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On August 7, sweeping U.S. tariffs on a wide array of imported goods from nearly every country took effect

On August 7, sweeping U.S. tariffs on a wide array of imported goods from nearly every country took effect, significantly disrupting global trade and rattling key markets. The move marks the latest phase in President Donald Trump's protectionist agenda, following through on earlier threats to raise import duties in a bid to strengthen domestic industries.

Under a separate executive order signed on July 30, Brazil now faces a 50% tariff on exports to the United States. However, exemptions apply to key commodities such as crude oil, petroleum products, and iron ore, reflecting a strategic focus on preserving energy flows and critical raw materials. These country-specific tariffs will not be added to existing sector-based measures like the 50% tariffs imposed under Section 232 on steel, aluminum, and copper, or the 25% tariffs on cars and automotive parts.

USA Import Tariff rates vary by country based on ongoing trade relations and prior agreements. Japan, South Korea, and the European Union now face a 15% tariff, while Vietnam and Indonesia will see duties of 20% and 19%, respectively. These rates stem from an initial executive order issued on April 2 and follow-up trade communications sent to 25 countries throughout July. Negotiations with many of these nations remain still in progress.

Canada and Mexico, initially exempt from reciprocal tariffs, received trade notifications in July. Canada is now subject to a 35% tariff—up from the originally proposed 25%—on goods not covered under the United States-Mexico-Canada Agreement (USMCA). Mexico, meanwhile, has been granted a 90-day extension to finalize trade negotiations, delaying the imposition of a planned 30% tariff. Energy exports from both nations face a separate 10% duty.

India faces one of the most severe adjustments, with a 25% surcharge added to all goods exported to the U.S., doubling the tariff rate to 50%. The new rate takes effect at the end of August. The move has already had noticeable economic consequences. According to the International Energy Agency (IEA), aggressive U.S. tariffs have slowed consumer demand in India—one of the fastest-growing markets globally. In its July oil market report, the IEA cut India's 2025 oil demand forecast by 90,000 barrels per day, even before the announcement that tariffs would be doubled. Though some of the finalized tariffs are lower than the initial proposals, the global economic outlook remains bleak. Analysts now forecast global GDP growth of just 2.4% for 2025—marking the weakest expansion since the 2008–09 financial crisis and the COVID-19 pandemic. As a result, global oil demand growth for 2025 has been revised downward to 635,000 barrels per day, less than half the 1.3 million barrels per day projected before Trump's initial tariff announcements in April.

Meanwhile, China's crude oil imports are expected to slow through the rest of 2025, easing off a near two-year high reached in June. Weakened by sluggish economic activity and tighter import quotas, monthly volumes slipped 8.4% in July to 11.16 million barrels per day. However, possible stockpiling for strategic petroleum reserves (SPR) may help stabilize imports at the current average of around 11.3 million bpd. Between January and July, China imported an average of 11.29 million bpd—a 3.2% increase over the same period in 2024.

S&P activity:

Dry:

On the Capesize sector, the "Cape Aqua" - 178K/2009 SWS was sold for USD 24 mills. The Kamsarmax "Shandong Fu Hui" - 82K/2017 Jiangsu Jinling was sold for USD 24.58 mills via auction to Turkish buyers, while the 19-year-old "Star Danai" - 83K/2006 Tsuneishi found new owners for USD 11.44 mills. The Supramax sector was very active this week, accounting for more than half of the total bulk carrier sales. The Supramax "Alora" - 59K/2012 Kawasaki changed hands for USD 16.1 mills, while the "Sagar Shakti" - 58K/2012 Tsuneishi Zhoushan which was sold for high USD 13 mills during June to Chinese buyers, who have now resold the vessel for USD 14.5 mills to Greek buyers. On the same sector, the "CLM Pearl"- 58K/2010 Tsuneishi Cebu found new owners for low USD 14 mills, whereas the "Cobra" - 55K/2010 Kawasaki changed hands for region USD 15 mills. Moreover, the "Jin Jun"- 57K/2009 Chengxi yard was sold for USD 10.5 mills and the "Ocean Prince"- 52K/2002 Tsuneishi found new owners for high USD 7 mills. Finally, the Handysize "Rostrum Asia" - 40K/2021 JNS was sold for USD 25 mills.

Tanker:

In the tanker S&P activity, only 2 sales took place. The Scrubber fitted VLCC "Halcyon" - 300K/2020 Hyundai Samho was sold for USD 119 mills to International Seaways. Indonesian buyers acquired the Ice Class 1A MR2 "Nave Equinox" - 51K/2007 STX for USD 14 mills.

Xclusiv Shipbrokers Inc.