The Latest: US stock market and global trade partners react to Trump's new tariffs

Globe and Mail

10 hours ago

President Donald Trump 's latest tariff moves drew worries from Wall Street as stocks slumped Friday and Treasury yields fell sharply.
Trump signed an order the previous night imposing steep tariffs on 66 countries, the European Union, Taiwan and the Falkland Islands, to go into effect Aug. 7, after he originally threatened them for April but postponed twice after that until Aug. 1.
The markets were also reacting to government reports of a dramatic slowdown in hiring as businesses, investors and the Fed operate under a cloud of uncertainty from months of tariff policy news.
Here's the latest:
House Republicans delay Ghislaine Maxwell's subpoenaed testimony before Oversight Committee
In a letter to Maxwell's lawyers, Rep. James Comer, chair of the House Oversight Committee, said the committee 'is willing to delay your deposition' as part of its Jeffrey Epstein investigation until after the conclusion of an appeal she filed to the Supreme Court. That appeal is expected to be resolved in late September.
Maxwell's team had notified congressional investigators that she would invoke her Fifth Amendment rights against self-incrimination unless the committee meets certain demands, including a granting of congressional immunity; for the deposition to take place outside of her Tallahassee prison; a preview of the questions; and the conclusion of her appeal.
Comer wrote that while Maxwell's testimony is 'vital' to the investigation, the committee would not provide immunity or advance questions. The committee 'is willing to engage in good faith negotiations' and 'will continue its long-standing practice of engaging in forthright and detailed discussions about scoping,' Comer added.
Restaurant industry leader says the cost of eating out is likely to rise due to tariffs
The National Restaurant Association, which represents more than 1 million U.S. eateries and food service providers, said Friday that tariffs could increase the cost of popular menu items like coffee and hamburgers as well as ingredients like spices.
Chef Phila Lorn walks through his restaurant, Mawn, after opening for the day in Philadelphia, Thursday, May 22, 2025. (AP Photo/Matt Rourke)
Michelle Korsmo, the president and CEO of the association, said restaurants operate on such tight margins that the tariffs will force many to raise prices. Higher prices will cause diners to eat out less often, jeopardizing an industry that supports millions of jobs.
Korsmo said the association wants food and beverages to be exempted from tariffs.
'We ask the Trump administration to continue with sensible trade agreements,' Korsmo said in a statement. 'While addressing trade deficits is important, food and beverage products are not major contributors to these imbalances.'
US depends on spices coming from abroad
Laura Shumow, the executive director of the American Spice Trade Association, said Friday that many essential spices like cinnamon, pepper, nutmeg, cloves and vanilla require tropical conditions to grow and can't be cultivated in the U.S. on a commercial scale.
Tariffs on such products won't incentivize U.S. production or create American jobs, but they will place a financial burden on food companies and restaurants, Shumow said.
Shumow noted the Trump administration's framework for its trade agreement with Indonesia would allow the U.S. to lower tariff rates on commodities that aren't naturally available or domestically produced in the U.S.
Shumow said she hopes the final trade agreements with Brazil, India, Madagascar, Sri Lanka and other spice providers will contain similar language.
'We firmly believe that smart, targeted trade policies can support the U.S. spice industry and other American businesses while helping to keep grocery costs down for families,' Shumow said in a statement.
Brewer outlines the toll of Trump's latest tariffs
Brewers across the country have been struggling with labor costs driven up by inflation and generational shifts in alcohol consumption. Tariffs have made sourcing everything from cardboard to aluminum cans more expensive.
Trump's latest round of tariffs on European goods are putting special pressure on Utepils Brewing in Minneapolis — which specializes in pilsner, Kolsch and other classic styles from the continent. For Dan Justesen, president of Utepils, that means sourcing hops and malt from farmers in Germany and the Czech Republic.
'You might ask, 'Why don't we buy American-grown hops?' They don't grow the same styles, and they don't taste the same,' he said.
The latest tariffs are already taking a toll. One supplier notified Justesen Thursday that they would no longer split the additional costs–leaving Utepils on the hook with no relief in sight.
'Even when the tariffs have been dropped temporarily at times, we don't see a price reduction. Prices go up, go up, and they go up,' Justesen said.
New tariffs could raise costs of coffee and hamburgers, restaurant group says
The National Restaurant Association, which represents more than 1 million U.S. restaurants and food service providers, said Friday that the tariffs could increase the cost of popular menu items like coffee and hamburgers as well as ingredients like spices.
Michelle Korsmo, CEO of the association, said restaurants operate on such tight margins that the tariffs will force many to raise prices. Higher prices will cause diners to eat out less often, jeopardizing an industry that supports millions of jobs.
