On Thursday, China and the European Union warned that they would retaliate against President Donald Trump’s announced tariffs, which have created upheaval in global markets and drawn criticism from international leaders.
Trump declared on Wednesday that he intended to impose a 10% baseline tariff on all imports to the US, along with elevated rates targeting imports of sportswear from Asia, Italian coffee, and Japanese whiskey.
China, facing tariffs of 54% including preliminary tariffs, urged the US to abandon its trade policy and pledged to safeguard its interests.
“China opposes this firmly,” stated the Commerce Ministry of Beijing. “In a trade war, there are no winners. Protectionism has no future.”
European Union leader Ursula von der Leyen expressed that the 27-nation bloc feels it has “let down our oldest allies” and affirmed that the EU is “prepared to respond.”
She described Trump’s tariffs as a “significant setback,” which would lead to increased costs and heightened inflation globally.
“The consequences will be catastrophic for countless individuals,” she remarked.
The White House has not yet issued a response to a request for comment.
Trump is not scheduled to participate in any public events before heading to a golf tournament at a Florida resort.
Treasury Secretary Scott Becent recommended that countries refrain from responding to retaliatory measures too hastily after Trump’s “liberation day” speech in the Rose Garden on Wednesday.
“Everyone should take a moment, breathe deeply, and avoid retaliating right away. Let’s see how this unfolds.”
Trump’s 10% baseline tariff is set to commence just after midnight on Saturday, although higher mutual tariffs will not take effect until April 9th.
Experts suggest that there’s room for negotiation, possibly resulting in a lower final tariff rate.
“In the next 24 hours, we will learn that the world cannot remain as it is, or we will face economic Armageddon through self-inflicted damage.”
“We must consider this as the beginning of negotiations and that these tariffs may not be enforced.”
However, Ives noted that the initial tariff rate Trump proposed during Wednesday’s announcement was “illogical and ridiculous.”
Other key trading partners have also condemned the escalating trade conflict that threatens to alter global alliances.
“This is not a gesture of friendship,” remarked Australian Prime Minister Anthony Albanese. “The tariffs by the (Trump) administration are baseless and counter to the foundation of our partnership.”
Japan, another significant US ally, indicated that it might implement retaliatory measures following a 24% tariff imposition.
“We need to carefully and quickly determine the best and most effective response for Japan,” said Trade Minister Yoji Moto when asked if Japan would retaliate.
According to Fitch ratings, the newly implemented US tariffs are the highest witnessed in over a century. Last year, imports into the largest consumer market faced an average tariff rate fluctuating from 22.5% to 2.5%.
Trump states that “mutual” tariffs address barriers on US goods. Officials claim that these tariffs will boost domestic manufacturing jobs and open up overseas export markets, though they caution that the benefits will take time to materialize.
“I know many Americans are anxious,” said Vice President JD Vance in an interview with Fox News. “What we ask people to remember is that we won’t resolve everything overnight.”
Numerous companies are relocating their production capacity from China to Vietnam, Cambodia, and Thailand, wary of impending tariffs and trade restrictions in Asian nations.
However, following Trump’s proposed tariffs of 46% in Vietnam, 49% in Cambodia, and 36% in Thailand, restructuring their supply chains might turn out to be futile.
New taxes could drastically raise clothing and apparel prices, as many businesses depend on South Asian countries for manufacturing.
Economists assert that tariffs might reignite inflation, heighten the risk of a recession in the US, and increase the expenses for the average American family by thousands.
With post wire
