Global Markets Stumble as Trump’s New Tariffs Take Effect on August 7
President Donald Trump’s extensive new tariff regime is set to take effect on August 7, 2025, implementing import taxes that range from 10% to 50% on goods from nearly 200 countries worldwide. The announcement has triggered significant market volatility, with the Dow Jones dropping 542 points (1.23%) on Friday, marking its worst decline since June.
India faces the highest penalty with a staggering 50% tariff rate, following Trump’s criticism of the country’s continued purchases of Russian oil. “They’re fueling the war machine,” Trump said in a CNBC interview. Meanwhile, Switzerland saw its rate jump from 31% to 39%, while Canada’s tariffs increased from 25% to 35%.
The new trade policy represents a dramatic shift from decades of free trade, with Trump describing it as cementing “a new protectionist era.” Many companies are rushing to import goods before the August 7 deadline to avoid the higher duties.
Source: CNBC – Trump tariffs inject more uncertainty into global economy