Trump’s Global Tariff Blitz Triggers Economic Ripples, Alarms Smaller Nations

In a sweeping escalation of protectionist policy, US President Donald Trump has unveiled an aggressive new wave of tariffs targeting 69 global trade partners, sparking fears of economic destabilisation, trade retaliation, and significant hardship for smaller economies heavily reliant on exports.

The new tariffs — set out in a White House executive order — range from a 10% global baseline to punitive duties as high as 50% on countries the US deems “uncooperative” in both trade negotiations and strategic alignment. These measures are due to take effect within seven days and are being framed as a corrective to what Trump describes as “chronic trade imbalances” and “strategic misalignments”.

Among the worst-hit are India (25%), Canada (35% on specific goods), Brazil (50%), Taiwan (20%), Switzerland (39%), Laos and Myanmar (40% each), and even traditional allies such as the UK (10%). President Trump’s rationale, as laid out in the order, reflects a new doctrine in US trade — one that increasingly fuses economic policy with geopolitical loyalty.

“Countries that refuse to play fair — or side with us on key national security matters — will pay a premium,” Trump wrote on Truth Social, reiterating that these tariffs are “long overdue.”

India Singled Out Over BRICS, Russia Ties

India faces a particularly thorny situation. Not only is it subject to a sweeping 25% tariff on all exports to the United States starting 7 August, but the order also includes an unspecified “penalty surcharge” linked to its continued energy and defence cooperation with Russia. Trump’s targeting of India comes amid his growing suspicion of the BRICS bloc, which he has repeatedly labelled as “anti-American”.

While New Delhi has not yet issued a formal countermeasure, the Ministry of Commerce has confirmed that it is “closely studying the implications” of the tariffs and will act to “safeguard national interests”, particularly those of India’s agricultural and dairy sectors. A US delegation is expected in Delhi mid-August for continued trade discussions.

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Smaller Nations Face Bigger Consequences

The implications for emerging and smaller economies are grave. Nations such as Sri Lanka, Pakistan, Laos, and Myanmar — already struggling with inflation, IMF pressures, or export dependency — could be plunged into deeper economic strain. Analysts warn of cascading effects: global supply chain disruptions, rising consumer prices, and declining investor confidence.

“This is not a simple trade recalibration; it's a geopolitical litmus test masquerading as economic policy,” said Dr. Helena Krugman, Senior Fellow at the Centre for Multilateral Trade Policy in Brussels. “Smaller nations that cannot afford strategic ambiguity may now be forced to pick sides.”

Canada Penalised, Mexico Exempted — For Now

While Canadian and Mexican goods remain technically protected under the US-Mexico-Canada Agreement (USMCA), Trump raised the tariff on certain Canadian exports to 35%, citing Ottawa’s “lack of cooperation” in stemming fentanyl flows into the US. Conversely, Mexico was granted a 90-day reprieve after President Claudia Sheinbaum’s last-minute call with Trump, though key sectors such as steel, aluminium, and autos will still be hit with existing duties.

“Mexico has agreed to immediately eliminate its Non-Tariff Trade Barriers, of which there were many,” Trump announced, though details remain scarce.

ALSO READ: https://www.benefitnews24.com/business/trump-sharif-seal-new-trade-pact/17250

A Strategy of Pressure, or Provocation?

In essence, the tariffs are being used not only to influence trade outcomes but to compel ideological and strategic conformity. Countries making “meaningful trade and security commitments” may see their duties reduced later — but only if Washington deems their concessions adequate.

Critics across Europe and Asia have described the move as both “economic coercion” and “unilateralism under the guise of fairness”. The European Commission issued a brief statement indicating it is “evaluating appropriate countermeasures”.

As the world awaits retaliatory steps, markets have already begun to respond. Global indices dipped following the announcement, with emerging markets seeing the sharpest outflows.

In pursuing this aggressive tariff path, President Trump is signalling a clear departure from multilateralism and doubling down on transactional nationalism. Whether this results in fairer trade or further global fragmentation remains to be seen — but the shockwaves are already being felt.