New US Tariffs, Weak July Jobs Data Weigh on Global Stocks

Stock markets experienced significant declines following President Donald Trump's announcement of new tariffs on dozens of trading partners, combined with weaker-than-expected U.S. jobs data fueling concerns about the economy's strength. The FTSE 100 and U.S. indices such as the S&P 500, Nasdaq, and Dow all posted notable losses, driven by fears over the economic impact of tariffs ranging from 10% to 41%, including a 40% levy on goods transshipped to evade duties. The U.S. Labor Department reported nonfarm payroll growth of only 73,000 in July, far below expectations, with substantial downward revisions to May and June jobs figures, signaling a softening labor market and rising unemployment. Analysts highlighted that the weak jobs report alongside persistent tariff pressures could increase the likelihood of Federal Reserve interest rate cuts and pose challenges to corporate margins. Switzerland was particularly affected by a new 39% tariff, causing market shock and concerns over jobs in key Swiss industries like pharmaceuticals and watchmaking, with government officials urging continued negotiations to avoid long-term competitive disadvantages. Overall, the combination of trade tensions and labor market weakness has created a more cautious outlook for global markets and economic growth.