Trump’s Expansive Tariff Policy Sparks Global Trade Tensions, With More Measures Looming

U.S. President Donald Trump has escalated his administration’s combative trade stance, implementing a sweeping set of tariffs on both products and countries, and threatening a second wave of even steeper penalties.

In what amounts to a comprehensive global trade war, Trump has introduced a standard 10 per cent baseline tariff on all goods imported into the United States, alongside a battery of higher duties aimed at specific industries and trade partners.

According to the administration, this approach is intended to protect U.S. manufacturing, address trade imbalances, and punish what it considers unfair practices by foreign governments. However, the extent and scale of the tariffs have drawn widespread concern from allies and trading partners alike.

Tariffs Already in Force on Products

Among the key product categories now subject to elevated duties, steel and aluminum face a staggering 50 per cent tariff, while automobiles and auto parts are taxed at 25 per cent.

These measures are part of a broader push to revive domestic industries deemed vital to national security and economic competitiveness.

Products Under Threat of New Tariffs

The administration has also warned of new tariffs that could take effect as early as August 1.

Copper is slated for a 50 per cent duty, and pharmaceuticals may see tariffs soar up to 200 per cent. Semiconductors, a cornerstone of modern technology and manufacturing, are on the list for duties of "25 per cent or higher." Additional products being considered for tariff hikes include:

• Movies – 100 per cent

• Timber and lumber

• Critical minerals

• Aircraft, engines, and parts

These proposed measures signal an intent to extend U.S. trade pressure deep into the global supply chain, particularly in sectors critical to high-tech industries.

Tariffs Currently Applied by Country

On a country-by-country basis, the administration has already imposed targeted tariffs.

Canada is subject to a 10 per cent duty on energy products, and 25 per cent on all other items not covered by the US-Canada-Mexico Agreement. China, one of Washington’s chief economic rivals, is facing a blanket 30 per cent tariff, with extra charges applied to specific product categories.

Other countries hit with existing tariffs include:

• Indonesia – 19 per cent

• Mexico – 25 per cent for products outside the USMCA

• United Kingdom – 10 per cent, though some auto and metal imports have been exempted

• Vietnam – 20 per cent on selected goods, with a 40 per cent penalty on transshipments of goods from third-party countries

Countries Targeted for Tariffs Starting August 1

A new and broader set of country-specific tariffs is expected to come into force on August 1.

These include substantial increases on imports from both U.S. allies and emerging economies. Among the threatened measures are:

• Algeria, Iraq, Libya, South Africa, Sri Lanka, and Bosnia and Herzegovina – 30 per cent

• Bangladesh – 35 per cent

• Brazil – 50 per cent

• Brunei, Japan, Kazakhstan, Malaysia, Moldova, South Korea, Tunisia – 25 per cent

• Canada (additional tariffs) – 35 per cent

• Cambodia, Thailand – 36 per cent

• Laos, Myanmar – 40 per cent

• European Union – 30 per cent

• Mexico (additional tariffs) – 30 per cent

• Philippines – 20 per cent

• Serbia – 35 per cent

These moves could dramatically reshape global trade patterns, triggering retaliatory measures and straining diplomatic relations. With many of these tariffs poised to take effect in just weeks, international observers and domestic industries alike are bracing for intensified trade friction and economic disruption.

By fLEXI tEAM