How Trump’s Tariffs Impact Global Trade: Winners and Losers from Laos to Brazil

President Trump’s recent tariffs have created a ripple effect across various economies, from small nations like Laos and Algeria to wealthy partners like Canada and Switzerland. Starting August 7, these countries will face higher taxes on the goods they export to the United States. While some nations tried to negotiate with Trump, it remains uncertain if anyone can truly win from this situation.

Barry Appleton, a co-director at the Center for International Law, commented, “In many respects, everybody’s a loser here.” Trump’s approach has shifted the global economic landscape, moving away from established trade rules to a system where he sets the terms, leveraging America’s economic might to push for one-sided agreements. Alan Wolff, a former U.S. trade official, noted, “The biggest winner is Trump,” suggesting his intimidation tactics had a notable impact.

The tensions began with what Trump called “Liberation Day” on April 2, when he proposed steep tariffs as a way to correct trade deficits. He utilized a 1977 law to declare this trade deficit a national emergency, allowing him to bypass Congress on tariffs, a move that is now being challenged in court.

Following that announcement, financial markets reacted negatively, prompting Trump to pause some tariffs for 90 days to allow for talks. Countries like the United Kingdom agreed to increase their tariffs to 10%, a significant jump from the previous 1.3%. The European Union and Japan accepted tariffs of 15%, scaling back from higher threats of 30% and 25%, respectively.

However, even nations that negotiated still ended up paying significantly more than before Trump’s administration. For instance, Angola’s tariff was reduced to 15% from 32%, but it was less than 1.5% just a year prior. Taiwan’s President Lai Ching-te expressed hope for better rates in future negotiations, noting that the current rates are not sustainable.

On the flip side, countries that resisted or incurred Trump’s ire faced harsher penalties. For example, Laos and Algeria, despite their lower economic outputs, faced tariffs of 40% and 30%, respectively. Brazil was hit with a 50% tax, partly due to political tensions surrounding its former president. Canada found itself in the crosshairs when it suggested recognizing a Palestinian state, leading to a 35% tariff on its exports. Meanwhile, Switzerland experienced a staggering 39% tariff, higher than initially announced.

As the courts deliberate on the legality of these tariffs, the implications continue to unfold. Some businesses and 12 states have filed suits against Trump, claiming he overstepped his authority. If these tariffs are invalidated, it could turn things around for nations like Brazil.

While Trump frames tariffs as penalties on foreign countries, U.S. companies are ultimately footing the bill, leading to higher prices for consumers. Economists at Goldman Sachs have found that the majority of the costs are borne by U.S. businesses and consumers, with only about one-fifth absorbed by foreign exporters. Companies like Walmart and Procter & Gamble have already raised prices on everyday items, including sneakers and appliances—products many consumers depend on.

According to a study from Yale University’s Budget Lab, the average U.S. tariff has surged from 2.5% in early 2025 to 18.3% now. This has added about $2,400 in costs for the average household, illustrating a heavy burden on consumers.

As trade dynamics shift, many are left wondering what the future holds for international relations and trade. With so many uncertainties, it’s clear that the fallout from these tariffs will affect us all—from exporters to everyday shoppers.

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