New US tariffs redraw global trade landscape and rattle industrial real estate market
A sweeping new wave of US tariffs set to take effect on August 7th is poised to reshape global trade dynamics and send ripples through key domestic sectors, particularly industrial real estate. The tariffs, announced by the Trump administration as part of a fiercely protectionist trade stance, target 60 countries where trade negotiations have stalled. Major economic partners like Canada, India, Switzerland, and Taiwan have been hit with some of the most punitive rates in decades.
Canada faces a 35% tariff on all exports not covered under the US-Mexico-Canada Agreement (USMCA), while Switzerland is subject to a 39% levy, among the highest globally. India and Taiwan face tariffs of 25% and 20%, respectively. A 50% duty will also apply to copper imports, excluding refined products, and the long-standing de minimis exemption that allowed small-value foreign goods (notably e-commerce items from China) to enter tariff-free will be removed.
The result is a blended U.S. tariff rate of 17% — the highest in over a century — locking in a long-term shift toward a fragmented global economic system.
“This isn’t a rerun of past trade disputes,” said Nigel Green, CEO of financial advisory giant deVere Group. “These tariffs are forcing countries to rewire trade, capital, and strategic priorities. Multipolarity now defines the direction of global trade.”
While negotiations with Mexico and China continue — Mexico was granted a temporary 90-day extension on 10% tariffs — many other countries are reacting by deepening ties outside Washington’s orbit. India, for instance, is reportedly intensifying cooperation with China and Russia, despite being positioned by Washington as a strategic partner.
“Countries are responding by building systems that can operate without US permission,” Green added. “What we’re witnessing is a foundational shift: from a US-centric trade model to a multipolar one, where economic power is distributed and transactional alignment prevails.”
The implications go far beyond diplomacy. For the US industrial real estate sector, the impact is already becoming clear. According to CommercialEdge’s June industrial report, tariff uncertainty is contributing to a notable slowdown in the sector. Leasing decisions are being delayed, and newly delivered space is being absorbed more slowly than expected.
In the first five months of 2025, only 86.9 million square feet of new industrial space broke ground—putting construction starts on track for their lowest annual total since 2018. National industrial vacancy rose to 8.5%, up 290 basis points year-on-year, although slightly down month-on-month.
Port activity is also weakening, with Los Angeles’ cargo volumes in May falling 25% below forecast, due in part to cooling international trade and rerouted supply chains.
As trade policy hardens and uncertainty deepens, both investors and occupiers are rethinking strategies. With supply chains regionalising and policy risk climbing, industrial real estate — once a safe haven — now finds itself at the centre of global realignment.
