President Donald Trump’s sweeping new tariffs have triggered global economic upheaval, impacting nations large and small. From wealthy allies like Canada and Switzerland to poor countries like Laos and Algeria, many now face heavy taxes on exports to the U.S. starting August 7.
Winners Are Few in Trump’s Trade War
The few who might benefit are those who caved to Trump’s demands, avoiding even harsher penalties. But the long-term outcome remains uncertain—even for the United States.
“In many respects, everybody’s a loser here,” said Barry Appleton, co-director of the Center for International Law at New York Law School.
Six months into his second term, Trump has upended the global economic system. Gone are agreed-upon trade rules, replaced by a system where Trump dictates terms based on U.S. power.
“The biggest winner is Trump,” said Alan Wolff, former U.S. trade official. “He bet that he could get other countries to the table on the basis of threats, and he succeeded—dramatically.”
‘Liberation Day’ and the Rise of Import Taxes
On April 2, Trump declared “Liberation Day,” announcing “reciprocal” tariffs of up to 50% on imports from countries with trade deficits and a 10% baseline for others. Citing a 1977 law, he bypassed Congress—now facing legal challenges.
After markets panicked, Trump suspended tariffs for 90 days. Some countries complied, agreeing to sharp tariff hikes. The UK accepted 10% tariffs (up from 1.3%) despite a U.S. trade surplus. The EU and Japan agreed to 15% rates. Others striking deals include Pakistan, South Korea, Vietnam, Indonesia, and the Philippines.
Even the ‘Lucky’ Face Higher Tariffs
Countries like Angola saw tariffs drop from April highs (15% from 32%)—but still far above pre-Trump levels. Taiwan’s rate dropped to 20% from 32%.
“20% 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,” said Taiwan’s president Lai Ching-te.
Trump also reduced Lesotho’s tariff from 50% to 15%, but lasting damage may remain.
Hardest Hit: Brazil, Canada, and Switzerland
Countries that resisted Trump faced stiffer penalties. Poor nations like Laos and Algeria were not spared—slapped with 40% and 30% tariffs respectively.
Brazil was hit with 50% tariffs, a move linked to Trump’s support for Jair Bolsonaro. Canada, a longtime ally, faced 35% tariffs, reportedly in retaliation for recognizing a Palestinian state. Switzerland received a 39% tax.
“The Swiss probably wish that they had camped in Washington,” said Wolff. “They’re clearly not at all happy.”
Trump’s tariffs face court challenges. Five U.S. businesses and 12 states are suing, claiming he overstepped under the 1977 law. A specialized court blocked the tariffs in May, though collections continue pending appeal. Federal Circuit judges appeared skeptical of Trump’s justifications.
“If (the tariffs) get struck down, then maybe Brazil’s a winner and not a loser,” Appleton said.
Consumers Bear the Real Cost
Despite Trump’s claim that tariffs hurt foreign nations, U.S. companies pay the taxes and often pass costs to consumers. Exporters may cut prices to compete, but most costs fall on Americans.
Goldman Sachs economists say U.S. firms and consumers absorb most tariff costs. Retail giants like Walmart, Best Buy, and Nike have raised prices.
“This is a consumption tax, so it disproportionately affects those who have lower incomes,” said Appleton. “Sneakers, knapsacks … your appliances are going to go up. Your TV and electronics are going to go up. Your video game devices, consoles are going to up because none of those are made in America.”
Tariff Levels Hit Historic Highs
The average U.S. tariff jumped from 2.5% in early 2025 to 18.3%, the highest since 1934. According to Yale’s Budget Lab, that’s a $2,400 annual burden on the average household.
“The U.S. consumer’s a big loser,” Wolff said.
