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On August 12, U.S. President Donald Trump announced a new list of tariffs via his social media platform, Truth Social. This marks the fourth wave of tariffs, imposing a 30% tariff on both Mexico and the European Union. This shock announcement caught many off guard as Trump had previously indicated that he would impose tariffs of 25% on Mexico and at least 20% on the EU. The sudden change in strategy has stirred significant concern among market participants.

This is not the first time that Trump has altered his stance at the last minute — during negotiations with Vietnam, he raised the agreed tariff from an expected 11% to 20%. Similarly, Brazil saw its tariff spike from 10% to 50%. These changes highlight the volatility and unpredictability of the Trump administration's trade policies, affecting the decision-making processes of governments around the world.

In interviews, Trump has indicated that he intends to impose comprehensive tariffs of 15% to 20% on other trading partners as well. This has raised alarm bells globally, as such sweeping measures could further complicate international trade relations.

As of now, Trump has sent tariff notices to 24 countries, but Taiwan was notably not included. The choices made in U.S. foreign policy could have implications for U.S.-Taiwan relations. The current global trade environment is already fragile, and sudden policy shifts can severely impact market confidence.

In the international market, reactions to the new tariff measures are mixed. There are widespread fears that this could lead to escalating trade wars, and the already fragile global supply chain may experience even greater strains. Many economists caution that these measures could backfire on the U.S. economy, as tariffs may not be sufficient to offset the economic losses resulting from reduced trade.

As the trade policies of the Trump administration continue to draw scrutiny, other countries are becoming increasingly vigilant, closely monitoring the situation's developments.