69 trading partners, including Canada, Brazil, India, Taiwan, Switzerland, and others, were subject to broad new tariffs imposed by President Trump.
A year ago, the average U.S. tariff rate was under 2.3%; now, it is around 18%.
Rates vary greatly by country, for example, 35% in Canada, up to 50% in some, and a typical baseline of 10ā20% in others.
š Effect on Stock Market: Was "1.1 Trillion" Lost?
Trump's "Liberation Day" tariff announcement in early April 2025 caused equities to plummet; in only two days, almost $3 trillion in value was lost, and benchmarks plummeted over 10%.
The larger losses were in the multi-trillion dollar level; the $1.1 trillion figure does not correspond to significant market moves.
Additional, if smaller, reductions were brought on by more recent actions in August: on August 1, the S&P lost around 1.6%, the Dow about 1.3%, and the Nasdaq about 2.2%.
š„ Reasons for Market Reaction
Businesses are delaying hiring and investment due to uncertainty and concern of weaker growth or greater inflation as a result of unclear trade arrangements.
Unpredictability has caused a market shock; numerous sudden announcements, recurrent tariff increases, and political acts (such as dismissing the head of labor statistics) have eroded confidence.
Institutional investors are currently changing and cutting their exposure to US markets in half. Approximately 80% of portfolios are being repositioned, with some diversifying into cash or defensive stocks.
