The widespread and intense tariffs announced by President Donald Trump have sparked global alarms and retaliatory threats from key allies, warning analysts that they can push the US and other countries towards the recession.
Still, many US trade partners have responded carefully to taxes of 10% to 49% baselines, indicating their reluctance to a full-scale trade war with the world’s largest economy.
“This is a game changer not only for the US economy, but also for the global economy,” Orsonora, head of US economic research at Fitch Ratings, said in the report. “If this tariff rate is ongoing for a long time, you can throw away most forecasts through the door.”
Here’s how allies, other countries, business groups and experts respond:
european union
European Commission Chairman Ursula von der Leyen has addressed the EU’s new 20% tariffs and called the scale a “major blow to the global economy.”
“The outcome will be disastrous for millions of people around the world,” she said, adding that it will cost food, transport and medicine. “And this is especially hurting the most vulnerable citizens.”
Von Der Leyen acknowledged that the global trading system has “serious flaws” and said that the EU is ready to negotiate with the US but is also ready to respond with measures.
Germany
German Prime Minister Olaf Scholz said the recent tariff decision by the US president was in his view.
“We are seeking cooperation rather than conflict, and we defend our interests. Europe will respond strongly and strongly proportionately to this decision,” he said.
Later he added: “That’s completely obvious. Even if Europe did nothing at all, it would lead to economic hardships for the US. This is the basic economics that I could read for 100 years in a textbook about the trade war.”
France
French Prime Minister Francis Bellou said tariffs were “a huge challenge for Europe.”
“I think it’s also a catastrophe for the US and the US citizens.”
Ireland
Ireland Prime Minister Michael Martin called the decision “deeply regret.”
“I strongly believe that tariffs will not benefit anyone. My priorities, and that of the government, is to protect Ireland’s employment and the Irish economy.”
Italy
Italian Prime Minister Georgia Meloni said, “We will do everything we can to work towards an agreement with the US, with the aim of avoiding weakening the West in the favor of other global players.”
Spain
The Spanish government will implement a plan of 14.1 billion euros ($156.6 billion) to mitigate the impact of new US tariffs on the Spanish economy, Prime Minister Pedro Sanchez said.
“This tariff attack by the US administration does not distinguish between friends and enemies, and does not discriminate based on ideology or trade balance. It’s for everyone and everything,” Sanchez said.
He also asked the Commission to set up funding for revenue from tariffs on imports from the US, which increases in response to movements he said were unkind and unfair.
Finland
Finland President Alexander Stubb believes that everything in Europe should be involved with the US on the issue of trade tariffs.
“My recommendation to all my European partners is to engage with the American administration. “Involvement is important,” he added.
Sweden
Swedish Trade Minister Wolf Christerson said the country does not want to “expand trade barriers.”
“We don’t want a trade war. We want to go back to the path of trade and cooperation with the United States so that people in our country can enjoy a better life.”
England
The UK played it diplomatically, declaring that the US remains “the closest ally”, despite the new 10% tariff on British goods.
Jonathan Reynolds’ Secretary of State for Business and Trade said the UK has called for a trade agreement to “mitigate the impact” of tariffs. “No one wants a trade war and our intentions are still working to secure the trade,” he said. “But nothing has fallen off the table and the government will do everything necessary to protect the UK’s national interests.”
Switzerland
Switzerland President Karin Keller Sutter said the country’s federal council would quickly decide on the next step.
“The long-term economic interests of the country are of paramount importance. Compliance with international law and free trade remains alive.”
Japan
The closest US allies in Asia said that its 24% tariffs were “very disappointing” and could break World Trade Organization rules and trade agreements between the two countries.
“I once again urged (Washington) not to apply to Japan,” Yoji Moto, Minister of Trade and Industry, told reporters.
Asked whether Japan is considering imposing retaliatory tariffs or filing a lawsuit with the WTO, government spokesman Yoshimasa Hayashi said, “We refuse to disclose details of the considerations.”
Reported from Tokyo, Al Jazeera’s Fadi Salamé said tariffs would be a major blow to the automotive industry, where the country is struggling to deal with it.
China
The Commerce Department was caught up in the 34% tariffs above the 20% already imposed earlier this year, and said China will “take decisive measures to protect its rights and interests.”
“China is urging the US to immediately cancel unilateral tariff measures and to properly resolve differences with trading partners through equal dialogue,” he said.
