Yet on Monday, Donald Trump announced his intention to intensify, not end, these trade wars. He announced that he would suspend tariffs increases on major economies until next month. As the United States continues to navigate the tumultuous waters of international trade, it aims to provide a more transparent, principles-based method for implementing tariffs on foreign goods.
The U.S. has gone a considerable step further already by recently imposing a 50% concrete tariff on imports of foreign steel and aluminum. In his latest announcement, Trump unveiled new tariff rates for various countries, reflecting his administration’s ongoing efforts to renegotiate trade terms. The new tariffs include a 35% charge on goods from Bangladesh, a 30% rate for Bosnia and Herzegovina, and 36% for Cambodia, among others. Japan, South Korea, and Malaysia are all subject to a 25 percent tariff. Neighbors like Laos and Myanmar will be hit with a stiff 40% tariff.
Trump made a point of saying that these tariffs would go up if other countries start adding more tariffs on American exports. He stated, “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto that 25% we charge.” This claim would underscore the administration’s hawkish approach in the still-ongoing trade talks.
The European Union was staring down the barrel of 50% tariffs. Thankfully, this week, Simon Harris, the deputy Irish prime minister, announced that they had been granted an extension until August 1 to continue these discussions. The United Kingdom has already managed to secure a lower rate of 25%. Now, they’re scrambling and negotiating now to get it down to zero. As of yet, there is no formal agreement set in stone between the U.K. and U.S. on tariffs.
So far, the U.S. administration has managed to reach agreements with three countries: the U.K., China, and Vietnam. Negotiations continue with more than a dozen other countries. The recent three-week extension provides a little extra breathing room for countries that still haven’t finalized agreements. This catch-22 creates huge problems for importers, putting them in a bind on either side of the equation.
As the trade landscape continues to shift in unpredictable ways, fears are deepening among global international economic communities. BRICS nations (Brazil, Russia, India, China, and South Africa) expressed “serious concerns about the rise of unilateral tariff” policies that could disrupt global trade dynamics.
Harris articulated the broader implications of these tariffs, stating, “I want to be clear that, while it is likely there will be some form of tariffs going forward, their imposition even at a lower rate is bad for consumers, jobs, economic growth and investment.” This sentiment highlights the danger of further tariff escalations to both the U.S. and global markets.
The first half of this year was the dollar’s worst six months in more than fifty years. It tanked by 10.8% from the beginning of 2025. Economists and market analysts are scratching their heads at this drop. It highlights just how fragile U.S. trade relations are at the moment.