A Global Trade Shakeup and the Countries Caught in the Crossfire

The United States, under Donald Trump, implemented the most significant American tariffs on imports in over a century. These tariffs, reaching as high as 50 percent on some countries, were met with criticism, with the EU describing the move as a major blow to the global economy. The announcement shocked global markets as the US president declared minimum tariffs of at least 10 percent on almost all exporters to the US, with higher duties for countries with large trade surpluses.

Southeast Asian nations and some of the world’s weakest economies were particularly affected by these new tariffs. The White House outlined a "baseline" tariff of 10 percent on imports to the US, which took effect on April 5th. Countries subject to this baseline included the UK, Ukraine, Australia, New Zealand, Singapore, Brazil, Turkey, Colombia, Argentina, El Salvador, the United Arab Emirates, and Saudi Arabia.

Exemptions from the new tariffs were limited, primarily tied to existing trade agreements or special circumstances. Canada was exempt from both the baseline and reciprocal tariffs due to the US-Mexico-Canada Agreement (USMCA). Mexico also benefited from an exemption due to the USMCA. Cuba, Belarus, and North Korea were not subjected to new tariffs due to existing sanctions or high tariffs already in place. Russia was also excluded from the new tariffs.

Several countries faced the highest tariff rates under Trump's "reciprocal tariff" regime, which the White House said reflected their significant trade surpluses with the US or high barriers to American exports. Cambodia was hit with the highest rate of 49 percent. Vietnam faced a 46 percent tariff. Sri Lanka was also significantly impacted. Bangladesh was hit with a 37 percent tariff. Thailand faced a 36 percent reciprocal tariff.

China was targeted with massive 104 percent duties on Chinese goods. Taiwan was targeted with a 32 percent tariff. Switzerland was hit with high tariffs. India faced a 26 percent reciprocal tariff. South Korea was targeted for its trade surplus and barriers. Japan faced a 24 percent tariff. The EU was hit with a 20 percent tariff.