World leaders are reacting with dismay, threats of countermeasures and calls for swift negotiations to make trade rules fairer in response to the sweeping new tariffs announced by U.S. President Donald Trump. But initial moves have been measured, suggesting key trading partners hope to avoid outright trade wars with the world鈥檚 biggest economy.
Asian in Thursday trading and U.S. futures tumbled, setting up what could be as investors brace for the economic shocks.
Trump said in his 鈥淟iberation Day鈥 announcement that the import taxes, ranging from 10% to 49%, would do to U.S. trading partners what they have long done to the U.S., and draw factories and jobs back to the United States.
European Commission President Ursula von der Leyen said they are a 鈥渕ajor blow to the world economy,鈥 while Japanese Prime Minister Shigeru Ishiba said they will have a 鈥済reat impact鈥 on U.S.-Japan relations and Korean Prime Minister Han Duck-soo called for emergency measures to support industries affected by the tariffs.
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Here's the latest:
Norway鈥檚 foreign minister says tariffs hurt NATO allies
Norway鈥檚 Foreign Minister Espen Barth Eide said the new U.S. tariffs may violate NATO鈥檚 Article 2, which stresses the importance of economic cooperation among allies to avoid conflict.
鈥淚f you want a strong NATO, you should ensure that there is as much economic growth as possible in the NATO countries. That was the insight of those who established NATO, that economic cooperation would be good for the entire alliance,鈥 Eide said during a visit to Brussels for a NATO meeting, according to the NRK broadcaster.
Eide told NRK that he will raise the tariff war with U.S. Secretary of State Marco Rubio during the meeting.
Polish prime minister says tariffs may shave off 0.4% of GDP
Polish Prime Minister Donald Tusk said the new U.S. tariffs many reduce Poland鈥檚 GDP by 0.4%.
He said it was 鈥渁 severe and unpleasant blow, because it comes from the closest ally, but we will survive it.鈥 The Polish-U.S. friendship, he added, 鈥渕ust also survive this test.鈥
Spanish PM announces measures to mitigate US tariffs
Spanish Prime Minister Pedro S谩nchez said Thursday that his government will implement a $15.6 billion (14.1 billion euro) spending package to mitigate the effects of U.S. tariffs on the eurozone鈥檚 fourth-largest economy.
The Spanish leader called the tariffs 鈥19th-century protectionism,鈥 against which the European Union and Spain had to act proactively and diversify their economic ties with the rest of the world.
S谩nchez also called for a negotiated solution with the U.S. 鈥淲e鈥檙e once again asking President Trump to reconsider, to sit down at the negotiating table with the European Union and also with the rest of the world.鈥
Australia puzzled by tariffs on remote islands
The local government leader of Christmas Island, one of several Australian external island territories that like Australia have been assigned a 10% U.S. tariff, said his Indian Ocean atoll exported nothing to the United States.
The Australian outpost of fewer than 2,000 people 360 kilometers (225 miles) south of the Indonesian capital Jakarta has used U.S. heavy machinery to mine phosphate for decades, Christmas Island Shire President Gordon Thomson said.
The uninhabited Heard and McDonald Islands in the remote Antarctic are another Australian territory included in the 10% tariff. The mostly barren islands include two active volcanoes and can only be reached by sea.
Australian Prime Minister Anthony Albanese said Australia imposes no tariffs on U.S. imports. The U.S. and Australia have a free trade agreement.
Hong Kong urges US to withdraw tariffs
Hong Kong strongly opposed the extra tariffs announced by Trump and urged the U.S. to withdraw them. It said Hong Kong, as a free port, always practices free trade and doesn鈥檛 impose tariffs on imported goods, including those from the U.S.
It said the U.S. had a trade surplus of $271.5 billion with the semiautonomous Chinese territory over the past decade, the highest among its global trading partners.
鈥淭he U.S. imposing tariffs on Hong Kong products as so-called reciprocal tariffs defies logic,鈥 Hong Kong鈥檚 government said in a statement, adding that it would take measures including filing complaints with the WTO.
Hong Kong, a former British colony returned to China in 1997, has a different economic and political system from mainland China that allows it to set its own policies most of the time.
India wants to expedite trade talks with US
India鈥檚 Trade Ministry is assessing the latest U.S. tariffs announced by President Donald Trump. It said the Indian government strives to expedite the negotiations for a trade agreement with the U.S. to potentially garner some concessions and offset the impact of higher import taxes.
