President Donald Trump’s sweeping tariff announcement — a 10% baseline levy on all imports and targeted reciprocal rates of up to 54% — has triggered an international firestorm, with world leaders warning of economic retaliation, legal challenges, and a potential collapse of global trade norms.

Related: Trump Announces Tiered Tariffs on China, EU, India, Others — “This Is Just the Start”

Governments Respond: From Retaliation to Caution

1. European Union 🇪🇺

  • EC President Ursula von der Leyen: “Global economy will massively suffer.”
  • EU preparing €290 billion in countermeasures
  • Special EU vote scheduled for April 9 on steel and aluminum retaliation
  • France’s 🇫🇷 Macron: “All instruments on the table. EU anti-coercion tool not excluded.”
  • Spain 🇪🇸: €14.1 billion domestic support package announced
  • France’s wine/spirit industry expects 20% sales drop = €1.6 billion EU-wide hit

2. China 🇨🇳
Beijing condemned the 54% U.S. tariffs on its exports as “unilateral bullying,” vowing “resolute countermeasures.” China’s commerce ministry urged Washington to cancel the tariffs immediately, warning “there is no winner in a trade war.”

3. Germany 🇩🇪
German officials joined France in calling for stronger EU retaliation. Chancellor Friedrich Merz said the EU “cannot accept a one-sided economic attack on our industries.”

4. Japan 🇯🇵
Labeling the tariffs “regrettable,” Japan is seeking an exemption and questioning their compliance with WTO rules. PM Shigeru Ishiba said the move violates the Japan-U.S. trade agreement.

5. Canada 🇨🇦
PM Mark Carney promised forceful countermeasures, saying millions of Canadians would be directly affected. “We will act with purpose and with force,” he stated.

6. Mexico 🇲🇽
President Claudia Sheinbaum said Mexico will not go “tit-for-tat,” but is preparing a broader economic response.

7. South Korea 🇰🇷
Acting President Han Duck-soo declared that “a global trade war has become a reality” and launched emergency support for domestic industries.

8. United Kingdom 🇬🇧
The UK, which received a lighter 10% tariff rate, said it will keep “options open” and seek a trade deal. PM Rishi Patel urged “cool and calm heads” while ruling out retaliation.

9. Brazil 🇧🇷
Brazil is weighing WTO action and considering sector-specific responses.

10. Australia 🇦🇺
PM Anthony Albanese called the 10% tariff on Australian goods “not the act of a friend,” but ruled out retaliation. The country will instead offer financial aid to affected sectors.

11. Malaysia 🇲🇾
Malaysia is taking a strategic route — no retaliation, but engaging with U.S. officials. Its trade ministry aims to expand exports and strengthen the country’s chip design industry.

Economic Impact & Industry Fallout

  • UBS estimates U.S. inflation could hit 5% if tariffs remain permanent.
  • The EU expects €290 billion worth of its exports to be impacted.
  • France’s wine and spirits industry expects a €800 million loss, with a €1.6 billion hit across the EU.
  • PM Macron has asked French firms to pause investments in the U.S., saying “all instruments are on the table.”

Trump’s Position

“Today we’re standing up for the American worker, and we are finally putting America first,” Trump declared.

“We truly can be very wealthy. We can be so much wealthier than any country, it’s not even believable, but we’re getting smart.”

“None of our companies are allowed to go into other countries… friend or foe. That ends tonight.”

“It’s our declaration of economic independence.”

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