In a bold and controversial move, U.S. President Donald Trump reignited global trade tensions by announcing sweeping tariffs on over 100 countries.
This dramatic step came as part of his administration’s effort to curb the persistent U.S. trade deficit and reclaim what he termed as “fairness” in international trade.
The Tariff Offensive
During a joint session of the U.S. Congress, President Trump justified the tariffs by stating that the American economy had been bleeding due to unfavorable trade practices by countries that imposed tariffs on U.S. goods.
As retaliation, the U.S. would now do the same. Trump’s “America First” stance has taken a hard turn into protectionism — a move that has sent shockwaves through global markets.
On April 2, 2025, Trump announced tariffs on 69 countries from the Rose Garden of the White House.
Though the implementation was originally scheduled for April 9, a 90-day window was granted to countries to renegotiate trade deals with the U.S.
The final deadline expired on July 31, and by then, tariffs were officially imposed on more than 100 countries.
Nations that cooperated with American demands saw moderate tariffs between 10% and 20%. However, countries that resisted Trump’s conditions faced punitive tariffs ranging from 25% to 50%.
The Compliant: Nations That Yielded to U.S. Pressure
Several countries quickly struck deals to protect their exports and minimize the damage:
1. United Kingdom: Opens Market to U.S. Beef
Originally facing a 41% tariff, the UK negotiated it down to 10%. However, tariffs on British steel and aluminium still stand at 25%, though reduced from 50%. In return, the UK agreed to lift tariffs on American beef and ethanol and reduce duties on U.S. wine, olive oil, and sports goods.
2. Japan: Boeing Buys and Defence Investments
The Japanese government agreed to buy 100 Boeing aircraft and significantly increase its defence spending with U.S. companies, from $14 billion to $17 billion annually. In exchange, the tariff on Japanese goods was lowered to 15%, from an initial threat of 25%.
3. European Union: Trillions in Investments
The EU avoided a trade disaster by committing to import $750 billion worth of U.S. energy over three years and investing approximately ₹51 trillion ($600 billion) in American pharma, auto, and defence industries. Tariffs were lowered to 15%, but key sectors like steel and aluminium still face a 50% duty.
4. South Korea: Trade Deal Without Beef Concession
Despite not opening its beef or rice markets (to protect its farmers), South Korea secured a tariff reduction to 15% by agreeing to import $100 billion in U.S. energy and invest $350 billion in the American economy. Nearly all American goods will now enter South Korea duty-free.
5. Indonesia: Orders for Boeing, Market Access for U.S. Goods
Indonesia agreed to purchase 50 Boeing planes and open its markets to over 99% of American goods without tariffs. The country’s tariff was reduced from a threatened 32% to 19%.
The Defiant: Countries That Refused to Bend
Not all nations agreed to Trump’s demands. Five prominent economies stood firm, citing economic sovereignty, local interests, and ethical concerns.
1. India: Protecting Culture, Farmers, and SMEs
India became one of the highest-profile refusers. The U.S. demanded access to India’s dairy and agricultural sectors, including the right to sell milk from non-vegetarian cows — a proposal India firmly rejected due to religious sentiments and rural livelihoods.
The Indian government also refused to compromise its small and medium enterprises (MSMEs), which are the backbone of its economy. As a result, a 25% tariff now applies to Indian goods exported to the U.S. Despite several rounds of negotiations, no agreement was reached.
India has begun diversifying its export markets and is now seeking stronger trade ties within Asia, Africa, and Latin America. A complaint against the U.S. tariffs has also been filed at the World Trade Organization (WTO).
2. China: A Battle of Giants
The trade war between the U.S. and China escalated sharply. After the U.S. imposed tariffs up to 145% on Chinese goods, China retaliated with 125% tariffs on American products. Following months of a standoff, both sides moderated the tariffs, with the U.S. imposing a 30% duty and China responding with 10%.
The core issue wasn’t just trade. Washington demanded Beijing cut subsidies to its state-owned enterprises, open its tech sector to foreign firms, and strengthen IP protection laws. China refused to comply, defending its strategic autonomy and domestic industries.
3. Brazil: Political and Trade Tensions
Brazil faces the highest tariff from the U.S. — 50%. However, critical exports like fertilisers, aircraft parts, energy, and orange juice continue to be taxed at a lower 10% rate.
Trump’s dissatisfaction extends beyond trade. He expressed displeasure over Brazil’s treatment of former President Jair Bolsonaro and was angered by Brazil’s growing trade surplus with the U.S. Brazil is now offering subsidies and financial packages to offset the impact on its farmers and exporters.
4. Canada: Tariffs and Palestine
Canada, which was originally hit with a 25% tariff, saw it rise to 35% after Prime Minister Mark Carney expressed support for the creation of a Palestinian state — a move strongly opposed by the U.S. administration.
Additionally, Trump accused Canada of failing to control the fentanyl trade flowing into the U.S., citing this as another reason for the increased tariffs.
5. South Africa: No Deal, Rising Pressure
South Africa remains under a 30% tariff, with no breakthrough in negotiations. Trump has pointed to the U.S. trade deficit with South Africa and expressed concerns over Pretoria’s strengthening ties with Russia, China, and Iran.
How the Resisters Are Responding
Countries like India, Brazil, and South Africa are pushing back by expanding their trade partnerships across emerging markets in the Global South. They are also seeking legal redress through the WTO, arguing that the U.S. tariffs violate global trade norms.
India is focusing on regional cooperation through initiatives like IPEF and BRICS, while Brazil and South Africa are offering stimulus packages, subsidies, and export financing to support their local industries and shield them from the brunt of the U.S. trade barriers.
A New Trade Order in the Making
Trump’s tariff onslaught has undeniably reshaped global trade dynamics. While some countries chose to yield, others are drawing red lines to protect their national interests, values, and economic structures.
This evolving standoff could mark the beginning of a new world order in trade — one that prioritizes regional resilience, multipolar commerce, and a rethinking of global dependencies.
As protectionism takes center stage and nations look inward, the question remains — who will benefit in the long run, and at what cost?
#TrumpTariffs #TradeWar2025 #IndiaStandsFirm #EconomicSovereignty #USChinaTrade #GlobalTradeCrisis #AmericaFirst #BRICSResponse #WorldTradeOrder #MSMEProtection #SwadeshiEconomy #TariffRetaliation #InternationalPolitics #WTOComplaint