The agreement, first tranche of which is expected to be in place by the fall, would focus on enabling both nations to boost trade, investments and technology transfers in addition to deepening supply chain integrations, it said.
鈥淲e remain in touch with the Trump administration and expect to take them forward in the coming days,鈥 it said.
The U.S was New Delhi鈥檚 biggest trading partner in 2024 with trade estimated at $129 billion. The countries have now set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030.
Stock market in Vietnam plunges and people rush to buy gold
Vietnam鈥檚 stock market plunged Thursday while gold prices reached a record high after U.S. President Donald Trump slapped 46% tariffs on Vietnam鈥檚 exports. Meanwhile people lined up to buy gold in Hanoi despite the high prices.
鈥淚nvesting in gold would be at lower risk because the economy is very uncertain at the moment,鈥 said Nguyen Trung, a buyer.
Vietnam has long realized that it was too reliant on the U.S. and has been diversifying its trade relations by signing free trade agreements with over a dozen countries, said Dan Martin, international business adviser of Dezan Shira & Associates.
鈥淭he lesson is clear now, the reliance that Vietnam had as a U.S. export market, it鈥檚 not safe,鈥 he said.
Especially hard-hit will be the garments and sportswear section, including household names like Adidas and Nike. Nike made of its shoes and about a third of its clothes in Vietnam last year, while factories in Vietnam made 39% of Adidas鈥檚 shoes and 18% of its clothes.
US tariffs on goods from Vietnam among the highest on any country
Vietnam鈥檚 Prime Minister Pham Minh Chinh said that the country still hoped to reach its economic growth target of at least 8% despite the Trump administration imposing 46% tariffs on its exports.
Chinh chaired a Cabinet meeting Thursday to assess the impact of the tariffs, among the highest imposed on any country, and said that Vietnam hoped that U.S. policy would be 鈥渃onsistent with the good relations between the two countries.鈥 He added that Vietnam was still overcoming the consequences of the long war between the two nations.
The tariffs will deal a severe blow to Vietnam since the U.S. is its largest export market. Exports to the U.S., valued at $142 billion, in 2021 made up a third of the country鈥檚 GDP.
Ukrainian minister says her country can get better tariff conditions from US
Ukraine is working to get better tariff conditions from the United States, Ukrainian Economy Minister Yuliia Svyrydenko wrote on her X account.
Svyrydenko says Ukrainian tariffs on U.S. goods are 鈥渜uite low鈥 and that Ukraine imported more goods from the U.S. in 2024 than exported to the country.
She said the 10% tariff Trump imposed on Ukrainian goods will mainly impact small producers. 鈥淯kraine has something to offer the United States as a reliable ally and partner. Both our countries will benefit from fair tariffs,鈥 she wrote.
Japan PM regrets US tariffs and says ready to negotiate with Trump
Japanese Prime Minister Shigeru Ishiba said it was 鈥渆xtremely regrettable鈥 that the United States slapped the 25% auto tariff on Japan despite its huge contribution to the U.S. economy.
Japanese companies have been the world鈥檚 biggest investors in the U.S. since 2019, especially automakers, creating jobs for millions of Americans, Ishiba said.
Ishiba said Japan will continue to strongly request the United States to reconsider its tariffs measures and that he will directly negotiate with Trump, whenever it is considered appropriate. 鈥淚 will do so at a most appropriate time and method without hesitation.鈥
Germany鈥檚 Scholz says tariffs are an 鈥榓ttack鈥 on global trade
German Chancellor Olaf Scholz says the tariffs are an 鈥渁ttack鈥 on a trading system that brought global prosperity and that America itself helped design.
Scholz said Thursday 鈥渢he whole global economy will suffer from these decisions that haven鈥檛 been thought through.鈥 He added that 鈥渢he U.S. administration is setting off on a road at the end of which there will only be losers.鈥
Scholz said in Berlin that 鈥渢his is an attack on a trading order that has created prosperity across the globe 鈥 a trading order that is also to a very significant extent the result of American efforts.鈥
Fiji criticizes tariffs as 'disproportionate鈥 and 鈥榰nfair鈥
Among the small island nations of the South Pacific Ocean, a few were singled out for higher tariff rates than the 10% baseline. Fiji鈥檚 Deputy Prime Minister Biman Prasad on Thursday criticized as 鈥渄isproportionate鈥 and 鈥渦nfair鈥 the 32% tariffs announced on Fiji鈥檚 exports to the U.S.
