US President Donald Trump's sweeping tariff order, imposing import duties of up to 41 per cent on dozens of countries, has sent shockwaves through global capitals, drawing a mix of disappointment, measured relief, and mounting concern over the future of world trade.
Signed late Thursday and set to take effect on August 7, the executive order targets 69 nations and the European Union under Trump’s “reciprocal” trade policy push, with the remainder of the world facing a default 10 per cent levy.
Nations like Syria (41 per cent), Switzerland (39 per cent), and Myanmar (40 per cent) were hit with the steepest rates, while key partners such as India (25 per cent) and Taiwan (20 per cent) fell in the mid-range bracket.
While several countries scrambled to strike last-minute deals ahead of the August 1 deadline, others were left grappling with the consequences.
In Ottawa, Canadian Prime Minister Mark Carney voiced disappointment after the US hiked tariffs on Canadian goods to 35 per cent, citing disagreements over drug trafficking enforcement and Canada's stance on Palestine.
Trump cited what he said was a lack of cooperation in stemming trafficking in illicit drugs across the northern border. He also slammed Canada's plan to recognise a Palestinian state and has expressed frustration with a trade deficit largely due to US oil purchases.
“Canada accounts for only 1 per cent of US fentanyl imports and has been working intensively to further reduce these volumes,” Carney said in a statement.
Despite the US-Mexico-Canada Agreement shielding many exports, Canada's steel, lumber and auto sectors are bracing for impact.
Switzerland reacted sharply to its 39 per cent rate, up from a previously floated 31 per cent. The Swiss Federal Council said it regretted the US’s “unilateral” move, despite what it claimed were constructive bilateral talks.
“The Federal Council notes with great regret that, despite the progress made in bilateral talks and Switzerland's very constructive stance from the outset, the US intends to impose unilateral additional tariffs on imports from Switzerland,” the government said in a post on X.
It said it would continue to seek a negotiated solution.
Across the Pacific, New Zealand said it would keep lobbying the Trump administration to bring down its 15 per cent tariff. “We don’t think this is warranted,” Trade Minister Todd McClay said, warning that the jump from 10 per cent could hurt exporters.
McClay said New Zealand exporters had reported they could absorb a 10 per cent tariff or pass it on to US consumers through increased costs. A further increase would “change the equation,” he said.
Neither New Zealand nor its neighbour Australia have struck tariff deals with the Trump administration. Australian steel and aluminum exports have faced a steep 50 per cent tariff since June.
Australian Trade Minister Don Farrell said the 10 per cent overall tariff on Australia's exports to the United States was a vindication of his government's “cool and calm negotiations.”
But he said even that level was not justified. The US exports twice as much to Australia as it imports from its bilateral free trade partner, and Australia imposes no tariffs on US exports.
India, one of the countries assigned a 25 per cent tariff, offered a reserved response. “We will take all necessary steps to safeguard and promote national interest and the implications of the tariffs are being examined,” the Indian government said.
The Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai noted that the order provides “relaxation for goods in transit and those loaded on ship for final sailing to the US by August 7.”
Sahai added, “Goods cleared for consumption in the US by October 5 will also not be subject to reciprocal tariffs, thus providing some relief to exporters of goods already shipped or likely to be shipped this week.”
Trump, in a Truth Social post, lashed out at India's high tariffs, military ties with Russia, and its BRICS membership, calling them “obnoxious trade barriers” and threatening an additional penalty.
The Asia Society’s Wendy Cutler, a former US trade representative, said India’s tariff rate “calls into question” the possibility of a bilateral deal. She also warned of logistical bottlenecks in US customs and rising uncertainty for American companies operating under the new regime.
In East Asia, Japan welcomed the 15 per cent tariff as a product of successful negotiations but urged Washington to follow through on promises to reduce duties on auto exports.
“We believe it is necessary to carefully examine the details of the measure," Hayashi said. “The Japanese government will continue to urge the US side to promptly implement measures to carry out the recent agreement, including reducing tariffs on automobiles and auto parts.”
Taiwan, which had expected a harsher 32 per cent rate, said the reduced 20 per cent tariff was still too high. President Lai Ching-te said Taipei would push for “a more beneficial and reasonable” rate in further rounds.
Taiwan is a key supplier of advanced semiconductors needed for many products and technologies.
“20 per cent from the beginning has not been our goal, we hope that in further negotiations we will get a more beneficial and more reasonable tax rate,” Lai told reporters in Taipei Friday.
The US is Taiwan's largest ally even though it does not formally recognise the island. “We want to strengthen US Taiwan cooperation in national security, tech, and multiple areas,” Lai said.
In Southeast Asia, Cambodia’s Deputy Prime Minister Sun Chanthol expressed gratitude for being assigned a 19 per cent rate, down from an earlier proposed 49 per cent, and promised zero tariffs on American imports.
Thailand’s finance minister said the same rate “reflected close partnership” with the US, even as he warned that the country must now accelerate economic resilience efforts.
Trump had threatened to withhold trade deals from Cambodia and Thailand if they didn't end an armed conflict over border territory. The two nations agreed on a ceasefire that began Tuesday.
Markets reacted cautiously. South Korea’s Kospi dropped nearly 4 per cent after the US set a 15 per cent tariff for Seoul. The Japanese yen strengthened against the dollar amid investor unease. China, which has yet to reach a deal, faces a looming August 12 deadline, with its trade surplus with the US remaining a key sticking point.
The White House said over 200 countries had contacted the trade team and promised that every nation would be addressed, either by direct negotiation or through an executive order “by midnight.” A senior official said the delay in implementation till August 7 would allow time to “harmonise” the new tariff framework.
(With inputs from AP/ PTI)