Global markets and businesses were reeling on Thursday, as US president Donald Trump announced sweeping tariffs on major trade partners and struggling countries alike.
Trump’s new policies set a baseline tariff of 10% on all goods coming into the US, taking the a maximum rate to more than 50% on imports from some countries. It marks the biggest upheaval of global trade norms since the second world war. The US president said that these levies were aimed at targeting decades of unfair trade practices which had disadvantaged the US.
The 10% universal tariff will go into effect on 5 April while the “reciprocal tariffs” on specific countries will begin on 9 April.
Trump has imposed a 20% tariff on goods from the European Union. Mexico and Canada escaped Wednesday’s whirlwind but will still be subject to 25% tariffs imposed earlier this year.
The reaction to the upending of decades of US foreign and trade policy has been swift and dramatic, with Asian markets plunging on Thursday morning. You can follow the latest on our business liveblog.
Here we break down the individual responses by country to the new global economic order as they come in.
China
China has been hit particularly hard by the new tariffs, which take the total levy on Chinese imports to over 50%.
China’s commerce ministry called for Washington to “immediately cancel” the tariffs, warning they “endanger global economic development” and would hurt US interests and international supply chains.
“There is no winner in a trade war, and there is no way out for protectionism,” the ministry said. Beijing has promised countermeasures.
The US will impose a 34% tariff on Chinese goods, on top of the 20% that had already been imposed earlier this year.
Wang Wen, dean of Renmin University’s Chongyang Institute for Financial Studies, said China had become accustomed to US tariffs over the past seven years. “But these high tariffs have not reduced the US-China bilateral trade volume as well as China’s trade surplus with the US … most Chinese people believe that the US tariff war against China is ineffective.”
Wang speculated that potential Chinese countermeasures could include reciprocal tariffs, devaluing China’s currency, and further restrictions on the export of certain rare earths to the US.
Trump also closed the so-called “de minimus” loophole, which allowed goods worth under $800 to be imported to the US duty-free. More than 90% of all packages coming to the US enter via the de minimus regime, with about 60% of them coming from China. This exception had allowed fast-fashion companies like Shein and Temu to enjoy booming business in the US. Shein is the biggest e-commerce company in the US and contributed an estimated $570m to the US economy in 2023, according to Oxford Economics, a consultancy. But it will see its business model cratered by the closing of the loophole, which takes effect on 2 May.
UK
Donald Trump has hit the UK with tariffs of 10%. Downing Street, which had been expecting a 20% rate to be imposed, expressed relief to have escaped the higher rate. Keir Starmer’s more conciliatory approach to the Trump administration appeared to have paid off.
However, the UK’s growth forecasts are likely to be downgraded as a result, and the tariffs could cost thousands of jobs and force the government to implement further spending cuts or tax rises in autumn.
South Korea
South Korea’s acting president, Han Duck-soo, has vowed an “all-out” response as Asia’s fourth-biggest economy reeled from Thursday’s imposition of 25% tariffs on its exports to the US. Han instructed senior officials to urgently address the crisis during an emergency meeting of his economic and security strategy taskforce, the Yonhap news agency reported.
“As the situation is very grave with the approach of the reality of a global tariff war, the government must pour out all of its capabilities at its disposal to overcome this trade crisis,” Han said.
The auto industry is expected to be hit particularly hard by the latest round in Trump’s trade war, with leading carmakers Hyundai and GM Korea expected to see a decline in US exports. South Korea exported automobiles worth $34.74bn to the US last year, the Korea Herald said, accounting for 49% of the country’s global car exports.
Japan
Prime minister Shigeru Ishiba said: “Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for [Washington] to apply uniform tariffs to all countries.”
Trade and industry minister Yoji Muto described the tariffs as “extremely regrettable” and said Tokyo was still attempting to persuade the Trump administration to think again. “I have conveyed that the unilateral tariff measures taken by the United…
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