WASHINGTON, D.C. — Global markets tumbled Friday after President Donald Trump announced sweeping tariff hikes targeting imports from more than 90 countries. The move triggered swift backlash from U.S. allies, jolted financial markets, and renewed concerns about rising prices and slowing job growth. The new measures, which take effect next week, raise import taxes on a broad range of goods. Canada, Mexico, Brazil, India, and several European and Asian economies are among those affected.
President Trump raised tariffs on Canadian goods from 25% to 35%. Prime Minister Mark Carney called the decision “deeply disappointing,” though Canadian wheat, lumber, and dairy remain largely exempt under a separate trade agreement. Mexico received a 90-day extension before its higher tariffs kick in, but Brazil faces a new 50% rate across multiple exports.
“These tariffs are a great deal for the country,” U.S. Trade Representative Jamieson Greer said in an interview. “The president believes tariffs are a stronger option than deals in many cases.”
Markets across Europe, Asia, and North America slipped ahead of Wall Street’s opening bell. Germany’s DAX index fell 1.5%. The FTSE 100 in London lost 0.5%, while Japan’s Nikkei dropped 0.66%. The S&P/ASX 200 in Australia closed down nearly 1%.
Economic analysts expected a selloff, but the scope of Trump’s action surprised traders. “We anticipated targeted measures,” said a financial expert familiar with G20 discussions. “This scale reopens risk across global supply chains.”
U.S. markets opened lower, with investors closely watching how the tariffs will affect consumer prices and corporate earnings heading into the final quarter of 2025.
Labor Department data released Friday showed the U.S. economy added just 73,000 jobs in July, a steep drop from June. Revisions for May and June also showed weaker growth than previously reported. The national unemployment rate ticked up slightly to 4.2%.
Analysts tied the slowdown to uncertainty caused by tariff threats. Businesses held off on hiring and capital investments amid fears of rising input costs and disrupted imports.
President Trump has repeatedly defended tariffs as a way to shrink the U.S. trade deficit. But official figures show the opposite trend. In March 2025, the U.S. goods trade deficit hit a record $162 billion before easing to $86 billion in June. The rise was partly driven by U.S. firms stockpiling imports before tariffs took effect.
Imports surged. Exports rose marginally. The overall trade gap remains large, particularly with China and the European Union. In 2024, the U.S. average tariff rate stood at just 2.3%. That figure could now jump to 17%, the highest since the 1930s, based on estimates from independent economists.
India expressed concern, with its foreign ministry stating talks with Washington are ongoing. Indian exporters especially in textiles and leather warned that new costs would be passed on to U.S. consumers.
A tea trader in Assam said, “We cannot absorb these rates. Prices will go up in the U.S. market.”
While some countries have signaled willingness to negotiate exemptions, others are preparing retaliatory measures. The European Commission is reviewing its trade policies in response.
Polls show mixed views among Americans on tariffs. Many are unclear about their direct impact. A trade policy expert said, “These tariffs are taxes paid by U.S. importers. The costs will eventually land on businesses and consumers.”
With the 2026 midterm elections less than 18 months away, the political consequences of rising consumer prices and job losses could shape the national conversation.
For now, Trump remains firm. “We’re not going to let countries take advantage of us anymore,” he said Thursday at the White House.
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