President Trump’s latest trade measures are reshaping global commerce, with new import duties set to alter market dynamics and deepen economic divides across continents.
Tariff Highlights
Effective August 7, the U.S. will impose duties ranging from 10% to 41% on dozens of trading partners. Key rates include 25% on Indian imports, 35% on Canadian goods, and 39% on Swiss products. Last-minute deals eased charges for the UK and Japan, but many nations remain exposed.
Emerging Markets on Edge
Developing economies without U.S. agreements will face an average 19% tariff. In India, the rupee slid nearly 2% in July, while pharmaceuticals, autos, and gems risk significant disruption, potentially shaving 0.4 percentage points off GDP growth in 2025–26.
South Korea Strikes a Cautious Deal
Seoul secured a reduction of auto tariffs from 25% to 15%, tied to a proposed $350 billion investment and $100 billion in energy purchases. Yet analysts warn that opaque deal conditions may undercut the benefits of relief, raising questions about free-trade foundations.
Retail Ripples in the U.S.
Higher import duties are filtering into American shelves. Retailers like Walmart plan price hikes, and Fitch Ratings has downgraded multiple U.S. sectors by up to 25%, citing mounting trade uncertainty and political strategy ahead of the 2026 midterms.
Global Growth Takes a Hit
The OECD has trimmed its worldwide growth forecast from 3.1% in 2024 to 2.9% in 2025 and 2026, attributing the downgrade to elevated trade costs and policy volatility. An additional 10% tariff across all partners could cut global output by 0.3% and shrink the U.S. economy by 0.6% over two years.
The Road Ahead
Amid rising tensions, the Chinese mainland and other Global South nations have reaffirmed support for WTO-centered multilateralism, calling for dialogue over unilateral measures. As markets brace for further shifts, exporters worldwide are exploring new partners to diversify beyond the U.S.
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Trump's new tariffs deepen global divides amid economic fallout
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