US tariff hikes continue to impact trade partners as industries see sharp revenue losses

The United States' sweeping tariffs are continuing to affect industries across the globe, causing serious economic woes among some of the country's key trading partners.

Battered by U.S tariffs, Germany's industrial output has fallen to its lowest level since May 2020.

Figures released in early August by the country's Federal Statistical Office show industrial output dropped 1.9 percent month-on-month in June and was down 3.6 percent year-on-year.

Data also showed exports to the United States, Germany's biggest single market, have declined for three consecutive months, reaching their weakest point since February 2022.

The auto sector, a pillar industry of the country, was hit hard in the process. Although the U.S. presidential administration recently trimmed the tariff on EU-built cars to 15 percent, German automakers still face "several billion euros" of extra annual costs, according to industry insiders.

According to reports, BMW, Mercedes-Benz and Volkswagen all reported steep profit declines in the first half of the year, while suppliers Bosch, Continental and ZF have announced sweeping cost-reduction plans. Porsche, meanwhile, is scaling back its battery-electric vehicle program.

Consultancy firm EY Germany estimates that the country's industrial workforce has shrunk by 2.1 percent -- about 114,000 jobs -- over the past twelve months. EY calculates that the auto industry alone has shed 51,500 jobs - almost seven percent of its workforce, in the past year, making it the most affected industrial sector.

On Wednesday, The United States began levying a 50 percent tariff on Indian products, sending shock waves through key export industries.

Leather and diamond-processing firms were hit first, as U.S. buyers began canceling orders and factories struggled to stay open.

The Federation of Indian Export Organizations warned on Tuesday that about 55 percent of India's exports to the United States will now suffer a "price disadvantage", eroding competitiveness across labor-intensive sectors such as leather, chemicals and handicrafts. The group urged the Indian government to roll out emergency financial support for exporters already drowning in canceled orders.

US tariff hikes continue to impact trade partners as industries see sharp revenue losses

The multilateral system is "under attack" amid global turmoil, President of the 80th UN General Assembly Annalena Baerbock warned in her remarks on Wednesday.

In her briefing on the priorities for the resumed 80th Session of the General Assembly, the UNGA president noted that the current multilateral system does not collapse all in a sudden, but "crumbles piece by piece" in divisions, compromises, and lack of political commitment.

The president called all the UN member states to defend the UN Charter and international law and promote cross-regional cooperation.

She also urged to push forward the work of the UNGA on certain critical issues with a strong majority, rather than an absolute consensus among all member states. Such act is not a failure of multilateralism, but "an affirmation of it," she said.

The foundational principles of the institution should not be eroded by appeasement, she said, calling the member states to show courage, leadership, and responsibility at the UN's "critical make-or-break moment."

"The UN needs you. Your support, your leadership, your principle, stand, your cross-regional cooperation, if we are to preserve and modernize this institution, if we are to make it, rather than break it," she said.

UNGA President warns global multilateral system "under attack"