- The US has introduced new tariffs ranging from 10% to 50% on goods from 67 countries, including Canada, India, Brazil, and Switzerland.
- India has been particularly affected by a 25% tariff on Russian oil purchases, prompting a retaliatory response.
- The average tariff rate in the US has risen to 20%, the highest in 100 years, already causing price increases and losses for companies.
- Trump is threatening further tariffs on China if there is no progress in the peace talks on Ukraine.
Biggest change in US customs policy in a decade
From Thursday, 7 August 2025, new, significantly increased tariffs on imports into the US come into effect. President Donald Trump has decided to subject goods from 67 countries to tariffs ranging from 10% to 50%. Among the most affected countries are Canada, India, Brazil and Switzerland. For many trading partners, this came as a shock, especially as previous negotiations with Washington had not yielded the expected results. India was particularly hard hit with an additional 25 per cent tariff on its purchases of Russian oil, which was met with a sharp announcement of retaliation from Delhi. The new tariffs, levied from the north by US Customs, are likely to raise prices, disrupt global supply chains and escalate diplomatic tensions.
Despite these concerns, financial markets reacted fairly calmly, with indices in Asia remaining at record levels and the dollar slightly depreciating. However, experts warn that the full impact of the decision may be delayed. Already, the US is seeing price rises for household appliances, vehicles and recreational goods, among others. Companies such as Caterpillar, Marriott and Yum Brands are reporting billions of dollars in losses. According to Atlantic Institute estimates, the average tariff rate in the US has now reached 20 per cent – the highest in a century, while at the start of Trump’s presidency it was just 2.5 per cent.
Who’s gained, who’s lost – the global impact and risk of escalation
Some countries managed to negotiate softer terms – the European Union, Japan, South Korea and the UK can count on reduced rates in the range of 10-15%. In contrast, other countries, such as Canada (35%) and Brazil (50%), face drastic increases. Additionally, the Trump administration has announced the extension of 40% tariffs to goods that would attempt to ‘circumvent’ the restrictions by re-exporting from third countries, although details on the enforcement of this provision are lacking for the time being.
Trump is not slowing down and has announced further action, as early as 12 August new tariffs could be imposed on China if peace negotiations on Ukraine fail to make progress. At the same time, the US Treasury Department predicts that tariff revenues could exceed $300 billion a year. For companies and consumers, this means one thing – more expensive imports, new risks and growing uncertainty in global trade. The question remains whether a compromise can be reached or whether the world is on the threshold of a new trade war.
