Washington, August 22, 2025 (TPE News): President Donald Trump’s tariff escalation is sending shockwaves across world markets, as new duties on imports from the European Union, India, Australia, and the U.K. raise fears of prolonged economic disruption.
The U.S. has enforced a 15% tariff on major EU exports, while simultaneously slapping a 50% tariff on Indian goods in retaliation for energy trade with Russia. Australia has lost its duty-free exemption on shipments under $800, dealing a blow to cross-border e-commerce. The U.K.’s machinery and steel exports are also caught in the tariff net, forcing companies to reassess trade strategies.
Global businesses are responding swiftly: Sony raised PlayStation prices in the U.S. by $50, while U.K. manufacturing giant JCB warned of hundreds of millions in potential losses due to higher costs.
Although U.S. tariff revenues have surged—$158 billion collected in 2025 so far—economists caution that ordinary consumers will bear the brunt through rising prices, higher inflation, and slower wage growth.
Geopolitically, tensions are mounting. China has openly supported India, condemning the U.S. tariffs as “bullying,” and signaling a possible realignment of global trade alliances. Analysts warn that this could intensify the divide between Washington and emerging economic blocs.
With revenues climbing but risks growing, Trump’s tariffs are proving to be both a financial weapon and a diplomatic flashpoint, leaving the future of global trade on uncertain ground.