Countries Brazil and India stand opposed to Trump's imposed tariffs and executive orders
The Trump administration's trade policies, marked by the imposition of reciprocal tariffs starting in 2025, have significantly reshaped global trade dynamics. The new tariffs, aimed at protecting American workers, farmers, and manufacturers, have affected various countries differently.
Rumors suggest that President Trump was indecisive until the last moment about which commercial partners to punish and which to spare. This indecision has led to tariffs of 10% (previously 145%) on American imports from China, with the exception of fentanyl which has a tariff of 20%. However, these tariffs have not gone uncontested. Some world governments have met these new measures with resistance.
The impact of these tariffs can be seen in countries like Brazil, which faces a 50% tariff, and Canada, with a 35% tariff. These trade shocks and business confidence declines have contributed to an estimated 1% reduction in global GDP[1][2].
Not all countries have taken these tariffs lying down. Some are open to negotiation, while others are hard to convince. For instance, the Swiss government is attempting to renegotiate due to unexpected tariffs, citing Swiss law and international obligations as reasons for their stance. Switzerland regrets the US's intention to impose unilateral additional tariffs of significant magnitude, citing excessive trade imbalances as the reason[1].
The European Union is also waiting for details regarding potential changes to the trade agreement, with a base tariff of 15% potentially affecting American imports of cars, steel, drugs, and wine.
The US approach has not been without controversy. Treasury Secretary Steven Mnuchin, Commerce Secretary Wilbur Ross, and US Trade Representative Robert Lighthizer spent countless hours in the Oval Office drafting plans, leading to disagreements within the administration[1].
The new tariffs have not left anyone indifferent. The European Union, Switzerland, Brazil, Canada, and many other countries have responded with threats and retaliatory tariffs, sparking global market downturns and raising concerns about inflation and recession risks[1][3].
However, the US has secured limited trade agreements with six countries—including Japan, China, the Philippines, Indonesia, Vietnam, and the United Kingdom. Yet, most negotiations have proven complex and challenging, with modest concessions at best[3].
The U.S.'s aggressive tariff strategy has isolated it on the global stage, jeopardizing millions of American jobs and straining relations with key partners. The trade policies have depressed business sentiment worldwide and weighed heavily on global economic confidence[1][4].
In the midst of these challenges, some countries are finding ways to adapt. For example, Brazil and India are heavily dependent on Russian oil, providing a potential avenue for negotiation and cooperation[1].
Xi Jinping has used strategic minerals to negotiate with the US, but many aspects of the negotiations between the two superpowers remain undecided[1].
The new tariffs, intended to revolutionize global trade and favor the US, have not been without controversy. Yet, they have undeniably caused notable disruptions and economic drag not only for the targeted countries but also for the broader global economy. As the new tariffs are set to come into effect soon, the world watches with bated breath, waiting to see how these policies will continue to shape global trade dynamics.
[1] Source: The Economist, The New York Times, The Washington Post, and Bloomberg [2] Source: International Monetary Fund (IMF) [3] Source: The Wall Street Journal [4] Source: The Guardian
- The European Union is considering a potential change to the trade agreement, with a base tariff of 15% affecting American imports likely to impact cars, steel, drugs, and wine.
- Some countries have responded to the new tariffs with threats and retaliatory tariffs, sparking global market downturns and raising concerns about inflation and recession risks.
- Migration patterns might be affected by the trade policies, as the economic difficulties in countries like Brazil could lead to increased emigration.
- The Swiss government, citing Swiss law and international obligations, is attempting to renegotiate due to the unexpected tariffs, indicating the potential for changes in policy-and-legislation as a result of these trade disputes.
- The new tariffs also have implications for crime-and-justice and accidents, as economic hardships could potentially lead to an increase in car-accidents and fires due to decreased safety measures being implemented by struggling businesses.
