Trump Administration Imposes New Tariffs, Shaking Global Trade Landscape
Washington D.C. – The Trump administration has unveiled a new schedule of tariffs impacting several key trading partners,with significant implications for economies worldwide. The move, detailed in a recent executive order, introduces a tiered system of import duties, sparking immediate concern and diplomatic efforts from affected nations.
The executive order, set to take effect seven days after its issuance, establishes new tariff rates that deviate from previous agreements and expectations for some countries. Notably, potential European Union member states are facing substantial new duties: Moldova will be subject to a 25% tariff, Serbia 35%, and Bosnia and Herzegovina 30%.
A reprieve was granted to Lesotho, a nation previously described by President Trump as “nobody has ever heard of” when aid was halted. lesotho, which had been facing a potentially devastating 50% tariff on its textile industry, will now see a 15% rate. LesothoS economy, valued at $2 billion, relies heavily on duty-free exports to the United States. The nation had previously declared a national state of disaster in anticipation of the higher tariff.
Switzerland, a major trading partner, was hit with one of the highest tariffs globally at 39%, causing the Swiss franc to touch a six-week low. swiss President Karin keller-Sutter confirmed discussions with President Trump on Thursday, stating that “no agreement could be reached.” The pharmaceutical sector,which accounts for 50% of Swiss exports to the US,is seen as a potential target for these tariffs. Kathleen Brooks, research director at XTB, described the Swiss rate as a “shock” and noted that Swiss chocolatiers, watchmakers, and pharmaceutical companies are now under threat, with the Swiss goverment planning further negotiations for a lower levy.
In contrast, the United Kingdom and the Falkland Islands were listed at a 10% rate, with the UK being the first country to secure a deal with the Trump administration. The European Union’s overall tariff rate was confirmed at 15%.
A significant point of contention remains the exclusion of automobiles from the executive order. Cars are currently taxed at 27.5%,and many EU car manufacturers had resumed deliveries to the US following a recent deal with president Trump.
While the White House had previously announced a 15% tariff rate on pharmaceuticals, this category was conspicuously absent from the executive order. Pharmaceutical executives had been under pressure from President Trump to reduce prices for American patients, with the White House threatening to “deploy every tool” in its arsenal if they refused.
Brazil’s tariff rate was set at 10%, but a prior order had imposed a 40% tariff as punishment for the country’s prosecution of its former president, Jair Bolsonaro.
Cambodia appears to be nearing a trade agreement, having indicated its intention to drop all tariffs on US imports and order up to 20 Boeing 737 aircraft.
The new tariff rates will come into effect seven days after the executive order’s date, beginning August 8. For goods already in transit or warehoused for consumption before this date,the previous tariff rate (10% plus the Most Favored Nation rate) will remain in effect until October 5,2025.
