The S&P 500 (SPX) is down by about 1.5% after President Trump issued an executive order that set new tariff rates for dozens of countries, effective August 7. These include a 25% tariff on India, a 15% tariff on Japan, and a 20% tariff on Taiwan. The rates range between 10% and 41%, with Syria at the high end of the range.
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Several countries were able to escape the new rates with last-minute trade deals. On Thursday, the U.S. and Mexico agreed to extend their existing terms for 90 days, which include a 25% penalty tariff on fentanyl. The U.S. and South Korea agreed to a 15% tariff for imported South Korean goods on Wednesday.
Trump Hits Switzerland with Surprise Tariff
Along with Syria, Switzerland received a surprise tariff rate of 39%, up from its initial rate of 31%. The country exported $63.4 billion of goods to the U.S. in 2024, while the U.S. makes up about a sixth of its total exports. Swiss watchmakers are set to take a hit from the tariff, although the country has a few days to negotiate a lower rate ahead of the Aug. 7 implementation date.
The S&P 500 is down by 1.59% at the time of writing.
