Trump’s tariff blitz reshapes Asian trade landscape

President Donald Trump imposed sweeping tariffs on dozens of countries Friday, sending U.S. stocks tumbling and establishing rates on nearly every trading partner while talks with China continue.

By the numbers: Trump’s tariff framework raises the effective import tax rate — the average rate American importers must pay for foreign goods — to 17%. This marks a sharp jump from the previous year’s 1.2%, reaching levels not seen since 1933 during the Great Depression. Syria received the highest tariff at 41%, while Laos and Myanmar each got 40%.

Among major economies, India bore the heaviest burden with a 25% levy after trade talks collapsed. Meanwhile, Taiwan’s crucial semiconductor sector faces a 20% tariff, down from an initially threatened 32%. Vietnam received 20% on standard imports, though goods routed through the country to circumvent Chinese tariffs face steeper 40% penalties.

Elsewhere in Asia, Japan and South Korea successfully negotiated lower 15% rates through broader trade agreements, while Indonesia and the Philippines both received 19%. Thailand and Cambodia called their 19% rates favorable outcomes after initially facing threats of much higher levies.

Unsurprisingly, the tariff announcements sent shockwaves through global financial markets. U.S. stocks suffered notable losses Friday as the Dow Jones declined 542 points and the S&P 500 experienced its steepest single-day drop since May. European markets also posted sharp declines.

What’s next: The most critical question remains China. Treasury Secretary Scott Bessent characterized last week’s Stockholm meetings as “very constructive,” but the Aug. 12 deadline for extending their tariff moratorium is approaching rapidly. Trade Representative Jamieson Greer told “Face the Nation” Sunday that the recent China talks were “very positive” and focused on the supply of rare earth magnets.

Trump, for his part, has hinted at a possible meeting with Chinese President Xi Jinping before the end of the year. The stakes are considerable, given both nations previously escalated retaliatory tariffs to 145% on select products before establishing the current moratorium.