President Donald Trump unleashed a new wave of tariffs targeting more than 60 trading partners, shaking global financial markets and reigniting tensions around trade diplomacy. The sudden announcement of import duties—ranging from 10% to 50%—hit countries including Canada (35%), Brazil (50%), India (25%), Taiwan (20%), and Switzerland (39%), raising the average U.S. tariff rate to an estimated 18%.

Markets responded sharply: the STOXX 600 slid 1.3% to its lowest in a month, while Wall Street futures pointed to losses at the opening bell. Analysts say the move reflects an aggressive pivot by the Trump administration ahead of the 2026 election campaign, designed to pressure allies into more favorable bilateral trade deals.

Despite Mexico avoiding a 30% tariff for now, major economies are scrambling to negotiate exemptions. Switzerland called the shock "stunning," India resumed urgent trade talks, and South Africa condemned the 30% levy as a threat to jobs.

Trump defended the move as essential for rebalancing trade relations and safeguarding national security. A separate order raised tariffs on Canadian fentanyl-linked exports, citing insufficient cooperation in combatting narcotics trafficking.

However, experts warn of wider economic fallout. “There are no real winners in a trade war,” said Thomas Rupf, CIO Asia at VP Bank. European winemakers, Asian exporters, and American consumers alike face higher costs.

With a deadline looming for a U.S.-China trade deal on August 12 and more negotiations in progress, the global economy enters a new era of uncertainty. One thing is clear: Trump’s tariff playbook is far from finished.