2025-08-20
U.S. Tariff Surge in August Shakes Global Markets: Sharp Steel & Aluminum Hikes, Semiconductor Stocks Plunge
In August 2025, U.S. tariff policies were further intensified, triggering significant market fluctuations. Starting August 7, the U.S. imposed equalization tariffs ranging from 10% to 41% on products from multiple countries, causing notable export and import disruptions within just two weeks. Key impacts are summarized as follows:
Steel and Aluminum: On August 19, the U.S. Department of Commerce expanded the 50% tariff coverage to over 407 steel and aluminum-related products, tightening import controls and pushing aluminum prices in Shanghai and London to a two-week low.
Semiconductor Products: President Trump announced potential tariffs ranging from 100% to 300% on semiconductor companies not manufacturing or expanding in the U.S., leading to a 2.26% short-term drop in the Philadelphia Semiconductor Index in August, highlighting increased market concerns.
Tariff Rate Adjustments: As of late July, tariffs on nearly 70 countries ranged from 10% to 41%, with 50% tariffs imposed on some Russian crude imports in India and multiple products from Brazil also facing 50% tariffs.
Import Price Impact: The tariff hikes have significantly fueled inflationary pressure in the U.S., with the July Producer Price Index (PPI) seeing an unexpected sharp rise, viewed by markets as a warning sign of tariff-induced inflation, affecting market and consumer confidence.
Overall, the U.S. tariff policy in August 2025 showed rapid, multi-dimensional expansion, demonstrating the Trump administration’s aggressive use of tariffs to reshape global trade, particularly tightening controls on key industries like metals and semiconductors, triggering ripple effects across global supply chains and prices. This wave of tariff measures is expected to continue impacting global supply, demand, and prices, with markets closely monitoring the progress of U.S.-China trade talks and tariff adjustments, as these will directly influence the global economy and manufacturing reshoring trends. Economists assess that in the short term, tariff pressures may worsen U.S. inflation and hinder economic growth, but medium to long-term easing remains possible, with AI and manufacturing reshoring serving as potential pillars supporting future economic resilience.