The U.S. is a major trading partner for the nation of 924,000 people, accounting for 10% of total imports and exports, Prasad said Thursday on social media. Fiji鈥檚 biggest export to the U.S. is bottled water, with its most famous brand 鈥 Fiji Water 鈥 owned by a U.S. conglomerate.
The U.S. administration justified Fiji鈥檚 higher tariffs with a claim that the Pacific nation imposes 63% tariffs on American goods arriving on its shores. Prasad rejected that figure, telling reporters that Fiji does not impose such tariff rates on any country.
鈥楾here are no winners in trade wars,鈥 China鈥檚 Foreign Ministry says
A Chinese Foreign Ministry spokesperson says 鈥渢here are no winners in trade wars and tariff wars, and protectionism is not a way out. What the U.S. should do is to correct its wrong practices and resolve trade disputes with all countries, including China, through consultations based on equality, mutual respect and mutual benefit.鈥
Guo Jiakun added that the tariffs violate WTO rules, 鈥渉arm the common interests of people of all countries, and do not help solve the problems of the U.S. itself. It is clear to everyone that more and more countries are opposing the U.S.鈥檚 unilateral bullying actions, such as imposing tariffs.鈥
Israeli finance minister says his office is 鈥榓nalyzing鈥 tariff implications
Israeli Finance Minister Bezalel Smotrich says his office is studying Trump鈥檚 tariff order and 鈥渁nalyzing its implications for the economy,鈥 in the country鈥檚 first reaction to Trump鈥檚 announcement of a 17% tariff on imports from Israel.
On Wednesday, ahead of Trump鈥檚 announcement, Israel cancelled all remaining tariffs on imports from the U.S. The Prime Minister鈥檚 Office said in a statement the move would go into effect after final approval by the economy minister and the parliament鈥檚 finance committee.
Smotrich said in a statement on X he was talking with industry leaders about Trump鈥檚 new order and would meet Thursday with the Finance Ministry leadership to decide on 鈥渃ourses of action鈥 in response to it.
Spain's economy minister says negotiations with US essential
Spain鈥檚 Economy Minister Carlos Cuerpo said a negotiated solution with the United States was essential for the eurozone鈥檚 fourth-largest economy, but that Spain was prepared to take steps to protect its companies and industries.
鈥淲e have a lot at stake. We have to protect the very important trade and economic relationship we have between the planet鈥檚 two biggest partners,鈥 Cuerpo said in an interview Thursday with the RNE radio station after the U.S. announced 20% tariffs against the European Union.
German economy minister says this day will become US Inflation Day
鈥淭his day is not going to become Liberation Day for consumers in the U.S., but Inflation Day,鈥 said Germany鈥檚 vice chancellor and economy minister, Robert Habeck. 鈥淭he U.S. mania for tariffs could set off a spiral that could also pull countries into recession and cause massive damage worldwide.鈥
鈥淲e have always pushed for negotiations, not confrontation. That remains right,鈥 Habeck said. 鈥淪o it is good that the European Commission still aims for a negotiated solution with the U.S. There is still some time for that. But if the U.S. doesn鈥檛 want a negotiated solution, the EU will give a balanced, clear and determined answer. We have prepared for this.鈥
Germany's main industry federation calls for a coordinated reaction to tariffs
Germany鈥檚 main industry lobby group, the Federation of German Industries, said that 鈥渢he EU must now strengthen its alliances with other major trading partners and should coordinate its reaction with them. A coordinated reaction is also necessary to counter diversionary effects in international trade.鈥
The group, known by its German acronym BDI, said that the tariffs are 鈥渁n unprecedented attack on the international trade system, free trade and global supply chains. The reasoning for this protectionist escalation is incomprehensible.鈥
The United States was Germany鈥檚 biggest single trading partner last year for the first time since 2015, displacing China.
UK's Starmer vows to act with 鈥榗ool and calm heads鈥 to Trump鈥檚 tariffs
Prime Minister Keir Starmer said the U.K. government would react with 鈥渃ool and calm heads鈥 to Trump鈥檚 announcement of a 10% tariff on imports from Britain.
Starmer told business leaders gathered in 10 Downing St. that 鈥渃learly there will be an economic impact,鈥 but that he still hoped to get tariffs lifted through a trade deal with Washington.
