The News
World leaders and global markets were left reeling Thursday after US President Donald Trump unveiled steep tariffs on imports from all countries, in the biggest shakeup of the international trading system in decades.
In a speech in the White House Rose Garden, Trump announced baseline levies of 10% on all imports, and far higher tariffs on many key trading partners, saying that “for years, hard working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense.”
US markets recorded steep losses almost immediately after opening, a sign that the sheer scale of the tariffs had taken investors by surprise. In Asia, Japan’s Nikkei 225 lost 3%, with automakers particularly badly hit, while South Korea’s benchmark index fell 2%.
The View From Europe
The European Union
European Commission President Ursula von der Leyen called the new tariffs a “major blow to the world economy” and vowed to retaliate after the European Union was hit with a 20% tariff on its goods — toward the higher end of economists’ predictions.
“We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” von der Leyen said, adding that “it is not too late to address concerns through negotiations.”
The president of the EU parliament’s international trade committee said the “unfair” levies would increase prices in the US and Europe alike. “Trump called it ‘liberation day’; I call it ‘inflation day,’” Bernd Lange said.
The UK
Prime Minister Keir Starmer told business leaders at his Downing Street office on Thursday that “clearly there would be an economic impact” from the 10% tariffs but that the UK would keep a “cool head” in talks with its key transatlantic ally.
“Last night the president of the United States acted for his country, and that is his mandate. Today, I will act in Britain’s interests with mine,” Starmer said, stressing that “we will fight for the best deal for Britain”.
Business Secretary Jonathan Reynolds said Britain is “in a relatively better position” than the European Union, which is facing tariffs at double the rate of those imposed on the UK.
Germany
Germany’s Vice Chancellor Robert Habeck slammed Trump’s announcement of 20% tariffs on EU imports: “Last night’s decision is comparable to the war of aggression against Ukraine [...] The magnitude and determination of the response must be commensurate,” Habeck told reports in Berlin.
Germany is likely to be among the countries hardest hit by the tariffs thanks to the scale of its car exports to the US, with a body that represents the German auto industry saying the new levies “will only create losers.”
“The EU is now called upon to act together and with the necessary force, while continuing to signal its willingness to negotiate,” the German Automotive Industry Association said in a statement.
The View From Asia
China
China faces some of the steepest tariffs on its exports to the US, with the new levies taking the total rate on its goods to more than 50%. The commerce ministry Thursday called on the Trump administration to “immediately cancel” sweeping new tariffs, warning they “endanger global economic development.”
It urged Washington to “properly resolve differences with trade partners through equal dialogue,” adding: “There is no winner in a trade war, and there is no way out for protectionism.” And US tariffs of 25% on auto imports coming into effect today are “protectionism and bullying,” the ministry said.
India
An official from India’s commerce ministry told The Times of India that the steep 26% reciprocal tariffs were “a mixed bag and not a setback,” noting the Trump administration’s apparent flexibility on the duties and the possibility of a reprieve if US concerns are addressed.
Some experts say India could seize the moment: The country faces lower tariffs than its Asian neighbors China, Vietnam, Thailand, and Bangladesh, which presents “an opportunity” for Indian textile manufacturers to expand into the US, a Delhi-based think tank argued.
Thailand
Thailand’s government said in a statement that the new 37% levies “will inevitably impact all trading partners,” including American consumers “who may not be able to absorb the rapid price increase.”
It encouraged Thai exporters to consider other markets, and that it had prepared “mitigation measures” to support those most affected.
Finance Minister Pichai Chunhavajira warned that Thailand’s economic growth could fall by 1%, Reuters reported: Thailand’s trade surplus with the US totaled $45 billion last year, according to the Office of the US Trade Representative.
“We have to negotiate,” Thai Prime Minister Paetongtarn Shinawatra said, adding that “we can’t let it get to where we miss our GDP target.”
South Korea
South Korea’s acting President Han Duck-soo called for an “all-out” response to Donald Trump’s imposition of 25% tariffs on its exports to the US.
“As the situation is very grave with the approach of the reality of a global tariff war, the government must pour out all of its capabilities at its disposal to overcome this trade crisis,” Han told economic and security officials, the Yonhap News Agency reported.
Industry Minister Ahn Duk-geun said the new tariffs are “regrettable,” but that Seoul would keep consulting with US officials.
“It’s clear that major export products such as automobiles” and “exports to the US through production bases in Vietnam [...] will be hit hard,” an economist at Seoul-based iM Securities said in a note.
Japan
Shigeru Ishiba, prime minister of Japan, one of the US’ closest allies, said he was “extremely disappointed” with the 24% reciprocal levy on its goods, which caught many analysts off guard because of Tokyo’s low average tariff rate.
Meanwhile Japan’s chief cabinet secretary said the sweeping levies may contravene World Trade Organization rules and a trade treaty between the two countries.
“We have serious concerns as to consistency with the WTO agreement and Japan-US trade agreement,” Yoshimasa Hayashi told reporters.
The View From Canada
Canada was notably left off the list of 60 countries facing higher rates, although a previously announced 25% tariff on automobile imports — which came into effect Thursday — will hit Ottawa hard. The automobile tariff package is “like dodging a bullet into the path of a tank,” the president of the Automotive Parts Manufacturers’ Association wrote on X, and Canadian Prime Minister Mark Carney vowed to retaliate “with purpose and with force.”
The View From Mexico
Like Canada, Mexico is exempt from the latest set of US tariffs, but still faces 25% levies on steel, aluminum and automobiles.
President Claudia Sheinbaum has said that she does not plan to impose tit-for-tat tariffs on the US, but will announce a “comprehensive program” on Thursday.
With Mexican goods that comply with a 2020 free trade deal also exempt from levies, the country may be better off than many others. “It’s bad news for the world [...] but it’s good news for Mexico,” an analyst for Mexico’s Banco Base told the Financial Times: “Mexico could end up winning market share despite Trump’s protectionist rhetoric.”
The View From South Africa
South Africa criticized its 30% reciprocal levy as “punitive” and “a barrier to trade and shared prosperity”.
Despite being included on Trump “worst offender” list, Pretoria seemed keen to leave the door to negotiation open, however: “Tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the US, as an essential step to secure long-term trade certainty,” President Cyril Ramaphosa’s office said in a statement.
“The reciprocal trade announcement will pull the AGOA rug from under our feet,” an economist from South Africa’s Gordon Institute of Business Science told Reuters, referring to the US trade deal — set to expire in September — that allows 32 sub-Saharan countries including South Africa to export its products to the US tariff-free.