WASHINGTON – The United States has enacted a sweeping increase in tariffs under President Donald Trump’s administration, triggering alarm among its major trading partners. The average U.S. import tariff has now reached its highest level in over a century, with duties ranging between 10 to 50 percent, affecting a wide range of goods.
Countries such as India, Brazil, Switzerland, and members of the European Union are among the hardest hit. While some nations have entered last-minute negotiations with Washington to reduce or delay the tariff impact, others are bracing for significant economic fallout. The EU, Japan, and South Korea managed to reach partial deals that cap tariffs below 15 percent, but tensions remain high.
The global response has ranged from defiance to cautious diplomacy. Indian and Brazilian trade officials criticized the tariff escalation as harmful to developing economies. Meanwhile, European leaders expressed frustration, calling the U.S. move unilateral and destabilizing.
Despite the international backlash, the U.S. economy has shown signs of resilience. Growth exceeded 3 percent in the last quarter, and the stock market has remained steady. However, American economists warn that inflationary pressure may rise, and the long-term cost to global trade relationships could be substantial.
Analysts argue that while the immediate effects may appear manageable, prolonged trade tensions could erode investor confidence and disrupt supply chains worldwide. With negotiations ongoing, the next few weeks are expected to be critical in determining the global economic outlook.
This story has been reported by PakTribune. All rights reserved.