鈥淣egotiations on an economic prosperity deal 鈥 one that strengthens our existing trading relationship 鈥 they continue and we will fight for the best deal for Britain,鈥 Starmer said.
鈥淣obody wins in a trade war. That is not in our national interest,鈥 he added.
Honda CEO says company will take some time to determine how to respond to tariffs
Honda Chief Executive Toshihiro Mibe says the Japanese automaker will take some time to look at the market situation and other factors to determine the right way to respond to Trump鈥檚 tariffs.
鈥淪udden changes like this are tough as it鈥檚 hard to respond speedily,鈥 he told reporters on Thursday.
Taiwan calls US tariffs 鈥榮trongly unreasonable鈥
Taiwan responded to the imposition of a 32% tariff on its high-tech economy by calling it 鈥渟trongly unreasonable and highly regrettable,鈥 adding it would 鈥渓odge solemn representations with the United States.鈥
鈥淭he proposed tax rate does not reflect the actual economic and trade situation between Taiwan and the United States (and) is unfair to Taiwan,鈥 Cabinet spokesperson Lee Hui-chih said in an official news release.
Lee said the tariff calculation method was unscientific and unclear and 鈥渃annot reflect the high degree of complementarity in the trade structure between Taiwan and the U.S. and the actual trade relationship.鈥
Taiwan鈥檚 exports to the U.S. and corresponding trade surplus have risen significantly in recent years, mainly reflecting the surge in demand from U.S. customers for semiconductors and related products, especially AI products, Lee said.
British officials say they will push to secure a free trade deal with US
The British government says it will push to secure a free trade deal with the United States rather than retaliate after Trump slapped a 10% tariff on U.K. goods.
Labelling the announcement a 鈥渄isappointment,鈥 Business Secretary Jonathan Reynolds said 鈥淚鈥檓 pleased the U.K. is in a better position than other countries, but I鈥檓 not satisfied.鈥
Reynolds told Sky News that the message he was hearing from businesses was 鈥渞emain at the table, don鈥檛 overreact.鈥
Britain argues that it has a broadly balanced trade relationship with the U.S., and has been negotiating with Washington on a trade deal in hope of escaping import taxes.
Japan鈥檚 prime minister says tariffs will have a 鈥榞reat impact鈥 on U.S.-Japan relations
Japanese Prime Minister Shigeru Ishiba says the tariffs are a matter of great concern and stressed that Japan鈥檚 contributions to the American economy are significant both in terms of investment and jobs.
He said he repeatedly made his case with the Trump administration not to move ahead with the tariffs.
鈥淭hey will have a great impact not only on U.S.-Japanese economic relations but also on the global economy and various trade relations overall,鈥 Ishiba told reporters Thursday.
鈥淲e as the government will work as one to decisively protect people鈥檚 lives, jobs and industries,鈥 he added.
Thailand says it is ready to negotiate with US over trade balance
The Thai prime minister says her country is ready to negotiate with the U.S. to find a fair trade balance for both sides, after Trump announced 36% tariffs on Thailand.
Paetongtarn Shinawatra said Thursday that Thailand is committed to working with the U.S. to achieve sustainable economic growth.
She added that Thai exporters should also look for additional markets for their products to reduce their risk of relying on one main market.
Indian analysts see opportunity in supply chain realignments
Indian exporters and analysts say Trump鈥檚 new tariffs are a mixed bag for the country.
Trump announced a reciprocal tariff of 26% for India, as compared to 34% for China, 46% for Vietnam, 37% for Bangladesh and 36% for Thailand.
Observers said Thursday the move will likely impact Indian industry and pressure jobs, but that there is room for new business to come in since India is in a lower band than its Asian peers.
鈥淭hese tariffs do present challenges, but India鈥檚 position remains comparatively favorable,鈥 said S.C Ralhan, president of the Federation of Indian Exports Organisations.
Ajay Srivastava, a former Indian trade official and founder of the New Delhi-based think tank Global Trade Research Initiative, said the protectionist tariff regime could be a catalyst for India to gain from global supply chain realignments.
South and Southeast Asia are targeted with some of the highest tariff rates
Vietnam, Sri Lanka and other countries across South and Southeast Asia are the targets of some of the highest tariff rates.
Trump imposed 46% 鈥渞eciprocal鈥 duties on goods from Vietnam, 49% on products from Cambodia, 37% on Bangladesh and 44% on Sri Lanka.
