged to negotiate hard to lower the 30% duty. Some of the world’s poorest countries, including Syria (41%), Laos (40%), and Myanmar (40%), were hit with punitive rates.
Lesotho, initially facing a 50% tariff that threatened its textile industry, saw a reduction to 15% after declaring a national state of disaster. The EU received a 15% rate, but cars were excluded, remaining at 27.5%. Pharmaceuticals were notably absent from the tariff list, despite earlier indications of a 15% rate.
