Trump imposes tariffs on numerous nations
In a significant move, President Donald Trump recently announced new tariffs on imports from Canada, Switzerland, and other countries, causing ripples in the global trade landscape.
The $49bn agriculture industry in California, which produces three-quarters of the fruit and nuts in the US and about one-third of its vegetables, is feeling the brunt of these changes. With nearly 65% of California's agriculture workers being immigrants, and more than one-quarter of those being undocumented, the mass deportation program introduced by Trump is adding to the industry's woes.
The tariffs, ranging from 15% up to 41%, are disrupting established supply chains, particularly for Canada-US trade, which is significant. For Canada specifically, a 35% tariff levy was imposed, while goods transshipped from unspecified other countries are subject to a 40% import duty.
These tariffs are part of a broader trade policy approach, including investigations under Section 232 of the Trade Expansion Act related to commercial aircraft, jet engines, critical minerals, and heavy-duty trucks. The aim is to protect key industrial sectors, but the move has led to a rise in trade tensions.
The new US tariff regime includes a 10% global minimum and 15% or higher duties for countries with trade surpluses with the US. This is expected to increase the average US tariff rate to 15.2% if rates are implemented as announced.
The implications for global trade and stock markets are far-reaching. Trade tensions are on the rise, with the high new duties potentially prompting tariff retaliations from affected countries, escalating into wider trade disputes. Stock markets and the US dollar have shown negative reactions, with shares and the dollar dipping in response to these tariff announcements.
The elimination of the Chinese-origin goods de minimis exemption and imposition of high duties on small goods via international postal networks add further friction to global trade flows.
Meanwhile, in the business world, Goldman Sachs is set to invest €15bn in Froneri, the world's second-largest ice cream maker. Despite the trade tensions, big companies are offering extra holidays and more remote working as perks this summer.
In other news, the US has raised tariffs on Canadian imports from 25% to 35%, effective from today. Britain and America are on course for their lowest violent crime rates in decades this year, but public concern about crime has been rising steadily for several years.
Elsewhere, Switzerland faces a higher levy on "liberation day" in April, due to its big pharmaceuticals industry. The average US tariff rate is expected to rise to 15.2% if rates are implemented as announced. Figma's shares tripled on its Wall Street debut.
In international politics, US special envoy Steve Witkoff travels to Gaza today for a meeting. El Salvador's legislative assembly has removed term limits for the presidency, potentially allowing Nayib Bukele to remain in office indefinitely.
Businesses and consultants are withdrawing from the UN climate summit in Belém due to a difficult political backdrop, expensive hotel rooms, and lengthy travel. Cryptocurrencies can be useful, according to Gillian Tett, but artificial intelligence has the potential to advance knowledge but can also cause cognitive atrophy.
In conclusion, the tariffs introduced by Trump between mid-2025 and August 2025 on Canada, Switzerland, China, and other countries are broad and significant, aiming to protect US industries but increasing trade tensions. They are already affecting global trade patterns and market sentiment, contributing to economic uncertainty and market sell-offs.
- The changes in global trade landscape, initiated by President Donald Trump's new tariffs, are causing havoc in the agriculture industry in California, a significant player in US farming that produces three-quarters of its fruit and nuts.
- The tariffs, ranging from 15% up to 41%, are not only disrupting established supply chains, particularly for Canada-US trade, but also adding to the industry's woes by indirectly affecting the immigration status of a majority of its workforce.
- The new US tariff regime, including investigations under Section 232 of the Trade Expansion Act, aims to protect key industrial sectors but could potentially lead to a rise in trade tensions and escalate into wider trade disputes.
- The implications for global trade and stock markets are far-reaching, with trade tensions on the rise, and the high new duties potentially prompting tariff retaliations from affected countries. Stock markets and the US dollar have shown negative reactions to these tariff announcements.
- Meanwhile, in the business world, despite trade tensions, big companies are offering extra holidays and more remote working as perks, while businesses and consultants are reducing their participation in key international events due to political and economic uncertainty.
