Trump’s sweeping new tariffs reshape global trade landscape

President Donald Trump’s sweeping new tariffs, set to begin August 7, mark a dramatic escalation in his effort to restructure global trade. 

The tariffs raise the average US tax on imports to 18.3%—the highest since 1934, according to the Yale Budget Lab. Previously, the rate hovered between 2–3%.

Key trading partners affected
Trump imposed a 35% tariff on Canadian imports Friday, signaling a stalled negotiation with America’s second-largest trading partner. 

Goods from surplus nations now face 15% tariffs, with some rates soaring to 41%. 

The tariffs come as the White House pursues trade deals with key partners like China and Mexico—though no agreements yet exist with India, Switzerland, or Taiwan.

Economic impact and legal challenges
Stock markets fell sharply Friday, and economists warn the higher prices from tariffs could slow economic growth. Inflation remains elevated, and July’s weak jobs report hinted at a cooling labor market. 

While Trump argues tariffs will rebalance trade and boost revenues—already totaling $150 billion—legal challenges loom. 

Critics question his use of the International Emergency Economic Powers Act to justify the levies, with the issue potentially heading to the Supreme Court.