A new era of global trade disruption began at 12:01 a.m. EDT Friday as U.S. President Donald Trump’s August 1 deadline for new trade deals officially passed, unleashing a wave of sweeping tariff hikes on dozens of U.S. trading partners. The White House has set new import duty rates ranging from 10% to 41%, redrawing the landscape of global commerce and rattling financial markets.
The latest move, part of Trump’s broader “America First” trade reset, has already sparked diplomatic outcries, market turbulence, and a reshuffling of global supply chains, even as several nations scramble to strike last-minute agreements.
Key Tariff Moves:
- Canada faces a steep 35% tariff on goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA), up from the previous 25%.
- India has been slapped with a 25% tariff on all exports to the U.S.
- Norway and European Union countries are now subject to 15% tariffs, as a new EU-U.S. trade deal kicks in.
- Switzerland sees a 39% tariff, with its government calling for a “negotiated solution.”
- Mexico received a 90-day extension to finalize terms and avoid immediate tariff hikes.
- Australia secured the lowest tariff rate of 10%, prompting plans to boost exports.
- Cambodia avoided economic collapse after its tariff was slashed from 49% to 19%, in exchange for a deal involving Boeing jet purchases.
The newly imposed tariffs represent the most aggressive U.S. trade policy since the 1930s and come despite warnings from economists, trading partners, and multinational businesses.
“The 15% tariff regime on European goods alone is sending shockwaves through global markets,” said Andrew Wilson, Deputy Secretary General of the International Chamber of Commerce. “Trading with the United States is now hellishly more difficult.”
European exporters are already reporting shipment delays, rising costs, and shrinking margins. Some businesses say they may not survive the new environment.
Asian markets reacted swiftly to the news. The South Korean won fell to a two-month low, dropping 0.62% against the U.S. dollar, while Malaysia’s ringgit, the Taiwan dollar, and Thai baht all slipped as investors fled regional currencies.
The MSCI emerging market currency index fell more than 0.3%, reflecting broad concern over the escalating trade war.
Country Reactions:
Canada:
Prime Minister Mark Carney expressed “disappointment” over the 35% tariff on Canadian exports outside of CUSMA, warning of serious implications for key industries like lumber, steel, aluminum, and automobiles.
In a statement, Carney said:
“We remain committed to CUSMA… but we will act to protect Canadian jobs, invest in competitiveness, and diversify our export markets.”
He linked the tariff hike to U.S. frustration over Canada’s recent support for Palestinian statehood, though he emphasized Canada’s ongoing efforts to collaborate on border security and drug trafficking issues.
Switzerland:
The Federal Council criticized the 39% tariff, saying it is “assessing the situation” and working toward a diplomatic solution with Washington.
Norway:
Norway’s Trade Minister Cecilie Myrseth told NRK that the country is still pursuing a U.S. trade agreement and hopes to avoid a lasting trade rift.
Malaysia:
Malaysia secured a 19% tariff without compromising on its national sovereignty. Officials praised the outcome as the result of “methodical negotiation” and pledged support for affected exporters.
Cambodia:
Deputy Prime Minister Sun Chanthol confirmed that the revised 19% rate saved the country’s vital garment sector. “If the U.S. maintained 49% or 36%, that industry would collapse,” he said. Cambodia has agreed to purchase 10 Boeing jets as part of the deal.
Taiwan:
President Lai Ching-te confirmed that trade talks with the U.S. are still ongoing, despite the expiration of the deadline. A previously announced 32% tariff was paused, and Taiwan now faces a 20% rate, pending a final agreement. A U.S. official told Reuters that Taiwan’s current proposal is “well received.”
South Korea:
Seoul reached a compromise with Washington on Wednesday, securing a 15% tariff instead of the previously threatened 25%. The move helped boost July exports by 5.9% year-over-year, marking the strongest growth in seven months, as exporters rushed to ship goods before the deadline.
Trump’s executive order lays out a timeline for the new tariff rates to take effect in seven days, by August 8, 2025, for 69 countries that failed to finalize bilateral deals. The White House argues the moves are necessary to correct “unfair trade imbalances” and reduce dependency on adversarial supply chains.
Meanwhile, major global industries, including electronics, automobiles, textiles, and mining, are bracing for ripple effects, while governments weigh countermeasures.
With global trade lines redrawn overnight, Trump’s tariff blitz may redefine alliances, economic dependencies, and diplomatic strategies for years to come.
Written By Rodney Mbua
