Washington, August 22, 2025 (TPE News): The Trump administration has intensified its tariff drive, raising alarms of a full-scale trade war that could reshape the global economy.
The U.S. has now imposed a 15% duty on European imports, including medical supplies, semiconductors, and lumber. Simultaneously, tariffs on Indian goods have been doubled to 50%, a move that has already provoked diplomatic backlash from New Delhi. Australia is also hit as Washington scraps its $800 duty-free import allowance, disrupting e-commerce and retail trade.
Multinationals are struggling to cope: Sony has increased PlayStation 5 prices by $50, citing tariff costs, while U.K. engineering giant JCB warned that expanded U.S. steel tariffs will cost the firm hundreds of millions.
Though tariff revenues have surged—$29 billion collected in July alone—economic experts caution that American households will ultimately bear the cost through rising prices. A Penn Wharton analysis projects a 6% GDP loss and a 5% wage decline over the long term if tariffs continue.
China has openly sided with India against the U.S., calling the tariffs “economic bullying” and pledging closer trade ties with New Delhi. Analysts believe this could accelerate the formation of alternative trade blocs outside Washington’s influence.
With allies unsettled and markets jittery, Trump’s tariff offensive is rapidly transforming global trade into a high-stakes geopolitical battleground.
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