Trump's Tariffs 2025 Mixed Reactions & What It Means for Global Trade

Post by : Priya

  Photo:AP

U.S. President Donald Trump rolled out a sweeping new tariff regime affecting imports from over 90 countries. These tariffs will mainly take effect from August 7, except for Canada where they started immediately. The duties range widely—from 10% to as high as 41%, depending on the country and product category. This bold move is intended to reduce the U.S. trade deficit and protect American jobs. However, it has sparked mixed global reactions, significant concerns, and uncertainty about the future of global trade.

What Are These Tariffs?

Trump’s latest tariffs impose higher duties on imported goods from countries including India, Canada, Taiwan, South Africa, Brazil, and many others. India will face a 25% tariff on all exports to the U.S., while Taiwan’s tariffs are set at 20%, and South Africa’s at 30%. Canada’s tariffs have been raised from 25% to 35%, causing immediate impact since they are already in force. Some nations face steep levies topping 40%, like Syria at 41%, reflecting the wide scope and severity of this policy.

The tariffs are part of Trump’s declared strategy to prioritize U.S. interests by addressing trade imbalances that he believes harm the American economy and national security. According to the White House, these duties are a way to “put America first” by protecting local industries and jobs from foreign competition.

Countries’ Reactions: Relief, Resistance, and Confusion

Relief:
Certain countries like Thailand, Cambodia, Malaysia, and Sri Lanka welcomed the tariff results as they fared better than expected, sparking cautious optimism. Thailand called it a “major success” and a “win-win,” as moderate tariffs help protect its exports and economy[Previous conversation].

Resistance and Worries:
India faces one of the hardest hits with a 25% tariff on its exports, plus an additional unspecified penalty linked to its dealings with Russia. Indian industries—from apparel to pharmaceuticals—fear significant setbacks, including job losses and slowed economic growth. Indian business groups and economists express disappointment and call for renewed trade negotiations. Moreover, political backlash within India includes critiques of government handling of the situation.

Switzerland was caught off guard by a high 39% tariff, prompting regret from Swiss officials. Taiwan, a major supplier of semiconductors to the U.S., sees a 20% tariff but hopes negotiations may bring relief. Japan remains uncertain about upcoming auto tariffs, awaiting clarity on future rates.

Canada’s immediate tariff hike to 35% has raised tensions. The U.S. accuses Canada of failing to curb fentanyl smuggling, justifying the move as retaliation for inaction and past tariff responses. This escalation contributes to the ongoing policy friction between the two neighbors.

Confusion and Political Motives:
Brazil faces a staggering 50% tariff, delayed till August 6, tied in part to American criticism of its judiciary’s treatment of former President Jair Bolsonaro—someone Trump openly supports. This demonstrates how political considerations influence tariff applications alongside economic ones.

Economic and Industry Impacts

Experts warn that these tariffs will raise costs for U.S. manufacturers that rely on global supply chains. Studies suggest factory production costs could rise between 2 to 4.5%, squeezing already narrow profit margins, potentially leading to wage stagnation, layoffs, or even plant closures if increases are unsustainable.

U.S. consumers and businesses may face higher prices as tariffs increase the cost of imported goods. While Trump’s goal is to revive American industry and improve trade balances, economists remain skeptical about achieving these outcomes. Indeed, such trade conflicts create uncertainty that can weaken global economic growth and disrupt international markets.

Some agreements with countries like South Korea do provide exceptions or negotiated tariff reductions. For example, tariffs on South Korean automobiles will decrease from 25% to 15% as part of a $350 billion investment deal with the U.S. South Korea also agreed to import American agricultural products without tariffs, showing that bilateral deals can temper tariff impacts.

What This Means for Global Trade

The tariffs are reshaping trading relationships and compelling countries to reconsider their strategies. Countries affected are seeking new trade partners, racing to negotiate or contest tariffs, and preparing for economic disruptions.

Trade experts warn that ongoing tariff impositions and retaliations risk spiraling into full-blown trade wars—damaging not just the U.S. and targeted countries but also the broader global trade system built on cooperation and mutual benefit.

The full impact will unfold over the coming months as the tariffs take effect, negotiations continue, and industries adapt. The global economy is watching closely to see how this bold approach to trade policy influences markets, diplomatic relations, and economic stability.

Trump tariffs 2025