Despite these concerns, numerous trading partners of the U.S. have cautiously responded to the tariffs, which fluctuate between a baseline of 10 percent to a high of 49 percent. This response shows a hesitance to escalate into a full-blown trade war with the world’s leading economy.
“This marks a significant shift, not just for the U.S. economy but for the world economy,” stated Olu Sonola, head of U.S. Economic Research at Fitch Ratings. “Most forecasts will need to be revised, should these tariff rates persist over time.”
Here’s how various stakeholders are responding:
European Union
European Commission President Ursula von der Leyen criticized the 20 percent tariff on the EU as a “serious blow to the world economy” and expressed concerns over its impact on global trade and the most vulnerable citizens.
Germany
German Chancellor Olaf Scholz denounced the tariffs decision, characterizing it as fundamentally misguided and an assault on a trade system that has promoted global prosperity. He underscored Germany’s commitment to cooperation over confrontation.
France
French Prime Minister Francis Bayrou highlighted the significant difficulties these tariffs impose on Europe and deemed them a catastrophe for the U.S. and its citizens.
Spain
In reaction to the tariffs, Spain announced a 14.1-billion-euro plan to mitigate their impact on the Spanish economy and called for the European Commission to establish a fund to counter the U.S. move.
Finland
Finland’s President Alexander Stubb advocated for European engagement with the U.S. on trade tariffs, stressing the importance of dialogue in addressing these issues.
United Kingdom
The UK adopted a diplomatic stance, affirming its relationship with the U.S. despite the imposition of a 10 percent tariff on British goods. The government is seeking a trade deal to mitigate the tariff’s impact.
Japan
Japan, a U.S. ally in Asia, expressed deep regret over the 24 percent tariff imposed on it, voicing concerns about compliance with WTO rules and the bilateral trade agreement.
China
China’s Ministry of Commerce responded to the significant tariffs by stating its intention to take countermeasures for safeguarding its rights and interests, urging the U.S. to cancel the tariffs and resolve differences through dialogue.
India
India is examining the implications of the new tariffs and views them as an opportunity, with ongoing negotiations between Indian and U.S. trade teams to conclude a mutually beneficial bilateral trade agreement.
Sri Lanka
Sri Lanka’s apparel industry warned of the tariffs’ potential disruption to its export sector and the risk they pose to thousands of jobs, emphasizing a focus on maintaining the country as a reliable sourcing destination.
South Korea
South Korea’s acting President Han Duck-soo called for immediate talks with the U.S. to minimize the impact of the imposed tariffs and ordered emergency support for businesses, recognizing a path forward through negotiation.
Brazil
Brazillian officials stated they are evaluating potential actions to ensure reciprocity in bilateral trade with the U.S., including resorting to the World Trade Organization, in response to the imposition of tariffs.
Financial analysts
Financial analysts predict severe disruptions from the tariff increases, with Andrew Beavan pointing out that the average U.S. tariff rate has risen dramatically from 2.5 percent in 2024 to around 22 percent, a level last seen in 1910. This has severe implications, especially for export-dependent regions and poorer countries hit by the measures.
US Trade groups
Several U.S. trade representatives expressed both support for protection of domestic industries and concern that the higher costs could harm manufacturers and raise prices for consumers. While some praised the prioritization of U.S. manufacturers and workers, others warned of the potential negative effects on investment, jobs, and supply chains.
