Global Trade War and Tariff Escalation

President Trump giving a speech at an official podium

President Donald Trump launched an unprecedented worldwide trade assault, unveiling broad tariffs against dozens of trading nations. Through executive orders as of August 1, 2025, Trump set import duties between 10% and 41% on 69 nations, with Switzerland incurring the largest at 39%, Canada's at 35%, and India's at 25%. The steps are a far more aggressive leap from the 10% starting point tariff revealed in April 2025.

The levies will start to go into effect on August 7, 2025, after a week's delay to give customs authorities sufficient preparation time. The administration of Trump has invoked the International Emergency Economic Powers Act of 1977 to legitimize these actions, promulgating the U.S. trade deficit as a national emergency. The policy has created a huge market turbulence, with European equities making three-week lows and Asian markets suffering their worst week since April.

Key Countries Impacted:

•            Switzerland: 39% tariff

•            Canada: 35% tariff (up from 25%)

•            Iraq and Serbia: 35% each

•            Algeria, Libya, and South Africa: 30% each

•            India: 25% tariff

•            Taiwan: 20% tariff

Several countries have received initial trade agreements by the administration, such as the European Union (15% tariff), Japan (15%), and South Korea (15%), confirming Trump's negotiation-first philosophy. Mexico was given a 90-day extension period for negotiations after direct presidential talks.