Broad, hard-hitting tariffs introduced by United States President Donald Trump have triggered world alarm and retaliatory threats from key allies, with analysts warning they may 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 p.c to 49 p.c – displaying a reluctance to escalate right into a full-scale commerce struggle with the world’s largest financial system.
“It is a recreation changer, not just for the US financial system however for the worldwide financial system,” mentioned Olu Sonola, Fitch Scores’ head of US Financial Analysis, in a report. “You possibly can throw most forecasts out the door, if this tariff charge stays on for an prolonged time period.”
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 p.c tariff on the EU, referred to as the measure a “main blow to the world financial system”.
“The results can be dire for hundreds of thousands of individuals across the globe,” she mentioned, including groceries, transport and drugs will price extra. “And that is hurting, particularly, essentially the most weak residents.”
Von der Leyen acknowledged that the world buying and selling system has “critical deficiencies” and mentioned 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 p.c tariff on British items.
Secretary of State for Enterprise and Commerce Jonathan Reynolds mentioned the UK sought a commerce deal to “mitigate the affect” of the tariff. “No person desires a commerce struggle and our intention stays to safe a deal,” he mentioned. “However nothing is off the desk and the federal government will do every little thing essential to defend the UK’s nationwide curiosity.”
Japan
The closest US ally in Asia mentioned the 24 p.c 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 business 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 mentioned: “We decline to reveal particulars of our concerns.”
Al Jazeera’s Fadi Salameh, reporting from Tokyo, mentioned the tariffs will deal a heavy blow to the auto business that the nation will wrestle to reply to.
China
The Ministry of Commerce, reeling from a 34 p.c tariff on high of the 20 p.c already imposed earlier this yr, mentioned China would “resolutely take countermeasures to safeguard its personal rights and pursuits”, with out saying precisely what it would do.
“China urges america to instantly cancel its unilateral tariff measures and correctly resolve variations with its buying and selling companions by equal dialogue,” it mentioned.
Invoice Bishop, an analyst and commentator on China affairs, mentioned the US ought to anticipate 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 forex towards the US greenback to offset the price of the brand new tariffs, Bishop wrote in his Sinocism publication.
South Korea
Appearing President Han Duck-soo referred to as for talks with US officers to defend the export-reliant financial system from the impact of the 25 p.c tariff and ordered emergency assist measures for companies.
Han requested the business minister to analyse the content material of the tariffs and actively negotiate with Washington to minimise the impact, a ministry assertion mentioned.
“As the worldwide commerce struggle has change into a actuality, the federal government should pour all its capabilities to beat the commerce disaster,” Han mentioned.
Al Jazeera’s Jessica Washington, reporting from Seoul, mentioned “lots of of small and medium enterprises can be affected”.
“However in the meanwhile it does appear South Korea believes there’s a path ahead involving negotiation,” she mentioned.
Brazil
The federal government of Latin America’s largest financial system mentioned it was “evaluating all doable actions to make sure reciprocity in bilateral commerce, together with resorting to the World Commerce Group”, following Trump’s 10 p.c tariff.
Earlier within the day, Brazil’s Congress authorized a invoice that establishes a authorized framework for Brazil to reply to potential unilateral commerce measures concentrating on its items and companies, together with countermeasures resembling 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,” mentioned world market strategist Stephen Innes.
“The [average] US tariff charge on all imports is now round 22 p.c, from 2.5 p.c in 2024. That charge was final seen round 1910,” added Sonola, of Fitch Scores. “Many international locations will possible find yourself in a recession.”
The ache is prone to be particularly intense in Asia Pacific nations, with the best tariffs for impoverished, financially precarious international locations like Laos at a 48 p.c tariff, Cambodia at 49 p.c and Myanmar at 44 p.c.
“An export-dependent area goes to essentially wrestle with sudden enormous worth will increase. The injury to poorer international locations is especially merciless,” Deborah Elms, the pinnacle 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 larger prices may squeeze already tight margins for producers and drive up costs for customers.
“The excessive prices of recent tariffs threaten funding, jobs, provide chains and, in flip, America’s capability to outcompete different nations and lead because the pre-eminent manufacturing superpower,” mentioned Jay Timmons, president and CEO of the Nationwide Affiliation of Producers.
Scott Paul, president of the Alliance for American Manufacturing, mentioned the measures prioritise US producers and employees.
“These hardworking women and men have seen unfair commerce minimize the bottom from beneath their ft for many years. They deserve a preventing likelihood,” he mentioned in a press release.
