90 day Tariff Pause Has Failed So Will Tariff Resumption

Trump’s New Tariffs: What They Mean for the Global Economy

US President Donald Trump has reignited global trade tensions by announcing new tariffs on 14 countries, ending a 90-day tariff pause. Major trading partners like Japan and South Korea face 25% tariffs, while other nations, including Malaysia, South Africa, and Thailand, see increases up to 40%. These tariffs are set to take effect on August 1, 2025, giving affected countries a brief window to negotiate possible changes.

This move has stirred discontent among the nations targeted. Japan’s Prime Minister Ishiba Shigeru responded swiftly, signaling potential retaliation. The unilateral tariff imposition underscores the failure of recent trade talks, contradicting Trump’s earlier claims that countries were eager to negotiate and make concessions to the US.

The new tariffs may have unintended consequences for the US economy. Instead of reducing trade deficits, the aggressive tariff policy has contributed to a surge in the US global trade deficit, which reached $604.42 billion in the first five months of 2025—a significant increase from the previous year. Imports have surged due to tariff concerns, while exports have lagged, leading to an imbalance that contradicts the administration’s goals.

Critics argue that the tariffs violate World Trade Organization rules and foster unequal trading conditions. By setting high unilateral tariffs and imposing tight deadlines, the US leaves little room for fair negotiation, pressuring other nations to yield to its demands. This approach has strained relationships with key trading partners and may harm the global economy.

The impact on the US could be severe. Stock markets reacted negatively to the tariff announcements, and economic indicators suggest potential downturns. With the global community preparing for economic challenges, there’s growing concern that these trade measures may backfire, isolating the US in international trade.

Meanwhile, other nations are strengthening ties and exploring new trade alliances, potentially sidelining the US. The European Union has proposed a free trade alliance with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and countries in the Global South are enhancing cooperation among themselves.

As the world watches the unfolding tariff tensions, questions arise about the effectiveness of such unilateral actions. For teenagers and young adults in the Global South, these developments could influence job markets, economic opportunities, and international relations in the years to come.

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