Trump’s revised tariffs will reduce GDP of several countries, including the US

The global rollercoaster ride of United States trade tariffs has now entered its latest phase.

President Donald Trump’s April 2 “Liberation Day” announcement placed reciprocal tariffs on all countries. A week later, amid financial market turmoil, these tariffs were paused and replaced by a 10% baseline tariff on most goods.

On July 31, however, the Trump Administration reinstated and expanded the reciprocal tariff policy. Most of these updated tariffs are scheduled to take effect on August 7.

To evaluate the impact of these latest tariffs, we also need to take into account recently negotiated free trade agreements (such as the US-European Union deal), the 50% tariffs imposed on steel and aluminium imports, and tariff exemptions for imports of smartphones, computers and other electronics.

For selected countries, the reciprocal tariffs announced on April 2 and the revised values of these tariffs are shown in the table below. The revised additional tariffs are highest for Brazil (50%) and Switzerland (39%), and lowest for Australia and the United Kingdom (10%).

For most countries, the revised tariffs are lower than the original ones. But Brazil, Switzerland and New Zealand...

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