The duties will affect domestic exporters to the U.S. but also Chinese, Japanese and South Korean companies that have over the past few years shifted production to Southeast Asian nations to escape the trade frictions during Trump鈥檚 first term in office.
Automaker Stellantis will shut down its assembly plant in Windsor, Canada, for 2 weeks
Automaker Stellantis will shut down its assembly plant in Windsor, Canada, for two weeks from April 7, the local union said late Wednesday.
The president of Unifor Local 444, James Stewart, said more scheduling changes were expected in coming weeks.
鈥淭he company said there are multiple factors at play, with the primary driver behind the final decision being this afternoon鈥檚 announcement from U.S. President Donald Trump of the U.S. tariffs,鈥 Stewart said. 鈥淭his has and continues to create uncertainty across the entire auto industry. This is not just affecting our plant鈥攊t鈥檚 impacting facilities in the U.S. and Mexico as well.鈥
EU leader says tariffs are a major blow to the world economy
European Commission President Ursula von der Leyen says the tariffs are a 鈥渕ajor blow to the world economy.鈥
鈥淭he consequences will be dire for millions of people around the globe,鈥 von der Leyen said. Groceries, transport and medicines will cost more, she said, 鈥淎nd this is hurting, in particular, the most vulnerable citizens.鈥
Von der Leyen acknowledged that the world trading system has 鈥渟erious deficiencies鈥 and said the EU was ready to negotiate with the U.S.
Japan鈥檚 chief cabinet secretary calls tariffs 鈥榚xtremely regrettable鈥
Japan鈥檚 chief cabinet secretary has called the tariffs 鈥渆xtremely regrettable,鈥 saying officials thought the country deserved an exemption, after Trump slapped 24% additional tariffs on Japan.
Yoshimasa Hayashi on Thursday also questioned whether the tariffs are compatible with Japan-U.S. bilateral trade agreements and said the move would likely impact their economic ties, as well as the global economy and multilateral trade system.
He said Japanese officials are continuing to negotiate with Washington seeking an exemption. Asked if Japan would consider retaliatory tariffs or file complaints with the World Trade Organization, Hayashi declined to comment.
Asian markets tumble following Trump鈥檚 tariff announcement
Tokyo鈥檚 Nikkei 225 index dipped more than 3.4%, while the Kospi in South Korea dropped 1.8%. In Australia, the S&P/ASX 200 also sank 1.8%.
U.S. stocks whipped through another dizzying day before Trump鈥檚 unveiled the tariffs Wednesday. The S&P 500 rose 0.7%, and the Dow gained 0.6%. The Nasdaq composite surged 0.9%.
Tesla swung from a sharp loss in the morning to a gain later in the day to help pull the market higher. Treasury yields also veered from lower to higher following a better-than-expected report on the job market.
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House majority whip praises Trump鈥檚 actions, including tariffs, during town hall
House Majority Whip Tom Emmer fielded mostly friendly questions during an hourlong telephone town hall with constituents in Minnesota.
House Speaker Mike Johnson has encouraged Republican lawmakers to avoid holding in-person town halls where they鈥檇 run the risk of hostile questioning and protesters.
Emmer extensively praised the actions that Trump has been taking in his first months back in office, including the tariffs he announced earlier Wednesday.
鈥淗ow about we give this guy some grace while he tried to actually do what he鈥檚 been campaigning on for years and his mission to protect American companies and workers?鈥 Emmer said. 鈥淭here鈥檚 still going to be some choppy waters, but when we come out the other side, it鈥檚 going to be much better than it was beforehand, and certainly much better than it was the last four years.鈥
South Korea prime minister calls for emergency measures to support industries affected by tariffs
South Korea鈥檚 acting leader called for swift emergency measures to support the auto industry and other businesses potentially affected by the Trump administration鈥檚 new tariffs, pledging full government efforts to address what he described as a looming 鈥済lobal tariff war.鈥
During an emergency government meeting, Prime Minister Han Duck-soo also instructed officials to work with business groups to analyze the impact of the U.S. tariff increases and actively engage in negotiations with Washington to 鈥渕inimize damage鈥 to South Korea鈥檚 economy, the trade ministry said.
Han, serving as South Korea鈥檚 acting leader while President Yoon Suk Yeol remains impeached over his December imposition of martial law, convened the meeting with trade and foreign policy officials after Trump announced a 25% tariff on South Korea.
