The world reacts with caution to US ‘reciprocal’ tariffs against dozens of nations

ROME/MEXICO CITY: The sweeping new tariffs announced Wednesday by US President Donald Trump were met initially with measured reactions from key trading partners, highlighting the lack of appetite for a full-fledged trade war.

Italian Prime Minister Giorgia Meloni, seen as close to Trump, described the new 20 percent tariffs against the European Union as “wrong,” saying they benefit neither side, but suggested finding a way to avoid a trade war.

“We will do everything we can to work toward an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favor of other global players,” she said in a statement on Facebook.

“In any case, as always, we will act in the interest of Italy and its economy, also engaging with other European partners,” she added.

The fact that the tariffs fell most heavily on parts of the world sleeping through the night appeared to at least temporarily delay some of the potential outrage.

Trump presented the import taxes, which he calls “reciprocal tariffs” and range from 10 percent to 49 percent, in the simplest terms: the US would do to its trading partners what he said they had been doing to the US for decades.
“Taxpayers have been ripped off for more than 50 years,” he said. “But it is not going to happen anymore.”
The president promised that “Jobs and factories will come roaring back into our country.” He framed it not just as an economic issue, but a question of national security that threatens “our very way of life.”
‘Nobody wants a trade war’
Shortly after Trump’s announcement, the British government said the United States remains the UK’s “closest ally.”
Business Secretary Jonathan Reynolds said the UK hoped to strike a trade deal to “mitigate the impact” of the 10 percent tariffs on British goods announced by Trump.
“Nobody wants a trade war and our intention remains to secure a deal,” said Reynolds. “But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
British officials have said they will not immediately retaliate, an approach backed by the Confederation of British Industry, a major business group.

Little to gain
Spared for the moment from the latest round of tariffs were Mexico and Canada, so far as goods that already qualified under their free trade agreement with the United States. Yet, the previously announced 25 percent tariffs on auto imports were scheduled to take effect at midnight.
Mexico President Claudia Sheinbaum said Wednesday she would wait to take action on Thursday when it was clear how Trump’s announcement would affect Mexico.
“It’s not a question of if you impose tariffs on me, I’m going to impose tariffs on you,” she said in a news briefing Wednesday morning. “Our interest is in strengthening the Mexican economy.”

Canada had imposed retaliatory tariffs in response to the 25 percent tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the steel and aluminum tariffs, imposed taxes on 26 billion euros’ worth ($28 billion) of US goods, including bourbon, prompting Trump to threaten a 200 percent tariff on European alcohol.
As Trump read down the list of countries that would be targeted Wednesday, he repeatedly said he didn’t blame them for the tariffs and non-tariff barriers they imposed to protect their own nations’ businesses. “But we’re doing the same thing right now,” he said.
“In the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender,” Trump said.
Speaking from a business forum in India, Chilean President Gabriel Boric warned that such measures, in addition to causing uncertainty, challenge the “mutually agreed rules” and the “principles that govern international trade.”
Ultimately, Trump announced Chile would face the baseline reciprocal tariff of 10 percent. The US is Chile’s second most important trading partner after China.

Analysts say there’s little to be gained from an all-out trade war, neither in the United States or in other countries.
“Once again, Trump has put Europe at a crossroads,” said Matteo Villa, senior analyst at Italy’s Institute for International Political Studies.
“If Trump really imposes high tariffs, Europe will have to respond, but the paradox is that the EU would be better off doing nothing,” he added.
Villa also noted that retaliation would certainly be a further “blow” to the United States, but it would hurt Europe even more, as the EU bloc depends more on exports to the US than vice versa.
“On the other hand, Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,” Villa said. “Probably the hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.”