Trump’s tariffs have sent the world in a frenzy over the impact they will have on the economy and trade [Getty/file photo]
Countries across the world, including some of America’s closest allies, condemned President Donald Trump’s announcement of reciprocal tariffs and some pledged counter-measures while hoping the White House would be open to negotiations.
China urged the United States to immediately cancel its latest tariffs and vowed to safeguard its own interests, threatening to spiral the world’s largest economies deeper into a trade war that is likely to upend global supply chains.
“This is not the act of a friend,” said Prime Minister Anthony Albanese of Australia, a nation often described as America’s “deputy sheriff” in Asia. “The (Trump) administration’s tariffs have no basis in logic and they go against the basis of our two nations’ partnership.”
Leaders in Japan, New Zealand, Taiwan and South Korea, all major US allies in the region, blasted Trump’s move. “We need to decide what is best for Japan, and most effective, in a careful but bold and speedy manner,” said Trade Minister Yoji Muto, when asked whether Japan would retaliate.
Trump said on Wednesday that he would impose a 10 percent baseline tariff on all imports to the US and higher duties on dozens of other countries.
Among close US allies, Japan was targeted with a 24 percent rate, South Korea with 25 percent, Taiwan with 32 percent and the European Union with 20 percent. The UK, Australia, New Zealand, Saudi Arabia and most of South America were let off with the minimum 10 percent.
“The consequences will be dire for millions of people around the world,” said European Commission President Ursula von der Leyen. “We are ready to respond, we are preparing further packages of measures to protect our interests.”
Trump announced China would be hit with a 34 percent tariff, on top of the 20 percent he previously imposed earlier this year, bringing the total new levies to 54 percent and close to the 60 percent figure he had threatened while on the campaign trail.
The US move disregards the balance of interests reached in multilateral trade negotiations over the years and the fact that it has long benefited greatly from international trade, Beijing’s commerce ministry said in a statement. “China firmly opposes this,” it said. “There are no winners in trade wars, and there is no way out for protectionism.”
However, several leaders pressed for talks with the White House, seeking exemptions or a retreat on duties, while von der Leyen said she agreed with Trump that the global trading system had “serious deficiencies”.
No new tariffs for Canada, Mexico
Trump is not imposing his new 10 percent global tariff rate on top trading partners Canada and Mexico while his previous order remains in place for up to 25 percent tariffs on many goods from the two countries over border control and fentanyl trafficking issues, the White House said in a fact sheet.
“We are going to fight these tariffs with counter-measures, we are going to protect our workers, and we are going to build the strongest economy in the G7,” said Canadian Prime Minister Mark Carney.
Mexico’s President Claudia Sheinbaum said on Wednesday that Mexico would not pursue a “tit-for-tat on tariffs” but would rather announce a “comprehensive programme” on Thursday.
The government of Latin America’s largest economy, Brazil, which Trump slapped with a 10 percent tariff, said it was “evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization.”
