Sweeping new tariffs announced Wednesday by U.S. President Donald Trump provoked dismay, threats of countermeasures and calls for further negotiations to make trade rules fairer.
But responses were measured, highlighting a lack of appetite among key trading partners for an outright trade war with the world’s biggest economy.
Trump said the import taxes, ranging from 10% to 49%, would do to U.S. trading partners what they have long done to the U.S. He maintains they will draw factories and jobs back to the United States.
European Commission President Ursula von der Leyen said they are a “major blow to the world economy,” while Japanese Prime Minister Shigeru Ishiba said they will have a “great impact” on U.S.-Japan relations. Korean Prime Minister Han Duck-soo called for emergency measures to support industries affected by the tariffs.
Asian markets fell in Thursday trading and U.S. futures tumbled.
Here's the latest:
EU leader: Tariffs are a major blow to the world economy
European Commission President Ursula von der Leyen says the tariffs are a “major blow to the world economy.”
“The consequences will be dire for millions of people around the globe,” von der Leyen said. Groceries, transport and medicines will cost more, she said, “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 U.S.
Norway’s foreign minister says tariffs hurt NATO allies
Norway’s Foreign Minister Espen Barth Eide said the new U.S. tariffs may violate NATO’s Article 2, which stresses the importance of economic cooperation among allies to avoid conflict.
“If you want a strong NATO, you should ensure that there is as much economic growth as possible in the NATO countries. That was the insight of those who established NATO, that economic cooperation would be good for the entire alliance,” Eide said during a visit to Brussels for a NATO meeting, according to the NRK broadcaster.
Eide told NRK that he will raise the tariff war with U.S. Secretary of State Marco Rubio during the meeting.
Polish prime minister: tariffs may shave off 0.4% of GDP
Polish Prime Minister Donald Tusk said the new U.S. tariffs many reduce Poland’s GDP by 0.4%.
He said it was “a severe and unpleasant blow, because it comes from the closest ally, but we will survive it.”
The Polish-U.S. friendship, he added, “must also survive this test.”
Spanish PM announces measures to mitigate US tariffs
Spanish Prime Minister Pedro Sanchez said Thursday that his government will implement a $15.6 billion spending package to mitigate the effects of U.S. tariffs on the eurozone’s fourth-largest economy.
The Spanish leader called the tariffs “19th-century protectionism,” against which the European Union and Spain had to act proactively and diversify their economic ties with the rest of the world.
Sanchez also called for a negotiated solution with the U.S.
“We’re once again asking President Trump to reconsider, to sit down at the negotiating table with the European Union and also with the rest of the world.”
Ukrainian minister says her country can get better deal
Ukraine is working to get better tariff conditions from the United States, Ukrainian Economy Minister Yuliia Svyrydenko wrote on her X account.
Svyrydenko says Ukrainian tariffs on U.S. goods are “quite low” and that Ukraine imported more goods from the U.S. in 2024 than exported to the country.
She said the 10% tariff Trump imposed on Ukrainian goods will mainly hurt small producers.
“Ukraine has something to offer the United States as a reliable ally and partner. Both our countries will benefit from fair tariffs,” she wrote.
Spain’s economy minister says negotiations with US essential
Spain’s Economy Minister Carlos Cuerpo said a negotiated solution with the United States was essential for the eurozone’s fourth-largest economy, but Spain was prepared to take steps to protect its companies and industries.
“We have a lot at stake. We have to protect the very important trade and economic relationship we have between the planet’s two biggest partners,” Cuerpo said in an interview Thursday with the RNE radio station after the U.S. announced 20% tariffs against the European Union.
German economy minister: This day will become US Inflation Day
“This day is not going to become Liberation Day for consumers in the U.S., but Inflation Day,” said Germany’s vice chancellor and economy minister, Robert Habeck. “The U.S. mania for tariffs could set off a spiral that could also pull countries into recession and cause massive damage worldwide.”
“We have always pushed for negotiations, not confrontation. That remains right,” Habeck said. “So it is good that the European Commission still aims for a negotiated solution with the U.S. There is still some time for that. But if the U.S. doesn’t want a negotiated solution, the EU will give a balanced, clear and determined answer. We have prepared for this.”
Germany’s main industry lobby group, the Federation of German Industries, said that “the EU must now 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.”
The group, known by its German acronym BDI, said that the tariffs are “an unprecedented attack on the international trade system, free trade and global supply chains. The reasoning for this protectionist escalation is incomprehensible.”
The United States was Germany’s biggest single trading partner last year for the first time since 2015, displacing China.
German Chancellor Olaf Scholz says the tariffs are an “attack” on a trading system that brought global prosperity and that America itself helped design.
