Trump’s global tariff war explained: What the new rates mean for China, India and the world

Trump’s global tariff war is unlike anything in modern US history.

US President Donald Trump has escalated his trade fight with Beijing, threatening a 100 percent tariff on all Chinese imports from November 1, 2025, in retaliation for China’s restrictions on rare earth exports. These minerals are critical for industries from electronics to defence. Until now, most Chinese goods faced a 30 percent baseline tariff, extended through November 10. If imposed, the new rate would mark one of the sharpest blows in the US-China trade relationship, risking another halt in bilateral trade and higher prices for US buyers, the New York Times reported.

The administration has leaned heavily on Section 232 of federal law, citing national security to justify steep sector-wide tariffs. Current rates include 50 percent on steel and aluminium, 25 percent on autos and auto parts, and 50 percent on copper parts, a sector in demand due to AI data centres. Pending measures cover heavy-duty trucks, furniture, timber, cabinets and branded pharmaceuticals, with new probes on semiconductors, drones, aircraft, wind turbines, and even movies. These actions reveal how tariffs are now being applied industry by industry, not just country by country.

Trump has also invoked a 1970s emergency economic law, never before used for tariffs, to impose duties on nearly 90 countries. Rates range from 15 to 50 percent, with higher penalties for “transshipment” cases where goods are rerouted through third countries. Some of the steepest rates hit Brazil at 50 percent. For India, tariffs were first set at 25 percent but were doubled to 50 percent on August 27, linked to India’s purchases of Russian oil.

Despite the aggressive stance, the White House has struck deals with some allies. The European Union, South Korea, Britain, Japan, Vietnam, the Philippines and Indonesia have accepted tariffs in the 15-20 percent range in exchange for making new US investments and opening markets. For example, South Korea agreed to buy more American energy, while the EU reached a 15 percent tariff framework on cars and pharmaceuticals. These deals often impose tougher duties on goods with Chinese or Russian content.

For around 96 nations not singled out in recent rounds, the US has imposed a flat 10 percent tariff on all imports. This includes Australia, Singapore, Saudi Arabia, Russia and many African nations. Even small economies like Bhutan, Belize and Samoa are subject to the blanket tax, a reflection of Trump’s desire for universal reciprocity.

Trump’s global tariff war is unlike anything in modern US history. Nearly every country faces higher duties, and key industries are bracing for disruption. The US Supreme Court will soon hear challenges to the emergency tariff powers, which could redefine the scope of presidential authority on trade. For now, the uncertainty leaves businesses scrambling to adjust supply chains, while consumers may soon feel the squeeze in prices on everything from cars to furniture.