America's Tariff War 2025: A Strategic Economic Weapon Against Global Rivals
What is tariff war?
Tariff is always imposed to affect the economy of other countries, so that under pressure, they reduce it according to the interest of the country imposing tariff. If we talk about tariff in our own language, it means when a country imposes tax or duty on goods imported from another country. Or in other words, when a country tries to suppress another country economically by imposing heavy tax on its goods, it is called tariff war. This is not a conventional war, but a weapon of economic pressure. Today, America is using tariff war instead of fighting a conventional war. For example, America has imposed heavier tariff on Russia, Iran, North Korea as compared to other countries.
History of America's Tariff Policy
America's history of tariff war is not new. It has always been using it. But after Donald Trump became the President of America for the first time in 2018, under the America First policy, the Trump government imposed heavy tariffs on countries like China, India, Europe and Mexico. America imposed tariffs on products worth about $250 billion dollars on China, which started the US-China trade war. High tariffs were also imposed on some Indian goods like steel, aluminum, auto parts etc. President Donald Trump's tariff war against other countries continues even today in 2025.
Main objectives of America's tariff war
1. Limiting China's economic power
China is constantly competing with America in the economic sector. China is today the world's second largest economy. China is considered a threat to American technology, manufacturing and trade dominance by America. Therefore, it is resorting to tariffs to limit China's economic power.
2. Protection of domestic industries America wants American companies to remove their production from China, India or any other country and invest more and more in America so that America's domestic industries get a boost and America becomes stronger in the economic sector.
3. Reducing trade deficit:
America has the highest trade deficit with China and India, the two most populous countries. For this purpose, America is using tariffs.
4. Creating strategic pressure
It is through praise that America forces other countries to accept its terms in every field. It creates diplomatic, political, strategic pressure on other countries according to its interests. So that its flag continues to fly all over the world.
Global impact of tariff war
1. Slowdown in global trade
Especially tariffs imposed by the US increase the cost of goods as compared to other countries, which slows down international trade.
2. Increase in inflation
Consumers in the US are getting foreign goods at a higher price, which has led to an increase in inflation. And there is no possibility of tariffs coming down in the near future either. It is inviting a continuous increase in inflation.
3. Uncertainty in investment
It has become difficult for companies to decide in which country they should produce and in which country they should not.
4. Change in supply chain
Companies are turning to countries like India, Vietnam to reduce their dependence on China. The US is telling them to invest more and more in the US as compared to other countries.
Role of WTO in tariff war
The main function of WTO (World Trade Organization) is to monitor global trade rules and ensure fair and free trade between member countries. The role of WTO in the event of tariff war is as follows:
1. Dispute Settlement Body
If a country imposes unfair tariff on another, the affected country can file a complaint in WTO. WTO hears this dispute and gives a decision.
2. Monitoring compliance of rules
WTO ensures that member countries follow international trade agreements and do not impose arbitrary tariffs.
3. Trade negotiations and reforms
WTO organizes multilateral negotiations to prevent situations like tariff war so that member countries can find solutions by mutual consent.
4. Stability in global trade
The objective of WTO is that no country misuses its economic power, so that trade instability does not spread in the world.
Tariff imposed by America in the year 2025
2025 The US government has recently imposed tariffs on about 67 countries. Under the orders that will be effective from 1–7 August 2025, how much percentage of tariffs have been imposed on which countries. Which is as follows. As per the recent order of President Donald Trump, this new tariff will come into effect from 7 August 2025
America's new tariff rate talks (Effective August 7, 2025)
India: 25% tariff has been imposed
Pakistan: 19% tariff has been imposed
Bangladesh: 20% tariff will be applicable
Taiwan: 20% tariff
South Africa: 30% tariff
Switzerland: Up to 39%.
Brazil: 40 to 50%
Canada: Tariffs increased from 25% to 35%
Syria: Highest rate at 41%
Laos and Myanmar: Around 40% per country
UK and Australia: 10% baseline tariff (exempt)
In total, 69 countries were hit with new "reciprocal tariffs" ranging from 10% to 41%
Conclusion:
The United States, as the world's largest economy, is leveraging its economic strength through the strategic use of tariffs, transforming them into tools of geopolitical influence. The 2025 tariff measures, especially under President Donald Trump's leadership, reflect a broader agenda—limiting China's economic rise, protecting domestic industries, and reshaping global trade flows. While these policies may offer short-term domestic gains, they have far-reaching global consequences such as inflation, disrupted supply chains, and trade uncertainties. The WTO plays a critical but increasingly challenged role in managing such conflicts. As America expands its tariff reach to over 69 countries, the global economy stands at a pivotal juncture—between cooperation and confrontation.
Comments