The EU chief mentioned it was a significant blow to the world economic system and the implications “might be dire for thousands and thousands of individuals.”
Groceries, transport and medicines will price extra, she mentioned, “and that is hurting, particularly, probably the most susceptible 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 however was additionally ready to reply with countermeasures.
Her feedback come as US President Donald Trump’s tariff announcement was met, initially, with measured reactions from key buying and selling companions, highlighting the dearth of urge for food for a full-fledged commerce struggle.
Trump introduced the import taxes, which he calls “reciprocal tariffs” and vary from 10% to 49%, within the easiest phrases: the US would do to its buying and selling companions what he mentioned they’d been doing to the US for many years.
“Taxpayers have been ripped off for greater than 50 years,” he mentioned. “However it isn’t going to occur anymore.”
The president promised that “Jobs and factories will come roaring again into our nation.” He framed it not simply as an financial concern, however a query of nationwide safety that threatens “our very lifestyle.”
Monetary markets have been jolted, with US inventory futures down by as a lot as 3% early Thursday and Tokyo’s market main losses in Asia. Oil costs sank greater than $2 a barrel and the worth of bitcoin dropped 4.4%.
Leaders react to tariffs
Shortly after Trump’s announcement, the British authorities mentioned america stays the UK’s “closest ally.”
Enterprise Secretary Jonathan Reynolds mentioned the UK hoped to strike a commerce deal to “mitigate the impression” of the ten% tariffs on British items introduced by Trump.
“No one desires a commerce struggle and our intention stays to safe a deal,” mentioned Reynolds. “However nothing is off the desk and the federal government will do every little thing essential to defend the UK’s nationwide curiosity.”
Italy’s conservative Premier Giorgia Meloni described the brand new 20% tariffs in opposition to the European Union as “flawed,” saying they profit neither aspect.
“We are going to do every little thing we are able to to work in direction of an settlement with america, with the goal of avoiding a commerce struggle that might inevitably weaken the West in favour of different world gamers,” Meloni mentioned in a Fb put up.
Brazil’s authorities mentioned it was contemplating taking the case to the World Commerce Group. And later, in a uncommon show of unity, Brazil’s Congress unanimously handed a reciprocity invoice to permit its authorities to retaliate in opposition to any nation or commerce bloc that imposes tariffs on Brazilian items.
Minimising injury
Asian nations which are among the many greatest exporters to the US pledged to take swift motion to assist automakers and different companies prone to be affected.
South Korea’s appearing chief, Prime Minister Han Duck-soo, informed officers to work with enterprise teams to analyse the potential impression of the brand new 25% tariff to “minimise injury,” the commerce ministry mentioned.
China’s commerce ministry mentioned Beijing would “resolutely take countermeasures to safeguard its personal rights and pursuits,” with out saying precisely what it’d do. China has reacted to earlier rounds of upper tariffs by imposing larger duties on US exports of farm merchandise, whereas limiting exports of strategically necessary minerals used for high-tech industries equivalent to electrical automobiles.
“China urges america to right away cancel its unilateral tariff measures and correctly resolve variations with its buying and selling companions by way of equal dialogue,” it mentioned.
Some nations took concern with the White Home’s calculations.
Australian Prime Minister Anthony Albanese mentioned the US tariffs imposed on his nation have been completely unwarranted, however Australia is not going to retaliate.
“President Trump referred to reciprocal tariffs. A reciprocal tariff could be zero, not 10%,” mentioned Albanese. The US and Australia have a free commerce settlement and the US has a $2-to-$1 commerce surplus with Australia. “This isn’t the act of a pal.”
Trump mentioned america purchased $3 billion of Australian beef final 12 months, however Australia wouldn’t settle for US beef imports. Albanese mentioned the ban on uncooked US beef was for biosecurity causes.
The 29% tariff imposed on the tiny South Pacific outpost of Norfolk Island got here as a shock. The Australian territory has a inhabitants of round 2,000 folks and the economic system revolves round tourism.
“To my information, we don’t export something to america,” Norfolk Island Administrator George Plant, the Australian authorities’s consultant on the island, informed the AP Thursday. “We don’t cost tariffs on something. I can’t consider any non-tariff limitations that might be in place both, so we’re scratching our heads right here.”
New Zealand additionally took concern with Trump’s tariff logic.
“We don’t have a 20% tariff price,” mentioned commerce minister Todd McClay, including that New Zealand was “a really low tariff regime” and the proper determine was beneath the ten% baseline price utilized by the US to all nations.
“We gained’t be trying to retaliate. That might put up costs on New Zealand shoppers and it will be inflationary,” he mentioned.
Spared for the second from the most recent spherical of tariffs have been Mexico and Canada, for items already certified below their free commerce settlement with america. But, beforehand introduced 25% tariffs on auto imports have been scheduled to take impact at midnight.
Mexico President Claudia Sheinbaum mentioned on Wednesday she would wait to take motion on Thursday when it was clear how Trump’s announcement would have an effect on Mexico.
“It’s not a query of in the event you impose tariffs on me, I’m going to impose tariffs on you,” she mentioned Wednesday morning. “Our curiosity is in strengthening the Mexican economic system.”
Canada had imposed retaliatory tariffs in response to the 25% tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the metal and aluminum tariffs, imposed taxes on 26 billion euros’ value ($28 billion) of US items, together with bourbon, prompting Trump to threaten a 200% tariff on European alcohol.
Little to realize
As Trump learn the listing of nations that might be focused on Wednesday, he repeatedly mentioned he didn’t blame them for the commerce limitations they imposed to guard their very own nations’ companies. “However we’re doing the identical factor proper now,” he mentioned.
“Within the face of unrelenting financial warfare, america can not proceed with a coverage of unilateral financial give up,” Trump mentioned.
Talking from a enterprise discussion board in India, Chilean President Gabriel Boric warned that such measures, along with inflicting uncertainty, problem the “mutually agreed guidelines” and the “ideas that govern worldwide commerce.”
Colombia President Gustavo Petro, who has clashed with Trump earlier than, mentioned through X that the tariffs marked a world milestone: “Right now the neoliberalism that proclaimed free-trade insurance policies all around the world has died.”
Analysts say there’s little to be gained from an all-out commerce struggle, neither in america or in different nations.
“As soon as once more, Trump has put Europe at a crossroads,” mentioned Matteo Villa, senior analyst at Italy’s Institute for Worldwide Political Research.
“If Trump actually imposes excessive tariffs, Europe must reply, however the paradox is that the EU could be higher off doing nothing,” he added, noting that the EU bloc relies upon extra on exports to the US than vice versa.
“Then again, Trump appears to know solely the language of power, and this means the necessity for a robust and rapid response,” Villa mentioned. “In all probability the hope, in Brussels, is that the response might be robust sufficient to induce Trump to barter and, quickly, to backtrack.”
