Financial analyst at Bloomberg News, Martin Ritchie, said: “The 50% level is a surprise. The market was really pricing in and analysts were broadly expecting a 25% tariff. This is significantly higher than expected, and it's really got people a little bit on the back foot in terms of scrambling to understand what's going to happen next. The reason why 50% is considered very high is because the US is actually particularly reliant on imports for its manufacturing industries, far more than on steel. It is going to leave certain pockets of manufacturing, potentially facing much higher costs.”

Mr. Trump revealed his new tariff plan just one day after sending letters to 14 trade partners, including Japan and South Korea, to notify them of higher tariffs starting August 1. He also warned that there will be no further extensions for trade deal negotiations, after postponing the deadline from July 9 to August 1, due to ongoing talks.