Trump's new tariffs start tomorrow. Here's who's getting hit, and by how much.

President Trump's new reciprocal tariffs, ranging from 10% to 41%, will commence tomorrow, August 7, affecting a broad range of nations including Switzerland (up to 39%), Taiwan (reduced to 20%), and maintaining a 25% tariff on Mexico. These reciprocal levies, distinct from sectoral tariffs, are subject to ongoing negotiations, as seen with Switzerland. Notably, China is not part of this immediate wave, though the broader tariff landscape continues to influence market sentiment, with Apple Inc. shares rising 6% on investor hopes of avoiding severe semiconductor tariffs.

Analysis

A new wave of U.S. reciprocal tariffs, ranging from 10% to 41%, is set to take effect on August 7, impacting a wide array of trading partners and creating significant market uncertainty. The measures are notable for their differentiated application, with Switzerland facing an increased import tax of 39% while Taiwan's rate is reduced to 20%. Major partners like the European Union and Japan are also subject to 15% tariffs despite having existing trade deals. The situation remains fluid, as evidenced by ongoing negotiations with Switzerland, indicating that these rates are not yet final. These reciprocal tariffs are distinct from potential future sectoral levies, with the administration threatening tariffs as high as 250% on pharmaceuticals and new tariffs on semiconductors. This specific threat directly impacts Apple Inc. (AAPL), whose stock, despite a 6% intraday rally on hopes of appeasement, is down 14% year-to-date, partially due to this overhang. The overall market sentiment is moderately negative and uncertain, reflecting the unpredictable nature of trade policy and its direct implications for corporate supply chains and profitability.

Key Decisions for Investors

• Investors should anticipate heightened cross-asset volatility as the new tariffs are implemented and closely monitor diplomatic developments, particularly the status of the U.S.-China trade truce which ends August 12.
• For positions in Apple (AAPL), the recent 6% gain should be viewed with caution, as it contrasts with the stock's 14% year-to-date decline and the unresolved threat of semiconductor tariffs, making supply chain announcements a key catalyst to watch.
• Portfolio managers with exposure to the pharmaceutical and semiconductor industries must remain on high alert for forthcoming sectoral tariff announcements, as the threatened 250% levy on drugs signals a potential for severe, targeted disruptions.