Tariffs are back in the news again, with President Trump unveiling a slew of new tariffs. While the baseline rates for many trading partners remain unchanged at 10%, he has hit 92 US trading partners with higher tariffs while at the same time formalising recent deals with others including the EU.
The higher levies apply to key exporters to the US such as Taiwan, Canada, India and Switzerland. The new regime may be softer than the raft of more aggressive levies announced by the US President on “liberation day” on April 2, but it still leaves the US’s effective tariff rate at its highest level in nearly a century. Most of the tariffs are set to be implemented on August 7, with the average US tariff estimated to rise to just over 15%, up from 2.3% at the start of the year.
Daniel Casali, Chief Investment Strategy at Evelyn Partners, the UK wealth manager,commented:
“The latest wave of US tariff increases is being used by the Trump administration to force those countries that have not given concessions since Liberation Day into trade deals.
“Importantly for investors, large US trading partners, like the EU and Japan, have already settled on 15% tariff rates with the US. Though a big unknown is what tariff rate will be settled on for China, with the 12 August deadline approaching. The bottom line is that higher US tariffs have had a limited impact on US company earnings. Solid fundamentals have provided support for US and global equities to rally.
“The S&P 500 slipped in the final day trading day in July but has nevertheless delivered an impressive rally since its post Liberation Day nadir as investor concerns about tariffs have dissipated and attention has refocused on tech earnings.”
About Evelyn Partners
We are a leading wealth management group, created by the merger of Tilney and Smith & Williamson in 2020. With £61.9 billion of assets under management (as at 31 March 2025) we are one the largest UK wealth managers. Our purpose is ‘to place the power of good advice into more hands’.
We have a network of offices across 25 towns and cities in the UK, as well as the Republic of Ireland and the Channel Islands, supporting private clients, charities, family trusts and providing investment solutions to financial intermediaries. Our clients include entrepreneurs, C-suite senior managers and partners of professional firms.
Our expertise includes both award-winning financial planning and investment management, enabling us to offer clients a truly holistic dual expert wealth management service. Through Bestinvest, we provide an online investment platform and coaching service for self-directed investors.
For further information please visit: www.evelyn.com
