President Donald Trump’s new trade policy and recently announced tariffs have sent shockwaves through global markets.
Trump, who began his second term this year, has established a trade policy prioritizing America, similar to his first term. In April, he announced high tariffs on imports from 60 countries, describing these as a necessary “remedy” for the U.S. economy. He stated that tariff reductions would only be considered if countries agreed to pay large sums to the U.S.
On August 1, Trump announced new tariffs ranging from 10% to 41% on imports from 92 countries. This has increased the average U.S. import tariff from 2.3% a year ago to about 18% – the highest since 1930.
The new tariffs include a 35% tariff on certain Canadian goods, 50% on Brazilian imports, 25% on Indian goods, 20% on Taiwanese products, and 39% on Swiss imports.
These announcements have significantly impacted global stock markets. U.S. markets saw declines between 1% and 1.6%, while some UK markets dropped 1.9% in a day and 2.6% over a week.
The new tariffs are set to take effect from August 7, leaving countries little time to negotiate. Some nations have already begun discussions with the U.S. to lower these tariffs.
Switzerland, facing a 39% tariff, has started negotiations. India, with a 25% tariff, has also begun talks. South Africa, facing a 30% tariff, plans to negotiate to protect its jobs and economy.
Trump has imposed a 35% tariff on Canadian goods not meeting USMCA standards. Canadian Prime Minister Mark Carney expressed dissatisfaction, noting that only 1% of fentanyl entering the U.S. comes through Canada, contrary to Trump’s justification.
Mexico, responsible for 98% of illegal fentanyl in the U.S., has been given a 90-day negotiation period for a proposed 30% tariff. However, the U.S. will impose immediate tariffs on Mexican steel (50%), vehicles (25%), and goods not meeting USMCA standards (25%).
China has until August 12 to negotiate its tariffs. South Africa’s Trade Minister Paks Tau has vowed to defend the country’s jobs and economy against the 30% tariff.
The UK is not included in the new tariffs, having reached an agreement with the U.S. in May for a 10% tariff. Australia’s tariffs will also not exceed 10%.
Experts argue that Trump’s new tariff policy benefits no one.
