US President announces sweeping new global tariffs

In what Trump dubbed sweeping new “reciprocal” tariffs, the US has imposed a 20% tariff on EU imports as China, South Korea, Brazil, Poland, Australia and Switzerland have all reacted with dismay as several countries ponder over a response. As investors get jittery, European stocks dived ahead of possible global trade war.

Trump had previously lashed out at the EU over the balance of trade, especially given the higher volume of European goods sold in the US compared to US exports.

Here are some of the reactions to Trump’s new tariffs from across the globe:

China

China has urged the United States to “immediately cancel” its latest tariffs, firmly opposing the tariffs and vowed “countermeasures to safeguard its own rights and interests,” its Commerce Ministry said.

Trump has announced new tariffs of 34% on China, one of the US’ largest trading partners. That comes on top of the 20% the US president imposed earlier this year.

South Korea

South Korea’s industry ministry said that it will pursue active talks with the US officials about tariffs and will look for emergency measures for industries hit by the 25% rate imposed on the Asian nation.

Acting President Han Duck-soo said the government needs to “pour all its capabilities to overcome the trade crisis” as “the global trade war has become a reality.”

Brazil

Latin America’s largest economy said, “it is evaluating all the possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organization, in defense of legitimate national interests,” the Brazilian government said in a statement.

It added that it remains open to dialogue and believes the US claims that the tariffs are reciprocal don’t “reflect reality.”

Poland

Polish Prime Minister Donald Tusk posted on X, saying: “Friendship means partnership. Partnership means really and truly reciprocal tariffs. Adequate decisions are needed.”

Australia

Australia’s Prime Minister Anthony Albanese said on Thursday the tariffs were “not the act of a friend,” but ruled out placing reciprocal tariffs against the United States.

Switzerland

Swiss President Karin Keller-Sutter said in a post on X that Switzerland will “quickly determine” its next steps, adding that “the country’s long-term economic interests are paramount.”

United Kingdom

“Our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced,” UK Secretary of State for Business and Trade Jonathan Reynolds said.

Reynolds added that the UK government would continue to defend the country’s interests, saying in his statement that “nothing is off the table.”

New US tariff rate of 22% is highest since ‘around 1910’

The effective import tax rate in the United States has shot up significantly under the Trump administration.

It was just 2.5% in 2024, according to the head of US economic research at Fitch Ratings but has now shot up to 22%.

“That rate was last seen around 1910,” Olu Sonola said in a statement.

“This is a game changer, not only for the US economy but for the global economy. Many countries will likely end up in a recession.”

Russia escapes Trump’s new tariffs

The US isn’t going to impose any new tariffs on Russia, according to US magazine Newsweek since Russia wasn’t on the tariff list because a trade between the countries is “zero” as a result of US sanctions over Russia’s invasion of Ukraine.

Belarus, Cuba and North Korea, other countries that face US sanctions, also weren’t on the tariff list of 180 countries.

US-Russia trade has dropped considerably since Washington imposed sanctions on Moscow in 2021.

But according to US government figures, the US still imported goods from Russia worth $3 billion (€2.75 billion) in 2024 while it exported $526 million.

This means the US ran a trade deficit with Russia in 2024. Trump has repeatedly said he wants to use the tariffs to correct the United States’ trade imbalance.

The US also still trades more with Russia than with countries like Mauritius or Brunei that did make Trump’s tariffs list, according to Axios news website.
War-torn Ukraine faces a 10% tariff.

The German auto industry says US tariffs ‘will only create losers’

New US tariffs “will only create losers,” the German Automotive Industry Association said after Donald Trump’s announcement that Washington would impose a 25% tariff on all foreign-made automobiles.

The industry body called on the European Union to act together and with the “necessary force.”
The US is one of the most important markets for German carmakers Volkswagen, Mercedes, BMW and Porsche, for whom falling overseas sales will likely deal a severe blow.

African nation of Lesotho among countries was worst hit by 50% on its exports to the US tariffs. These are mainly on textiles and diamonds.

Lesotho’s US exports are equivalent to 10% of its GDP, meaning Trump’s new tariffs will potentially hit the tiny mountainous nation hard.

Lesotho currently enjoys duty-free access to the US for certain products, such as clothing, under an agreement between Africa and the US.

In March, Trump drew the ire of Lesotho’s government after he said that nobody had ever heard of the country.

US targets Asian countries with high tariffs

The US imposed a 10% tariffs baseline for most countries, but targeted specific countries with a higher rate. Chief among them were Asian nations and traditional allies like Japan with 24%, South Korea with 25% and Taiwan with 46%.

“Taxpayers have been ripped off for more than 50 years,” Trump said in remarks at the White House. “But it is not going to happen anymore.”

The three Asian nations are home to manufacturing industries like the automobile sector in Japan and South Korea, and semiconductors in Taiwan. He accused Taiwan of taking “all of our computer chips and semiconductors.”

Trump said Japanese governments had been “very smart” on trade and accused Tokyo of targeting the US when it came to the auto industry.

Other Asian nations affected were textile manufacturing producers like Cambodia and Vietnam, which saw hits of 46% and 49% respectively.

“Great people, they like me, I like them, the problem is they charge us 90%,” Trump said, explaining his rationale for the measure.