Trade Tensions Rise as New Tariffs Take Effect Amid Industry Challenges | BoF

This week, global trade tensions escalate as President Donald Trump announces new tariffs scheduled to take effect on August 7, impacting various industries worldwide. While the fashion sector faces increased tariffs—20% on imports from Bangladesh, a significant rise from previous rates, and a 15% duty on EU goods—these measures are somewhat moderate compared to earlier threats, such as a 37% tariff on Bangladeshi imports. Luxury brands may be displeased with the 15% EU tariff amid existing high prices, but the impact could have been more severe. In contrast, certain countries are hit harder: Swiss watchmakers face a hefty 39% tariff, raising questions about Switzerland’s trade standing. India's efforts to become an alternative garment sourcing hub to China and Southeast Asia suffer setbacks due to tariffs. Additionally, Trump has imposed a 25% tariff on Russian oil imports and has hinted at further increases, while Brazil's footwear industry is confronted with a 50% tariff. Market reactions are volatile, with the S&P 500 declining over 1% on August 1, reflecting investor concern. The administration's tariff policies remain uncertain, and further negotiations could alter the anno...