Key Points
- The U.S. announced a major new wave of tariffs on 69 trading partners.
- The move caused global stock markets to fall sharply as fears of a trade war grew.
- Tariff rates are high, including 39% for Switzerland and 35% for Canada on many goods.
- Countries are scrambling to negotiate better deals, with some getting more favorable rates than others.
U.S. President Donald Trump has unleashed a new wave of heavy tariffs on dozens of trading partners, sending global stock markets tumbling and leaving countries scrambling to understand the new rules. The move is part of Trump’s aggressive plan to reorder the global economy with some of the highest U.S. tariff rates seen since the 1930s.
The tariffs hit a wide range of nations. Switzerland was “stunned” by a new 39% rate, while India was hit with 25% and Canada with 35% on many goods. In total, 69 trading partners face higher duties, raising the average U.S. tariff rate from 2.3% last year to an estimated 18%.
The reaction in financial markets was swift and severe. Stock indexes in Europe, Asia, and the U.S. all fell sharply as investors worried about a global trade war. Countries affected by the tariffs, from Switzerland to South Africa, announced they would seek urgent talks with Washington to negotiate better deals.
Some nations, like Australia and Thailand, felt they got a better-than-expected rate and expressed relief, but the overall mood was one of deep concern.
Adding to the chaos is the uncertainty surrounding the new rules. It’s still unclear how the U.S. will enforce a new “transshipment” penalty, which threatens a 40% duty on any goods suspected of being rerouted from a high-tariff country like China.
Meanwhile, there is growing evidence that the tariffs are already hurting American consumers. U.S. government data shows prices for goods like furniture have jumped. Analysts warn there are no real winners in a trade war, as the new duties will likely hurt jobs and profits on both sides of the Atlantic.
