Broad, hard-hitting tariffs introduced by United States President Donald Trump have triggered international alarm and retaliatory threats from key allies, with analysts warning they might push the US and different international locations in the direction of a recession.
Nonetheless, many US commerce companions responded cautiously to the levies – which vary from a baseline 10 % to 49 % – exhibiting a reluctance to escalate right into a full-scale commerce battle with the world’s largest economic system.
“It is a sport changer, not just for the US economic system however for the worldwide economic system,” stated Olu Sonola, Fitch Rankings’ head of US Financial Analysis, in a report. “You’ll be able to throw most forecasts out the door, if this tariff charge stays on for an prolonged time frame.”
Right here’s how US allies, different international locations, enterprise teams, and specialists are responding:
European Union
European Fee President Ursula von der Leyen, responding to a brand new 20 % tariff on the EU, referred to as the measure a “main blow to the world economic system”.
“The implications will probably be dire for hundreds of thousands of individuals across the globe,” she stated, including groceries, transport and drugs will price extra. “And that is hurting, particularly, essentially the most susceptible residents.”
Von der Leyen acknowledged that the world buying and selling system has “severe deficiencies” and stated the EU was prepared to barter with the US but additionally was ready to reply with countermeasures.
United Kingdom
The UK performed it diplomatically, declaring that the US stays its “closest ally” regardless of a brand new 10 % tariff on British items.
Secretary of State for Enterprise and Commerce Jonathan Reynolds stated the UK sought a commerce deal to “mitigate the affect” of the tariff. “No person desires a commerce battle and our intention stays to safe a deal,” he stated. “However nothing is off the desk and the federal government will do all the pieces essential to defend the UK’s nationwide curiosity.”
Japan
The closest US ally in Asia stated the 24 % tariff on it’s “extraordinarily regrettable” and should break World Commerce Group guidelines and the 2 international locations’ commerce settlement.
“I’ve once more strongly urged (Washington) to not apply them [the tariffs] to Japan,” Yoji Muto, commerce and trade minister, advised reporters.
Requested if Japan will impose retaliatory tariffs or is contemplating submitting a go well with to the WTO, authorities spokesman Yoshimasa Hayashi stated: “We decline to reveal particulars of our issues.”
Al Jazeera’s Fadi Salameh, reporting from Tokyo, stated the tariffs will deal a heavy blow to the auto trade that the nation will battle to answer.
China
The Ministry of Commerce, reeling from a 34 % tariff on prime of the 20 % already imposed earlier this yr, stated China would “resolutely take countermeasures to safeguard its personal rights and pursuits”, with out saying precisely what it’d do.
“China urges the US to instantly cancel its unilateral tariff measures and correctly resolve variations with its buying and selling companions via equal dialogue,” it stated.
Invoice Bishop, an analyst and commentator on China affairs, stated the US ought to count on a swift response from China, together with extra export controls on crucial minerals and inquiries into US corporations. Beijing can also make a “bigger than anticipated devaluation” of its foreign money towards the US greenback to offset the price of the brand new tariffs, Bishop wrote in his Sinocism e-newsletter.
South Korea
Performing President Han Duck-soo referred to as for talks with US officers to defend the export-reliant economic system from the impact of the 25 % tariff and ordered emergency assist measures for companies.
Han requested the trade minister to analyse the content material of the tariffs and actively negotiate with Washington to minimise the impact, a ministry assertion stated.
“As the worldwide commerce battle has develop into a actuality, the federal government should pour all its capabilities to beat the commerce disaster,” Han stated.
Al Jazeera’s Jessica Washington, reporting from Seoul, stated “a whole lot of small and medium enterprises will probably be affected”.
“However for the time being it does appear South Korea believes there’s a path ahead involving negotiation,” she stated.
Brazil
The federal government of Latin America’s largest economic system stated it was “evaluating all attainable actions to make sure reciprocity in bilateral commerce, together with resorting to the World Commerce Group”, following Trump’s 10 % tariff.
Earlier within the day, Brazil’s Congress authorized a invoice that establishes a authorized framework for Brazil to answer potential unilateral commerce measures focusing on its items and providers, together with countermeasures akin to tariffs.
Monetary analysts
As US inventory futures and Japan’s inventory index dropped, market analysts warned of extreme disruption from tariff hikes reaching ranges unseen in additional than a century.
“The magnitude of the rollout — each in scale and pace — wasn’t simply aggressive; it was a full-throttle macro disruption,” stated international market strategist Stephen Innes.
“The [average] US tariff charge on all imports is now round 22 %, from 2.5 % in 2024. That charge was final seen round 1910,” added Sonola, of Fitch Rankings. “Many international locations will seemingly find yourself in a recession.”
The ache is more likely to be particularly intense in Asia Pacific nations, with the very best tariffs for impoverished, financially precarious international locations like Laos at a 48 % tariff, Cambodia at 49 % and Myanmar at 44 %.
“An export-dependent area goes to actually battle with sudden enormous worth will increase. The harm to poorer international locations is especially merciless,” Deborah Elms, the top of commerce coverage on the Hinrich Basis in Singapore, advised Al Jazeera.
US commerce teams
Whereas some US commerce representatives welcomed the safety for home industries, others expressed concern that greater prices may squeeze already tight margins for producers and drive up costs for customers.
“The excessive prices of latest tariffs threaten funding, jobs, provide chains and, in flip, America’s skill to outcompete different nations and lead because the pre-eminent manufacturing superpower,” stated Jay Timmons, president and CEO of the Nationwide Affiliation of Producers.
Scott Paul, president of the Alliance for American Manufacturing, stated the measures prioritise US producers and staff.
“These hardworking women and men have seen unfair commerce minimize the bottom from beneath their ft for many years. They deserve a combating probability,” he stated in an announcement.
