A sweeping new wave of tariffs imposed by US President Donald Trump on more than 90 countries took effect at midnight, marking a dramatic escalation in the administration’s global trade overhaul.
“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump declared on his social media platform shortly before the deadline.
The latest round includes a 50% tariff on India, set to be enforced from 27 August unless New Delhi halts purchases of Russian oil — a demand seen as part of Washington’s broader strategy to isolate Moscow economically.
Trump also threatened a 100% levy on foreign-manufactured computer chips, a move aimed at encouraging tech giants to invest and manufacture domestically. The pressure appears to be yielding results, as Apple announced a $100 billion investment in U.S. facilities, reportedly under intense White House urging.
The administration last week released an updated list of revised import taxes, granting countries until 7 August to strike agreements with Washington or face penalties. Trump describes the tariffs as “reciprocal” measures designed to address what he has long labelled as an imbalanced global trade system that disadvantages American businesses and workers.
South East Asia’s export-heavy economies were among the hardest hit. Myanmar and Laos, both with significant trade ties to China, are facing tariffs as high as 40%. Analysts suggest the administration is using economic levers to indirectly pressure Beijing through its regional allies.
Despite the tough measures, Asian stock markets showed mixed reactions on Thursday. Indexes in Japan, Hong Kong, South Korea, and mainland China saw slight gains, while Indian and Australian markets posted mild losses.
“This is supposed to be it. Now you can start to analyse the impact of the tariffs,” said Bert Hofman, an economist at the National University of Singapore, noting that countries can now move from uncertainty to planning under the new rules.
Some US allies have managed to negotiate softer landings. The UK, Japan, and South Korea secured reduced tariffs following last-minute agreements. The European Union reached a framework deal, accepting a 15% tariff on its goods.
Taiwan, a key US partner in the Asia-Pacific region, was hit with a 20% tariff, though President Lai Ching-tedescribed it as “temporary” and said talks with Washington are still in progress.
Meanwhile, Canada saw its tariff rate jump from 25% to 35%, after Trump accused the country of “failing to cooperate” on controlling the influx of fentanyl and other narcotics into the U.S. Canadian officials pushed back, stating they are intensifying efforts to dismantle cross-border drug networks.
However, the impact on Canadian exports may be limited due to protections under the United States-Mexico-Canada Agreement (USMCA).
Tariffs on Mexican goods were paused for another 90 days, as negotiations continue over a new trade framework between the two countries.
President Trump’s tariff strategy marks a bold attempt to reshape the international trading system, one that could have far-reaching consequences for both US consumers and global markets. Critics warn that while the moves may favour certain domestic industries, they risk retaliation, higher consumer prices, and strained diplomatic ties.
Whether the aggressive trade stance will yield the desired economic gains or deepen global divisions remains to be seen. For now, Trump is betting on pressure and unpredictability to secure what he views as fairer terms for America.
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