Key Facts
• January 2025: Trump begins second term, escalates trade war with higher tariffs.
• U.S. import tax rates reach highest levels since the 1930s.
• Switzerland’s economy shrinks sharply in Q3 2025 due to trade instability.
• Japan’s economy contracts in the same period, driven by export and housing declines.
• Mexico’s economic slowdown linked to inconsistent U.S. trade policies.
• Canada’s manufacturing sector cuts 36,500 jobs in 2025, lowest workforce since 2021.
• August–November 2025: Brazil faces 50% tariffs on coffee exports to the U.S.
• Brazil’s coffee exports to the U.S. drop 50% year-on-year during this period.
• Coffee farming accounts for up to 1.8% of Brazil’s GDP and 3% of its workforce.
Summary
The Trump administration’s tariff policies, initiated in early 2025, have caused widespread economic repercussions beyond the U.S. While domestic import tax rates reached historic highs, the effects have rippled globally. Switzerland, Japan, and Mexico experienced economic contractions in Q3 2025, with trade instability and reduced investments cited as key factors. Canada’s manufacturing sector suffered significant job losses, while Brazil’s coffee exports to the U.S. plummeted due to steep tariffs, impacting its GDP and workforce. Despite these challenges, the U.S. remains Brazil’s largest coffee importer. The global economic strain highlights the far-reaching consequences of protectionist trade measures.
