U.S. Markets Drop After Trump Imposes New Tariffs on Dozens of Countries | Latest Financial News

 📉 U.S. Markets Open Lower as Trump Announces New Tariffs; Weak Jobs Report Adds Pressure

Date: August 1, 2025

• Tariff Shock from the White House
  President Donald Trump signed an executive order imposing “reciprocal tariffs” of 10% to 41% on imports from nearly 70 countries. Key examples:

  • Canada: up from 25% to 35%

  • Switzerland: 39%

  • Brazil: 50%

  • India: 25%

  • Taiwan: 20%, described as temporary and subject to renegotiation Reuters+6Reuters+6Reuters+6The Guardian+4Reuters+4Al Jazeera+4.

• Stocks React Sharply
  U.S. stock-market futures tumbled, prompting a weak opening:

  • Dow Jones: down around 1.3%, falling 560–770 points

  • S&P 500: down approximately 1.5–1.7%

  • Nasdaq Composite: off 1.8–2.2% Deutsche Welle+8Investors+8The Economic Times+8.

• Weak Employment Data Adds to Concerns
  The July U.S. jobs report showed gains of just 73,000, far below expectations of ~110,000. Combined revisions for May and June shaved off 258,000 jobs, while the unemployment rate rose to 4.2%. The underwhelming data strengthened downward pressure on equities and raised speculation about a possible Federal Reserve rate cut in September The GuardianInvestors+1The Guardian+1.

• Global Market Fallout
  Equity markets in Europe and Asia fell in tandem. The STOXX 600 declined around 1.3–1.8%, with MSCI’s Asia Pacific index off by about 1–2%. Investors are pricing in slower world trade, disrupted supply chains, and rising volatility AP News+4ft.com+4The Guardian+4.

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🔍 Why This Matters

1. Trade Shock: Tariffs at these levels risk triggering retaliatory actions and disrupting global supply chains. The sudden escalation revives fears reminiscent of the sharp declines seen in early April during the first tariff wave — which erased trillions in market value within days WikipediaWikipedia.

2. Inflation Risk: Tariff-driven cost increases add pressure on corporate margins and consumer prices at a time when inflation already shows signs of creeping higher ReutersReutersAP News.

3. Investor Sentiment Shifts: Markets had recently rallied on hopes of strong trade agreements and optimism around corporate earnings. These fresh shocks have rapidly turned sentiment cautious and volatile again ft.comAP NewsDeutsche WelleThe Guardian.

4. Monetary Policy in Focus: With labor data weakening and inflation risks mounting, pressure mounts on the Fed to pivot. Trump openly criticized Fed Chair Jerome Powell, urging the Board to act if the chair does not deliver rate cuts The Guardian+1Deutsche Welle+1.

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🗣 Market Snapshot: Opening Moves

Index	Approx. Loss
Dow Jones	–1.3% (−560 – 770 pts)
S&P 500	–1.5 – 1.7%
Nasdaq	–1.8 – 2.2%

This downturn reflects worry over trade escalation and deteriorating domestic fundamentals.

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✅ Key Takeaways

• Trump’s sweeping tariffs—some hitting up to 41%—have spooked both equity and global markets.

• Weak hiring numbers compound economic unease, heightening the possibility of a Fed policy shift.

• Investor confidence remains fragile amid rising trade friction and inflationary pressures.

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🔭 Watch for next updates on:

• Federal Reserve policymaking, including any signals toward rate cuts.

• Negotiations with key affected countries (Canada, India, Switzerland, Taiwan).

• Corporate earnings and guidance amid a shifting trade environment.

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