You’ve probably heard about Trump’s tariffs, the current president of the USA.
Even before he began his second term in January 2025, they were already making waves.
Well, his decision to impose extra taxes on products from other countries is stirring up turmoil in various global economies.
What’s the reason? The impact not only on companies and their workers, but also on consumers.
There are fears it could lead to rising inflation, a drop in trade, and even a possible global recession.
A few weeks ago, the president announced a package that includes a minimum 10% tariff on all products entering the USA.
In addition, higher tariffs for those coming from certain nations.
But who is really affected by this policy imposed by the American president? You’ll find the answer in this article.
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Latin American Countries
According to BBC News Mundo, Latin America is one of the regions affected by Trump’s new tariffs.
Although not as much as other parts of the world, thanks to the lower tax rates applied to the region.
Importers will have to pay the base 10% tariff on their products, except for those coming from Venezuela, which faces a 15% tariff.
Goods from Nicaragua will also be more expensive, as the USA has imposed a higher duty of 18% on this Latin American country.
Therefore, it’s possible they will sell less, which could reduce investment, employment, and growth opportunities.
Various Products from Latin American Exporters Become More Expensive
The application of tariffs on Latin American exports affects the final cost of these goods.
Having to pay more at customs raises their price for American consumers.
Now, buyers in the U.S. will have to spend more money to purchase goods subject to these tariff policies.
Among them: Argentine wine, Colombian coffee, Chilean salmon, Peruvian blueberries, and Ecuadorian shrimp.
Trump’s Tariffs on African Countries
The consequences of Trump’s announcement are also raising concerns among African nations, which were hit with steep tariffs.
Lesotho, one of the smallest and poorest countries on the continent, is bearing the brunt, according to the DW website.
With a 50% tariff on everything it sells to the USA, it’s uncertain whether it can maintain its trade relations with the country.
So far, the U.S. has been its second-largest trade partner, after South Africa — another nation affected by an export tariff hike to 30%.
African products had been exempt from tariffs for 25 years, thanks to a law from former president Bill Clinton that is no longer in effect.
This has caused a sharp drop in the value of both countries’ currencies and has also impacted their stock markets.
Fear of Mass Layoffs
In both Lesotho and South Africa, there are growing fears of massive job losses due to Trump’s measures.
Especially in the textile and automotive industries, where the high tariffs have had the greatest impact.
Lesotho has 11 textile factories that have, for years, supplied jeans to well-known U.S. clothing brands.
These factories employ over 12,000 people, but if they can’t expand to other international markets, they may be forced to shut down.
In South Africa, job losses could hit the agribusiness and vehicle sectors. The country exports 10% of its cars to the USA.
Trump’s Tariffs Also Affect the United States
Americans themselves will also be affected by the tariff decisions made by their current president.
Although Trump has claimed the measures will lower prices, some economic analysts believe they will instead cause more inflation.
According to CBS News, prices are expected to rise soon, since it’s the importers who end up paying the tariffs.
This means prices will go up on imported food, clothing, shoes, TVs, iPhones, and other goods made outside the USA.
Higher Raw Material and Production Costs
One reason everything will become more expensive is that, in an effort to reduce the impact, many companies will adjust their costs.
Both raw materials and the production of imported parts consumed by Americans will become more expensive.
For example, Trump’s tariffs on China will affect the price of clothing made there and sold by U.S. retailers.
The same will happen with goods made in other Asian countries and in the European Union, which now face higher tariffs.
In the end, it will be an unavoidable increase in expenses for American families and businesses, who will have to cope with rising inflation.
Trump’s Tariffs Affect Asian Countries
This part of the world is the most affected by the new trade system imposed by the Trump administration.
China, in particular, faces a series of tariffs totaling over 125% on all its exports to the U.S.
In addition to a general 10% tariff, another 10% was added in March of this year, followed by a reciprocal 34% tariff on April 2.
Because the Beijing government responded with the same measure against American products, Trump imposed an additional 50% duty.
Later, he added another 41%, but China hasn’t been the only one hit. Other Asian powers and countries also received high tariffs.
The list includes South Korea (25%), Japan (24%), India (26%), and Vietnam (46%). Cambodia faces a 49% tariff, and Laos 48%, among others.
China’s and Other Economies’ Growth Will Slow
According to forecasts by the Asian Development Bank, published on the SWI website, these tariffs will reduce growth in the affected countries.
China’s economy is expected to grow by 4.69% this year, while the increase in goods production in 2024 was 5.0%.
Trump’s tariffs will also impact emerging economies, such as Cambodia (49% tariff) and Laos (48%).
The imbalance caused by rising tariffs and retaliatory actions has created uncertainty and further tensions between these nations and the United States.
European Countries
Another trade relationship at risk is between the European Union and the USA — the largest in the world.
The various tariffs imposed by the White House are a blow to EU exports, sparking conflict.
Countries affected include Germany, Italy, and Ireland, which anticipate significant economic losses.
Sources from the European Central Bank, cited by RTVE, estimate a GDP reduction of 0.3 percentage points due to the 25% tariff.
Meanwhile, the general 20% tariff could affect two-thirds of total exports.
The growing concern has reignited the debate over the bloc’s commercial autonomy.
EU countries are now considering their own measures to protect their interests.
Drop in Sales of European Products in the USA
The imposition of tariffs on European products makes them more expensive in the U.S. market.
The result is a decline in demand and reduced sales in key sectors such as vehicles, machinery, aircraft, steel, and aluminum.
In 2024, EU exports to the U.S. rose by 26%, reaching €531.98 billion.
But with the new measures, an estimated 70% of exports will be affected, equivalent to €290 billion.
According to an analysis by El País, the volume of goods destined for the U.S. market could fall by nearly 15%.
Retaliatory actions by the European Commission may further increase prices for U.S. consumers.
Are We Facing a Trade War Due to Trump’s Tariffs?
According to The New York Times, it is evident that Trump’s measures have triggered an unprecedented economic conflict.
Not only have global financial markets declined, but U.S. trade partners have announced retaliatory measures.
Investors claim this will lead to price hikes, slower growth, and — worst of all — a global recession.
The fear of such an outcome has caused a drop in stock values and could shrink the economy.
Who will be directly affected? Low- and middle-income consumers, who spend more on products subject to tariffs.
The wealthy won’t be spared either, as the trade chaos is devaluing their investments.
Moreover, if sales fall, there will be fewer jobs and more business losses.
To this, we must add the fear caused by falling oil prices, following the tariff announcements and responses.
According to NYT, this could ultimately weaken global economies — including that of the United States itself.
For this reason, both investors and trade partners are hoping Donald Trump will reconsider his measures.