š§ Trumpās Current Tariff Policy (as of August 1, 2025) Markets could drop hard š©ø
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 10ā20% on others .
š Stock Market Impact: Was ā$1.1āÆTrillionā Wiped Out?
In early April 2025, stocks fell sharply following Trump's āLibĆ©ration Dayā tariff announcementāover $3āÆtrillion in value was lost within two days; benchmarks fell ~10% .
The number $1.1āÆtrillion doesnāt match major market movements; the bigger losses were in the multiātrillionādollar range.
More recent moves in August caused additionalābut smallerādeclines: S&P fell ~1.6%, Dow ~1.3%, and Nasdaq ~2.2% on August 1 .
š„ Why Markets Are Reacting
Uncertainty and fear of higher inflation or slower growthācompanies are postponing hiring/investment amid confusion over trade terms .
Market shock from unpredictabilityāmultiple 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 portfoliosāsome diversifying into defensive stocks or cash.