Frankfurt: Sweeping new tariffs announced by US President Donald Trump provoked dismay, threats of countermeasures and urgent calls for talks to find ways to rescind the stiff new import taxes imposed on goods from countries around the globe.
But responses on Thursday were measured, highlighting a lack of appetite for an outright trade war with the world’s biggest economy.
Trump’s announcement of a new 20% tariff on the European Union drew a sharp rebuke from European Commission President Ursula von der Leyen, who said it was 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 while visiting Uzbekistan. “And this is hurting, in particular, the most vulnerable citizens.”
Von der Leyen held off, however, from announcing new retaliatory measures and underlined that the EU was ready to negotiate with the US.
Analysts say there is little to be gained from an all-out trade war for the United States or other countries, as higher tariffs can lower growth and raise inflation.
“If Trump really imposes high tariffs, Europe will have to respond, but the paradox is that the EU would be better off doing nothing,” said Matteo Villa, a senior analyst at Italy’s Institute for International Political Studies.
“On the other hand, Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,” Villa said. “Probably the hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.”
Outgoing German Chancellor Olaf Scholz said the EU won’t be able to limit itself to saying the tariffs are damaging – “we must show that we have strong muscles.” He added: “But this is with the aim of an agreement, because that is the best for prosperity in the US, for prosperity in Europe and for prosperity in the world.”
British Prime Minister Kier Starmer said the UK government would react with “cool and calm heads,” telling business leaders in London that he hopes to get the tariffs lifted with a trade deal. “Nobody wins in a trade war that is not in our national interest,” Starmer said.
Canada Prime Minister Mark Carney said his country will match US President Donald Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States. The Prime Minister said he told Trump last week in a phone call that he would be retaliating for those tariffs.
“We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.
Japan, America’s closest ally in Asia, plans to closely analyse the US tariffs and their impact, Chief Cabinet Secretary Yoshimasa Hayashi said, while refraining from talk of retaliation.
Asian countries that are among the biggest exporters to the US pledged to act fast to support automakers and other businesses likely to be affected.
South Korean Prime Minister Han Duck-soo told officials to work with business groups to analyse the impact of the new 25% tariff to “minimise damage,” the trade ministry said.
China’s Commerce Ministry said Beijing would “resolutely take countermeasures to safeguard its own rights and interests,” without saying exactly what it might do.
With earlier rounds of tariffs China reacted by imposing higher duties on US exports of farm products, while limiting exports of minerals used for high-tech industries such as electric vehicles.
Mexican President Claudia Sheinbaum said she would wait to see how Trump’s announcement will affect Mexico.
A 29% tariff imposed on the tiny South Pacific outpost of Norfolk Island came as a shock. The Australian territory has a population of around 2,000 people and the economy revolves around tourism.
“To my knowledge, we do not export anything to the United States,” Norfolk Island Administrator George Plant, the Australian government’s representative on the island, told the AP on Thursday. “We don’t charge tariffs on anything. I can’t think of any non-tariff barriers that would be in place either, so we’re scratching our heads here.”