Korsmo said the association wants food and beverages to be exempted from tariffs. 'We ask the Trump administration to continue with sensible trade agreements,' Korsmo said in a statement. 'While addressing trade deficits is important, food and beverage products are not major contributors to these imbalances.'
Supermarket chain assesses tariff impacts on chocolate and wine
Stew Leonard Jr., president and CEO of Stew Leonard's, a supermarket chain that operates stores in Connecticut, New York and New Jersey, noted that the latest round of Trump's tariffs will now force him to look at doing more business with U.S. suppliers.
For the winter holidays, he usually buys Swiss chocolates but will look at other U.S. vendors to fill the gap.
'Trump is doing what he intends to do,' he said. 'He's making it too expensive to buy chocolate from Switzerland. So what I'm going to do is make sure we buy our chocolate from the United States. '
As for wines, 50% of the wines and spirits the chain sells are imported from Europe and other countries. The price range has been $10 to $20 so with a 15% tariff rate on goods from the European Union, he would have to raise prices, a move that he believes will hurt demand. So he plans to promote more U.S. brands, he said.
Leonard is already started to increase prices on some imported items, including jars of marinara sauce from Italy under the retailer's private label. They were $5.99 before the pandemic, then rose to $6.49 during the health crisis because of supply chain issues. That price will go up to $6.99 because of the 15% duties on products from the European Union, he said.
Hungary's prime minister slams EU for failing to negotiate more favorable trade deal with the US
'They didn't take seriously that the U.S. president was going to really reshape the world economy, they thought he was just a bigmouthed American entrepreneur who wouldn't do half of what he undertook,' Viktor Orbán, Hungary's populist prime minister, told state radio on Friday.
The Hungarian leader, who is a Trump ally, also criticized European Commission head Ursula von der Leyen for making 'commitments to America that are beyond her authority,' and railed against reported agreements for European companies to purchase natural gas, oil and nuclear fuel from the U.S. and to make large-scale investments there.
'This is a terrible economic agreement,' Orbán said. 'I have been saying since February that we should take the initiative, to stand up for totally free trade ... but we shouldn't wait like a frozen rabbit or an animal charmed by a snake just to be attacked.'
US hiring slowed as Trump's tariffs took effect
U.S. hiring is slowing sharply as Trump's erratic and radical trade policies paralyze businesses and raise doubts about the outlook for the world's largest economy.
The Labor Department reported Friday that U.S. employers added just 73,000 jobs last month, well short of the 115,000 forecasters had expected. Worse, revisions shaved a stunning 258,000 jobs off May and June payrolls. And the unemployment rate ticked up to 4.2% as Americans dropped out of the labor force and the ranks of the unemployed rose by 221,000.
Economists have been warning that the rift with every U.S. trading partner will begin to appear this summer and the Friday jobs report appeared to sound the bell. 'We're finally in the eye of the hurricane,' said Daniel Zhao, chief economist at Glassdoor. 'After months of warning signs, the July jobs report confirms that the slowdown isn't just approaching—it's here.'
Trade group reiterates that higher tariffs eventually get passed down to consumers
David French, executive vice president of government relations at the National Retail Federation, the largest retail trade group in the U.S., said in a statement Friday that these higher tariffs are taxes paid by U.S. importers and are eventually passed along to consumers and hurt businesses.
'Retailers have been able to hold the line on pricing so far, but the new tariffs will impact merchandise in the coming weeks, ' he said. 'We have heard directly from small retailers who are concerned about their ability to stay in business in the face of these unsustainable tariff rates.'
A 'structural rewrite' for the global economy
'Trump's new tariff directive, signed behind closed doors just ahead of the Aug. 1 deadline, slaps a new floor under global trade costs: a 10% minimum rate for nearly all partners, with surcharges of 15% or higher for surplus nations,' Stephen Innes of SPI Asset Management said in a commentary.
'This wasn't just an update — it was a structural rewrite. The average U.S. tariff jumps from 13.3% to 15.2%, a seismic shift from the 2.3% average before Trump retook office. This reshapes the cost calculus for everything from semiconductors to copper pipes,' he said.
France still wants to renegotiate parts of the EU's trade deal with the EU
Just days after it was sealed with a handshake, France is already talking about possibly renegotiating parts of the EU-US deal on tariffs, to make it more favorable for European producers. 'It's a stage and we won't stop here,' French Foreign Minister Jean-Noël Barrot said Friday, speaking to broadcaster France Info. 'We want new concessions, guarantees on wine and spirits, a readjustment, a rebalancing on the service sector, in particular digital services.'