Scholz said Thursday “the whole global economy will suffer from these decisions that haven’t been thought through.” He added that “the U.S. administration is setting off on a road at the end of which there will only be losers.”
Scholz said in Berlin that “this is an attack on a trading order that has created prosperity across the globe — a trading order that is also to a very significant extent the result of American efforts.”
UK’s Starmer vows to act with ‘cool and calm heads’
Prime Minister Keir Starmer said the U.K. government would react with “cool and calm heads” to Trump’s announcement of a 10% tariff on imports from Britain.
Starmer told business leaders gathered in 10 Downing St. that “clearly there will be an economic impact,” but that he still hoped to get tariffs lifted through a trade deal with Washington.
“Negotiations on an economic prosperity deal — one that strengthens our existing trading relationship — they continue and we will fight for the best deal for Britain,” Starmer said.
“Nobody wins in a trade war. That is not in our national interest,” he added.
The British government says it will push to secure a free trade deal with the United States rather than retaliate.
Labelling the announcement a “disappointment,” Business Secretary Jonathan Reynolds said “I’m pleased the U.K. is in a better position than other countries, but I’m not satisfied.”
Reynolds told Sky News that the message he was hearing from businesses was “remain at the table, don’t overreact.”
Britain argues that it has a broadly balanced trade relationship with the U.S., and has been negotiating with Washington on a trade deal in hope of escaping import taxes.
Asian markets tumble following Trump’s tariff announcement
Tokyo’s Nikkei 225 index dipped more than 3.4%, while the Kospi in South Korea dropped 1.8%. In Australia, the S&P/ASX 200 also sank 1.8%.
U.S. stocks whipped through another dizzying day before Trump’s unveiled the tariffs Wednesday. The S&P 500 rose 0.7%, and the Dow gained 0.6%. The Nasdaq composite surged 0.9%.
Tesla swung from a sharp loss in the morning to a gain later in the day to help pull the market higher. Treasury yields also veered from lower to higher following a better-than-expected report on the job market.
> Read more about markets’ reaction to the tariffs
South and Southeast Asia targeted with some of the highest tariffs
Vietnam, Sri Lanka and other countries across South and Southeast Asia are the targets of some of the highest tariff rates.
Trump imposed 46% “reciprocal” duties on goods from Vietnam, 49% on products from Cambodia, 37% on Bangladesh and 44% on Sri Lanka.
The duties will affect domestic exporters to the U.S. but also Chinese, Japanese and South Korean companies that have over the past few years shifted production to Southeast Asian nations to escape the trade frictions during Trump’s first term in office.
Vietnam’s stock market plunged Thursday while gold prices reached a record high after U.S. President Donald Trump slapped 46% tariffs on Vietnam’s exports. Meanwhile people lined up to buy gold in Hanoi despite the high prices.
“Investing in gold would be at lower risk because the economy is very uncertain at the moment,” said Nguyen Trung, a buyer.
Vietnam has long realized that it was too reliant on the U.S. and has been diversifying its trade relations by signing free trade agreements with over a dozen countries, said Dan Martin, international business adviser of Dezan Shira & Associates.
“The lesson is clear now, the reliance that Vietnam had as a U.S. export market, it’s not safe,” he said.
Especially hard-hit will be the garments and sportswear section, including household names like Adidas and Nike. Nike made a good portion of its shoes and about a third of its clothes in Vietnam last year, while factories in Vietnam made 39% of Adidas’s shoes and 18% of its clothes.
Vietnam’s Prime Minister Pham Minh Chinh said that the country still hoped to reach its economic growth target of at least 8% despite the Trump administration imposing 46% tariffs on its exports.
Chinh chaired a Cabinet meeting Thursday to assess the impact of the tariffs, among the highest imposed on any country, and said that Vietnam hoped that U.S. policy would be “consistent with the good relations between the two countries.”
He added that Vietnam was still overcoming the consequences of the long war between the two nations.
The tariffs will deal a severe blow to Vietnam since the U.S. is its largest export market. Exports to the U.S., valued at $142 billion, in 2021 made up a third of the country’s GDP.
Hong Kong urges US to withdraw tariffs
Hong Kong strongly opposed the extra tariffs announced by Trump and urged the U.S. to withdraw them. It said Hong Kong, as a free port, always practices free trade and doesn’t impose tariffs on imported goods, including those from the U.S.
It said the U.S. had a trade surplus of $271.5 billion with the semiautonomous Chinese territory over the past decade, the highest among its global trading partners.
“The U.S. imposing tariffs on Hong Kong products as so-called reciprocal tariffs defies logic,” Hong Kong’s government said in a statement, adding that it would take measures including filing complaints with the WTO.
