Edith HejbergNations that rely heavily on trade with the US are facing steep increases in costs, supply chain disruption, and growing economic uncertainty.
Since returning to the White House in 2024, President Donald Trump has doubled down on tariffs as a central pillar of his economic approach. Import taxes are now at their highest level since the 1930s, reshaping both domestic and global markets.
Americans already feeling the squeeze
For everyday Americans, the impact is clear: higher prices.
As companies absorb rising import costs, many are passing the burden onto consumers, contributing to the growing cost-of-living crisis already gripping the country.
A global ripple effect takes hold
The effects of America’s protectionist stance have been felt far beyond its borders.
Nations that rely heavily on trade with the US are facing steep increases in costs, supply chain disruption, and growing economic uncertainty.
Doing business with the US just got harder
For foreign companies, engaging with American businesses now comes at a much steeper price.
While a few governments have managed to broker limited exemptions, the overall result has been widespread pain for global trade partners.
Japan, Switzerland, and Mexico see shrinking economies
Three major economies, Japan, Switzerland, and Mexico, have all seen their GDP decline.
Switzerland’s economy contracted by 0.5%, Japan’s by 0.4%, and Mexico’s by 0.3% between July and September 2025, reversing previous growth trends.
GDP dips mark a concerning shift
Gross Domestic Product measures all goods and services produced in a country.
These drops suggest a notable slowdown in economic activity, especially concerning as all three countries had been experiencing steady growth before tariffs took effect.
Brazil’s coffee industry takes a bitter hit
The US doesn’t grow enough coffee to meet domestic demand, so it relies heavily on imports, particularly from Brazil, the world’s top exporter.
But relations soured following Trump’s criticism of former Brazilian president Jair Bolsonaro’s imprisonment.
50% tariff devastates Brazilian coffee exports
From August to mid-November 2025, Brazilian coffee shipped to the US was hit with a steep 50% tariff. This meant a $100 bag of beans now cost $150, crippling sales and causing a 30% drop in exports compared to the same period in 2024.
Coffee crucial to Brazil’s economy
Coffee is more than a morning habit in Brazil, it’s an economic lifeline. The industry makes up 1.8% of Brazil’s $2.18 trillion GDP and employs about 3% of its workforce.
The tariff blow has sparked serious concerns in the agricultural sector.
Canadian manufacturing suffers massive job losses
North of the border, Canada’s manufacturing sector has shed around 36,500 jobs since the beginning of 2025.
Employment in the sector is now at its lowest level since the height of the COVID-19 pandemic in September 2021.
Exports to the US plummet
The job losses stem largely from a sharp decline in Canadian exports to the US, traditionally its largest trade partner.
In September, industry group Canadian Manufacturers & Exporters warned manufacturing was “among the hardest hit” by Trump’s tariffs.
Global confidence in US trade policy falters
Trump’s isolationist strategy has strained diplomatic ties and cast doubt on the US as a reliable trading partner.
Countries are now reassessing their supply chains and diversifying trade away from America wherever possible.
The world braces for what comes next
As tariff tensions escalate, uncertainty continues to dominate the global economic outlook.
While some sectors may adapt, many nations are left scrambling to mitigate damage from a policy shift they had little power to prevent.
