Trump Announces New Tariffs; Suspends 'De Minimis' Exemption
Key Takeaways
- Trump announced new tariffs on multiple countries, including 50% on Brazil, effective August 7.
- Trump suspends 'de minimis' exemption, ending tariff-free status for packages under $800, effective August 29.
- US job cuts increased 140% YoY in July 2025, influenced by budget cuts, AI, and tariffs.
- US and Cambodia agree to trade deal with 19% tariff, Cambodia drops tariffs on U.S. imports.
- Federal Reserve Vice Chair Bowman dissented, advocating for a 25bp rate cut due to slowing economy.
Top Stories
Trump announces new tariffs on multiple countries, effective August 7.
On August 1, 2025, President Trump announced new tariffs ranging from 10% to 50% on several countries, including 35% on Canada and 50% on Brazil, effective August 7. The announcement raised fears of inflation and impacted global stock markets.
Trump suspends 'de minimis' exemption, ending tariff-free status.
President Trump is suspending the “de minimis” exemption, ending tariff-free status for packages valued at or under $800, effective August 29, applying duties of $80 to $200 per item.
US job cuts increase 140% YoY in July 2025.
US employers reported 62,075 job cuts in July 2025, a 140% increase year-over-year, influenced by government budget cuts, AI, and trade tariffs.
US and Cambodia agree to trade deal with 19% tariff.
The U.S. and Cambodia agreed to a trade deal with a 19% tariff on Cambodian goods, reduced from an initial 36% set by Trump, with Cambodia dropping all tariffs on U.S. imports.
Federal Reserve Vice Chair Bowman dissents on interest rates.
Federal Reserve Vice Chair Michelle Bowman dissented from the FOMC's decision to hold interest rates steady, advocating for a 25 basis point cut due to signs of a slowing economy.
Business News
Microsoft and Meta report strong quarterly results.
On July 30 and 31, 2025, Microsoft and Meta reported strong quarterly results, leading to stock price increases, with Meta Platforms surging 12% and Microsoft shares rising 4.77%.
China's Economy
China tightens oversight of government-backed investment funds.
China is tightening oversight of government-backed investment funds and local governments' investment promotions to curb "herd behavior" and disorderly competition in emerging sectors.
Finance Trends
US dollar strengthens after Trump imposes new tariff rates.
On August 1, 2025, the U.S. dollar strengthened against major currencies after President Trump imposed new tariff rates, with the dollar index rising to 100.14.
Trump criticizes Fed Chair Powell for not cutting rates.
On August 1, 2025, Donald Trump criticized Fed Chair Jerome Powell for not cutting interest rates and demanded rate cuts to lower debt costs.
Global central banks slow rate cuts amid tariff concerns.
As of July 2025, global central banks are slowing the pace of rate cuts amid tariff concerns and political pressures, with the U.S. Federal Reserve holding rates steady.
Global Economy
Trump's tariffs increase US average tariff to 18.4%.
On July 31, 2025, President Trump announced new tariffs on nearly 70 countries, increasing the US average tariff to 18.4% and potentially increasing unemployment by 0.4% by the end of 2025.
Switzerland faces 39% tariff after no deal with USA.
On August 1, 2025, the U.S. announced a 39% tariff on Swiss imports, effective August 7, 2025, targeting pharmaceuticals and luxury watches, causing shock in Swiss politics.
Brazil's unemployment rate falls to a record low of 5.8% in Q2.
In Q2 2025, Brazil's unemployment rate fell to a record low of 5.8%, the lowest since 2012, with 102.3 million employed.
Trump and Sheinbaum agree to 90-day tariff extension.
Presidents Trump and Sheinbaum agreed to a 90-day extension on tariffs, maintaining the current 25% tariff rates on products not covered by the USMCA, providing temporary relief for Mexico.
Taiwan negotiates with US after 20% tariff announcement.
Following the U.S. announcement of a 20% tariff on Taiwanese goods, President Lai Ching-te announced plans to continue negotiations with the U.S. to secure a more favorable rate.
US jobs report released in July 2025.
On August 1, 2025, the U.S. Employment Situation report, including the Nonfarm Payrolls report, showed 106,000 jobs created in July, and an unemployment rate of 4.2%.
South Africa faces 30% US tariffs, Reserve Bank cuts rate.
On August 1, 2025, Investec noted the 30% US tariffs on South African goods and the Reserve Bank's 25bp repo rate cut to 7% to support growth.
Market Overview
US stock futures decline due to tariffs and jobs report.
On August 1, 2025, US stock futures declined due to a weak jobs report and new tariffs announced by Donald Trump, including rates of 25% for India and 20% for Taiwan.
Stocks vulnerable to tariff shock; Apple's iPhone sales boost.
Stocks are vulnerable to a tariff shock, with Trump's new 10% baseline tariff and Apple's boost from iPhone sales being key market movers.
Market reactions to Trump's second term tracked by Bloomberg.
Bloomberg is tracking market reactions to Donald Trump’s second term, noting the S&P 500 is up 9.63% and the Nasdaq 100 is up 14.79% since the 2024 election.
Oil prices fluctuate amid US tariffs and sanctions.
On August 1, 2025, oil prices fluctuated as investors monitored the impact of U.S. tariffs and sanctions, with Brent crude around $71.63 and WTI at $69.16.
S&P 500 declines amid tariff deadline and market uncertainty.
On August 1, 2025, the S&P 500 faced declines due to concerns about the looming tariff deadline and technical portfolio adjustments.