U.S. President Donald Trump has unveiled sweeping new tariffs on imports from dozens of trading partners, escalating international trade tensions and amplifying global economic uncertainty.

The new duties, though overall reduced from those Trump announced on April 1 but delayed due to widespread resistance, remain strikingly high. They range from the 10 percent baseline to 41 percent, with India facing 25 percent, Canada 35 percent and Switzerland 39 percent. Most of the levies will take effect on August 7, rather than the originally announced date of August 1.

While countries like the UK and Japan secured lower rates under last-minute accords, others, including India, South Africa and Brazil, were hit with some of the steepest levies.

For those that failed to reach trade agreements with the U.S., the economic fallout is strident. India, for instance, has not been spared from a further round of punitive actions despite months of high‑level negotiations.

Trump's tariff offensives have rattled markets – India's rupee fell nearly 2 percent in July amid capital outflows – and officials warn that a broad spectrum of exports – especially pharmaceuticals, autos and gems – are exposed to serious disruption, potentially shaving 0.4 percentage points off GDP growth in 2025‑26.

Those that have secured partial tariff relief aren't much better off. South Korea, a major auto and semiconductor exporter, struck a deal with the U.S. just before the August 1 deadline. While this averted the worst of the tariff impact, analysts remain wary despite the deal that cut threatened U.S. auto tariffs to 15 percent from 25 percent, pointing to a lack of transparency and clarity, with some arguing the deal renders meaningless the existing free trade agreement between the two countries.

Conditions tied to South Korea's proposed $350 billion investment and $100 billion in American energy purchases have also not been fully detailed, raising concerns over Seoul being compelled into concessions that may outweigh the benefits of tariff relief.

Within the U.S., rising import duties are filtering into higher retail prices. Major retailers like Walmart signaled upcoming price hikes, and Fitch Ratings downgraded the outlook for multiple U.S. sectors – some by as much as 25 percent – labeling it "deteriorating" amid mounting trade uncertainty. Noting the political calculus behind Trump's tariff policies, analysts link them to the Republican Party's preparations for the 2026 midterm elections, characterizing the tariffs as a populist economic maneuver designed to burnish his "America First" credentials while raising federal revenue to fund recent tax cuts.

The fallout is hitting the Global South the hardest. Economies in Africa, Asia and Latin America – many of them developing nations without bilateral deals – will face tariffs averaging 19 percent by August 7, while important exports like copper, agriculture and textiles are especially vulnerable. Even before the new tariff announcement, South Africa estimated losses exceeding 35,000 jobs in its citrus industry alone, with an additional 65,000 at risk across other sectors.

Governments and officials in affected countries have condemned the tariffs as unjust and harmful to their economic recovery prospects while emphasizing the urgent need to diversify export markets beyond the U.S. In a joint statement last month, BRICS members voiced "serious concerns about the rise of unilateral tariff" measures, noting that the tariffs risked harming the global economy.

In a recent report, the Organization for Economic Co-operation and Development again revised its global growth outlook downward – from 3.1 percent in 2024 to 2.9 percent in 2025 and 2026 – citing sharply higher trade costs and policy uncertainty due to U.S. tariffs, which are also expected to fuel inflation. For the U.S., growth was projected to drop to 1.6 percent in 2025 and 1.5 percent in 2026.

If the U.S. were to impose an additional 10 percent tariff on all other economies, global economic output could decline by 0.3 percent within two years, while the U.S. economy itself would contract by 0.6 percent, the report said.

Against this backdrop, China and other Global South countries reaffirmed their commitment to multilateral trade frameworks, with Beijing reiterating support for WTO-centered multilateralism and urging dialogue instead of unilateral measures.