Trump and His Trade Tariffs: Which Sectors and Countries Will Face the Greatest Economic Impact

The Supreme Court Faces Historic Decision on the Validity of Emergency Tariffs

This Friday, the U.S. Supreme Court will decide on the constitutionality of tariffs implemented under the International Emergency Economic Powers Act (IEEPA). If the ruling declares these levies invalid, Washington could be forced to transfer nearly $150 billion to importers as compensation for already paid duties.

Global companies such as Costco, Revlon, EssilorLuxottica (maker of Ray-Ban), Bumble Bee Foods, Yokohama Tire, and Kawasaki Motors have already initiated legal actions against the U.S. government, demanding the return of paid tariffs.

Three Categories of Tariffs Under Emergency Powers

Emergency tariffs are classified into three types: those specifically targeting imports of fentanyl from China, Mexico, and Canada; broad “reciprocal” measures aimed at balancing trade deficits; and punitive tariffs imposed for foreign policy considerations without direct commercial basis.

Protected Sectors Maintain Advantageous Position

Strategic industries such as pharmaceuticals, energy, agriculture, financial services, and aerospace engineering have largely avoided these tariffs due to their critical importance, participation in global supply chains, potential public health impact, and consequences for international trade.

At the same time, the United States has negotiated tariff reductions with the European Union, the United Kingdom, Japan, South Korea, Vietnam, and Switzerland, in exchange for greater market access and additional investment commitments.

Geographic Impact: China Leads Among Affected Nations

China and Hong Kong experience moderate tariffs

China and Hong Kong face a 10% tariff on consumer electronics, machinery, medical devices, chemicals, and toys. Retailers such as Lenovo, Costco, Walmart, Amazon, Target, and Apple are among the most impacted companies by these measures.

Taiwan: semiconductors under pressure with a 20% rate

The Taiwanese semiconductor and chip manufacturing industry, represented by Foxconn and TSMC, faces a 20% tariff, representing one of the highest rates among Asian nations.

American markets divided by regulatory compliance

Mexico and Canada experience differentiated tariff structures: products compliant with the USMCA Treaty avoid tariffs, while others face rates of 25%. Volkswagen, General Motors, and Ford feel the impact on auto parts and components.

Europe: tiered rates based on product origin

The European Union sees tariffs of 15% on most of its goods, while the United Kingdom faces rates between 10% and 25% depending on the product. Cars, machinery, industrial equipment, chemicals, and medicines from companies like AstraZeneca, Stellantis, and Sanofi are directly affected.

East Asia negotiates reductions

Japan and South Korea managed to reduce their tariffs to approximately 15% through negotiated agreements, benefiting automakers like Honda and Hyundai Motor, as well as Samsung Electronics.

Southeast Asia: the alternative route with “reciprocal” rates

Vietnam, Thailand, and Indonesia, as destinations for “China-plus-one” manufacturing reconfiguration, face “reciprocal” rates of 19% to 20% on clothing, footwear, electronics, and auto parts. Companies like Hewlett Packard, VF Corp, and Lululemon feel pressure on their supply chains.

Other regions under tariff pressure

India: the most exposed pharmaceutical sector

India faces tariffs that can reach 50% on certain products, particularly medicines, refined fuels, specialized chemicals, gemstones and jewelry, agriculture, and auto components. Companies like Sun Pharma, Dr. Reddy’s, and those linked to Reliance are especially vulnerable. Toy makers Mattel and Hasbro also experience significant impact.

Brazil: dual penalty on commodities

Brazil faces a combination of a 40% punitive tariff plus an additional 10% “reciprocal” levy on steel, aluminum, and agricultural products, affecting Embraer, ArcelorMittal, Gerdau, and Marfrig.

South Asian textiles: Western brands in the crosshairs

Beyond India, countries like Pakistan (19%), Bangladesh (20%), and Sri Lanka (20%) face tariffs on clothing and textiles, impacting global retailers such as H&M, Gap, Victoria’s Secret, and Adidas.

The emerging tariff landscape reflects both commercial strategy and geopolitical considerations, with profound implications for global value chains and the budgets of multinational importers.