MEXICO CITY (AP) — The broad new tariffs that U.S. President Donald Trump announced on Wednesday initially drew mild responses from major trading partners, underscoring the reluctance to engage in a full-blown trade conflict.
Trump outlined the import duties, which he labels as “reciprocal tariffs” ranging between 10% and 49%, emphasizing that the U.S. would respond in kind to practices he claims have been imposed upon it for decades.
“Taxpayers have been exploited for over 50 years,” he declared. “But that will no longer be the case.”
The president assured that “Jobs and factories will come rushing back into our country.” He positioned the issue not merely as an economic concern, but as a matter of national security that endangers “our very way of life.”
‘No one desires a trade war’
Following Trump’s announcement, the British government reaffirmed that the United States is still the U.K.’s “closest ally.”
Business Secretary Jonathan Reynolds expressed the U.K.’s hope to negotiate a trade agreement aimed at “mitigating the impact” of the 10% tariffs placed on British goods by Trump.
“No one desires a trade war, and our goal remains securing a deal,” Reynolds stated. “However, nothing is off the table and the government will take all necessary steps to protect the U.K.’s national interests.”
Italy’s conservative Premier Giorgia Meloni criticized the new 20% tariffs imposed on the European Union as “unwise,” claiming they do not benefit either party.
“We will exert every effort to reach an agreement with the United States to avoid a trade war that would undoubtedly weaken the West in favor of other global players,” Meloni mentioned in a Facebook post.
Meanwhile, Brazil’s government indicated it might consider bringing the issue before the World Trade Organization. Subsequently, Brazil’s Congress unanimously passed a reciprocity bill, enabling the government to retaliate against any nation or trade bloc imposing tariffs on Brazilian products.
‘No rational foundation’
Some nations raised concerns regarding the White House’s calculations.
Australian Prime Minister Anthony Albanese stated that the U.S. tariffs applied to his nation were entirely unjustified, although Australia would refrain from retaliation.
“President Trump referred to reciprocal tariffs. A true reciprocal tariff would be zero, not 10%,” Albanese pointed out. The U.S. and Australia share a free trade agreement, and the U.S. maintains a $2-to-$1 trade surplus with Australia. “This is not the behavior of a friend.”
Trump asserted that the U.S. purchased $3 billion worth of Australian beef last year, yet Australia does not accept U.S. beef imports. Albanese clarified that the prohibition on raw U.S. beef stems from biosecurity concerns.
The unexpected 29% tariff on the minuscule South Pacific territory of Norfolk Island surprised many. With a population of about 2,000, the island’s economy is heavily tourism-dependent.
“To my knowledge, we do not export anything to the United States,” noted Norfolk Island Administrator George Plant, the Australian government’s representative there. “We don’t impose tariffs on anything. I can’t think of any non-tariff barriers either, so we’re somewhat perplexed.”
New Zealand also questioned Trump’s tariff rationale.
“We don’t have a 20% tariff rate,” asserted trade minister Todd McClay, emphasizing that New Zealand features “a very low tariff regime” with actual rates below the 10% baseline imposed by the U.S. on all nations.
“We won’t resort to retaliation. That would increase costs for New Zealand consumers and could lead to inflation,” he remarked.
For now, Mexico and Canada were spared from the latest wave of tariffs regarding goods already covered by their free trade agreement with the United States. However, the previously announced 25% tariffs on auto imports were set to go into effect at midnight.
Mexico’s President Claudia Sheinbaum stated on Wednesday that she would wait to see how Trump’s announcement affected Mexico before deciding on any course of action.
“This is not about if you impose tariffs on me, I will impose tariffs on you,” she said Wednesday morning. “Our goal is to strengthen the Mexican economy.”
Canada had initiated retaliatory tariffs in response to the 25% tariffs Trump linked to the trafficking of fentanyl. The European Union reacted to the steel and aluminum tariffs by implementing taxes on $28 billion worth of U.S. goods, including bourbon, prompting Trump to threaten a 200% tariff on European alcohol.
Little to gain
As Trump read out the list of countries that would be affected, he repeatedly stated that he held no animosity toward them for the trade protections they have established to safeguard their businesses. “But we’re doing exactly the same thing right now,” he stated.
“Faced with ongoing economic aggression, the United States can no longer continue on a path of unilateral economic submission,” Trump remarked.
Speaking from a business forum in India, Chilean President Gabriel Boric cautioned that such measures, besides engendering uncertainty, challenge the “mutually agreed rules” and the “principles that govern international trade.”
Colombian President Gustavo Petro, who has previously clashed with Trump, declared via X that the tariffs signal a global turning point: “Today, the neoliberalism that championed free-trade policies worldwide has come to an end.”
Analysts contend that an all-out trade war would yield minimal benefits for both the United States and other nations.
“Once more, Trump has placed Europe at a significant juncture,” stated Matteo Villa, senior analyst at Italy’s Institute for International Political Studies.
“If Trump genuinely enacts high tariffs, Europe will have to respond, yet paradoxically, the EU would be better off adopting a stance of inaction,” he added.
Villa also pointed out that retaliation would certainly be a setback for the United States, but it would be far more detrimental to Europe, as the EU depends more heavily on exports to the U.S. than vice versa.
“Conversely, Trump seems only to comprehend the language of power, indicating the need for a strong and prompt response,” Villa noted. “Perhaps the hope in Brussels is that the response will be robust enough to persuade Trump to engage in negotiations and, ultimately, to reverse his stance.”
__
AP journalists worldwide contributed to this report.
