Trump just restarted the global trade war — but here's why his new tariff blitz is very different

The Trump administration on Friday unveiled new tariffs on 60 trading partners, reigniting global trade tensions. The new duties land in a markedly different economic environment from last year's 'Liberation Day' announcements, as global markets grapple with the ongoing effects of the Middle East conflict and ongoing inflationary pressure. Investment strategists warn that renewed trade tensions risk a structural drag on global growth.

As the U.S. military conflict with Iran enters its sixth month, President Donald Trump has returned to a more familiar battleground: global trade. Trump on Friday launched a fresh tariff blitz targeting 60 trading partners, including the European Union, the U.K. and Canada. The latest wave of tariffs — which took effect at 12:01 a.m. E.T. Friday, replacing the stopgap 10% baseline tariff that expired July 24 — range from 10% to 12.5%. Initial market reaction Friday was muted, with the renewed tariff push largely anticipated by investors, given the approaching expiry of the previous duties. That contrasts with the 'shock and awe' approach that underpinned the sweeping ' Liberation Day ' levies announced in April 2025, which sent markets plummeting . However, investors and analysts say the circumstances surrounding the latest tariff push are markedly different this time round, landing amid a more challenging global economic landscape than last year and underpinned by a separate legal framework, potentially risking a lasting drag on markets.

The significance this time around is twofold, said Emma Moriarty, portfolio manager at CG Asset Management. Not only does it show the Trump administration's commitment to tariffs, but it shows this commitment against a backdrop of a global energy shock and increasing supply chain bottlenecks. They appear content to continue to levy new tariffs even when they exacerbate domestic markets. For markets, the implications should be clear: we have to position for a low growth and high inflation outcome, Moriarty said.

The measures come as global stock markets continue to grapple with the impact of ongoing hostilities in the Middle East, which have seen oil prices rebound above $100 this week as hopes of a negotiated ceasefire in the war continue to recede. While the outcome won't come as a complete shock to markets, it is nonetheless another unwelcome source of uncertainty as sentiment is buffeted by the renewed conflict between the U.S. and Iran and concerns about levels of expenditure in the tech sector, said Russ Mould, investment director at AJ Bell.

The White House administration had been expected to seek an alternative route toward a new round of tariffs following the Supreme Court's ruling in February that the previous tariffs were illegal. The new onslaught is being pursued via Section 301 of the Trade Act of 1974, with officials citing alleged forced labor practices as the reason for the new tariffs. Specifically, countries that have adopted or committed to introducing prohibitions will face a 10% duty, while those that haven't will be subject to a 12.5% charge, with the levies affecting 99.4% of American imports. Alan Siow, co-head of EM corporate debt at Ninety One Asset Management, said the White House appears to be adapting to su...