The United States has triggered a new wave of global trade tension following President Donald Trump’s sweeping tariffs on nearly 70 countries, an executive action that dramatically raises duties on a wide range of imports. And this time, Washington says there will be no turning back.
The latest tariff round, which became effective on August 1, imposes steep new levies as high as 50%, marking a significant escalation in Trump’s economic agenda. Canada was hit with a 35% tariff, up from the previous 25%, while Brazil now faces a 50% duty—one of the highest ever imposed by the U.S. India, Taiwan, and Switzerland were also hit, with rates of 25%, 20%, and 39% respectively.
Unlike previous rounds where targeted nations were offered the chance to negotiate tariff reductions, U.S. Trade Representative Jamieson Greer has made it clear that this latest package is here to stay. Speaking to CBS’s Face the Nation on Sunday, Greer said the new rates are “pretty much set,” noting that they are tied to permanent deals and national policy positions, including trade balances and geopolitical alignment.
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“A lot of these are set rates pursuant to deals. Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country,” he said. “These tariff rates are pretty much set.”
This means there’s no room for temporary exemptions or a diplomatic off-ramp. Earlier rounds, such as those involving the European Union, allowed partial relief through side agreements, but not this one.
The sharp shift reflects a hardening of the Trump administration’s stance on global trade. The tariffs, officials say, were calculated based on specific concerns. For Canada, the hike was linked to what the U.S. claims is its failure to rein in fentanyl production and trafficking. In Brazil’s case, Washington cited the country’s worsening democratic backslide. For India, it was framed as a correction for longstanding trade imbalances. Taiwan’s rate was described as temporary, pending the outcome of broader U.S.-Taiwan negotiations.
Markets across the globe recoiled. Indian stocks fell for a second straight week. In Switzerland, government officials held an emergency session to assess the consequences of the 39% U.S. duty on Swiss exports, including luxury goods. The Swiss government is reportedly considering revising its trade package with the U.S. in retaliation.
Canada, also rattled by the unexpected spike, has moved swiftly to initiate negotiations with Washington. Canadian Trade Minister Dominic LeBlanc confirmed that Ottawa is already in direct talks with Greer’s office to seek a pathway to reduce the new 35% tariff. A phone call between President Trump and Canadian envoy Mark Carney is expected in the coming days.
Meanwhile, the U.S. is continuing separate negotiations with China, focused on unlocking trade for critical minerals and rare-earth magnets—essential for advanced electronics, defense, and clean energy sectors. According to Greer, both sides are “about halfway” toward resolving the deadlock, though it remains unclear whether any breakthrough will affect the current tariff framework.
“We’re focused on making sure that the flow of magnets from China to the United States and the- and the adjacent supply chain can flow as freely as it did before … and I’d say we’re about halfway there,” he said.
But for the rest of the targeted countries, the message is that the tariffs are not a bargaining chip—they’re a new reality. Businesses, economists, and global investors now face the implications of a more entrenched, less flexible U.S. trade regime.
In effect, Washington is now institutionalizing tariffs as a core component of its foreign policy playbook. Companies in impacted nations are already rethinking sourcing and export strategies, while foreign governments weigh retaliation or economic concessions to regain access to the U.S. market under better terms.
The world may be entering a new era of fractured trade as the U.S. doubles down on protectionism, one where negotiation is replaced by pressure, and economic alliances hinge not just on commerce but on compliance with Washington’s broader geopolitical agenda.