The S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) were unable to rally to green territory on Monday after President Trump announced new tariff rates for seven countries. The good news is that the reciprocal tariff pause deadline has been extended to August 1 from July 9.
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The new rates compared to the original April 2 reciprocal tariffs are as follows:
- 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%
Overall, it seems as if the Trump administration is softening its tariff stance. Two countries received higher rates by just 1%, two countries received an unchanged rate, and three countries received lower rates. Trump added that the rates could be adjusted higher or lower depending on each country’s relationship with the U.S.
“Please understand that the 25% number is far less than what is needed to eliminate the Trade Deficit disparity we have with your Country,” read the letters that Trump sent to each country.
Following the 17th BRICS summit, Trump also warned of an additional 10% tariff for countries that support the “Anti-American policies of BRICS.” The group, which contains emerging market countries like China, Russia, and India, released a joint statement condemning tariffs ahead of Trump’s threat. Trump’s disapproval of BRICS could stem from the group’s position as a challenger to the U.S. dollar and its status as the world reserve currency.
Meanwhile, the Trump-Musk feud is officially back. Trump characterized the Tesla (TSLA) CEO as a “TRAIN WRECK” after Musk announced the creation of the “America Party” following a positive response from a poll he posted on X.
“Today, the America Party is formed to give you back your freedom,” said Musk on Sunday. Musk has also continued his criticism of Trump’s bill following its passage, arguing that it will lift U.S. debt to unsustainable levels.
Meanwhile, another White House official has expressed his disapproval of Fed Chair Jerome Powell. In an interview with CNBC and an article on The Hill, White House trade advisor Peter Navarro bashed Powell for delaying interest rate cuts. Navarro believes that rates are too high, resulting in lower GDP for the U.S. and higher costs for consumers.
“He’s costing Americans with their credit card debt,” said Navarro. “He’s costing us in terms of our national debt growing.”
Both the S&P 500 (SPX) and the Nasdaq 100 (NDX) finished Monday’s trading session with a 0.79% loss.
