The world reacts with caution to US 'reciprocal' tariffs against dozens of nations
The sweeping new tariffs announced Wednesday by U.S. President Donald Trump were met initially with measured reactions from key trading partners, highlighting the lack of appetite for a full-fledged trade war.
The fact that the tariffs fell most heavily on parts of the world sleeping through the night appeared to at least temporarily delay some of the potential outrage.
Trump presented the import taxes, which he calls 鈥渞eciprocal tariffs鈥� and range from 10% to 49%, in the simplest terms: the U.S. would do to its trading partners what he said they had been doing to the U.S. for decades.
鈥淭axpayers have been ripped off for more than 50 years,鈥� he said. 鈥淏ut it is not going to happen anymore.鈥�
The president promised that 鈥淛obs and factories will come roaring back into our country.鈥� He framed it not just as an economic issue, but a question of national security that threatens 鈥渙ur very way of life.鈥�
鈥楴obody wants a trade war鈥�
Shortly after Trump's announcement, the British government said the United States remains the U.K.鈥檚 鈥渃losest ally.鈥�
Business Secretary Jonathan Reynolds said the U.K. hoped to strike a trade deal to 鈥渕itigate the impact鈥� of the 10% tariffs on British goods announced by Trump.
鈥淣obody wants a trade war and our intention remains to secure a deal," said Reynolds. "But nothing is off the table and the government will do everything necessary to defend the U.K.鈥檚 national interest.鈥�
British officials have said they will not immediately retaliate, an approach backed by the Confederation of British Industry, a major business group.
Italy鈥檚 conservative Premier Giorgia Meloni described the new 20% tariffs against the European Union as 鈥渨rong,鈥� saying they benefit neither side.
鈥淲e will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players,鈥� Meloni said in a Facebook post. 鈥淚n any case, as always, we will act in the interest of Italy and its economy, also by discussing with other European partners,鈥� she added.
Little to gain
Spared for the moment from the latest round of tariffs were Mexico and Canada, so far as goods that already qualified under their free trade agreement with the United States. Yet, the previously announced were scheduled to take effect at midnight.
Mexico President Claudia Sheinbaum said Wednesday she would wait to take action on Thursday when it was clear how Trump鈥檚 announcement would affect Mexico.
鈥淚t鈥檚 not a question of if you impose tariffs on me, I鈥檓 going to impose tariffs on you,鈥� she said in a news briefing Wednesday morning. 鈥淥ur interest is in strengthening the Mexican economy.鈥�
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 , imposed taxes on 26 billion euros鈥� worth ($28 billion) of U.S. goods, including bourbon, prompting Trump to threaten a 200% tariff on European alcohol.
As Trump read down the list of countries that would be targeted Wednesday, he repeatedly said he didn鈥檛 blame them for the tariffs and non-tariff barriers they imposed to protect their own nations鈥� businesses. 鈥淏ut we鈥檙e doing the same thing right now,鈥� he said.
鈥淚n the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender,鈥� Trump said.
Speaking from a business forum in India, Chilean President Gabriel Boric warned that such measures, in addition to causing uncertainty, challenge the 鈥渕utually agreed rules鈥� and the 鈥減rinciples that govern international trade.鈥�
Ultimately, Trump announced Chile would face the baseline reciprocal tariff of 10%. The U.S. is Chile鈥檚 second most important trading partner after China.
Analysts say there鈥檚 little to be gained from an all-out trade war, neither in the United States or in other countries.
鈥淥nce again, Trump has put Europe at a crossroads,鈥� said Matteo Villa, senior analyst at Italy鈥檚 Institute for International Political Studies.
鈥淚f Trump really imposes high tariffs, Europe will have to respond, but the paradox is that the EU would be better off doing nothing,鈥� he added.
Villa also noted that retaliation would certainly be a further 鈥渂low鈥� to the United States, but it would hurt Europe even more, as the EU bloc depends more on exports to the U.S. than vice versa.
鈥淥n the other hand, Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,鈥� Villa said. 鈥淧robably the hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.鈥�
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AP journalists around the world contributed to this story.