(Dunya News) – When US President Donald Trump assumed office for a second term at the beginning of 2025, the global landscape was immediately shaken. The moment Trump took the oath, significant changes began unfolding worldwide, as his administration quickly reversed several previous policies and implemented decisive measures.
Trump’s early moves
On January 20, 2025, Donald Trump was sworn in for his second term and took charge at the White House. On his very first day, he revoked 78 presidential actions taken during the Biden administration. Security privileges for former Vice Presidents Hillary Clinton and Kamala Harris were also withdrawn.
Trump removed the US military’s top officer, Chairman of the Joint Chiefs of Staff C.Q. Brown, whose tenure was scheduled until September 2027. He also intensified actions against illegal immigration across the country.
Global trade and tariffs – the US economic strategy
In 2025, the US leveraged its foreign policy as an economic weapon, imposing tariffs that had far-reaching effects on global trade. Washington increased favorable tariff rates, sparking economic disputes with several countries, while some sought to mitigate the impact through negotiations and agreements.
China
The US ramped up trade pressure on China, imposing tariffs on Chinese goods up to 145%. Negotiations between the two countries later resolved some issues, but the US maintained major tariffs on imports to reduce its trade deficit and protect domestic industries. In response, China raised tariffs on U.S. goods and temporarily suspended tariffs on some American agricultural products.
Canada and Mexico
In February 2025, the US announced additional tariffs of up to 25% on exports from Canada and Mexico, drawing strong reactions from both allies. However, under existing trade agreements, a significant portion of trade remained tariff-free—up to 85% for Canada-US trade and 84% for Mexico-US trade. Canada imposed retaliatory tariffs and restrictions, while Mexico emphasized political and constructive dialogue.
India
The US imposed an additional 25% tariff on Indian goods, raising the overall tariff rate for India to nearly 50%, straining bilateral trade relations. India avoided retaliatory tariffs and chose to continue negotiations with the US, while easing visa restrictions with China to facilitate trade.
Pakistan
US President Donald Trump imposed tariffs on exports from multiple trading partners, including a 19% tariff on Pakistani goods – reduced from the previous 29% – after the two countries finalised a trade agreement.
Brazil
In April 2025, the US imposed a 10% tariff on Brazilian goods, followed by 50% in July, prompting Brazil to challenge the tariffs at the World Trade Organization, escalating economic tensions between the two nations.
European Union
The US and the EU agreed on a framework imposing a general 15% tariff on European goods, with some products exempted at 0%. European investors pledged up to $600 billion in investments in the US
Switzerland
Under a bilateral agreement, the US approved a reduction in Swiss tariffs from 39% to 15%, and Swiss companies pledged $200 billion in investments in the US.
Taiwan and Japan
Taiwan avoided retaliatory tariffs and invested over $40 billion in the US semiconductor sector, while Japan negotiated limited trade agreements to protect its automotive sector, with investments exceeding $150 billion.
Global economic impact
Economic experts note that in 2025, the US used tariffs not only as an economic tool but also as a political and diplomatic weapon. These measures disrupted global supply chains, increased consumer prices, and created uncertainty. If the trend continues, global trade may face further fragmentation and increased economic bloc politics.
The US’s economic moves in 2025, including key tariff disputes and policy decisions, have had profound political and market consequences, reshaping global trade and economic dynamics.