Trump's New Tariff Tactics: Strains on Global Trade Intensify

In a move likely to reshape international trade dynamics, U.S. President Donald Trump has signed an executive order instituting revised tariffs on 70 nations, including significant changes for India and Pakistan. The decision is anticipated to further complicate global trade relations.

Set to take effect from August 7, these tariffs arise from the national emergency previously declared in Executive Order 14257. Trump's administration cited new information as the impetus behind these adjustments, marking a strategic shift in U.S. trade policy amidst international scrutiny.

While India's tariffs stand at 25%, those affecting neighboring countries like Pakistan and Myanmar differ, with Pakistan facing a 19% increase and Myanmar 40%. Notably, higher tariffs are imposed on Iraq, Laos, and Syria, while the UK sees lower rates. The policy shift represents a marked escalation in unilateral trade actions by the Trump administration.

Goods already in transit before August 7 will not be affected by the new tariffs until after October 5, 2025, maintaining the previously set rates. Ajay Bagga, a market expert, remarked on the upheaval caused by these measures, highlighting market instability unfolding across continents as a consequence.

The latest tariffs inject further volatility into an already stressed global market landscape, posing challenges across North America, Europe, and Asia as nations brace for potential economic repercussions.

(With inputs from agencies.)