There’s no avoiding it – Trump’s tariffs are dominating the conversation. Markets, businesses, and governments are all watching to see who pushes back, who cooperates, and what kind of global ripple effect we’re facing. Last week, U.S. stock markets posted their worst two-day slide since the Covid-era downturn, dropping around 5% each day.
Allies are pushing back, markets are rattled, and supply chains are being redrawn. Back in 2016, “unprecedented” was the word most often tied to Trump’s presidency. Now, as we move through his 2025 term, that word has shifted. While Trump himself has said “tariff” is his favorite word in the dictionary, “uncertainty” is the one that’s actually defining this moment. The markets are reacting in real-time to shifting policies, and America’s trading partners are recalibrating.
The U.S.’s top trading partners are taking varied approaches.
China struck back with a 34% tariff on all U.S. imports. Canada followed with a 25% tariff on U.S.-made vehicles. The E.U. warned of a flood of cheap exports redirected from the U.S. “A lot will depend on how Europe decides to play this,” said Simon Johnson, former IMF chief economist. “They could get closer to China and pick up slack from Vietnam.”
Mexico avoided new penalties. The White House confirmed that goods compliant with the U.S.-Mexico-Canada Agreement (USMCA) will continue to receive a 0% tariff. Non-compliant goods will face 25%, and certain energy products 10%.
In Asia, responses have been strategic.
Vietnam, slapped with a steep 46% tariff, is pushing for flexibility. A senior Vietnamese official said Sunday the country is “ready” to negotiate to remove all U.S. import tariffs and has formally requested a delay to the new levy. In a joint letter, the Vietnam Chamber of Commerce and the American Chamber of Commerce in Hanoi called the tariff “shockingly high” and warned it could hurt bilateral trade.
Taiwan chose a different path. President Lai Ching-te presented zero tariffs as a base for talks and encouraged Taiwanese firms to increase U.S. investment.
India, meanwhile, sees opportunity. A senior Indian official noted that India was among the first to begin trade talks with Washington, putting it in a stronger position than regional peers like China, Vietnam, and Indonesia. India has ruled out retaliatory tariffs for now, instead betting on closer ties to secure better access to the U.S. market. Indonesia is taking a similar approach—avoiding countermeasures to stay in Washington’s good graces.
Fed Chair Jerome Powell warned tariffs could fuel inflation and slow growth.
Mark Zandi of Moody’s Analytics added: “Tariffs are a tax. They’re paid by American consumers and businesses, not foreign governments.”
Everyday products—from clothes, cars, phones, and furniture to groceries—are expected to cost more.
While Trump dubbed the rollout “Liberation Day,” it sparked panic. But not every country is retaliating. Over 50 nations have contacted the White House to start trade talks—a move officials frame as leverage, not crisis—even as $6 trillion in U.S. stock value vanished.
At MoreThanShipping.com, we’ll continue to monitor these tariff developments closely, knowing they have direct impacts on global supply chains and are top of mind for shippers worldwide.
