New Delhi: US President Donald Trump has unveiled a whole set of reciprocal tariffs, on partners and competitors alike. With a minimum 10 percent tax on any product entering the American market, Trump 2.0 has ignited a slew of reactions from across the world, hinting at the possibility of an impending global trade war.
China
China is among the first countries to vow retaliation against the latest set of US tariffs. The Asian country has called on the US to “immediately cancel” the tariffs, which now come to about 54 percent on Chinese-made products—close to the 60 percent figure he had threatened while on campaign trail last year.
Trump announced Wednesday that China would be hit with a 34 percent tariff, on top of the 20 percent that he had imposed earlier this year, bringing the total new levies to 54 percent. Trump also signed an executive order closing a trade loophole known as “de minimis” that has allowed low-value packages from China and Hong Kong to enter the US duty-free, Reuters reported.
China has claimed that these measures disregard the progress reached in multilateral trade negotiations. “China firmly opposes this and will take countermeasures to safeguard its own rights and interests,” read a statement by the Chinese commerce ministry.
South Korea
A 25 percent import duty on South Korean products has urged the Asian nation to acknowledge the “reality” of a global trade war. Emergency support measures for business have been ordered to shield the export-reliant economy.
Acting President Han Duck-soo has called for talks with US officials. Han asked the industry minister to analyse the content of the tariffs and actively negotiate with Washington to minimise the impact, Reuters reported.
“As the global trade war has become a reality, the government must pour all its capabilities to overcome the trade crisis,” Han said at a meeting with the finance minister and other top officials.
Furthermore, likely tariffs on Vietnam may also hit South Korean manufacturing centres in the country. While the country suffers from a leadership vacuum, it is unclear what emergency measures have been taken.
Japan has called the import duties “extremely regrettable”, adding that they could violate World Trade Organisation and US-Japan agreements, while Thailand said it would negotiate its 36 percent tariff, BBC has reported.
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Australia
The baseline tariff of 10 percent on Australian beef is not being viewed as a friendly act by the Oceanic country. Prime Minister Anthony Albanese wishes to negotiate further as he aims to “stand up for the nation’s interests”. He has also promised support for exporters to find alternative markets in light of US tariffs.
“The (Trump) administration’s tariffs have no basis in logic and they go against the basis of our two nations’ partnership. This is not the act of a friend,” Albanese told media persons. Amid a slump in production in the US last year, Australia exported beef worth about 4 billion Australian dollars to the US.
However, Albanese maintained that Australia will not impose reciprocal tariffs on American products as it would only increase costs for American households. “We will not join a race to the bottom that leads to higher prices and slower growth,” he said.
The two countries have a free trade agreement and Australia recorded its first trade surplus with the United States in January as gold exports surged.
Canada
Uncertainty still looms over Canada as Trump skipped the country while announcing reciprocal tariffs. The country, however, faces 25 percent tariffs announced earlier this year. Canada’s auto sector, alongside steel and aluminium industries, are the worst hit.
Calling it a “crisis” situation, Prime Minister Mark Carney noted the impact on the global economy and trade after Trump’s announcement Wednesday night. “President Trump has just announced a series of measures that are going to fundamentally change the international trading system,” Carney said.
Both Carney and opposition leaders promised to “fight” against the tariffs and protect the Canadian economy. “It’s essential to act with purpose and with force, and that’s what we will do,” Carney told reporters.
Israel
Just a day ago, Israel had cancelled all tariffs on goods from “key ally and trading partner” US. After Trump’s announcement of 17 percent tariffs on Israeli goods, the country has been left completely shocked.
The US is Israel’s largest trading partner with bilateral trade valued at $34 billion in 2024. Israel is now worried about the “troubling situation” and the job losses it may cause.
According to The Jerusalem Post, Israeli government is puzzled and working to understand the motivation behind this move. The paper quoted Dr. Ron Tomer, President of the Manufacturers Association of Israel, as saying, “The claim that Israel imposes a 33 percent tariff on American goods is puzzling, and in that context, the US decision to impose 17 percent tariffs on Israeli goods remains unclear.”
“This decision threatens Israel’s economic stability, could deter foreign investment and weaken the competitiveness of Israeli firms in the US,” he added in a statement Wednesday night.
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United Kingdom
The UK government is fully focussed on reaching a deal with the United States. Calling the US “the closest ally”, Business Secretary Jonathan Reynolds has cautioned for a need to avoid trade war and stay calm and committed to a deal.
All UK imports will see a 10 percent tariff and the government feels vindicated as the relatively lower tariff is a result of the months of discussions and negotiations between the two countries.
UK ministers have ruled out imposing retaliatory barriers, while talks on an economic deal with the US continue, and are hoping for further carve-outs for UK companies, which export more than £60bn worth of goods to the US each year, The Guardian reported.
European Union
European countries have expressed strong opposition to the 20 percent tariff imposed by Trump on the European Union, which has been labeled as “unfair” by many leaders across the continent. The EU is a huge market for American-made goods and the bloc is working on countermeasures in response to US tariffs.
“We are already finalising the first package of countermeasures in response to tariffs on steel, and we are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,” said Ursula von der Leyen, president of the European Commission. “Let’s be clear-eyed about the immense consequences. The global economy will massively suffer. Uncertainty will spiral and trigger the rise of further protectionism.”
Italian Prime Minister Giorgia Meloni, a Trump ally, warned that the EU tariffs would be detrimental to both parties, saying that a trade war should be avoided. She emphasised intent to work towards a solution with the US to prevent further escalation.
France also voiced its concern earlier on Wednesday, with government spokeswoman Sophie Primas describing the potential 20-25 percent tariffs on French and European products as likely to cause “major economic disorder”. French wine and spirits exports are expected to take a significant hit, with sales projected to drop by at least 20 percent in the US. The US is the largest market for French wine and spirits, with shipments set to rise by 5 percent in 2024, reaching €3.8 billion ($4.12 billion).
In Spain, Prime Minister Pedro Sánchez vowed to protect Spanish businesses and workers, reiterating Spain’s commitment to an open global market. Meanwhile, Irish Taoiseach Micheál Martin called Trump’s decision “deeply regrettable” and argued that it would benefit “no one”.
(Edited by Mannat Chugh)