🧭 Trump’s Current Tariff Policy (as of August 1, 2025) Markets could drop hard 🩸
President Trump imposed sweeping new tariffs on 69 trading partners, including Canada, Brazil, India, Taiwan, Switzerland, and others.
The average U.S. tariff rate jumped to approximately 18%, up from about 2.3% a year ago .
Specific country rates vary widely: e.g. 35% on Canada, up to 50% for some countries, and a general baseline of 10–20% on others .
📉 Stock Market Impact: Was “$1.1 Trillion” Wiped Out?
In early April 2025, stocks fell sharply following Trump's “Libération Day” tariff announcement—over $3 trillion in value was lost within two days; benchmarks fell ~10% .
The number $1.1 trillion doesn’t match major market movements; the bigger losses were in the multi‑trillion‑dollar range.
More recent moves in August caused additional—but smaller—declines: S&P fell ~1.6%, Dow ~1.3%, and Nasdaq ~2.2% on August 1 .
💥 Why Markets Are Reacting
Uncertainty and fear of higher inflation or slower growth—companies are postponing hiring/investment amid confusion over trade terms .
Market shock from unpredictability—multiple abrupt announcements, repeated tariff hikes and political actions (e.g. firing labor statistics head) have undermined confidence .
Institutional investors are now halving exposure to U.S. markets and shifting. About 80% are repositioning portfolios—some diversifying into defensive stocks or cash.