Stocks came under pressure after Trump announced the new rates. Contracts for the S&P 500 fell 0.99% while Nasdaq 100 futures fell 1.1%.

Volatility index rose 12% in premarket trading while 2X long VIX futures ETF rockets 10%.

President Donald Trump unveiled a slew of new tariffs that boosted the average US rate on goods from across the world, forging ahead with his turbulent effort to reshape international commerce.

The baseline rates for many trading partners remain unchanged at 10% from the duties Trump imposed in April, easing the worst fears of investors after the president had previously said they could double. Yet his move to raise tariffs on some Canadian goods to 35% threatens to inject fresh tensions into an already strained relationship, while countries like Switzerland and New Zealand also saw increased rates.

Taken together, the average US tariff rate will rise to 15.2% if rates are implemented as announced, according to Bloomberg Economics. That’s up from 13.3% earlier and significantly higher than the 2.3% in 2024 before Trump took office.

Most of the tariffs will take effect after midnight on Aug. 7, to allow time for US Customs and Border Protection to make necessary changes to collect the levies. Trump signed the directive just hours before his prior Aug. 1 deadline for higher tariffs to kick in on scores of trading partners.

Major industrialized economies, including the European Union, Japan and South Korea, accepted 15% duties on their products, while charges on items from Mexico, Canada and China are even bigger.

Trump is expected to unveil separate tariffs on imports of pharmaceuticals, semiconductors, critical minerals and other key industrial products in the coming weeks, meaning ongoing uncertainty for companies and investors.