Global stock markets fell sharply on Friday after President Donald Trump announced new, high -end definitions on exports from 69 commercial partners, which is the most aggressive American trade step for decades. Comprehensive duties – ranging from 10 % to 50 % – the two countries are scrambling to negotiate lower rates as management indicates more upcoming changes.
Also read: American tariff rates rise to historical highlands, and increase concerns
Both said Switzerland, which surprised 39 %, and India by 25 %, both of whom will seek urgent talks with Washington. Canada faces a 35 % tariff on specific commodities, while Brazil will see a rate of 50 % and 20 %, which expects to re -negotiate.
The presidential matter raises the rate of effective tariffs in the United States to about 18 %, with an increase of only 2.3 % last year, according to Capital Economics. The new prices are August 7.
The advertisement was shaken by Wall Street. The Dow Jones Industrial rate decreased by 1.23 % to 43,588.58, S&P 500 1.6 % lost to 6,238.01, and the NASDAQ compound decreased by 2.24 % to 20,650.13. European stocks also decreased, with the Stoxx index decreased by 1.89 %.
The market segment is more worse through US job data more than expected, which showed the slowdown in employment growth in July. Trump responded by shooting the head of the work statistics office, accusing the agency – without evidence – from “falsifying” the numbers.
While some countries have avoided the harshest sanctions, uncertainty is weighing to global trade. Southeast Asian exporters welcomed the low rates of expected, while Australia retained the minimum customs tariff by 10 %. But analysts warn that the total effect is still negative. “There are no real winners in commercial conflicts,” said Thomas Robb, Cio ASIA at VP Bank.
The European Union, which recently reached a framework agreement with the United States, is still awaiting exemptions from the main sectors such as cars and aircraft. Questions also remain about how the United States imposes transportation rules aimed at preventing goods from high-tendency countries-such as China-which are heading across other countries.
A higher tariff is already working to pay US prices. Data of the Trade Department of home furnishings and home equipment prices appear 1.3 % in June, and it is the fastest pace since March 2022.
Trump defended his approach, saying that uncertainty gave the United States a lever to secure better trade conditions. White House economic advisor Stephen Miran said: “The deals that we have justified in recent weeks were not less than huge,” said White House Economic Adviser Stephen Miran.
Canada, India and many other countries continue negotiations in the hope of obtaining lower prices before the deadline in August. But with more customs tariff ads, the markets remain on the edge of the abyss.
