President Donald Trump’s sweeping new tariffs took effect on August 7, four months after he first unveiled country-specific rates and just one week after announcing a fresh wave of levies. The package establishes a global minimum duty of 10%, with significantly higher rates for select trading partners.
India, Switzerland face steepest penalties
Hours before the effective deadline, Trump signed an executive order imposing an additional 25% tariff on India, citing Delhi’s continued purchases of Russian energy. The measure is scheduled to come into force within three weeks.
Switzerland, despite last-minute negotiations by President Karin Keller-Sutter in Washington, will face one of the heaviest tariff burdens at 39%.
Section 232 probes broaden tariff reach
The new duties on steel, aluminum, copper and cars stem from Section 232 investigations, which allow tariffs on the basis of national security. Additional probes are under way that could expand tariffs to semiconductors, pharmaceuticals, critical minerals, lumber, heavy trucks, and even commercial aircraft and engines—sectors that together represent a significant share of global trade.
Trump’s case vs economists’ warnings
The White House argues that tariffs will shield US jobs, encourage domestic manufacturing investment, and generate additional government revenue. But critics warn the broader economic impact could be negative.
Bloomberg Economics notes that higher import costs will likely squeeze household budgets, reduce consumer spending power, and weigh on overall growth. Sectors reliant on global supply chains—particularly autos, electronics, and industrial machinery—are expected to feel the sharpest pinch.
Economic stakes
While the administration views tariffs as leverage to reset trade relationships, the risk of retaliatory measures looms large. India and the European Union have already signaled potential countermeasures. Analysts caution that escalating trade frictions could ripple through equity and currency markets, raise input costs for manufacturers, and slow global investment flows.
