KEY POINTS
- China and EU condemn US tariffs, vowing retaliatory measures
- Trump announces a 10% tariff on most imports and higher tariffs on several countries
- China criticised the tariffs as “economic bullying” and announced reciprocal tariffs on US exports
- EU vows “firm and proportionate” countermeasures to US tariffs
- The EU is also considering legal action at the WTO, claiming the tariffs violate international trade agreements
- Japan, South Korea, Canada, and Brazil, also pledged countermeasures
- Australia to negotiate with the US instead of imposing reciprocal tariffs
BEIJING/BRUSSELS/WASHINGTON: China and the European Union have condemned new tariffs imposed by US President Donald Trump and vowed retaliation to safeguard their economic interests.
Trump’s move to slap a 10 per cent tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.
The sweeping penalties unleashed turbulence across world markets and drew condemnation from other leaders now facing the end of an era of trade liberalisation that has shaped the global order for decades.
Now facing 54pc tariffs on exports to the US, the world’s No. 2 economy China vowed countermeasures, as did the European Union — Washington’s friends and foes united in criticism of measures they fear will deal a devastating blow to global trade.
The White House has justified the decision by citing unfair trade practices, intellectual property theft, and a need to protect American industries from what it describes as ‘predatory pricing’ by foreign competitors.
Goods from Canada and Mexico are not currently subject to reciprocal tariffs because Trump’s prior 25 per cent fentanyl-related duties remain in place on their goods.
China denounces ‘economic bullying’
In a statement on Thursday, the Chinese Ministry of Commerce called for the immediate cancellation of the tariffs and warned of countermeasures.
The ministry described Trump’s actions as a “unilateral bullying practice” that undermines years of multilateral trade progress.
“China firmly opposes this and will take countermeasures to safeguard its own rights and interests,” the statement read.
China’s Commerce Ministry announced reciprocal tariffs on American exports, including agricultural products, automobiles, and key industrial goods.
“The United States is unilaterally disrupting global supply chains and undermining multilateral trade agreements,” the statement read.
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Beijing has also hinted at additional retaliatory measures, including restrictions on US businesses operating in China.
EU says ‘unjustified and unacceptable’
European Commission President Ursula von der Leyen described the move as “unjustified and unacceptable,” warning that the EU would not hesitate to respond with “firm and proportionate” countermeasures.
The EU’s retaliatory tariffs are expected to target American industries with significant exports to Europe, including bourbon whiskey, motorcycles, and agricultural products.
Brussels is also exploring legal action against the U.S. at the World Trade Organisation (WTO), arguing that the tariffs violate international trade agreements.
“The EU remains committed to free and fair trade,” von der Leyen stated. “However, we cannot stand by while our industries and workers suffer due to unilateral and unjustified actions by the United States.”
Global leaders vow countermeasures
Governments around the world pledged counter measures on the US after Trump unveiled a new baseline 10 per cent tariff on goods from all countries plus reciprocal tariffs on those that his administration says have high barriers to US imports.
Japanese Trade Minister Yoji Muto called the reciprocal tariffs “extremely regrettable” and said Tokyo would urge the US to exempt Japan from tariff measures. Tokyo faces a 24 per cent reciprocal tariff.
South Korea’s Acting President Han Duck-soo ordered emergency support measures for affected businesses, including automobiles, the industry ministry said, after Trump’s tariff announcement included a 25 per cent rate on South Korea.
Canadian Prime Minister Mark Carney said Ottawa was “going to fight these tariffs with countermeasures” and would “act with purpose and with force.”
Goods from Canada and Mexico are not currently subject to reciprocal tariffs because Trump’s prior 25 per cent fentanyl-related duties remain in place on their goods, along with 10 per cent for Canadian energy and potash.
A tariff exemption for goods compliant with the US-Mexico-Canada Agreement on trade will continue indefinitely.
Mexican President Claudia Sheinbaum said on Wednesday that Mexico would not pursue a “tit-for-tat on tariffs” but would rather announce a “comprehensive program” on Thursday.
Australian Prime Minister Anthony Albanese said Australia would seek to negotiate with the US to remove the tariffs without resorting to a dispute resolution mechanism in the two countries’ Free Trade Agreement.
He said his government would not impose reciprocal tariffs as this would increase prices for Australian households.
“We will not join a race to the bottom that leads to higher prices and slower growth,” Albanese said.
The government of Latin America’s largest economy Brazil, which Trump slapped with a 10 per cent tariff, said it was “evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization.”
Earlier on Wednesday, Brazil’s Congress approved a bill that establishes a legal framework for Brazil to respond to potential unilateral trade measures targeting its goods and services, including countermeasures such as tariffs.
