Trump’s Trade Blitz: New Tariff Jitters Rattle Global Markets-What Comes Next for India and the World?

Source: Times Now | Original Published At: 2025-07-11 05:02:51 UTC

Key Points

• Trump's new tariffs target over 20 countries, including India, Brazil, and Canada, with rates up to 50%.
• India is negotiating a mini trade deal with the U.S. ahead of the August 1 deadline to avoid tariff reinstatement.
• Brazil faces a 50% blanket tariff, partly due to political tensions over Jair Bolsonaro's prosecution.
• Key sectors impacted include manufacturing (steel, aluminium, copper), e-commerce, and consumer electronics.
• Pakistan is finalizing a deal to avoid a 29% tariff on textiles and agriculture by offering U.S. investment access.

A Commerce Ministry delegation is expected in Washington next week for final talks on a mini trade deal, after Trump imposed a 26 per cent tariff on Indian goods in April, later reduced to 10 per cent for a 90-day window that ends this week. (AP Photo/Alex Brandon)

The United States’ trade landscape is undergoing a seismic shift as President Donald Trump, now in his second term, expands his tariff campaign across more than 20 countries. With retaliatory duties as high as 50 per cent, sectors ranging from automobiles and aluminium to copper and e-commerce are caught in the crossfire. Countries like Canada, Brazil, and India are racing against the August 1 deadline to secure exemptions, while businesses and consumers brace for aftershocks said a report by TOI.

“We will not accept being abused by anyone,” Brazilian President Luiz Inácio Lula da Silva declared, as Brazil was slapped with a 50 per cent blanket tariff, partly in retaliation for the prosecution of Trump ally Jair Bolsonaro. What’s Triggering the Turmoil?

At the heart of the fresh escalation is Trump’s aggressive push for “reciprocal tariffs”—custom duties aimed at rebalancing trade in America’s favour. The latest measures include:

35 per cent tariff on Canadian goods, citing fentanyl-related concerns.

50 per cent tariff on all Brazilian imports, citing political motivations.

50 per cent duty on imported copper, over national security worries.

Closure of the de minimis rule, ending tariff-free imports below $800, hitting e-commerce giants like Shein and Temu .

“The US is being ripped off. That ends now,” Trump said in a recent address from the Oval Office, reiterating that tariffs will “restore American greatness.”

Tariffs by Sector – Who’s Hit Hardest?

Sector New Tariff Rate Impact Steel & Aluminium 50 per cent Higher input costs for auto, construction Automobiles & Parts 25 per cent Car prices likely to surge Copper 50 per cent Manufacturers and builders affected Foreign Films Proposed 100 per cent Hollywood and global studios on alert BRICS Countries Extra 10 per cent if “anti-American” Political flashpoint iPhones & Electronics Proposed 25 per cent Consumer tech prices to rise

Where Does India Stand?

India remains in a delicate position. A Commerce Ministry delegation is expected in Washington next week for final talks on a mini trade deal, after Trump imposed a 26 per cent tariff on Indian goods in April, later reduced to 10 per cent for a 90-day window that ends this week.

Sources told PTI that agriculture and dairy are excluded from the current round, but negotiations are continuing over textiles, electronics, and digital trade. If no deal is reached, tariffs may snap back to April levels, threatening Indian exports already under pressure. “The focus now is on securing phase-one relief before the August 1 deadline,” said a government official familiar with the talks.

Pakistan’s Push to Avoid 29% Tariff

Pakistan, too, is nearing a resolution. After a tense round of talks led by Commerce Secretary Jawad Paal, Islamabad is finalising a framework to avoid the re-imposition of a 29 per cent tariff on key exports such as textiles and agriculture. In return, Pakistan is offering to open up to US crude oil and tech investments, including the Reko Diq mining project.

Economists are divided. Some argue tariffs will boost domestic manufacturing and reduce dependency on foreign imports. Others warn of supply chain shocks, inflationary spillovers, and lost competitiveness. “Tariffs hurt American importers, not foreign producers,” the New York Times noted, explaining that if Walmart imports shoes worth $100 from Myanmar (now facing a 40 per cent duty), the US retailer pays the $40—not the exporter.

Walmart’s CEO recently warned of price hikes, prompting Trump to retort publicly that companies should “eat the tariffs” rather than pass costs on to customers.

What’s Next for Global Trade?

The ripple effects are clear:

Toymaker Mattel is raising US prices due to higher Chinese duties.

Holiday orders from China have been paused by several US retailers.

Copper-dependent sectors like construction and tech will face cost spikes.

Countries like Vietnam and the UK have already brokered partial deals to shield certain sectors.

“We’re witnessing a trade realignment, not just a trade war,” said a senior trade official from the European Commission, which itself is preparing for up to 50 per cent duties unless it strikes a deal with Washington.

Conclusion: A Long, Hot Summer Ahead

With over 20 tariff letters sent out, pressure is mounting on allies and rivals alike. August 1, 2025, is emerging as a global inflection point in trade diplomacy. India’s path forward hinges on a timely agreement that balances geopolitical pragmatism with economic self-interest.

Until then, businesses worldwide—from auto giants to smartphone makers—are holding their breath as Trump’s tariff hammer continues to swing.