Bill Bishop, analyst and commentator on China’s issues, said the US should expect a quick response from China. Beijing may also make a “largest devaluation” of the currency against the US dollar to offset the costs of the new tariffs, Bishop wrote in his Sinokism newsletter.
India
India is trying to look at the meaning and see the ‘opportunity’ of the new tariffs announced by Trump, as Asian competitors were hit harder by tariffs announced the day before.
“There is ongoing negotiations between India and the US trade teams to quickly conclude a mutually beneficial multi-sector bilateral trade agreement,” India’s Commerce Ministry added in a statement.
Sri Lanka
Sri Lankan apparel manufacturing has warned that clearing US tariffs will disrupt the island’s largest export sector and endanger thousands of jobs.
“The tariff levels are very high compared to our local competitors,” said Johan Lawrence, director of the Joint Apparel Association Forum (JAAF), referring to the 44% tariffs imposed by the US President on Sri Lankan goods.
Jaaf said in a statement that tariff hikes could “significantly disrupt” the garment industry and could threaten “thousands of jobs.”
“Our focus is now on the destinations of sources that are still reliable in engagement, agility and guarantees in Sri Lanka,” Lawrence said, adding that the government has appointed a committee to study the impact of the new tariffs.
South Korea
President Han Duck Saw ordered emergency support measures for businesses calling for consultations with US officials to protect an export-dependent economy from the impact of a 25% tariff.
Han asked the Minister of Industry to analyze the tariffs and actively negotiate with Washington to minimize its effectiveness, the ministry said.
“As the world trade war becomes a reality, governments need to put all their capabilities into the process of overcoming the trade crisis,” Han said.
Reported from Seoul, Al Jazeera’s Jessica Washington said “hundreds of small businesses will be affected.”
“But at this point, it appears that South Korea believes there is a path that involves negotiations,” she said.
Australia
Australian Prime Minister Anthony Albanese said:
“This is not a friend’s act. Today’s decision will increase the uncertainty of the global economy and drive the costs of American households,” he added.
new zealand
Trade Minister Todd McCray said: “New Zealand’s interests are most useful in a world where trade flows freely… The bilateral relationship between New Zealand and the United States is strong. We talk to the administration and exporters will speak to us to get more information and to better understand the impact of this announcement.”
Brazil
Latin America’s largest economic government said it was following Trump’s 10% tariffs, “assessing all possible actions to ensure bilateral trade reciprocity, including relying on the World Trade Organization.”
Earlier in the day, Brazilian Parliament approved a bill that would establish a Brazilian legal framework to address potential unilateral trade measures targeting goods and services, including measures such as tariffs.
Columbia
Colombian President Gustavo Petro said, “We only make imports more expensive if they take our jobs away. But if their goods help create more valuable jobs, we won’t raise tariffs.”
Financial Analyst
As US stock futures and Japanese stock indexes fell, market analysts warned of serious disruptions from hiking tariffs reaching levels that are not visible for more than a century.
“The size of the rollout, both in scale and speed, wasn’t just offensive. It was a full throttle macro breakdown,” said global market strategist Stephen Innes.
“The (average) US tariff rate for all imports is currently around 22%, up from 2.5% in 2024. That rate was last seen around 1910,” added Sonora, Fitch’s rating. “Many countries will probably be in a recession.”
This pain is likely to be particularly severe in Asia-Pacific countries, with tariffs of 48%, Cambodia 49% and Myanmar at 44% in poor and financially unstable countries like Laos.
“Export-dependent regions really struggle with sudden, massive price increases,” said Deborah Elms, director of trade policy at the Hinrich Foundation in Singapore.
American merchant group
While some US trade representatives welcomed protections for domestic industries, others expressed concern that higher costs could narrow manufacturers’ already tight margins and raise consumer prices.
“The high costs of new tariffs threaten America’s ability to compete in investment, employment, supply chains, and other countries, and threaten its ability to lead as an outstanding manufacturing superpower,” said Jay Timmons, president and CEO of the National Association of Manufacturers.
Scott Paul, president of Alliance for American Manufacturing, said the measure would prioritize US manufacturers and workers.
“These hardworking men and women have seen unfair trade cut the ground from under their feet for decades. They deserve a chance to fight,” he said in a statement.