Trump imposes tariffs on numerous countries in a bid to restructure global trade
In a move that has shaken the global economic landscape, President Trump's tariff policies in 2025 have introduced a broad, evolving system of duties, affecting nearly 70 economies. These measures, announced in an executive order, range from 10% to a staggering 41%, with levels varying by trading partner.
The White House recently announced that these tariffs will take effect in a week, not on Friday as previously expected. This muscular approach to tariffs has raised fears of inflation and other economic fallout in the world's biggest economy.
Country-Specific Changes and Tariff Rates
As of July 30, 2025, the U.S. imposed a 25% tariff on India, a rise from an initially modeled 10%, along with an unspecified penalty related to Indian imports of Russian oil. The Trump administration paused higher tariffs for most countries for 90 days, effectively freezing planned increases, except for China, which saw an increase to a 145% tariff rate. Reciprocal tariffs remain at 10% for countries not listed in the specific annex (Annex I), with countries in Annex I subject to variable tariff rates based on negotiations and national security considerations.
Economic Impact in the U.S.
The tariffs implemented throughout 2025 are projected to raise $2.8 trillion in revenue between 2026 and 2035, after accounting for a $463 billion negative dynamic revenue effect due to economic drag. U.S. real GDP growth is estimated to be 0.5 percentage points lower in both 2025 and 2026 due to tariffs, with a long-run GDP shrinkage of 0.4% equating to an annual loss of $115 billion (in 2024 dollars). Employment is negatively affected, with unemployment projected to increase by 0.4 percentage points in 2025 and 0.7 points in 2026, equating to a loss of 500,000 payroll jobs by the end of 2025. Sectoral impacts are mixed: while manufacturing output might rise by 2% in the long term, this growth is offset by declines in construction (-3.6%) and agriculture (-0.8%).
Global and Non-Targeted Countries Effects
Countries not individually targeted by higher tariffs largely face the baseline 10% tariff introduced in April, which applies broadly to all. The freeze on tariff increases for many countries (except China) gives global companies and markets more time to adjust supply chains and purchasing strategies, somewhat mitigating immediate disruptions though with lagged economic effects likely to persist.
China’s Distinct Tariff Situation
China's tariff rate was significantly increased to 145% in 2025, a sharp rise from earlier 104% levels set in April. This sharp escalation prompted substantial Chinese retaliation, with tariffs of up to 84% on U.S. imports, escalating tensions and risks of a prolonged trade war. The economic burden on the U.S. from tariffs on China alone is enormous, roughly $400 billion in added costs to U.S. households and businesses before they substitute other goods or supply sources. The Chinese currency (yuan) has recently appreciated but may face devaluation pressure as a policy response to mitigate the tariff impact.
These dynamics contribute to increased uncertainty and potential recessionary risks globally. Notably excluded from the tariff drama is China, which faces an August 12 deadline for duties to potentially bounce back to higher levels. The outcome of Trump's plan remains uncertain, with questions hanging over the effectiveness of bilateral trade deals already struck, including with the European Union and Japan. The tariffs could fuel inflation, according to economists.
- Canada, along with other non-targeted countries, will face a baseline 10% tariff, as the White House has paused higher tariffs for most countries for 90 days.
- The United States' tariff policy in 2025 has significant consequences for Africa, with the potential for economic disruptions and fallout from the general news related to trade and politics.
- The international finance community closely watches the ongoing tariff conflicts, such as the 145% tariff rate on China, as these decisions can impact global business investments.
- As a result of the escalating war-and-conflicts involving tariffs with China, the Chinese currency (yuan) faces potential devaluation pressure to buffer the tariff impact.
- The passing of the policy-and-legislation regarding tariffs has raised concerns about long-term general-news implications for the economy of the United States and the world, as the tariffs could lead to increased inflation and potential recessionary risks.
