TLDR
- Trump raised tariffs on Canada to 35%, with rates from 10% to 40% on dozens of countries through executive order
- Most new tariff rates delayed by seven days, except Canada’s 35% rate which takes effect Friday
- Stock futures fell sharply with Dow down 0.9%, S&P 500 down 0.9%, and Nasdaq down 1.1%
- India faces 25% tariffs, Taiwan 20%, while EU, South Korea and Japan get 15% rates
- New tariffs bring US effective tariff rate to 18.4%, the highest since 1933
President Trump signed an executive order Thursday evening implementing sweeping tariff increases on nearly every US trading partner. The new rates range from 10% to 40% and represent a major shift in America’s trade policy.
🚨 US Futures Drop as Trump’s Trade Deadline Hits…
🔹 White House rolls out new tariffs after Trump’s trade deadline expires, hiking tariffs on Canada from 25% to 35%
🔹 S&P 500 $ES down over 2% from Thursday's highs
🔹 70+ countries hit with tariffs ranging from 15%-40%.
🔹… pic.twitter.com/wGxq3P5Ms8— Trader Edge (@Pro_Trader_Edge) August 1, 2025
Canada will face the steepest increase with tariffs rising to 35% from the current 25%. This new rate takes effect Friday as originally planned under a separate order focused on illicit drugs.
For most other countries, the implementation has been delayed by seven days from Trump’s original midnight Friday deadline. The order allows goods loaded onto ships before August 7 and entering the US before October 5 to qualify for previous lower rates.
Market Response
US stock futures dropped sharply Friday morning as investors processed the tariff announcement. Dow Jones futures fell 0.9%, S&P 500 futures declined 0.9%, and Nasdaq 100 futures dropped 1.1%.
The market reaction reflects concerns about the potential impact on global trade and economic growth. Copper prices edged higher but remained on track for a weekly decline.
India, initially hopeful for a trade deal, now faces a 25% tariff rate. Taiwan, a key US trading partner, will see a 20% rate. Bangladesh secured a lower 20% rate, down from Trump’s proposed 37%.
Key Trading Partners Affected
The European Union, South Korea, and Japan will face 15% tariffs. Southeast Asian nations received rates between 19% and 20%. The United Kingdom maintained its 10% rate.
Dozens of smaller trading partners saw increases to 15% from 10%. Countries where the US maintains a trade surplus will keep their 10% rates.
Mexico received a 90-day pause on new tariffs after what Trump called a “very successful” phone call. Current rates on Mexico remain at 25%.
The order includes anti-transshipping provisions with an additional 40% tariff on goods deemed to evade duties. No specific definition was provided for what constitutes transshipping.
Brazil faces 50% tariffs set to take full effect one day earlier than other countries. Copper also faces 50% levies starting Friday at midnight.
Trump justified the tariffs using the 1977 International Economic Emergency Powers Act after declaring a national emergency. Small business importers and the Justice Department have questioned his authority to take these actions.
The Yale Budget Lab calculated that before Thursday’s adjustments, consumers already faced an effective tariff rate of 18.4%. This marks the highest rate since 1933, with the figure expected to rise further.
Trump has repeatedly stated that tariffs are generating record revenues for the US government. He described the duties as making “America GREAT & RICH Again” in Thursday comments.
The tariff implementation comes as the July jobs report is expected Friday, showing slower hiring and higher unemployment. The Federal Reserve is closely monitoring economic indicators after Thursday’s inflation data showed increasing price pressures.
The new tariff structure gives negotiators another week to reach deals with affected countries before most rates take effect.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