Hong Kong, a former British colony returned to China in 1997, has a different economic and political system from mainland China that allows it to set its own policies most of the time.
India wants to expedite trade talks with US
India’s Trade Ministry is assessing the latest U.S. tariffs announced by President Donald Trump. It said the Indian government strives to expedite the negotiations for a trade agreement with the U.S. to potentially garner some concessions and offset the impact of higher import taxes.
The agreement, first tranche of which is expected to be in place by the fall, would focus on enabling both nations to boost trade, investments and technology transfers in addition to deepening supply chain integrations, it said.
“We remain in touch with the Trump administration and expect to take them forward in the coming days,” it said.
The U.S was New Delhi’s biggest trading partner in 2024 with trade estimated at $129 billion. The countries have now set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030.
Indian exporters and analysts say Trump’s new tariffs are a mixed bag for the country.
Trump announced a reciprocal tariff of 26% for India, as compared to 34% for China, 46% for Vietnam, 37% for Bangladesh and 36% for Thailand.
Observers said Thursday the move will likely impact Indian industry and pressure jobs, but that there is room for new business to come in since India is in a lower band than its Asian peers.
“These tariffs do present challenges, but India’s position remains comparatively favorable,” said S.C Ralhan, president of the Federation of Indian Exports Organisations.
Ajay Srivastava, a former Indian trade official and founder of the New Delhi-based think tank Global Trade Research Initiative, said the protectionist tariff regime could be a catalyst for India to gain from global supply chain realignments.
Japan: We’re ready to negotiate with Trump
Japanese Prime Minister Shigeru Ishiba said it was “extremely regrettable” that the United States slapped the 25% auto tariff on Japan despite its huge contribution to the U.S. economy.
Japanese companies have been the world’s biggest investors in the U.S. since 2019, especially automakers, creating jobs for millions of Americans, Ishiba said.
Ishiba said Japan will continue to strongly request the United States to reconsider its tariffs measures and that he will directly negotiate with Trump “at a most appropriate time and method without hesitation.”
Japanese Prime Minister Shigeru Ishiba says the tariffs are a matter of great concern and stressed that Japan’s contributions to the American economy are significant both in terms of investment and jobs.
He said he repeatedly made his case with the Trump administration not to move ahead with the tariffs.
“They will have a great impact not only on U.S.-Japanese economic relations but also on the global economy and various trade relations overall,” Ishiba told reporters Thursday.
“We as the government will work as one to decisively protect people’s lives, jobs and industries,” he added.
Japan’s chief cabinet secretary has called the tariffs “extremely regrettable,” saying officials thought the country deserved an exemption after Trump slapped 24% additional tariffs on Japan.
Yoshimasa Hayashi on Thursday also questioned whether the tariffs are compatible with Japan-U.S. bilateral trade agreements and said the move would likely impact their economic ties, as well as the global economy and multilateral trade system.
He said Japanese officials are continuing to negotiate with Washington seeking an exemption. Asked if Japan would consider retaliatory tariffs or file complaints with the World Trade Organization, Hayashi declined to comment.
Honda CEO: Company response will take time
Honda Chief Executive Toshihiro Mibe says the Japanese automaker will take some time to look at the market situation and other factors to determine the right way to respond to Trump’s tariffs.
“Sudden changes like this are tough as it’s hard to respond speedily,” he told reporters on Thursday.
Fiji: Tariffs as ‘disproportionate’ and ‘unfair’
Among the small island nations of the South Pacific Ocean, a few were singled out for higher tariff rates than the 10% baseline. Fiji’s Deputy Prime Minister Biman Prasad on Thursday criticized as “disproportionate” and “unfair” the 32% tariffs announced on Fiji’s exports to the U.S.
The U.S. is a major trading partner for the nation of 924,000 people, accounting for 10% of total imports and exports, Prasad said Thursday on social media. Fiji’s biggest export to the U.S. is bottled water, with its most famous brand — Fiji Water — owned by a U.S. conglomerate.
The U.S. administration justified Fiji’s higher tariffs with a claim that the Pacific nation imposes 63% tariffs on American goods arriving on its shores. Prasad rejected that figure, telling reporters that Fiji does not impose such tariff rates on any country.
China: ‘No winners in trade wars’
A Chinese Foreign Ministry spokesperson says “there are no winners in trade wars and tariff wars, and protectionism is not a way out. What the U.S. should do is to correct its wrong practices and resolve trade disputes with all countries, including China, through consultations based on equality, mutual respect and mutual benefit.”
Guo Jiakun added that the tariffs violate WTO rules, “harm the common interests of people of all countries, and do not help solve the problems of the U.S. itself. It is clear to everyone that more and more countries are opposing the U.S.’s unilateral bullying actions, such as imposing tariffs.”
