📉 Global Trade Shock: Trump’s New Tariffs Reignite Economic Tensions 🇺🇸🌍

On August 1, 2025, President Donald Trump signed a sweeping executive order triggering new “reciprocal” tariffs, effective August 7, targeting both trade surplus and deficit nations. This move marks a sharp escalation in global economic friction.

🔻 Key Tariff Highlights:

🔹 10% baseline tariff on most U.S. trade partners

🔹 15% floor for ~40 deficit countries

🔹 🔥 Specifics:

 ▪️ Canada: 35% (non-USMCA goods)

 ▪️ Switzerland: 39%

 ▪️ Taiwan: 20%

 ▪️ India: 25%

 ▪️ Bangladesh: 20% (cut from 41%)

🕊️ Mexico gets 90 days to negotiate amid 25% tariffs on non-USMCA goods, linked to fentanyl and migration control.

💣 China truce ends Aug 12 — potential escalation:

 ▪️ U.S. tariffs: 🚀 to 145%

 ▪️ China’s response: up to 125%

📜 Justified under:

IEEPA & NEA (courts ruled IEEPA use unconstitutional — appeal pending)

Framed as national security & economic sovereignty push

🌐 Global Blowback:

Canada: 25% retaliatory tariffs on $155B U.S. goods

EU: $28B counter-duties (mid-April start)

Japan: Calls it a “national crisis”

China & mexico Negotiating to avoid escalation

Switzerland & Bangladesh already adjusting to new terms

📦 Implications:

📈 Inflation pressure remains (CPI 2.3–2.4%)

💸 USD weakens (DXY ~98.4)

💰 Crypto regains safe-haven status as fiat volatility rises

📉 Traditional equities show caution amid global supply risks

🧠 Watch for: U.S.–China deal deadline (Aug 12), Congressional responses, and tariff-linked capital rotation into Web3 assets.#TrumpTariffs