Trade Tensions Surge as Trump's Tariff Strategy Unfolds

President Donald Trump's new tariff rates, ranging from 10% to 50%, affect dozens of trading partners, aiming to tackle U.S. trade deficits. Higher tariffs are challenging global supply chains and potentially increasing inflation. Major economies have negotiated reduced tariffs, while others face consequences of heightened duties.

The implementation of President Trump's escalated tariffs kicked off on Thursday, setting a complex stage for U.S. trade relations. Tariffs now reach as high as 50% with partners like Brazil and 35% for Canada, aiming to reduce trade deficits without disrupting supply chains.

United States Customs began collecting these new tariffs after intense negotiations with significant trading entities. Goods already in transit can take advantage of previous, lower tariffs until early October. Amid these changes, some nations like the European Union and Japan secured lesser tariffs, stabilizing trade impacts somewhat.

Despite tariff reliefs for some, countries like India face exacerbated tensions. The new tariff strategy, involving multiple sectors, threatens price hikes and global trade dynamics, leaving many businesses to fend off rising costs. Treasury revenue, bolstered by these tariffs, could surpass $300 billion annually.

(With inputs from agencies.)