As of today, August 7, 2025, the increased products from dozens of countries are in force, launching the largest shift to economic nationalism since the 1930s. The Trump government’s decision threatens to overturn the fragile balances of world trade, provoking chain consequences for the US and international economy.
Duties in 90 countries: The most extensive trade attack of the last decades
The new US tariff policy covers a wide range of products – from cars and food to electronics, clothes and technology. In some cases, duties reach 50%, as in and in, while countries such as Laos and Myanmar are facing contributions of up to 40%. The European Union, Japan and South Korea, one of the main trading partners in the US, are facing 15% duties on most of their products.
Before these new duties came into force, the average percentage of duties imposed on the country’s products was 18.4%, the highest since 1933, according to the Budget Lab research center of the University of Yale.
The additional increase is expected to raise this percentage close to 20%, according to Pantheon Macroeconomics analysts. They will be the highest of the early 1930s, according to the budget Lab.
And new announcements are expected to follow, as the White House tenant also wants to impose duties on imported medicinal products and imported semiconductors.
The additional, “reciprocal” duties came into force at 07:01 (Greek time), replacing 10% “base” duties implemented since April to almost all products entering the US.
A few minutes before launching the measures, he celebrated the internet: “It’s midnight! Billions of dollars are now flowing in the United States of America! “
Political lever and geo -economic blackmail
The new tariff policy is not just a tool of protectionism, but also a pressure lever for geopolitical purposes. Indicatively, India is threatened with a 50% duty if it does not stop buying Russian oil while in Brazil, heavy duties were imposed because of … prosecution. Correspondingly, in Taiwan – despite its strategic alliance with Washington – 20% duties are imposed because of its competitiveness in high -tech products, with its leadership declaring that it is a “temporary measure” pending agreement.
Some countries, such as Switzerland, have tried until the last minute to reduce their duties, with the Swiss Confederation sending Washington its chairman and minister to finance.
At present, although the US government has assured that “dozens of agreements” would be signed in recent months, only seven, notably the European Union, Japan or the United Kingdom, have been implemented.
These are mostly preliminary agreements that need to be formalized and which are accompanied by promises of mass investment in the United States on the part of the countries or coalitions with which they have been concluded.
The exception is Mexico, which has escaped the new increases. President Trump has exposed for 90 days the tariff conditions currently in force for the country, ie 25% duties on products entering the United States beyond the North American Free Trade Agreement.
On the contrary, Canada saw on August 1st to increase to 35% of the additional duty applicable to its products.
Canadian Prime Minister Mark Carney, however, downgraded the impact of this additional duty, considering that it does not apply to more than 85% of Canadian exports to the neighboring country.
Financial Impacts in the US: State Revenue but also Unbearable Costs for Households
The Trump government is promoting tax revenue from duties as a significant benefit – over $ 100 billion has already entered the state funds. However, the financial impact within the US are multifaceted.
On average, every US household is expected to pay an additional $ 2,400 in 2025 due to raising prices in basic consumer goods. The highest burdens are for clothing, footwear and electrical appliances. Increasing prices enhances inflationary pressures, limiting purchasing power and negatively affecting consumer expenditure.
Reduction of growth, export blow and missed jobs
In the industrial and agricultural sectors, higher import prices and possible countermeasures from other countries lead to increased production costs, limiting the competitiveness of US products.
According to analysts, US GDP in 2025 will drop by about 0.9 percentage points due to duties, while the long -term impact is estimated at a 0.6% decline in GDP per year – ie a loss of about $ 160 billion. At the same time, exports are expected to be reduced, while employment pressures are already being pressed, especially in international orientation sectors.
Global Impact: Fears of deceleration or even recession
At international level, US duties are causing uncertainty, with global markets nervously reacting. Estimates are talking about a possible reduction in world GDP by up to 1%, as target countries are considering trade and restrictions on trade.
Supply chains are disturbed, especially for Southeast Asia countries that depend on exports to the US. Laos, Myanmar and other growing economies are at the center of the crisis, and traditional partners, such as Canada and Mexico, are experiencing intense pressure – despite existing trade agreements such as USMCA.
Uncertainty and investment brake
Commercial turmoil burdens the business climate, leading many businesses to “freeze” investment plans. The growing geo -economic polarization between the US and China – with targeted blows to Beijing allies – creates a climate of insecurity that makes it difficult to make strategic decisions in the private sector.
At the same time, governments around the world are called upon to review their budgetary and monetary tools, as the inflationary pressure on duties limits maneuvering margins.
Return to commercial nationalism with uncertain future
The implementation of new US duties is a milestone in the transformation of the world economy. It enhances protectionism, intensifies geo -economic competitions, and brings to the forefront of a model of commercial policy and not on cooperation.
Whether this strategy will boost the US economy or if it will eventually harm world prosperity remains to be seen. At the moment, however, the world is entering a period of increased risks, limited trust and deep insecurity.
