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Bessent: Imposing Aug. 1 tariffs 'will put more pressure' on trade partners for deals

1. Tariffs on countries starting August 1 may increase pressure for better agreements. 2. Investors are uncertain if tariffs will be enforced or postponed again. 3. High tariffs, up to 40%, could harm U.S. and partner economies. 4. Negotiations focus more on deal quality than strict deadlines. 5. Bessent calls August 1 a 'hard deadline' for tariff enforcement.

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FAQ

Why Bearish?

High tariffs could slow economic growth and decrease corporate profitability, similar to past tariffs imposed in 2018 leading to volatility in S&P 500.

How important is it?

Tariffs directly affect companies in import/export sectors which comprise a significant proportion of S&P 500; thus, they can impact overall market sentiment.

Why Short Term?

Market reactions to tariff announcements have historically led to immediate volatility; expect short-term selling pressure.

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