Who Will Be Hit Hardest by the New U.S. Tariffs?

On April 1, 2025, former U.S. President Donald Trump announced sweeping new tariffs as part of his “Liberation Day” agenda, aimed at reducing America’s trade deficit and boosting domestic industry. The plan includes a flat 10% tariff on all imported goods, with much steeper country-specific duties—some as high as 46%—set to take effect from April 9. The move marks one of the most aggressive shifts toward protectionism in recent U.S. history and could reshape global trade dynamics significantly.

Countries with strong export ties to the U.S. are expected to suffer the greatest impact. The severity of the tariffs varies, but the message is consistent: reduce dependency on foreign goods and rebalance trade on what Trump calls “reciprocal” terms.

The most obvious target is China, facing a steep 34% tariff. As America’s largest goods trading partner, China exported over $500 billion worth of products to the U.S. in 2024 alone. The new tariffs will sharply raise the cost of Chinese electronics, machinery, and household goods in the U.S., threatening China’s export-dependent industries and potentially slowing its economic growth at a time when internal demand remains fragile.

The European Union is also in the crosshairs, hit with a 20% tariff across the board. Germany and France, both major exporters of automobiles and industrial machinery, are likely to be among the hardest hit. European-made vehicles, for example, could become considerably more expensive for American consumers, hurting sales and potentially triggering layoffs in manufacturing-heavy regions of the EU.

One of the most surprising—and severe—blows lands on Vietnam, now subject to a massive 46% tariff. Over the past decade, Vietnam had become a rising star in global supply chains, particularly in textiles and consumer electronics. Its low-cost manufacturing model was increasingly aligned with U.S. corporate outsourcing strategies. The sudden spike in tariffs could upend this trend, threaten thousands of export-related jobs, and strain Vietnam’s fast-growing economy.

Thailand, with a 36% tariff, finds itself in similar danger. Thai exports to the U.S.—including auto parts, electronics, and agricultural products—are now less competitive, which could stunt economic momentum and widen its trade vulnerability.

Meanwhile, South Korea and Japan, long-standing U.S. allies and major exporters of cars and high-tech goods, face 25% and 24% tariffs, respectively. While both countries have diversified trading partners, the American market remains crucial, especially for auto and semiconductor sectors. The higher costs could depress sales and increase pressure on domestic producers to either absorb losses or relocate production.

India, now facing a 26% tariff, is another significant casualty. Its fast-growing export economy, particularly in textiles, pharmaceuticals, and chemicals, had seen steady gains in U.S. market share. These new tariffs could derail momentum and complicate New Delhi’s ambitions to become a global manufacturing hub.

Lastly, Taiwan, hit with a 32% tariff, may suffer most in the semiconductor sector. As the U.S. pushes to localize chip manufacturing, Taiwanese firms like TSMC could see their price edge diminish, complicating cross-Pacific tech collaboration.

In short, while Trump’s tariff blitz aims to fortify U.S. industry, it risks igniting a retaliatory spiral and undercutting global supply chains. The countries facing the sharpest hikes—China, Vietnam, Thailand, and key Asian and European partners—stand to lose billions in trade, with ripple effects that may extend far beyond economics into geopolitics.