Taiwan calls US tariffs ‘strongly unreasonable’
Taiwan responded to the imposition of a 32% tariff on its high-tech economy by calling it “strongly unreasonable and highly regrettable,” adding it would “lodge solemn representations with the United States.”
“The proposed tax rate does not reflect the actual economic and trade situation between Taiwan and the United States (and) is unfair to Taiwan,” Cabinet spokesperson Lee Hui-chih said in an official news release.
Lee said the tariff calculation method was unscientific and unclear and “cannot reflect the high degree of complementarity in the trade structure between Taiwan and the U.S. and the actual trade relationship.”
Taiwan’s exports to the U.S. and corresponding trade surplus have risen significantly in recent years, mainly reflecting the surge in demand from U.S. customers for semiconductors and related products, especially AI products, Lee said.
Thailand says it is ready to negotiate
The Thai prime minister says her country is ready to negotiate with the U.S. to find a fair trade balance for both sides after Trump announced 36% tariffs on Thailand.
Paetongtarn Shinawatra said Thursday that Thailand is committed to working with the U.S. to achieve sustainable economic growth.
She added that Thai exporters should also look for additional markets for their products to reduce their risk of relying on one main market.
South Korea prime minister calls for emergency measures to support industries
South Korea’s acting leader called for swift emergency measures to support the auto industry and other businesses potentially affected by the Trump administration’s new tariffs, pledging full government efforts to address what he described as a looming “global tariff war.”
During an emergency government meeting, Prime Minister Han Duck-soo also instructed officials to work with business groups to analyze the impact of the U.S. tariff increases and actively engage in negotiations with Washington to “minimize damage” to South Korea’s economy, the trade ministry said.
Han, serving as South Korea’s acting leader while President Yoon Suk Yeol remains impeached over his December imposition of martial law, convened the meeting with trade and foreign policy officials after Trump announced a 25% tariff on South Korea.
Australia puzzled
The local government leader of Christmas Island, one of several Australian external island territories that like Australia have been assigned a 10% U.S. tariff, said his Indian Ocean atoll exported nothing to the United States.
The Australian outpost of fewer than 2,000 people 225 miles south of the Indonesian capital Jakarta has used U.S. heavy machinery to mine phosphate for decades, Christmas Island Shire President Gordon Thomson said.
The uninhabited Heard and McDonald Islands in the remote Antarctic are another Australian territory included in the 10% tariff. The mostly barren islands include two active volcanoes and can only be reached by sea.
Australian Prime Minister Anthony Albanese said Australia imposes no tariffs on U.S. imports. The U.S. and Australia have a free trade agreement.
Israeli finance minister says his office is ‘analyzing’ tariffs
Israeli Finance Minister Bezalel Smotrich says his office is studying Trump’s tariff order and “analyzing its implications for the economy,” in the country’s first reaction to Trump’s announcement of a 17% tariff on imports from Israel.
On Wednesday, ahead of Trump’s announcement, Israel cancelled all remaining tariffs on imports from the U.S. The Prime Minister’s Office said in a statement the move would go into effect after final approval by the economy minister and the parliament’s finance committee.
Smotrich said in a statement on X he was talking with industry leaders about Trump’s new order and would meet Thursday with the Finance Ministry leadership to decide on “courses of action” in response to it.
Automaker Stellantis will shut down Canadian plant for 2 weeks
Automaker Stellantis will shut down its assembly plant in Windsor, Canada, for two weeks from April 7, the local union said late Wednesday.
The president of Unifor Local 444, James Stewart, said more scheduling changes were expected in coming weeks.
“The company said there are multiple factors at play, with the primary driver behind the final decision being this afternoon’s announcement from U.S. President Donald Trump of the U.S. tariffs,” Stewart said. “This has and continues to create uncertainty across the entire auto industry. This is not just affecting our plant—it’s impacting facilities in the U.S. and Mexico as well.”
House majority whip praises tariffs
House Majority Whip Tom Emmer fielded mostly friendly questions during an hourlong telephone town hall with constituents in Minnesota.
House Speaker Mike Johnson has encouraged Republican lawmakers to avoid holding in-person town halls, where they’d run the risk of hostile questioning and protesters.
Emmer extensively praised the actions that Trump has been taking in his first months back in office, including the tariffs he announced earlier Wednesday.
“How about we give this guy some grace while he tried to actually do what he’s been campaigning on for years and his mission to protect American companies and workers?” Emmer said. “There’s still going to be some choppy waters, but when we come out the other side, it’s going to be much better than it was beforehand, and certainly much better than it was the last four years.”