Increased Tariffs by Trump Prompt Backlash and Apprehension Among Significant American Trade Associates
The higher tariffs imposed by U.S. President Donald Trump on imports from various countries have disrupted global trade, complicated supply chains, and impacted the economies of major trading partners like Switzerland, Brazil, and India.
These tariffs, announced and implemented in 2021, have contributed to somewhat slower world economic growth and reduced the U.S. share of global trade, suggesting that these trade restrictions have dampened overall international commerce and economic integration.
The introduction of additional ad valorem duties on goods from selected trading partners has created uncertainties in supply chains. Some countries have sought to negotiate trade and security commitments to mitigate these effects, but others have resisted or failed to align with U.S. demands, perpetuating disruptions.
Switzerland, heavily reliant on exports and complex supply chains (especially in pharmaceuticals and machinery), likely faces increased costs and uncertainties from higher tariffs, pressuring Swiss exporters to the U.S. Brazil, as a major exporter of agricultural products and raw materials to the U.S., has seen its trade volumes affected by tariff-induced barriers that increase costs and complicate market access. Indian exporters have experienced challenges in U.S. markets due to heightened tariffs, prompting some efforts at negotiation but overall increased trade friction.
These tariffs and the ensuing trade disputes have further pressured the global economic landscape, leading to higher inflation in the U.S., slower U.S. economic growth, and slowed global expansion.
In a significant move, Trump announced a further 25% tariff on Indian goods, to be implemented in 21 days over India's purchases of Russian oil. The leaders of Brazil and India vowed not to be cowed by Trump's hardline bargaining position.
The Commerce Department data shows tariffs are driving up U.S. prices, including for recreational goods and motor vehicles. The tariffs range from 10% to 50%.
In response, major trade partners such as Switzerland, Brazil, and India are seeking a better deal. Brazil's President Luiz Inacio Lula da Silva will not seek a phone call with Trump, but cabinet-level talks will continue to lower a 50% tariff rate. Vietnam is seeking to lower tariffs further after negotiating a reduction to 20% from the initial 46%. Japan agreed a bilateral deal with Washington to lower tariffs, reducing the impact on profits for some Japanese companies.
India's Prime Minister Narendra Modi is defiant about not compromising the interests of the country's farmers. The U.S. and India have not yet reached a resolution on the tariff issue, and the situation remains a point of contention between the two nations.
References: [1] "Trade Policy Report", U.S. International Trade Commission, 2025. [2] "Global Economic Outlook", International Monetary Fund, 2025.
- The additional tariffs imposed by President Trump on Indian goods, set to increase the cost of Russian oil purchases, have escalated trade tensions between the U.S. and India, challenging – yet not compromising – the interests of India's farmers.
- International trade policies and legislations, including those related to tariffs and trade agreements, have become key areas of focus in global politics, as illustrated by the ongoing negotiations between major trading partners like Switzerland, Brazil, India, and the U.S.
- Financiers and economists alike have raised concerns over the potential long-term impact of trade restrictions, such as the tariffs imposed by President Trump, on global finance, general news, and business sectors, with increased inflation, slowed economic growth, and trade friction among key concerns.
