US President Donald Trump announced a revised trade policy, hitting practically every country across the globe with consequential tariff threats. Countries otherwise not listed in the order are set to be hit with an additional 10% duty.
According to the Republican leader’s adjustment of the reciprocal tariffs, India may be hit with the new 25% tariff rate and an additional penalty for the South Asian country’s trade with Russia.
On the contrary, India’s fellow nuclear-powered neighbour Pakistan, emerged a victor with the lowest tariff rate of any South Asian country. The new levies announced Thursday (US time) brought Pak’s tariff rate down from 29% to 19%.
Consequently, each country is dealing with its victory of defeat in the Trump tariff department. Indian and Pakistan’s reactions starkly oppose each other. While the latter conveyed its “profound thanks to President (Donald) Trump” via statement on X, the Indian Government scrambles for better negotiations ahead, saying it was committed to taking “all steps necessary to secure our national interest…”
Here’s how world leaders and nations across the world are reacting to Trump’s brand-new tariff announcements.
India-US trade deal: 25% tariff threat
India: “India and the US have been engaged in negotiations on concluding a fair, balanced and mutually beneficial bilateral trade agreement over the last few months,” the Government of India said in a statement. Noting that it remained “committed to that objective,” officials reiterated, “The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs.”
They further added, “The Government will take all steps necessary to secure our national interest, as has been the case with other trade agreements including the latest Comprehensive Economic and Trade Agreement with the UK.”
Meanwhile, Commerce and Industry Minister Piyush Goel said on Thursday that India is still in between negotiations with the US. A trade deal is reportedly expected by October-November 2025.
What Indian leaders said after new tariff announcement
Members of India’s Congress party pointed their fingers at the Bharatiya Janta Party. They took aim at PM Narendra Modi’s “friendship” with Trump, and how it was costing the country.
“Trump slapped a 25% tariff on India, along with a penalty. The country is now bearing the cost of Narendra Modi’s ‘friendship’. Modi campaigned for Trump, hugged him eagerly, posed for photos, and made it trend on social media. In the end, Trump still imposed tariffs on India. India’s foreign policy has completely failed,” the party wrote on X in Hindi.
Meanwhile, AAP MP Sanjay Singh accused Modi of “insulting India every day.” Then turning to Trump, he noted, “e has even threatened Apple against manufacturing iPhones in India. He has even gone on to say that he loves Pakistan and India should think about it. PM Narendra Modi should strongly oppose this move and make his next step clear.”
World leaders react to Trump tariffs
Pakistan: In addition to Trump’s government slashing the previous tariff rate of 29% to 19%, Pakistan also retracted its 5% tax of foreign digital services. The South Asian country’s Prime Minister Shehbaz Sharif thanked the US president for finalising the “historic” agreement.
Hailing the “landmark deal,” he said in an X post, “I wish to convey my profound thanks to President Trump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.”
I wish to convey my profound thanks to President Trump @realDonaldTrump for his leadership role in finalization of the historic US-Pakistan trade agreement, successfully concluded by our two sides in Washington, last night.
— Shehbaz Sharif (@CMShehbaz) July 31, 2025
This landmark deal will enhance our growing cooperation…
Canada: Trump’s executive order issued an increase in the tariff rate on Canadian goods, bringing the number up from 25% to 35%.
The President and CEO of Canada’s Chamber of Commerce, Candance Lang, hit it out against Trump heightened tariff rate, calling the result “more fact-less tariff turbulence.”
Prime Minister Mark Carney also issued an official statement, addressing the disappointment turnaround. “President Trump has announced that the United States will increase its tariffs to 35% on those Canadian exports that are not covered under the Canada-United States-Mexico Agreement, or CUSMA. While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world’s second-largest free trade agreement by trading volume.”
He further affirmed that Canada’s negotiations with the US on the basis of their trading relationship will continue and their focus remains on “building Canada strong.”
My statement on Canada-U.S. trade: pic.twitter.com/0PSG9kKtiO
— Mark Carney (@MarkJCarney) August 1, 2025
Thailand: Instead of the original 36% threat, Thailand was more than happy to be hit with the 19% duties. “This finalised deal, setting US major import tariffs at 19%, marks a major success for Thailand,” said government spokesman Jirayu Huangsab. “It represents a win-win approach aimed at preserving Thailand’s export base and long-term economic stability.”
Cambodia: The new tariff table hit the country with 19% duties, marking a significant cut from the 49% — one of the highest rates announced “Liberation Day” in April. As a result, Cambodian PM Hun Manet hailed the “good news for the citizens and economy of Cambodia to continue developing the country” in a Facebook post.
“I would like to express my thanks to President Donald Trump for his initiative and decisive leadership in securing immediate and unconditional ceasefire between Cambodian and Thai military forces, and for continuing to monitor the implementation of the ceasefire directly, until permanent peace and normalization of relations between Cambodia and Thailand is achieved in the future,” the country leader wrote.
“In addition, President Trump has shown understanding and support for Cambodia by providing the opportunity to further strengthen economic development and trade relations between Cambodia and the United States.”
Taiwan: After getting lowered 20% tariffs from the previous 32%, President Lai Ching–te shared via Facebook that negotiations between the two nations were still ongoing and they were expecting the tariff rate to be reduced further. They’re currently considering the current 20% rate as the “temporary tariff.”
Japan: Since the Asian economy landed a 15% rate despite the initial 25% threat, Chief Cabinet Secretary Yoshimasa Hayashi said during a recent press conference that the new duties will reduce uncertainty regarding U.S. trade policy and lower the risk of a downturn in our economy and the global economy,” as per Japanese broadcaster NHK.
This is a developing story. Please refresh for more updates.