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Markets tumble after Trump unveils new tariff blitz

Updated Aug 1, 2025, 8:31am EDT
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U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House
Carlos Barria/Reuters

Stock markets fell around the world Friday after US President Donald Trump unveiled a swath of revised tariffs, with investors bracing for fresh turbulence in the global economy.

Major economies including Canada and China condemned the announcement, which though not as extreme as his “Liberation Day” levies in April nevertheless raised the effective US tariff rate to nearly seven times its level before Trump took office, according to Bloomberg. Asian stocks closed lower, European markets opened down, and S&P 500 futures slipped.

The protectionist moves have so far had little major impact on the US economy, but key indicators suggest trouble: The inflation rate on goods from China is increasing rapidly, one expert noted, while growth may be significantly lower than it otherwise would have been, another warned.

A chart showing the new US tariff rates on select countries.
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