The S&P 500 (SPX) secured a new intraday low after President Trump announced several new tariff rates for U.S. trading partners. The trading partners will incur these new rates if they are unable to sign a deal with the U.S. by August 1.
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Forget margin or options. Here's how the pros trade QQQEarlier in the day, Trump announced 25% tariffs on Japan and South Korea, effective as of August 1. That was only the beginning, as he has now revealed the tariff rates for five more countries.
Trump’s New Tariff Rates
Here are the new tariff rates compared to the April 2 reciprocal tariff rates:
- Laos: 40%, down from 48%
- Myanmar: 40%, down from 44%
- South Africa: 30%, unchanged
- South Korea: 25%, unchanged
- Japan: 25%, up from 24%
- Malaysia: 25%, up from 24%
- Kazakhstan: 25%, down from 27%
Of the seven tariff rates, only two countries received higher tariffs. These two countries, Japan and Malaysia, saw their tariffs go up by only 1%. In addition, it seems that Trump could be capping the tariffs at 40%, as evidenced by Laos and Myanmar’s reduced tariffs compared to their respective April 2 rates. Overall, the new rates exhibit a softer stance from the Trump administration.
Nonetheless, investors may have been expecting further tariff rate reductions given the market’s negative reaction.
The S&P 500 is down by 0.89% at the time of writing.
