Islamabad, Aug. 8, 2025 – President Donald Trump’s new higher tariffs on imports from dozens of countries took effect on Thursday.
The average US import duty rose to its highest level in a century, ranging from 10% to 50%.
This sudden increase surprised major trading partners like Brazil, India, and Switzerland, who continue to negotiate for better deals. Despite diplomatic efforts, many countries remain defiant and concerned about the economic impact.
Trump announced a 50% tariff on goods from Brazil and India, 39% on Swiss goods, and 35% on Canadian products.
He also imposed a new 25% tariff on Indian goods tied to their purchase of Russian oil. Trump claimed the tariffs would bring billions back to the US and strengthen the country.
However, tariffs ultimately raise costs for companies and consumers importing these goods.
While some countries like the EU, Japan, and South Korea agreed to lower tariff rates around 15%, others face punishing duties.
Switzerland called an emergency meeting after failing to avoid the tariffs. South Africa and Brazil continue talks, but remain firm on protecting their interests.
India’s Prime Minister Modi vowed not to compromise the country’s farmers.
The tariffs are part of Trump’s broader trade strategy targeting sectors like semiconductors, autos, and steel.
There is a potential 100% tariff on microchips and further tariffs on China unless a deal is reached.
These measures aim to shrink US trade deficits but risk disrupting global supply chains and raising inflation.
US companies have already felt the pressure, with Toyota forecasting a $10 billion hit due to auto tariffs.
Other firms like Caterpillar and Marriott are also struggling.
Analysts warn of supply chain rearrangements and rising prices, while governments try to navigate this new trade environment.
The coming months will test the resilience of international trade relations. (Pakistan Daily Times)
