The United States has officially implemented sweeping new tariffs across nearly all of its trading partners with the European Union, Japan, and South Korea agreeing to 15% duties under the revised trade framework authorized by President Donald Trump.
According to Bloomberg Economics, the average U.S. tariff rate has now surged to 15.2%, up from 2.3% a year ago and the highest level recorded since the World War II era.
Despite months of protracted negotiations and global pushback, the three key allies—EU, Japan, and South Korea—accepted the new duty rate on goods including automotive exports, narrowly avoiding the more punitive 25% levy initially proposed.
However, these concessions have yet to be codified into binding trade agreements, leaving room for further uncertainty and possible reversals.
Other U.S. trading partners were issued predetermined tariff rates with some facing higher levies. For instance, Indian exports will attract a 50% tariff in three weeks after New Delhi failed to convince Washington to reconsider its trade stance in light of its continued purchase of Russian oil.
Similarly, Switzerland’s attempt to renegotiate its 39% tariff concluded without success following a high-level diplomatic visit to Washington.
While the White House has justified the tariff policy as a mechanism to reduce trade deficits and revive domestic manufacturing, economists remain divided on its long-term impact.
Early data shows U.S. economic growth slowed in the first half of the year, with July employment figures reflecting the steepest downward revisions since the COVID-19 pandemic. Service sector activity also neared stagnation amid rising cost pressures.
Nevertheless, U.S. Customs and Border Protection has begun full enforcement of the new tariff framework, with preliminary reports indicating customs duties reached a record $113 billion over the last nine months through June.
The administration has signaled additional tariff actions in the coming weeks, including sector-specific levies targeting critical industries such as semiconductors and pharmaceuticals.
President Trump has also hinted at potential 100% duties on foreign-made chips, while offering exemptions to companies that invest in domestic manufacturing.
Despite skepticism from analysts and growing legal scrutiny over the administration’s use of emergency powers to impose country-specific tariffs, the White House maintains that the tariff strategy is central to its economic agenda.
In a related development, several multinational firms have pledged to increase investment in U.S. operations in a bid to secure reduced tariffs, though many of these agreements remain under negotiation.
The auto sector, in particular, awaits final clarification on whether the 15% tariff rate will be locked in or revert to the original 25% proposal in absence of binding commitments.
The new tariffs represent a turning point in U.S. trade policy and are expected to influence upcoming negotiations with Canada, Mexico, and China. Talks with these three nations are proceeding on a separate track, according to U.S. trade officials.
While President Trump has cited increased tariff revenue as evidence of policy success, trade experts warn that rising costs will eventually be passed on to consumers and businesses.
“There are signs that tougher times are around the corner,” said Wendy Cutler, Vice President at the Asia Society Policy Institute and a former U.S. trade negotiator. “It’s almost inevitable that prices increase because businesses are unlikely to sustain lower margins indefinitely.”
The administration is facing mounting pressure to deliver clarity and stability, with financial institutions including Morgan Stanley and Deutsche Bank AG cautioning investors about near-term risks to the U.S. equity market.
As the effects of the new tariffs ripple through global supply chains and the domestic economy, both the White House and its critics will be tested on their predictions regarding the long-term outcomes of Trump’s trade strategy.