Broad, hard-hitting tariffs announced by United States President Donald Trump have triggered global alarm and retaliatory threats from key allies, with analysts warning they could push the US and other countries towards a recession.
Still, many US trade partners responded cautiously to the levies – which range from a baseline 10 percent to 49 percent – showing a reluctance to escalate into a full-scale trade war with the world’s largest economy.
“This is a game changer, not only for the US economy but for the global economy,” said Olu Sonola, Fitch Ratings’ head of US Economic Research, in a report. “You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time.”
Here’s how US allies, other countries, business groups, and experts are responding:
European Union
European Commission President Ursula von der Leyen, responding to a new 20 percent tariff on the EU, called the measure a “major blow to the world economy”.
“The consequences will be dire for millions of people around the globe,” she said, adding groceries, transport and medicine will cost more. “And this is hurting, in particular, the most vulnerable citizens.”
Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the US but also was prepared to respond with countermeasures.
United Kingdom
The UK played it diplomatically, declaring that the US remains its “closest ally” despite a new 10 percent tariff on British goods.
Secretary of State for Business and Trade Jonathan Reynolds said the UK sought a trade deal to “mitigate the impact” of the tariff. “Nobody wants a trade war and our intention remains to secure a deal,” he said. “But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
Japan
The closest US ally in Asia said the 24 percent tariff on it is “extremely regrettable” and may break World Trade Organization rules and the two countries’ trade agreement.
“I have again strongly urged (Washington) not to apply them [the tariffs] to Japan,” Yoji Muto, trade and industry minister, told reporters.
Asked if Japan will impose retaliatory tariffs or is considering filing a suit to the WTO, government spokesman Yoshimasa Hayashi said: “We decline to disclose details of our considerations.”
Al Jazeera’s Fadi Salameh, reporting from Tokyo, said the tariffs will deal a heavy blow to the auto industry that the country will struggle to respond to.
China
The Ministry of Commerce, reeling from a 34 percent tariff on top of the 20 percent already imposed earlier this year, said China would “resolutely take countermeasures to safeguard its own rights and interests”, without saying exactly what it might do.
“China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue,” it said.
Bill Bishop, an analyst and commentator on China affairs, said the US should expect a swift response from China, including more export controls on critical minerals and inquiries into US firms. Beijing may also make a “larger than expected devaluation” of its currency against the US dollar to offset the cost of the new tariffs, Bishop wrote in his Sinocism newsletter.
South Korea
Acting President Han Duck-soo called for talks with US officials to shield the export-reliant economy from the effect of the 25 percent tariff and ordered emergency support measures for businesses.
Han asked the industry minister to analyse the content of the tariffs and actively negotiate with Washington to minimise the effect, a ministry statement said.
“As the global trade war has become a reality, the government must pour all its capabilities to overcome the trade crisis,” Han said.
Al Jazeera’s Jessica Washington, reporting from Seoul, said “hundreds of small and medium enterprises will be affected”.
“But at the moment it does seem South Korea believes there is a path forward involving negotiation,” she said.
Brazil
The government of Latin America’s largest economy said it was “evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization”, following Trump’s 10 percent tariff.
Earlier in the day, 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.
Financial analysts
As US stock futures and Japan’s stock index dropped, market analysts warned of severe disruption from tariff hikes reaching levels unseen in more than a century.
“The magnitude of the rollout — both in scale and speed — wasn’t just aggressive; it was a full-throttle macro disruption,” said global market strategist Stephen Innes.
“The [average] US tariff rate on all imports is now around 22 percent, from 2.5 percent in 2024. That rate was last seen around 1910,” added Sonola, of Fitch Ratings. “Many countries will likely end up in a recession.”
The pain is likely to be especially intense in Asia Pacific nations, with the highest tariffs for impoverished, financially precarious countries like Laos at a 48 percent tariff, Cambodia at 49 percent and Myanmar at 44 percent.
“An export-dependent region is going to really struggle with sudden huge price increases. The damage to poorer countries is particularly cruel,” Deborah Elms, the head of trade policy at the Hinrich Foundation in Singapore, told Al Jazeera.
US trade groups
While some US trade representatives welcomed the protection for domestic industries, others expressed concern that higher costs could squeeze already tight margins for manufacturers and drive up prices for consumers.
“The high costs of new tariffs threaten investment, jobs, supply chains and, in turn, America’s ability to outcompete other nations and lead as the pre-eminent manufacturing superpower,” said Jay Timmons, president and CEO of the National Association of Manufacturers.
Scott Paul, president of the Alliance for American Manufacturing, said the measures prioritise US manufacturers and workers.
“These hardworking men and women have seen unfair trade cut the ground from beneath their feet for decades. They deserve a fighting chance,” he said in a statement.
