“Trump’s 2025 Tariffs Take Effect: Global Trade Shifts, Prices Rise, India Faces 50% Duty”

Dubai | August 7, 2025 | 0 | news

Trump’s Tariffs Take Effect: Global Trade Disrupted, Prices Set to Rise

New Tariffs Hit Dozens of U.S. Trading Partners

President Donald Trump’s new tariffs officially took effect just after midnight on Thursday, marking a major shift in U.S. trade policy. The new taxes apply to imported goods from many countries, including major partners like India, Switzerland, and South Africa.

Tariff rates reach up to 39%, with India’s set to increase to 50% in the coming weeks.

Trump stated the move would bring “billions of dollars” into the U.S. and claimed that certain countries have been taking unfair advantage of the American economy for years.


Impact on Consumers and Businesses

Experts warn that the cost of these tariffs will likely be passed on to U.S. consumers. As companies face higher import costs, they are expected to raise prices on everyday goods such as electronics, clothing, and shoes.

Large companies are already reacting:

  • Apple announced a $100 billion investment in U.S. chip and glass production.

  • Retail brands have started raising prices to offset tariff costs.

  • Manufacturers are shifting production from China and India to other regions like Vietnam and Cambodia.


India Responds to Tariffs

Indian leaders have pushed back strongly. Prime Minister Narendra Modi stated that he would not support any trade deal that harms local farmers, dairy producers, or fishermen. Despite knowing the political risks, he said he was ready to “pay the price” for protecting Indian interests.

Indian stocks dropped sharply after the announcement of the new 50% tariff rate.


Tariff Exemptions and Delays

Not all countries are affected equally. The U.S. has paused higher tariffs for China and Mexico while ongoing negotiations continue. Canada is already facing a 35% tariff, and trade talks with Switzerland are ongoing.

Trump’s administration has encouraged companies to bring manufacturing back to the U.S. to avoid high duties. Firms building factories in the U.S. are temporarily exempt from certain tariffs.


Uncertainty in Global Trade

The fast rollout of these tariffs has created confusion among global businesses. Some fear that this move could weaken economic growth and strain international relationships. Legal challenges are also mounting, with some courts questioning the legality of Trump’s trade powers.


What This Means for You

If the new tariffs remain in place:

  • Prices on imported goods will likely rise.

  • Businesses may shift manufacturing closer to home.

  • Consumers will bear much of the financial impact.

While the White House claims foreign suppliers will absorb the cost, most experts agree American consumers will ultimately pay more.

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