According to the latest announcement from 'The Kobeissi Letter,' the US is introducing new tariff rates that vary by country and will take effect on August 1, 2025. These changes, while slight, affect 11 nations.
Trump's Tariff Hike
President Donald Trump has unexpectedly raised tax rates for several nations, including Canada, which will face an increase of 10% to 35%. This has become part of a broader program to impose reciprocal tariffs on other trading partners.
Impact on Global Trade
The list of countries affected by the new regime is wide-ranging: - Canada: raised from 25% to 35% - Switzerland: 39% - South Africa: 30% - Taiwan: 20% - Vietnam: 20% - Cambodia: 19% - Thailand: 19% - Malaysia: 19% - Indonesia: 19% - Turkey: 15% - Venezuela: 15%. Despite such broad action, S&P 500 futures fell by only 10 points.
Corporate Responses and Trump's Remarks
Apple has announced that it expects to incur an additional $1.1 billion in costs this year due to the new Trump tariffs. This will impact its production chain, particularly parts and components imported from Malaysia, Vietnam, and Taiwan. "Trump also made harsh comments about India and Russia, stating that they are 'dead economies' and suggesting that the US should cease trade with them."
These changes in tariffs by the US represent a potential shift towards a new trade policy. However, they did not produce a noticeable effect on the American stock market, which may indicate a loss of the initial shock from trade wars.
