KEY POINTS
- World leaders condemn Trump’s sweeping tariffs, warning of a potential trade war
- Total tariffs on Chinese exports to the US reach 54%, prompting strong criticism from Beijing
- European Union vows countermeasures, warning of severe economic consequences
- Canada imposes 25% tariffs on US vehicles, warning of economic disruption
- Japan expresses regret and considers countermeasures after exclusion from exemptions
- UK consults businesses on potential retaliatory tariffs
- Australian PM Albanese criticises move but rules out retaliatory measures
- Widespread countermeasures signal escalating global trade war
WASHINGTON: World leaders have strongly condemned the sweeping import tariffs announced by US President Donald Trump, heightening concerns of a global trade war.
The new measures impose a blanket 10% tariff on all imports to the US, with significantly higher levies on key trading partners, including China, the European Union, and Canada.
China has been hit hardest, with total tariffs on its exports to the US rising to 54% after an additional 34% duty was imposed on top of an existing 20% levy earlier this year.
China
Beijing swiftly condemned the move, with the Chinese Ministry of Commerce stating that “China firmly opposes this and will take countermeasures to safeguard its own rights and interests.”
“There are no winners in trade wars, and there is no way out for protectionism.”
“China urges the US to immediately revoke its unilateral tariff measures and work with trading partners to resolve differences through fair and constructive dialogue,” China’s Ministry of Commerce said in a statement in Chinese on Wednesday night.
A spokesperson warned that “protectionism has no exit ramp” and urged Washington to “correct its wrong practices and resolve economic and trade differences through fair, respectful and reciprocal consultations.”
ALSO READ: China, EU Vow Retaliation as Trump’s Tariffs Stokes Global Trade War
The reciprocal tariffs “violate international trade rules, infringe upon the legitimate rights and interests of other parties, and represent an act of unilateral bullying,” the ministry added.
European Union
The European Union, which faces a blanket 20% tariff on top of the 25% tariffs on steel and aluminum as well as car exports to the US, which are expected to severely impact European nations, pledged to strike back at Trump’s tariff war.
European Commission President Ursula von der Leyen described the tariffs as a serious blow to global trade, warning that “uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe.”
“I know that many of you feel let down by our oldest ally,” she said in a video posted to X.
She added, “We have always been ready to negotiate with the US to remove any remaining barriers to transatlantic trade. At the same time, we are prepared to respond to protect our interests and our businesses if negotiations fail.”
The EU chief said the bloc was already finalizing countermeasures to Trump’s tariffs on steel and pledged to take similar actions to protect the pharmaceutical and auto industries “if negotiations fail.”
“We must brace for the impact this will inevitably have. Europe has everything it needs to make it through this storm,” von der Leyen added, noting the EU is the single largest market on the planet, which she said serves as Europe’s “safe harbor in tumultuous times.”
“If you take on one of us, you take on all of us,” she added. “Our unity is our strength.”
Canada
Canada has also been targeted, with a 25% tariff imposed on some auto imports.
Canadian Prime Minister Mark Carney criticised Trump’s policies, stating that they will “fundamentally change the international trading system” and pledged to “fight” back through “countermeasures.”
He announced retaliatory measures, imposing a 25% tariff on non-compliant US vehicles, and warned that the trade war “will rupture the global economy.”
“We’re in a situation where there’s going to be an impact on the US economy, which will build with time,” he added. “In our judgment, it will be negative on the US economy that will have an impact on us.”
“In a crisis, it’s important to come together,” Carney said. “It’s essential to act with purpose and with force, and that’s what we will do.”
Mexico
Mexico, which also faces a 25% tariff, has taken a cautious approach. President Claudia Sheinbaum stated that while her government would “announce a comprehensive programme” to address the economic fallout, Mexico would not engage in a “tit-for-tat on tariffs.”
Sheinbaum said she plans to “strengthen the economy under any circumstance.”
Japan
Japan has been hit with a 24% tariff, prompting Prime Minister Shigeru Ishiba to declare that “all options are on the table” in determining an effective response.
“Japan is a country that is making the largest amount of investment to the United States,” he reportedly told his Parliament.
