Trump’s global tariff blitz takes effect from today

New Delhi, Aug 7: US President Donald Trump’s new tariffs on imports from more than 90 countries came into force on Thursday, in one of the most significant trade overhauls in recent US history. The measures, first announced in April and modified over recent months, are aimed at reducing the US trade deficit and reviving domestic manufacturing.

Among those affected is India, which now faces the threat of a 50% tariff on its exports to the United States unless it halts its continued purchases of Russian oil, a demand Trump reiterated. The Trump administration has already imposed a 25% tariff on a wide range of Indian goods earlier this year, citing national interest and trade imbalances.

India's equities market reacted cautiously, closing lower on Thursday, in contrast to modest gains in other Asian markets such as Japan and China. Analysts attribute the dip to investor concerns over potential disruptions to India’s export-led sectors, including pharmaceuticals, textiles, and technology hardware, reports BBC.

In addition to India, countries across Southeast Asia notably Laos and Myanmar face some of the highest new duties, with tariffs as steep as 40%, disproportionately affecting export-reliant economies closely tied to Chinese supply chains.

Trump's new tariff regime also includes: 100% tariffs on foreign-made computer chips, designed to pressure multinational tech firms to manufacture within the US., increased duties on automobiles, steel, and energy equipment, among others, a 35% tariff on Canadian goods, though largely neutralized by the USMCA treaty, and paused tariff hikes on Mexico for 90 more days, pending further negotiations.

The European Union and countries like the UK, Japan, and South Korea have negotiated limited concessions, securing lower tariffs than initially threatened. Switzerland, however, remains exposed, with a 39% levy on its goods, triggering an emergency government meeting in Bern.

While Trump claims the tariffs are bringing “billions of dollars” into US coffers, critics warn the policies risk destabilising the global trading system. Yet with the new rates now locked in, economists suggest a period of relative predictability may follow after months of uncertainty.