More than 60 countries have been thrust into a renewed scramble to secure trade deals with the United States after President Donald Trump signed off on a sweeping new tariff regime, triggering global market jitters and widespread fears of economic fallout.
Trump’s latest tariff blitz imposes levies ranging from 10 to 50 percent on US-bound exports from dozens of countries — including long-standing allies — with the White House declaring that the new rates will take effect on August 8, a week later than initially planned. The delay offers a narrow window for renewed negotiations.
Markets around the world reacted sharply. European stocks plunged, with the Stoxx 600 down nearly 2 percent and the UK’s FTSE 100 falling 0.8 percent. On Wall Street, the Dow Jones and S&P 500 both closed over 1 percent lower, while the Nasdaq slumped by more than 2 percent. Earlier, Asian markets had also tumbled. Investor sentiment was further dampened by weaker-than-expected US jobs data.
The tariffs, which Trump claims will help US exporters and reduce trade imbalances, have fuelled inflationary concerns in the US and sparked diplomatic tensions abroad.
Some of the steepest rates have been reserved for some of the world’s poorest and most fragile economies. Syria faces a 41 percent tariff, Laos and Myanmar 40 percent each, Libya 30 percent, Iraq 35 percent and Sri Lanka 20 percent.
Among would-be EU members, Moldova was slapped with a 25 percent duty, Serbia with 35 percent, and Bosnia and Herzegovina with 30 percent.
Lesotho, initially hit with a 50 percent levy — an existential threat to its textile sector and $2 billion economy — managed to secure a partial reprieve, with the final rate lowered to 15 percent. The landlocked African nation had declared a national disaster in response to the initial announcement.
India’s exports to the US will now be taxed at 25 percent, while Taiwan faces a 20 percent duty. South Africa has been hit with a 30 percent rate. President Cyril Ramaphosa said his government would "negotiate as strongly and as hard as we can" to bring the tariff down.
Switzerland was dealt one of the harshest blows, with a 39 percent levy. The Swiss franc dropped to its weakest in six weeks following the announcement. President Karin Keller-Sutter, who spoke to Trump on Thursday, said no deal had been reached. Pharmaceuticals — which make up half of Switzerland’s US-bound exports — are expected to bear the brunt, though chocolate and watch exports are also at risk.
“The Swiss rate was a shock,” said Kathleen Brooks, research director at XTB. “Chocolatiers, watchmakers and pharma companies are all under threat.”
Canada’s Prime Minister, Mark Carney, expressed disappointment after Trump raised tariffs on Canadian goods from 25 to 35 percent, citing Ottawa’s failure to address fentanyl trafficking and border issues.
Mexico, meanwhile, was granted a 90-day extension to reach a final deal, delaying the implementation of any new tariff hikes.
The UK, which had already reached an agreement with the Trump administration, emerged relatively unscathed with a 10 percent rate — the lowest among the major economies — matched only by the Falkland Islands.
The EU has been assigned a 15 percent all-in rate, confirmed in the executive order. However, car exports — currently taxed at 27.5 percent — were conspicuously left out, despite last week’s agreement with Trump. The exclusion means European carmakers must still contend with punitive duties.
Pharmaceuticals, another major export sector, were also left out of the final text, despite the White House stating earlier that a 15 percent rate had been agreed. The White House warned drugmakers to reduce prices for American patients or face government intervention.
Cambodia appears close to finalising a deal after agreeing to eliminate tariffs on US imports and commit to ordering up to 20 Boeing 737 aircraft.
Brazil, however, remains under a punitive 40 percent duty — a previous measure imposed by Washington in retaliation for the prosecution of former President Jair Bolsonaro.
The new rates come into force seven days after the executive order, starting August 8. However, goods already in transit or warehoused for US consumption before that date will be subject to the previous tariff (10 percent plus MFN rate) until October 5, 2025.
As Trump’s aggressive tariff policy reshapes global trade dynamics, leaders worldwide are now racing against the clock to mitigate the damage and secure favourable terms — or risk being left behind in a rapidly shifting economic order.