Trump’s new tariffs hit U.S. trade partners

August 07, 2025 (MLN): U.S. President Donald Trump’s new round of so-called “reciprocal” tariffs took effect on Thursday, imposing higher duties on several of the country’s key trading partners.

“IT’S MIDNIGHT!!! BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!” Trump announced on Truth Social.

He added that the tariffs were aimed at “COUNTRIES THAT HAVE TAKEN ADVANTAGE OF THE UNITED STATES FOR MANY YEARS.”

Initially set to begin on Aug. 1, Trump revised the tariff rates and delayed their implementation to Aug. 7.

Now in force, the highest tariffs include Syria at 41%, Laos and Myanmar at 40%, and Switzerland at 39%. Switzerland, which attempted last-minute talks in Washington D.C., has yet to reach an agreement.

A statement from the Swiss government is expected later Thursday.

Brazil and India are also among the hardest hit, now facing 50% duties, as CNBC reported.

However, India’s rate will rise from 25% to 50% later in August, as outlined in an executive order.

Trump linked India’s increased tariffs to its ongoing imports of Russian oil.

Other nations have managed to secure trade deals, resulting in lower tariffs: the European Union, Japan, and South Korea face 15%, while the U.K. successfully negotiated a 10% rate.

China and Mexico remain in a state of uncertainty, with China currently in a trade truce and Mexico’s previously announced tariffs on hold.

“This game is not over,” warned Bill Papadakis, macro strategist at Lombard Odier, referencing Trump’s new tariff threats, including a potential 100% duty on chips.

He acknowledged some optimism due to recent deals and walk-backs but cautioned against underestimating the economic impact.

Beat Wittmann, chairman and partner at Porta Advisors, noted that harsh tariffs like those imposed on India and Switzerland should not be unexpected.

On Switzerland’s situation, he advised flexibility in the short term while building structural independence in the long run.

“You just watch how Trump is treating neighbors, Canada, and then you can imagine all the rest. So welcome to this new world,” Wittmann said.

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