In a week marked by escalating trade tensions and ripple effects across global supply chains, President Donald Trump’s administration has taken a series of bold steps that are reverberating well beyond U.S. borders. From threatened tariffs on Chinese magnets to the suspension of European postal shipments into the United States, and even the stalling of livelihoods in India’s diamond capital, the latest moves are reshaping the world’s approach to trade—sometimes in ways that hit closer to home than many might expect.
On August 25, 2025, President Trump made headlines yet again by threatening to slap new tariffs of up to 200 percent on Chinese magnets, a move that could have significant consequences for the tech industry and beyond. "China must give the US more magnets or we have to charge them 200 percent tariff or something," Trump told reporters at the White House, as reported by Reuters. The president’s comments come during a joint press conference with South Korean President Lee Jae Myung, underscoring the international stakes of the ongoing U.S.-China trade dispute.
At the heart of the issue lies a set of rare earth elements—critical components in everything from smartphones to electric vehicles. According to Reuters, China currently controls an astonishing 90 percent of the global magnet market. These magnets are essential for the manufacturing of semiconductor chips, a sector where the U.S. has sought to gain ground. The U.S. government recently announced a 10 percent stake in Intel, one of the world’s largest chipmakers, which relies heavily on rare earth materials sourced from China.
China, for its part, has not stood idle. In April, Beijing retaliated against U.S. tariff hikes by adding several rare earth items and magnets to its own export restriction list. The move was a clear signal: China is prepared to use its dominance in these strategic materials as leverage. The effects were quickly felt in the marketplace. Data from China’s General Administration of Customs revealed that exports of rare earth minerals surged in July, with imports of rare earth ore rising by more than 4,700 tonnes compared to June. The numbers highlight how quickly global supply chains can shift in response to policy changes.
The tariff standoff between the two economic superpowers had shown fleeting signs of easing earlier in August. President Trump signed an executive order extending a 90-day deadline on tariffs against Chinese goods, temporarily preventing a dramatic jump in tariffs from 30 percent to a staggering 145 percent. This extension, as noted by Reuters, was intended to buy time for negotiations, but the threat of even higher tariffs—now up to 200 percent—has reignited uncertainty.
These policy swings aren’t just affecting major corporations or government budgets—they’re having a tangible impact on everyday businesses and workers around the globe. Nowhere is this more evident than in the world of international shipping and logistics. On August 22, DHL, one of Europe’s largest shipping and delivery companies, announced it would suspend acceptance and transport of business customer parcels to the U.S. starting August 23. The move, reported by USA TODAY, is directly tied to a new set of tariff policies set to take effect on August 29, 2025.
The catalyst? An executive order signed by President Trump in late July, which effectively ends the "de minimis" trade agreement. For years, this exemption allowed packages valued at less than $800 to enter the U.S. duty-free—a boon for e-commerce and international trade. In 2024, these so-called de minimis shipments were valued at more than $1.36 billion, according to U.S. Customs and Border Protection.
The new policy has sent shockwaves through the global shipping industry. DHL Parcel Germany and its domestic arm, Deutsche Post, have paused all business customer shipments via the postal network to the U.S. "Key questions remain unresolved, particularly regarding how and by whom customs duties will be collected in the future, what additional data will be required, and how the data transmission to the U.S. Customs and Border Protection will be carried out," DHL said in a statement quoted by USA TODAY. The company stressed that the suspension is temporary, but did not provide a timeline for when normal service would resume.
DHL isn’t alone. Other members of the Association of European Postal Services have also been advised to temporarily restrict or suspend shipments to the U.S. until the new rules are clarified. Customers still have the option to send private packages labeled as gifts, provided they’re worth no more than $100 and sent from person to person—not business to customer. Commercial shipments, meanwhile, will face a minimum 15 percent tariff, with some categories subject to even higher duties.
The uncertainty has prompted a cascade of suspensions across the industry. According to NPR and Reuters, the U.K.’s Royal Mail, as well as postal services in Denmark, Sweden, Norway, Belgium, France, Italy, and parts of Asia, have all announced similar pauses in shipments to the U.S., bracing for the August 29 deadline when the de minimis exemption officially closes. The disruption is particularly acute for e-commerce giants like Shein and Temu, which, according to Reuters, account for more than 30 percent of all daily packages shipped under the de minimis provision—most of which originate from China.
The roots of the de minimis exemption stretch back to Section 321 of the Tariff Act of 1930, which gave the Secretary of the Treasury the authority to waive duties on low-value shipments where the cost of collection outweighed the revenue. In practice, it allowed millions of small packages to flow into the U.S. each day, fueling a boom in cross-border online shopping. The Trump administration, however, has long argued that the policy was being exploited, particularly by Chinese retailers, to circumvent tariffs and flood the U.S. with cheap goods.
But the fallout from these changes is not confined to the corridors of power or the loading docks of shipping giants. In Surat, India—a city known as the world’s diamond capital—the effects are deeply personal. As reported by The Washington Post, diamond worker Ajay Lakum has seen his steady livelihood upended by the new tariffs. For years, Lakum’s modest wages as a diamond sorter supported his 10-person household and helped pay for his mother’s cancer treatments. Now, with the diamond industry stalled by trade disruptions, his future is uncertain.
"The tariffs have upended lives and stalled the diamond industry in India’s diamond capital," The Washington Post reported, capturing the sense of anxiety that has settled over the region. Lakum’s story is a reminder that behind every policy decision and economic statistic are real people grappling with the consequences.
As the world watches to see how these disputes will play out, one thing is clear: the era of frictionless global trade is facing its most serious test in decades. With key questions about customs, tariffs, and supply chains still unresolved, businesses and workers from Shanghai to Surat are bracing for whatever comes next.
For now, the world holds its breath, waiting to see whether negotiation or escalation will shape the next chapter in this unfolding trade saga.
