The US stock market had a difficult Friday after Donald Trump signed an executive order imposing new tariffs on several countries.
The news triggered a sell-off across global markets, with the Nasdaq falling 2.24%, S&P 500 dropping 1.60%, and the Dow Jones losing 1.23%.
New Tariffs Target 66 Countries
Trump’s order places tariffs between 10% to 41% on imports from countries like India, Canada, the European Union, Taiwan, and South Korea. For example, tariffs on Canadian goods increased to 35%, while India’s exports to the US will now face 25% duties. These tariffs are set to take effect from August 7, 2025. Mexico has been given a 90-day window to negotiate and avoid immediate hikes.
Job Growth Slows Down, Recession Fears Rise
Along with trade worries, markets also reacted to weaker-than-expected job data. The US economy added only 73,000 jobs last month, well below the forecast. June numbers were also revised down sharply. These reports raised concerns about a possible economic slowdown or even a recession.
Leadership Changes Add More Uncertainty
Tensions increased further when Trump fired the head of the US Bureau of Labour Statistics, blaming her for the weak data. Separately, Fed Governor Adriana Kugler announced she will step down early. These leadership changes have made investors uneasy about the future of US economic policy.
Dollar Drops, Rate Cut Hopes Rise
With all this news, the US dollar index fell by 1.37%, and investors began betting heavily on a Federal Reserve interest rate cut in September. According to CME FedWatch, the chance of a rate cut jumped from 37.7% to 87.5% in just one day.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Please consult a certified advisor before making any investment decisions.