“We wonder if it makes sense for (Washington) to apply uniform tariffs to all countries. That is a point we’ve been making and will continue to do so.
“We need to consider what’s best for Japan’s national interest,” he added, without detailing what specific steps Tokyo could take.
Trade Minister Yoji Muto expressed disappointment after last-minute pleas for an exemption were ignored, calling the decision “extremely regrettable.”
Australia
Australia, among the least affected with a 10% tariff, has also criticised the move.
Prime Minister Anthony Albanese dismissed the rationale behind the tariffs, stating, “A reciprocal tariff would be zero, not 10%. This is not the act of a friend.”
“The administration’s tariffs have no basis in logic, and they go against the basis of our two nation’s partnership.” “This is not the act of a friend,” Albanese said.
Albanese pointed out that Americans will pay the heaviest price for the tariffs and said therefore he will not put reciprocal tariffs back on the US.
“We will not join the race to the bottom,” he added, but pledged to continue to fight to have the tariffs removed.
United Kingdom
The United Kingdom, also subject to a 10% tariff, has not yet announced retaliatory measures but is consulting industry leaders.
Leaders in the UK have repeatedly said they would not immediately respond to the blanket tariff – which coupled with the steel and auto tariffs, could have a significant impact on its economy – though London is taking steps to see which tariffs could be implemented that would have the least negative effect on its own businesses.
British Trade Secretary Jonathan Reynolds told Parliament on Thursday that the UK “will not hesitate to act” if diplomatic efforts fail.
“We will seek the views of UK stakeholders over four weeks until 1st May 2025 on products that could potentially be included in any UK tariff response,” Reynolds said in a statement.
“This exercise will also give businesses the chance to have their say, and influence the design of any possible UK response.”
Brazil
Brazil, which faces a similar 10% tariff, has already passed legislation allowing reciprocal action against countries imposing trade barriers on Brazilian goods by any country or trade bloc.
Brazilian President Luiz Inácio Lula da Silva earlier said it was considering appealing to the World Trade Organization over Trump’s steel tariffs.
“The new measure, like the tariffs already imposed on the steel, aluminum, and automobile sectors, violates the United States’ commitments to the World Trade Organization and will impact all Brazilian exports of goods to the United States,” Brazil’s Foreign Ministry said in a statement.
“The Brazilian government is evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization, in defense of legitimate national interests.”
India
Indian officials have indicated ongoing negotiations with Washington but have yet to confirm any retaliatory steps.
India’s Commerce and Trade Ministry said in a statement Thursday that they will “remain in touch” with the US regarding Trump’s latest tariffs.
The statement added that “discussions are ongoing between Indian and US trade teams for the expeditious conclusion of a mutually beneficial, multi-sectoral Bilateral Trade Agreement.”
France
French government spokesperson Sophie Primas accused Trump of acting as “master of the world,” while German Chancellor Olaf Scholz called the tariffs an “attack on a trade system that has created prosperity all round the world.”
Scholz warned that “Europe will respond united, strong, and proportionately to this decision.”
Primas said that the E.U. will likely implement countermeasures as a bloc in mid-April and again in late April.
Italy
Italian Prime Minister Giorgia Meloni stressed the need to prevent a full-blown trade war, while Irish Taoiseach Micheál Martin emphasised that “tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk.”
Trump’s sweeping tariffs, imposed on both allies and adversaries, have been met with widespread condemnation and threaten to disrupt global trade patterns. With several governments preparing countermeasures, the risk of a full-scale trade conflict looms large.
Germany
German Chancellor Olaf Scholz called Trump’s latest tariffs an “attack on a trade system that has created prosperity all round the world” at a news conference on Thursday. He added that the EU would respond proportionately if negotiations fail.
“The EU has the strongest internal market in the world with 450 million consumers, which gives us the strength to hold talks with the U.S. government to avert a trade war,” Scholz said.
“We want cooperation, not confrontation, and will defend our interests. Europe will respond united, strong and proportionately to this decision.”
In a Thursday statement, the Federation of German Industries, the country’s largest industry lobby group, called on the EU to “strengthen its alliances with other major trading partners and should coordinate its reaction with them. A coordinated reaction is also necessary to counter diversionary effects in international trade.”
