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Regional Blocs Rising Against US Tariffs
The Morning Standard
|August 03, 2025
The White House has just announced a new global trade regime, effective August 7. It impacts every nation.
What we are seeing unfold is not just a change in policy; it is a new global order being written by the United States. Once the lead advocate of globalization, the Trump regime is now pivoting away from free trade to a new era of protectionism.
These Make-America-Great-Again (MAGA) changes will no doubt bring short-term gains for some US business interests; but, long-term, they spell the erosion of US hegemony.
What has been announced is the universal tariff of 10% will remain for countries with which the US has a trade surplus. For 40 nations with which the US has a trade deficit—countries like India, to which the US exports less than it imports—face a base rate of 15%. Where there are no deals, rates vary from 39% for Switzerland and 35% for Canada, to a readjusted 20% for Bangladesh and 19% for Indonesia.
At home in India, we were lulled into believing an interim deal was around the corner. Those who understood Donald Trump's brinkmanship and his disdain for both friend and foe, saw it coming. For Trump, there are no half measures. After mocking India as a 'dead economy', the US President announced a 25% tariff. In addition, he threatened a barrage of unspecified penalties if India continued to buy oil and arms from Russia.
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