How Trump's New Tariff Policies Are Shaking Up Global Trade Relations

President Trump's recent executive order to impose new tariffs has sent shockwaves through global trade relations. As countries react to the impending changes, the implications for international partnerships and economic stability are significant. From Switzerland's unexpected tariff hike to Cambodia's zero tariffs on US goods, the landscape of global trade is shifting rapidly. This article delves into the responses from various nations, highlighting the complexities and challenges posed by Trump's trade agenda. Discover how these developments could impact economies worldwide and the ongoing negotiations that may shape the future of international trade.

By Narendra Chaudhary Aug 1, 2025, 14:57 IST

Global Reactions to Trump's Tariff Announcement

In Washington, the response from international trade partners was swift following President Donald Trump's executive order to impose new tariffs, set to take effect in a week. This move poses a significant challenge to existing global economic relationships.

The executive order, announced late Thursday, followed a series of tariff-related discussions as the White House sought to finalize agreements with various countries before Trump's self-imposed deadline of August 1.

Additionally, Trump revealed plans to extend trade negotiations with Mexico for an additional 90 days. However, many nations remain in a state of uncertainty as the deadline approaches.

Despite some trade agreements being reached, many specifics are still unclear, leaving businesses and manufacturers worldwide preparing for increased operational costs and potential price increases.

Moreover, Trump's trade policy overhaul has faced legal scrutiny, with appellate judges expressing doubts about the president's legal justification for his extensive tariff measures.

Tariff Impacts on Specific Countries

Switzerland Faces a 39% Tariff

On its National Day, Switzerland was shocked to learn of a 39% tariff imposed by the US, a significant increase from the 31% proposed earlier this year. The Swiss government expressed disappointment and plans to pursue negotiations.

Canada's Tariff Increase to 35%

Trump has raised the tariff on imports from Canada to 35%, citing insufficient cooperation in combating drug trafficking. This increase comes after a previous threat to impose higher tariffs if no agreement was reached by the deadline.

Malaysia Celebrates a 19% Tariff Rate

Malaysia's Trade Ministry hailed the reduction of the US tariff from 25% to 19% as a significant achievement, emphasizing that it did not compromise key national interests.

Cambodia's Zero Tariff on US Goods

Cambodia's Deputy Prime Minister announced that the country would impose zero tariffs on all American goods, a significant reduction from the previously proposed 49%. Cambodia also plans to purchase 10 Boeing aircraft.

Australia's 10% Tariff Rate

Australia's Trade Minister expressed satisfaction with the 10% tariff rate on exports, asserting that Australia did not impose tariffs on US goods, maintaining a competitive edge.

Japan Welcomes New Tariff Rates

Japan's Chief Cabinet Secretary welcomed the new reciprocal tariff rates, viewing them as a reduction in uncertainty regarding US trade policy, although he noted the need for further examination.

New Zealand Seeks Lower Tariff Rates

New Zealand officials plan to lobby for a reduction in the newly announced 15% tariff, arguing that it is unwarranted given their trade deficit with the US.

Taiwan's Ongoing Negotiations

Taiwan's President indicated that final negotiations with the US are still pending, expressing hope for further reductions in the tariff rate, which was recently lowered to 20%.

Cambodia's Prime Minister Thanks Trump

Cambodia's Prime Minister expressed gratitude to Trump for the tariff reduction, calling it beneficial for the country's economy and development.

Thailand Achieves Lower Tariff Rates

Thailand's government announced a successful negotiation to reduce tariffs from 36% to 19%, aligning with rates imposed on other Southeast Asian nations.