German Economy Minister Robert Habeck said on Thursday: “For US consumers, this will be Inflation Day, rather than Liberation Day.”
Japan
Japan’s Trade Minister Yoji Muto said in a press conference on Thursday that he met with US Commerce Secretary Howard Lutnick just before Trump’s announcement to urge Japan’s exemption from the tariffs.
After the announcement, which did not exempt Japan, a long-standing ally of the US, Muto called the move “extremely regrettable.”
Asked if Japan would retaliate, Muto said: “We need to decide what is best for Japan, and most effective, in a careful but bold and speedy manner.”
He added that Japan’s trade ministry will closely analyze the impacts of the tariffs.
Cambodia
The Minister of Labour and Vocational Training for Cambodia, which was slammed with one of the highest “reciprocal” tariff rates at 49%, said the country will be able to manage the consequences of the US tariffs, despite concerns.
Heng Sour said on Thursday that the tariff increase “is not politically motivated nor intended as a sanction against Cambodia,” adding that several other Asian countries were hit with similarly high rates.
“Therefore, the tariff impact on Cambodia’s production costs is not significantly more severe compared to other competing countries.”
“However, by 2027,” Heng Sour warned, “we may face challenges if the U.S. eases tariffs on other countries, but Cambodia [does] not see such reductions.”
Colombia
Colombian President Gustavo Petro posted on X on Thursday: “Today, neoliberalism, which proclaimed a free trade policy across the globe, is dead. … The US government now believes that by raising tariffs on its imports in general, it can increase its own production, wealth, and employment; in my opinion, this may be a big mistake.”
Petro added that Colombia and other Latin American countries could benefit from Trump’s tariffs—and that Colombia will take a nuanced approach to any potential countermeasures.
“Colombian businesses must know how to take advantage of opportunities. Agro-industrial and semi-industrial products from countries outside Latin America are becoming more expensive in US markets, and if we can produce these goods more cheaply, it’s time to export them there,” he wrote.
“We will only make US imports more expensive if they take away our jobs. But we won’t raise tariffs if their goods help create higher-value jobs.”
Ireland
In a Wednesday statement, Irish Taoiseach Micheál Martin said: “We see no justification for this. More than €4.2 billion worth of goods and services are traded between the EU and the US daily.
Disrupting this deeply integrated relationship benefits no one. Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk.”
Martin added that he has spoken with von der Leyen and agrees that a coordinated E.U. response is “crucial.”
Malaysia
Malaysia, which was hit with a 24% “reciprocal” tariff by Trump, has ruled out imposing retaliatory tariffs, the country’s Ministry of Investment, Trade & Industry said in a Thursday statement.
The country’s National Geoeconomic Command Centre, the statement said, will “evaluate the impact of this recent US announcement and will consider a comprehensive and multipronged strategy to mitigate the effects of these tariffs on our economy and industries,” while the country uses the Trade and Investment Framework Agreement, a preexisting trade pact between the US and other countries including Malaysia, to “seek reciprocal trade gains and pursue a Technology Safeguards Agreement” with the US
“Malaysia strongly believes in constructive engagement for mutually beneficial economic relations,” the statement added. “MITI is committed to safeguarding Malaysia’s economic interests and maintaining strong trade relations with the US”
New Zealand
New Zealand’s Trade Minister Todd McClay disputed the Trump Administration’s claim that it imposed 20% tariffs on US imports, but McClay said New Zealand had no plans to retaliate to the new “reciprocal” tariffs imposed by the US.
“We are a low tariff country and we have benefitted from it,” the country’s Prime Minister Christopher Luxon said. “What we wouldn’t want to do is raise prices here in New Zealand and add to inflation here in New Zealand by [imposing retaliatory tariffs].”
Luxon added that while tariffs are “not the way to go,” New Zealand, which now faces a 10% U.S. tariff, is in a better position to trade with the U.S. relative to countries hit with harsher levies. “The bigger worry,” he said, “will be the global impact and the wash up of the tit-for-tat trade wars that may ensue.”
