Washington – president Donald Trump on friday signed an executive order imposing a new, far-reaching regime of tariffs on imports from 66 countries, the European Union, and Taiwan, reigniting global trade tensions and sending an immediate shudder through financial markets. The order, which takes effect on august 7, sets the stage for a dramatic escalation of the administration's "reciprocal tariff" strategy while carving out temporary exceptions for key trading partners China and Mexico.

The measures, announced on august 1, 2025, vary significantly by country. Imports from Switzerland will face a 39% duty, while goods from Canada will be subjected to a 35% tariff, an increase from a previous 25% that the administration linked to a lack of cooperation on illicit drug trafficking. Other notable rates include 50% on some Brazilian goods, 30% on South African products, 25% on imports from India, and 20% on those from Taiwan. A baseline tariff of 10% will apply to dozens of other nations covered by the executive order.

In a significant move, the administration has temporarily shielded its two largest trading partners from the immediate impact. Washington and Beijing are reportedly in talks to extend a 90-day tariff truce, with a temporary pause on a threatened 30% combined tariff lasting until at least august 12. Similarly, while Mexico was excluded from this new wave, existing 25% tariffs related to fentanyl flow remain in place, though a 90-day window is open for further negotiation.

Global reaction has been swift and divided. Officials in Switzerland, Canada, and South Africa expressed deep concern over the potential for job losses and severe trade disruptions. However, some nations, including Thailand, Pakistan, Cambodia, and Malaysia, welcomed what were described as reduced tariff rates following successful negotiations, highlighting the administration's strategy of using punitive duties as leverage to secure more favorable trade deals.

Financial markets responded with immediate caution. Major U.S. stock indices, including the S&P 500 and the Nasdaq, fell by more than 1% following the announcement. Economists have warned that the broad-based tariffs could fuel inflationary pressures, constrict corporate profit margins, and further disrupt already fragile global supply chains. The move has also raised legal questions in Washington, with critics questioning whether the president exceeded his authority by declaring a national "emergency" under a 1977 law to implement the tariffs without congressional approval.

The administration has defended the action as a necessary step to correct long-standing trade imbalances and generate revenue for domestic tax cuts. In a statement, president Trump indicated that the door remains open for negotiations, noting that new agreements could lead to tariff reductions. This leaves the global economic landscape in a state of uncertainty, as nations weigh the costs of confrontation against the potential benefits of striking a new deal with the United States.