President Trump has extended the tariff pause until Aug. 1. He also sent letters to various countries notifying them of the high tariff rates that will go into effect on Aug. 1. Despite the looming tariff hikes, the stock market is near all-time highs, prompting questions about investor complacency. Some analysts believe that the market may be underestimating the impact of Trump’s tariffs, which initially caused a market downturn in April. The president has also announced that there will be no extensions beyond Aug. 1, with additional levies on countries assisting BRICS nations and increased tariffs on copper.

In early April, Trump’s shocking tariff rates rattled investors, with rates much higher than expected. Recent trade deals have slightly lowered rates from the “Liberation Day” tariffs, but they remain significant. For example, tariffs on China are set at 55%, while Vietnam faces 20% tariffs. Trump announced deals with the UK and other countries, with new tariff rates set to take effect on Aug. 1, ranging from 25% to 40%. Despite concerns, the stock market response has been muted, with investors potentially underestimating the impact of the looming tariff hikes.

Read more at Nasdaq.: Is the Stock Market Underestimating President Trump’s Tariffs?