Trump announces massive tariffs, which countries will be hit hardest?

The US import tariffs, effective August 7, 2568, followed President Donald Trump's executive order imposing new tariffs on imports from 69 countries beginning August 1, 2568, ranging in rate from 10% to 41%. The average US tariff rate would increase to 18%, up from just 2.3% last year.

The countries that were severely affected include:

• Canada (35%)
• Brazil (50%)
• India (25%)
• Taiwan (20%)
• Switzerland (39%)

With exceptions and waivers, Mexico is granted a 90-day waiver from the 30% import tariff on certain goods covered by the USMCA agreement. However, tariffs remain in effect on steel, aluminum, copper, and automobiles.

The impact on the market and the economy on the day of the announcement on August 1st was that global stock market indexes fell heavily. Dow Jones -1.2%, S&P 500 -1.6% Nasdaq -2.2% Europe's Stoxx 600 index fell about 1.9%. The US employment report for July was disappointing, adding only 73,000 jobs, lower than the 100,000 expected, and Trump ordered the firing of the head of the Bureau of Labor Statistics (BLS), alleging that the data may have been distorted.

The tariffs are the largest increase in trade taxes since the 1930s, with several countries expressing opposition and attempting to negotiate tariff reductions. Switzerland, India and Canada are preparing to negotiate or oppose them, and the European Union (EU) is cautious about retaliation. China, India and Mexico are accelerating negotiations to avoid further impact. Sectors particularly hard hit by the tariffs include fashion, pharmaceuticals and retail.

Investment advice: In volatile market situations, investors should focus on diversifying their investments and avoid panicking. Considering fundamental factors will be important for investing in the medium to long term and generating appropriate returns.

refer: investing.com