Key Takeaways
- The U.S. is set to impose significant new tariffs on a range of countries effective August 1, 2025, with rates as high as 40% on Myanmar and 39% on Switzerland, impacting global trade flows.
- President Donald Trump has confirmed that the minimum global tariff rate will remain at 10%, despite earlier considerations of raising it to 15% or higher.
- Five major banks have announced increases in fixed-rate mortgage loans for August, signaling a tightening in the housing market.
- A top Senate Democrat has voiced criticism regarding Union Pacific's (UNP) proposed acquisition of Norfolk Southern (NSC), a deal that would create the first U.S. transcontinental railroad.
The global economic landscape is poised for significant shifts as new U.S. tariffs are set to take effect on August 1, 2025. These tariffs, imposed via executive order by President Donald Trump, will impact a broad array of nations with varying rates. Canada will face a 35% tariff, while Taiwan and Vietnam will see a 20% tariff. Switzerland is slated for a 39% tariff, and Myanmar will incur the highest new rate at 40%. Additionally, Thailand, Cambodia, Indonesia, Malaysia, and Pakistan will all be subject to a 19% tariff.
Despite the new tariffs, President Trump has decided to maintain the minimum global tariff rate at 10%. This decision resists prior suggestions that the floor could be raised to 15% or higher, offering a degree of stability amidst the new trade measures. The implementation of these tariffs is expected to influence international trade dynamics and potentially lead to shifts in global supply chains.
Domestically, the financial sector is also seeing notable changes. Five major banks have announced increases in their fixed-rate mortgage loans for August. This move could impact housing market activity and affordability for prospective homebuyers.
In the rail industry, a proposed acquisition is drawing scrutiny. A top Senate Democrat has criticized the deal for Union Pacific (UNP) to acquire Norfolk Southern (NSC). This merger, if approved, would establish the first transcontinental railroad in the United States, potentially reshaping the competitive landscape of the U.S. freight transportation sector.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.