US President Donald Trump is set to unveil a sweeping tariff plan, introducing reciprocal duties on foreign imports. The move, branded as "Liberation Day," has drawn sharp responses from global trading partners, with major economies vowing to retaliate. Here’s how different countries are reacting to Trump’s tariff measures.
European Union: A cautious response
German Chancellor Olaf Scholz said that the European Union would react decisively but remained open to dialogue. Speaking ahead of a trade fair in Hanover, he said, "It is clear that we, as the European Union, will react clearly and decisively to the United States' tariff policy." However, he maintained that Europe preferred cooperation over conflict.
European Commission President Ursula von der Leyen echoed this sentiment, warning that the EU had a "strong plan" for retaliation if necessary. "We do not necessarily want to retaliate, but, if it is necessary, we have a strong plan to retaliate and we will use it," she said. The EU has already imposed tariffs on $28 billion worth of US exports, including bourbon, motorbikes, and boats.
Germany: Bracing for impactAs a leading automobile exporter, Germany is expected to be hit hard by Trump’s proposed 25% tariff on auto imports. Finance Minister Joerg Kukies recently travelled to Washington to discuss the issue. A German government spokesman stressed that "nothing is off the table" in terms of a response.
Italy: Calling for diplomacy
Italian Prime Minister Giorgia Meloni has urged a "reasoned" approach, advocating for negotiations over aggressive countermeasures. Meloni warned that new tariffs would significantly impact Italian producers during a prize ceremony for Italian cuisine in Rome. She mentioned considering "adequate responses" to protect exports, without providing details. In 2024, Italy recorded a 39 billion euro trade surplus with the US, the third largest in the eurozone.
China, Japan, and South Korea
In response to US tariffs, China, Japan, and South Korea held their first high-level trade talks in five years, pledging to strengthen free trade. South Korean Industry Minister Ahn Duk-geun highlighted the need for a "predictable trade and investment environment" and said the three nations must respond "jointly" to growing global economic fragmentation.
Japan’s trade official Yasuji Komiyama noted that political tensions should not disrupt economic cooperation, particularly in industries like energy and critical minerals. Chinese official Wang Liping condemned "unilateralism and protectionism," warning that such policies threaten the multilateral trading system.
Canada: Retaliatory measures planned
During a call on Friday, Canadian Prime Minister Mark Carney informed President Donald Trump that Canada would impose retaliatory tariffs on US goods if Trump moves forward with his planned import taxes, potentially escalating the growing trade dispute. C
arney's office announced that Canada intends to implement these tariffs next week in response to Trump's import levies, though no specifics were provided on the timing or scope of the measures.
In a statement, Carney said that the tariffs are aimed at protecting Canadian workers and the economy.
Mexico: Retaliation pending
Mexican President Claudia Sheinbaum announced that Mexico would impose retaliatory tariffs but has yet to disclose specific details. Unlike Canada and China, Mexico appears to be leaving room for potential negotiations before implementing countermeasures.
Impact on the US economy
Experts warn that Trump's tariff policies could have significant economic consequences. Wendong Zhang, an economist at Cornell University, predicts that retaliatory tariffs from Canada, China, and Mexico could result in a 0.4% loss in US GDP, amounting to over $100 billion.
Manufacturers and retailers reliant on global supply chains are already feeling the pressure. Best Buy CEO Corie Barry stated, "International trade is critically important to our business and industry. China and Mexico remain the No. 1 and No. 2 sources for products we sell, respectively." Meanwhile, Target CEO Brian Cornell warned of "meaningful pressure" on profits due to rising costs.
European Union: A cautious response
German Chancellor Olaf Scholz said that the European Union would react decisively but remained open to dialogue. Speaking ahead of a trade fair in Hanover, he said, "It is clear that we, as the European Union, will react clearly and decisively to the United States' tariff policy." However, he maintained that Europe preferred cooperation over conflict.
European Commission President Ursula von der Leyen echoed this sentiment, warning that the EU had a "strong plan" for retaliation if necessary. "We do not necessarily want to retaliate, but, if it is necessary, we have a strong plan to retaliate and we will use it," she said. The EU has already imposed tariffs on $28 billion worth of US exports, including bourbon, motorbikes, and boats.
Germany: Bracing for impactAs a leading automobile exporter, Germany is expected to be hit hard by Trump’s proposed 25% tariff on auto imports. Finance Minister Joerg Kukies recently travelled to Washington to discuss the issue. A German government spokesman stressed that "nothing is off the table" in terms of a response.
Italy: Calling for diplomacy
Italian Prime Minister Giorgia Meloni has urged a "reasoned" approach, advocating for negotiations over aggressive countermeasures. Meloni warned that new tariffs would significantly impact Italian producers during a prize ceremony for Italian cuisine in Rome. She mentioned considering "adequate responses" to protect exports, without providing details. In 2024, Italy recorded a 39 billion euro trade surplus with the US, the third largest in the eurozone.
China, Japan, and South Korea
In response to US tariffs, China, Japan, and South Korea held their first high-level trade talks in five years, pledging to strengthen free trade. South Korean Industry Minister Ahn Duk-geun highlighted the need for a "predictable trade and investment environment" and said the three nations must respond "jointly" to growing global economic fragmentation.
Japan’s trade official Yasuji Komiyama noted that political tensions should not disrupt economic cooperation, particularly in industries like energy and critical minerals. Chinese official Wang Liping condemned "unilateralism and protectionism," warning that such policies threaten the multilateral trading system.
Canada: Retaliatory measures planned
During a call on Friday, Canadian Prime Minister Mark Carney informed President Donald Trump that Canada would impose retaliatory tariffs on US goods if Trump moves forward with his planned import taxes, potentially escalating the growing trade dispute. C
arney's office announced that Canada intends to implement these tariffs next week in response to Trump's import levies, though no specifics were provided on the timing or scope of the measures.
In a statement, Carney said that the tariffs are aimed at protecting Canadian workers and the economy.
Mexico: Retaliation pending
Mexican President Claudia Sheinbaum announced that Mexico would impose retaliatory tariffs but has yet to disclose specific details. Unlike Canada and China, Mexico appears to be leaving room for potential negotiations before implementing countermeasures.
Impact on the US economy
Experts warn that Trump's tariff policies could have significant economic consequences. Wendong Zhang, an economist at Cornell University, predicts that retaliatory tariffs from Canada, China, and Mexico could result in a 0.4% loss in US GDP, amounting to over $100 billion.
Manufacturers and retailers reliant on global supply chains are already feeling the pressure. Best Buy CEO Corie Barry stated, "International trade is critically important to our business and industry. China and Mexico remain the No. 1 and No. 2 sources for products we sell, respectively." Meanwhile, Target CEO Brian Cornell warned of "meaningful pressure" on profits due to rising costs.
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