Photo: KVUE

Global markets and businesses were shaken on Thursday as US President Donald Trump announced a series of sweeping tariffs on both major trading partners and struggling countries.

Trump's new policy imposes a minimum 10% tariff on all goods imported into the US, while raising the maximum tariff to more than 50% for some countries. This is the biggest change to global trade rules since World War II. The US president said the tariffs were aimed at decades of unfair trade practices that have put the US at a disadvantage.

The 10% tariff will take effect on April 5, while the country-specific “reciprocal” tariffs will start on April 9.

Trump has already imposed a 20% tariff on goods from the European Union (EU). Mexico and Canada were spared from the announcement but will still be subject to the 25% tariff that has been in place since the start of the year.

Reaction to the sudden shift in US trade policy has been strong, with Asian markets falling on Thursday morning. Here’s how each country has reacted to Trump’s new economic order.

China

China has been hit the hardest by the new tariffs, bringing the total tariff rate on Chinese goods to more than 50%.

China's Commerce Ministry called on Washington to "immediately cancel" the tariffs, warning that they would "threaten global economic development" and harm US interests and international supply chains.

"There are no winners in a trade war, and protectionism has no way out," the ministry said. Beijing has pledged to take retaliatory measures.

The US will impose 34% tariffs on Chinese goods, on top of the 20% imposed earlier this year.

Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China, said China had become accustomed to US tariffs over the past seven years. "But these high tariffs have not reduced the volume of US-China bilateral trade or China's trade surplus with the US… Most Chinese people believe that the US tariff war with China is ineffective."

Wang predicted that countermeasures could include reciprocal tariffs, a devaluation of the yuan and tightening rare earth exports to the US.

Trump also closed the “de minimus” loophole that allows goods worth less than $800 to enter the US duty-free. More than 90% of packages arrive in the US through this mechanism, with about 60% originating from China. Closing the loophole, which takes effect on May 2, will hit fast-fashion companies such as Shein and Temu.

UK

Trump has imposed a 10% tariff on goods from the UK. The UK Prime Minister’s Office expressed relief at getting rid of the originally predicted 20% tariff, thanks to Prime Minister Keir Starmer’s softer approach to the Trump administration.

However, UK growth forecasts could be slashed by the impact of tariffs, which could cost thousands of jobs and force the government to cut spending or raise taxes this autumn.

South Korea

Acting South Korean President Han Duck-soo has pledged a "comprehensive" response to the 25% tariffs on exports to the US on Asia's fourth-largest economy. Han has convened an emergency meeting to deal with the trade crisis.

The auto industry is expected to be hit hard, with major carmakers such as Hyundai and GM Korea likely to see reduced exports to the US.

Japan

Japanese Prime Minister Shigeru Ishiba questioned the US's blanket tariff: "Japan is the biggest investor in the US, so is it reasonable for Washington to impose tariffs on everyone?"

Japan's trade minister Yoji Muto expressed regret and said Tokyo was still trying to persuade the Trump administration to reconsider.

Tokyo stocks reacted negatively, with the Nikkei index falling 4% to an eight-month low.

India

India faces a 26% tariff on all goods exported to the US, which the Trump administration says is still "preferential" compared to the 52% rate India currently charges on US goods.

The Indian government is reviewing the impact of the policy. While electronics, jewelry and textiles are affected, pharmaceuticals – one of India's biggest exports – are exempt.

Australia

Prime Minister Anthony Albanese said that while “nobody has a better deal” than Australia, the new tariffs were a hostile act against an ally.

Australia was less affected than other countries under Trump’s new tariffs – facing a common 10% tariff – but Albanese was still critical of the move. “President Trump talked about reciprocal tariffs. A reciprocal tariff should be zero, not 10%,” he said. “This administration’s tariffs are illogical and against the foundation of our partnership. They are not the actions of a friend,” Albanese stressed.

Albanese insisted that his government would not impose retaliatory tariffs on the US – currently at zero in both directions – and that ultimately the American people would bear the brunt of Trump’s tariffs.

Some critical minerals from Australia that are not available in the US will be exempt from the new tariffs.

New Zealand

Prime Minister Christopher Luxon said on Thursday that New Zealand is getting a 10% tariff – relatively better than other countries – but he stressed that tariffs and trade wars “are not the answer.”

“There are about $900 million in tariffs being imposed on New Zealand exporters, and unfortunately that money is going to be passed on to American consumers,” Luxon said. “This will raise prices for American consumers, push inflation higher, slow economic growth, and put real pressure on the world.”

Luxon said he would seek to discuss with US officials the claim that New Zealand is imposing a 20% tariff on imports from the US. “We don’t understand how that figure is calculated,” he said.

The US is New Zealand’s fastest-growing export market and is set to become the second-largest by 2024, overtaking Australia and trailing only China. New Zealand exports to the US were set to exceed NZ$9 billion ($5 billion) in 2024, driven largely by meat, dairy and wine. The new tariffs could cost New Zealand exporters up to NZ$900 million.

Canada

Canada was exempted from the latest tariffs but still faces 25% tariffs on steel, aluminium and autos, which came into effect at midnight EST. Prime Minister Mark Carney said he would “fight these tariffs with countermeasures” and pledged to “build the strongest economy in the G7.”

Carney said Trump had “maintained some important elements of our relationship,” but noted that the previous 25% tariffs — which Trump said were a punishment for Canada for not sufficiently stemming the flow of fentanyl into the United States — remained in place.

Flavio Volpe, president of the Canadian Automotive Components Manufacturers Association, tweeted that the outcome was like “dodging a bullet but landing in the path of a tank.”

Mexico

Like Canada, Mexico was exempted from the latest round of tariffs but still faces tariffs previously announced by Trump. President Claudia Sheinbaum said Wednesday that Mexico would not pursue a “tit-for-tat tariff policy” and would instead announce a “comprehensive program” on Thursday.

Taiwan (China)

Taiwan’s government called the new tariffs “very unreasonable” and said it would raise the issue with the US government.

The 32% tariffs Trump announced on Taiwan are expected to have a serious impact on the island’s economy. Taiwan’s economy relies on exports for more than 60%, and the country posted a trade surplus of nearly $74 billion last year. Bloomberg economists predict Taiwan’s GDP could shrink by 3.8% as exports to the US fall sharply due to the tariffs.

Before the announcement, Taiwanese President Lai Ching-te said Taiwan was an “indispensable” member of the global supply chain and that his government would protect the interests of Taiwanese businesses.

The American Chamber of Commerce in Taiwan called on policymakers on both sides to “continue to promote this mutually beneficial relationship.”

“In an increasingly complex geopolitical environment, the US-Taiwan partnership not only promotes shared economic prosperity but also plays a vital role in supply chain security and regional stability,” the organization said in a statement.

Taiwanese officials have been planning to respond to the tariffs for months, including considering increasing energy imports from the US and reducing Taiwan’s own tariffs to balance bilateral trade, according to reports last week.

The Taiwanese government has also previously tried to placate the Trump administration after he announced tariffs on the semiconductor industry, a sector Taiwan dominates. A $100 billion investment by TSMC in the US, announced by TSMC’s chairman and Trump at the White House, appears to have paid off, with Trump announcing

US Reciprocal Tariffs (Source: FreightWaves)

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Source: Phaata.com (According to The Guardian)

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