By Adam Clark
Global stock markets were largely downbeat on Friday after President Donald Trump said he would start sending letters to countries setting new tariff rates.
Trump told reporters Thursday that the letters -- around 10 a day -- will start being sent Friday. He said the rates could range from 60% or 70% to as low as 10%.
His comments mean global investors are starting to fret ahead of the July 9 deadline for the imposition of so-called reciprocal tariffs by the U.S.
"We're probably going to be sending some letters out, starting probably tomorrow, maybe 10 a day to various countries saying what they're going to pay to do business with the U.S.," he said Thursday, MarketWatch reported.
Markets in countries perceived as more vulnerable to U.S. levies were hardest hit. South Korea's KOSPI Composite Index fell 2%. Germany's DAX was down 0.8% and France's CAC 40 was falling 1% in afternoon trading. U.S. markets are closed for the Fourth of July holiday but futures were trading early in the day, pointing around 0.6% for the S&P 500, Nasdaq 100 and Dow Jones Industrial Average. The U.S. Dollar Index fell 0.2% to 96.95.
Trump has threatened to increase tariffs on the European Union to 50% instead of 20%, if the bloc and the U.S. are unable to reach a deal by the deadline. While multiple media reports have suggested the EU might accept a broad 10% tariff on many of its exports, French industry minister Marc Ferracci said he didn't think that would be "a good deal", in an interview on Bloomberg TV on Friday.
Analysts at UBS estimate that if the full set of proposed tariffs were to go into effect, the weighted average tax rate on U.S. imports would rise to 21% from 16% currently.
"Our economic forecasts assume the higher tariffs do not snap back on July 9, but the outcome is highly uncertain. We doubt the overall level of tariffs goes down, however, and there is some risk [that] tariffs rise for some if not all trading partners," wrote UBS economist Jonathan Pingle in a research note.
Write to Adam Clark at adam.clark@barrons.com
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July 04, 2025 07:31 ET (11:31 GMT)
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