A new phase in international trade began on Thursday as President Donald Trump’s extensive “reciprocal” tariffs officially came into effect, increasing duties on imports from more than 60 countries.
This constitutes the most substantial rise in U.S. tariffs since the Great Depression, pushing the average tariff rate to over 17%, compared to approximately 2% earlier in the year, marking a clear shift away from decades of relatively free trade policies.
The tariffs vary widely, ranging from 10% to 50%, with certain countries facing particularly severe charges. Syria now faces a 41% tariff, Laos and Myanmar each have 40%, and Switzerland—despite last-minute diplomatic efforts—was hit with a 39% duty.
Brazil and India are subject to the highest tariffs at 50%, with India’s levies directly linked to its continued purchases of Russian oil, described by the Trump administration as a “national security threat.”
India’s tariff is set to increase in two stages, starting at 25% on 7 August and rising to 50% later in the month.
The Swiss government expressed “great regret” over the unexpectedly high tariffs and promptly convened an emergency meeting to determine its response. Swiss President Karin Keller-Sutter and Economy Minister Guy Parmelin travelled to Washington seeking relief, but only secured a meeting with the U.S. Secretary of State.
To address the bilateral trade surplus, which Trump cited as grounds for the tariffs, Switzerland is considering options such as boosting imports of American liquefied natural gas and increasing Swiss investments in the U.S. However, economists warn that the 39% tariff risks pushing Switzerland into recession, threatening key export sectors like watchmaking, chocolate, machinery, and pharmaceuticals.
Several other major trading partners negotiated lower rates: the European Union, South Korea, and Japan are subject to 15% tariffs, while the United Kingdom secured a more favourable 10% rate.
China remains under a fragile trade truce with tariffs temporarily paused, though these could escalate in mid-August if talks falter. Tariffs on Mexican goods remain on hold, contingent on compliance with trade agreements.
Trade experts highlight the complexity and uncertainty surrounding these tariffs. The higher tariffs increase import costs, which some analysts estimate could add up to $2,400 annually to expenses per U.S. household, especially for consumer goods such as clothing, footwear, and electronics.
President Trump hinted at further escalation, suggesting potential 100% tariffs on semiconductor imports unless companies expand manufacturing within the U.S.
This assertive tariff policy aims to reduce the U.S. trade deficit and regain economic leverage but raises concerns about global supply chain disruptions, inflation risks, and strained diplomatic ties. Affected countries are urgently adjusting to the new conditions, with some pursuing fresh agreements while others prepare for prolonged economic friction.