Trump's 2025 Trade Wars: A Year Of Global Tariffs And Economic Shifts

As the world approaches the end of 2025, the year is likely to be remembered as a "tariff-ied" one from a global trade and economic perspective, while 2026 may emerge as a crucial year of transition.

The year marked a decisive shift toward higher tariffs and disrupted global supply chains, with countries adjusting to a new trade environment shaped by geopolitical developments. At present, the average effective tariff rate worldwide stands at 14 per cent.

Although Trump defended his action, as a reaction to regain the profit that had been earned by countries for years. But in reality, the president also turned to tariffs amid personal grudges or in response to political critics.

Here’s a summary of how Trump’s biggest trade actions unfolded over the last year, broken down by key months.

January-March

In his first few months back in office, Trump focused his new tariffs on America’s three biggest trading partners: Canada, Mexico, and China. On-again, off-again levies and responding retaliation begin to bubble up.

Worldwide, the US also heightens import taxes on steel and aluminum to 25 per cent — expanding Trump’s previously-imposed 2018 import taxes.

April

Trump’s trade wars escalate to new heights in April. The president unveils sweeping “Liberation Day” tariffs on almost every country in the world-- sending the stock market tumbling. And more turbulence follows after he tells investors that it’s a “great time to buy” mere hours before postponing dozens of steeper import taxes.

China is the exception. Washington and Beijing trade more and more sky high, tit-for-tat levies — reaching 145 per cent and 125 per cent, respectively.

Separately, Trump’s 25% auto tariffs begin, plunging the industry into uncertainty and bringing more retaliation from trading partners like Canada.

May-July

The Trump administration spends much of the summer boasting about trade “framework” deals with countries like China, the UK and Vietnam. But his administration sends letters to dozens of other nations promising that heightened levies are on the way — and notably escalates trade wars with Brazil and India.

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Otherwise, Trump continues to expand sector-specific tariffs, hiking steel and aluminium taxes to a punishing 50 per cent.

August

Heightened US tariffs on more than 60 countries and the European Union kick in. After several delays, most of these rates span from April’s “Liberation Day” — but separately, Trump hikes import taxes on Canada to 35 per cent.

Trump imposes 50 per cent tariffs on India

Punishing 50 per cent levies on goods from Brazil and India also take effect, along with a new 50 per cent rate on most imported copper worldwide. And low-value imports coming into the US lose their duty-free status with the end of the “de minimis” rule.

September-December

The Trump administration officially takes its tariff fight to the Supreme Court. In initial oral arguments, the justices appear sceptical about the president’s authority to impose such sweeping levies.

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Meanwhile, Trump continues to promise more sectoral tariffs — and 25 per cent levies on kitchen cabinets and other furniture take effect. But other threats get delayed. Amid rising price pressures, the president also lowers or scraps a few previous tariffs, notably for goods like beef and fruit. He also suggests that Americans will receive a $2,000 dividend from new tariff revenue — but details remain very scarce.

Despite tariffs, India's exports to US on uptrend since Sept

Despite tariffs remaining in place, India's exports to the United States have shown a pickup since September, while sectors that were expected to be hit harder by tariffs have not underperformed as sharply as those considered relatively insulated, according to a data-based report by DSP Mutual Fund.

The data shows that India's exports to the US declined from USD 8.8 billion in May 2025 to a low of USD 5.4 billion in September 2025. Since then, exports have recovered to USD 6.3 billion in October and further to USD 7.0 billion in November.

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However, the report noted that the data window is short, and it would be premature to call this a trend, but the improvement complicates the narrative that tariffs alone are driving the slowdown.

It stated, "exports to the US have shown a pickup since September... it does complicate the straightforward narrative that tariffs alone are driving the slowdown."

(With inputs from agency)