The minister argued that European negotiators hadn't been feared enough by Trump.
'Europe has to beef up its game," Barrot added. If Europe had been stronger, had it been feared by Donald Trump and the American negotiators, we doubtless could have obtained better results.'
Swiss pharmaceutical Roche says medications should be exempt from tariffs
Swiss pharmaceuticals powerhouse Roche says it is working to ensure its patients and customers worldwide have access to their medications and diagnostics amid Trump's tariff war.
'While we believe pharmaceuticals and diagnostics should be exempt from tariffs to protect patient access, supply chains and ultimately future innovation,' the statement said. Still, the company said it was prepared for the implementation of potential tariffs. 'With strengthened U.S. production capacity and proactive measures like inventory adjustments and tech transfer, we are working to ensure uninterrupted access to our products.'
Some African nations hope they can still negotiate reduced tariffs
Some African nations that benefited for 25 years from a duty-free trade agreement with the U.S. say they hope they can still negotiate a reduction on the new tariff rates imposed by the Trump administration, as they threaten tens of thousands of jobs in poor countries already struggling with high unemployment rates.
South Africa, Africa's most diverse economy, received a 30% tariff rate which would impact exports like agricultural produce and cars. Those sectors have warned of potential job losses in a country that already has an unemployment rate of more than 32% — one of the highest in the world. South Africa is a beneficiary of the African Growth and Opportunity Act, a U.S. program giving some African countries duty-free access to the American market to spur development. African officials say that program — which started in 2000 — now appears doomed when it is up for renewal by the U.S. government in September.
Meanwhile, neighboring Botswana expressed some relief that its rate was reduced from a threatened 37% in April to 15%. It was hoping for further talks, according to Botswana's chief trade negotiator. But in an indication of the wider impact, Botswana said its automotive industry also would be hurt because it provides parts to South Africa's car sector.
Another African nation, tiny Lesotho, had been threatened with a massive 50% tariff rate. That was reduced to 15% by the U.S. in Thursday's list, but officials there fear it will still spell disaster for its clothing manufacturers, which make U.S. brands and export to the American market.
Tens of thousands of jobs in Swiss tech companies at risk
The director of Swissmen, an association for Swiss technology companies, says he is 'stunned' by the 39% tariffs for Switzerland.
Stefan Brupbacher said that the number has 'no rational basis' and is 'arbitrary,' putting tens of thousands of jobs at risk.
Swiss watch industry group 'very disappointed'
The Federation of the Swiss Watch Industry says it is 'very disappointed and surprised' by the 39% tariffs imposed on Swiss exports.
Swiss luxury watch brands — with products that cost tens of thousands, if not the hundreds of thousands, of euros — are expected to be hit hard by the tariffs.
'As Switzerland has eliminated all custom duties on imported industrial products, there is no problem with reciprocity between Switzerland and the U.S.,' the federation said in a statement. 'The tariffs constitute a severe problem for our bilateral relations. As an additional deadline has been granted, we expect that the Swiss authorities continue to negotiate and find a better solution.'
Kosovo lifts tariffs on US goods
Kosovo's Cabinet on Friday decided to remove trade tariffs for American products imported into Kosovo.
'We are grateful for our enduring relationship with the United States of America,' Prime Minister Albin Kurti said in a statement on X.
Kosovo's goods have a 10% tariff when exported to the United States.
Norwegian furniture maker will pass on costs to American customers
Norway's largest furniture manufacturer, Ekorne, says it will increase its prices for American customers as a result of the 15% tariffs, Norwegian broadcaster TV2 reported.
Tine Hammernes Leopold, Ekorne's chief executive, told TV2 that the manufacturer has to adjust its prices, which are assessed based on individual markets.
The furniture company earned more than $96 million last year in the U.S., TV2 reported.
India plays down any strain in relationship with US
India's Foreign Ministry has dismissed any strain in relationship with the U.S. following the imposition of 25% tariffs on Indian goods.
Ministry spokesman Randhir Jaiswal said Friday that India and U.S. share a comprehensive global strategic partnership, which is anchored in shared interests, democratic values and robust people-to-people ties.
'This partnership has weathered several transitions and challenges,' he said. 'We remain focused on the substantive agenda that our two countries have committed to and are confident that the relationship will continue to move forward.'
The ministry also said that India's relationship with Russia was 'steady and time-tested." The Trump administration also imposed an additional import tax on India because of New Delhi's purchase of Russian oil. Jaiswal said India's broader stance on securing energy needs was guided by availability in the markets and prevailing global circumstances.