BEIJING: As President Donald Trump’s latest tariff hikes disrupt global trade and markets, countries and industries are scrambling to find ways to respond. In retaliation to the 34% tariffs the U.S. has imposed on Chinese imports, China announced its own 34% tariff on all U.S. products, effective April 10.
Taiwan’s president pledged support for industries most vulnerable to the 32% tariffs Trump imposed under his “Liberation Day” reciprocal tariffs strategy. Vietnam’s deputy prime minister is set to visit the U.S. for trade talks, while some, including the head of the European Commission, have vowed to push back while promising reforms to free trade rules. Others hope to negotiate with the Trump administration for relief.
China’s response, similar to previous countermeasures to U.S. trade penalties, was targeted. Along with the universal 34% tariff on all U.S. products, Beijing’s Commerce Ministry announced stricter export controls on rare earth materials—crucial for high-tech products such as computer chips and electric vehicle batteries. Samarium, used in aerospace manufacturing and defense, and gadolinium, which is essential for MRI scans, are among the materials included. Additionally, China suspended imports of chicken from two U.S. suppliers, Mountaire Farms and Coastal Processing, due to the detection of a banned drug in their shipments.
China also blacklisted 27 U.S. firms, subjecting them to trade sanctions and export controls. In a further escalation, China filed a lawsuit with the World Trade Organization, labeling the U.S. tariffs as “a typical unilateral bullying practice” that threatens global economic stability.
India, facing a 26% tariff, is studying the potential impact on its exports, particularly in pharmaceuticals, which remain exempt from the new tariffs. Diamonds and gems, however, will face higher duties. India’s Commerce Ministry is in talks to deepen supply chain integration with the U.S. and sees the challenge as an opportunity to boost competitiveness in the shifting global trade environment.
Many U.S. trading partners have expressed hope for negotiations to resolve trade friction with Washington. Japanese Prime Minister Shigeru Ishiba has expressed willingness to travel to the U.S. to discuss the 24% tariff on Japanese exports. Ursula von der Leyen, President of the European Commission, criticized Trump’s approach, emphasizing that tariffs alone will not fix the global trade system’s deficiencies. She reaffirmed the EU’s readiness to negotiate with the U.S.
In Italy, Prime Minister Giorgia Meloni voiced opposition to the 20% tariffs on European exports, though she downplayed their impact, stating that it’s not as catastrophic as some have suggested. Her government is meeting with affected sectors to develop strategies for addressing the issue.
Vietnam, facing 46% tariffs, is particularly concerned about the devastating effect on its footwear, electronics, textiles, and seafood exports. The Vietnamese government is working on solutions and has planned a visit from the deputy prime minister to the U.S. for trade discussions.
Taiwan, which enjoys a trade surplus with the U.S., especially due to its advanced technology exports, expressed concern over the tariffs’ potential impact on global economic stability. President Lai Ching-te has vowed to offer support to industries most affected by the tariffs.
As nations brace for the fallout, European leaders emphasize that the EU, as a regional economic bloc of 450 million people, is well-positioned to weather these challenges. Ursula von der Leyen highlighted the EU’s ability to adapt and support industries through consultations with key sectors such as steel, auto manufacturing, and pharmaceuticals.
Wang Huiyao, president of the Chinese think tank Center for China and Globalization, described Trump’s tariffs as “self-defeating,” warning that they could isolate the U.S. in the long run. He predicted that China, through increased trade with Southeast Asia, Latin America, and other developing nations, may soon become the world’s largest trading nation.
The latest round of tariffs marks a new chapter in the ongoing global trade war, with countries working to navigate a shifting landscape and safeguard their economic interests. The future of international trade hangs in the balance as governments seek resolution through negotiation or confrontation.
