President Donald Trump Tariff offensive this week let many losers – from small, poor countries such as Laos and Algeria to wealthy US trade partners such as Canada and Switzerland. They are now above all high taxes – tariffs – to the products that they export to the USA from August 7th.
The winners may come closest to the countries that held Trump’s demands – and avoided even more pain. However, it is unclear whether someone will be able to win in the long run – even in the United States, the intended favored favorite of Trump’s protectionist policy.
“In many ways, everyone here is a loser,” said Barry Appleton, co-director of the Center for International Law of the New York Law School.
Less than six months after returning to the White House, Trump demolished the old global economic order. Gone are based on agreed rules. In its place is a system in which Trump himself defines the rulesWith the enormous economic power of America to punish countries that do not agree with one -sided trade agreements and deduct enormous concessions from those who do this.
“The biggest winner is Trump,” said Alan Wolff, former American trade officer and deputy general director at the world trade organization. “He bet he could bring other countries to the table due to threats, and he succeeded – dramatic. ”
Everything goes back to what Trump calls “Day of Liberation” “ – April 2 – when the president announced “mutual” taxes of up to 50% for imports from countries in which the United States carried out trade deficits and 10% “Baseline” taxes on almost everyone else.
He called A 1977 law to explain a national emergency that justified its comprehensive import taxes. This enabled him to avoid the congress that traditionally had authority about taxes, including tariffs – All of this is now being challenged in court.
The winners continue to pay higher tariffs than before Trump accepted his office
Trump retired temporarily after his announcement of the Liberation Day had triggered a On the financial markets And exposed the mutual tariffs for 90 days to negotiate the countries.
Some of them finally and long Trump’s demands to pay what was essential high tariffs for the privilege of still selling to the huge American market four months ago.
The United Kingdom agreed 10% tariffs for his exports to the United States – compared to 1.3% before Trump intensified his trade war with the world. The United States demanded concessions, although it had not deficit with Great Britain for 19 years.
The European Union And Japan Accepted US tariffs of 15%. These are much higher than the low single-digit tariffs that you paid last year-but lower than the tariffs he threatened (30% of the EU and 25% on Japan).
Also Reduction of business with Trump and approving tariffs to agree were Pakistan, South Korea, Vietnam, Indonesia and the Philippines.
Even countries in which their tariffs were reduced from April without achieving a deal still pay much higher tariffs than before Trump accepted his office. Angola tariff, for example, died from 32% in April to 15%, but in 2022 it was less than 1.5%. And while Trump Administration lowered the Taiwan’s tariff from 32% to 20% in April, the pain will still be felt.
“20% from the start we were not our goal. We hope that we will receive a more advantageous and reasonable tax rate in further negotiations,” Taiwan’s President Lai Ching-Te told reporters in Taipei on Friday.
Trump also agreed to reduce the tariff on the tiny South African kingdom of Lesotho to 15% compared to the 50%, which he announced in April Damage may already have been done there.
Throw Brazil, cuddle Canada, accelerate the Swiss
Countries that were not ankle under ankle – and those who found other ways to create Trump’s anger – were hit harder.
Some poorer countries were not spared. The annual economic output in Laos is $ 2,100 per person and Algeria $ 5,600 compared to the 75,000 US dollars of America. Nevertheless, Laos was shaken with a tariff of 40% and Algeria with a delivery of 30%.
Trump popped Brazil with 50% import tax Especially because he didn’t like how it was treated earlier The Brazilian President Jair Bolsonarowho is in court because he tried to lose his election defeat in 2022. No matter that the USA exported more to Brazil than every year since 2007.
Trump’s decision to clean a long -term tariff of 35% US Ally Canada was partially designed to threaten Ottawa because he had said recognize a Palestinian state. Trump is a convinced supporter of the Israeli Prime Minister Benjamin Netanyahu.
Switzerland was shortened with an import tax of 39% – Even higher than the 31% Trump, which was originally announced on April 2.
“The Swiss probably wished they camped in Washington,” said Wolff, now Senior Fellow at the Peterson Institute for International Economics. “You are clearly not happy. ”
The assets can change if Trump’s tariffs are brought to court. Five American companies and twelve states sue the president and argue that his tariffs exceed his authority on the 1977 law on the day of liberation.
In May, the US court for international tradeA specialized court in New York approved and blocked the tariffs, although the government was allowed to collect it, while its appointment landed by the legal system and probably ended at the U.S. Supreme Court. In a hearing on Thursday, the judges of the US profession court for the federal cycle Skeptically sounded against Trump’s reasons for the tariffs.
“If (the tariffs) are put down, Brazil is a winner and not a loser,” said Appleton.
Pay more for backpacks and video games
Trump portrays his tariffs as a tax on foreign countries. However, they are actually paid for by import companies in the USA who try to pass on the costs of higher prices to their customers. Customs can violate other countries by forcing their exporters to lower prices and sacrifice profits – or to lose the market share in the USA.
However, Goldman Sachs’ economists estimate that exporters have only absorbed a fifth of the rising costs of tariffs in overseas, while Americans and US companies have taken up the best out of the tab.
WalmartPresent Procter & GambleFord, Best BuyPresent AdidasPresent NikePresent Matt and Stanley Black & Decker hiked all prices due to US tariffs
“This is a consumption tax, so this affects those who have a lower income,” said Appleton. “Turn shoes, backpacks … Your devices will increase. Your television and your electronics will increase. Your video play equipment, consoles will increase because none of them are produced in America. ”
Trump’s trade war has pushed the average US tariff from 2.5% at the beginning of 2025 to 18.3%, the highest since 1934, according to the budget laboratory at Yale University. And that will impose $ 2,400 in the average budget for the average household.
“The US consumer is a big loser,” said Wolff.
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The AP economic writer Christopher Rugaber contributed to this story.
