US President Donald Trump has marked a significant shift in global trade by implementing his “reciprocal” tariff regime, solidifying a new world order that reflects his long-standing vision to reorient seven decades of commerce. The move is met with skepticism from experts, who warn of potential economic downturns and geopolitical tensions.
The US has imposed tariffs on key sectors such as steel, aluminum, copper, autos, and semiconductors, affecting countries accounting for 60% of the world’s GDP. Tariffs on pharmaceuticals, lumber, critical minerals, aircraft, poliysilicon, and trucks are also in the works, with rates set to increase by the week.
Despite warnings from experts, Trump remains confident in his approach, citing the success of previous tariffs as evidence. “Tariffs are my Swiss Army Knife – there’s nothing that can’t be solved by them,” a senior administration official said. The official likened Trump’s reliance on tariffs to a chainsaw, implying an increase in force and assertiveness.
To secure exemptions, world leaders and business leaders have made commitments worth hundreds of billions of dollars. However, the process has been contentious, with some officials stating that “yesterday’s price is not today’s price.” The US aims to use these commitments to shore up supply chain weaknesses and address national security concerns in critical industries.
Trump views investment commitments as a signing bonus, comparing them to baseball player contracts. He announced a long-term exemption for Apple, which has committed to invest $100 billion in US jobs and suppliers. The Trump administration is working to finalize the details of these deals, with tariffs serving as a means to enforce compliance.
The future of these agreements remains uncertain, but one thing is clear: Trump’s trade empire is taking shape, with global tariffs playing a key role in shaping the new world order.
Source: https://edition.cnn.com/2025/08/07/business/trade-exemptions-tariffs-trump