U.S. President Donald Trump’s late-night announcement (Wednesday, April 2) of sweeping “retaliatory tariffs” ranging from 10% to 50% on imports from over 100 countries — including the European Union — has sent shockwaves through global markets. The move is set to deal a serious blow to major industries, particularly multinationals in the automotive, apparel, and footwear sectors that manufacture their goods in countries like Vietnam (subject to 46% tariffs), China (34%), and Taiwan (32%).
German Industry Reacts
The response from global governments and industrial giants was swift and strong. Germany’s automotive sector warned that the U.S. tariffs would produce “only losers,” urging the EU to respond firmly. Meanwhile, the German chemical industry advocated for calm, stressing that any escalation would only “worsen the damage.”
“We regret the decision of the U.S. government. It’s important for all sides to remain calm,” stated the German Chemical Industry Association (VCI), which represents major players like Bayer and BASF. The group urged Brussels to continue “close dialogue with Washington,” emphasizing that “the goal must be a mutually fair solution” and warning that Germany must not become “a pawn in a never-ending trade war.”
U.S. Warning: “Retaliation Will Escalate Things”
U.S. Treasury Secretary Scott Bessent issued a global advisory, urging governments not to retaliate against the tariffs, warning that doing so would lead to escalation.
“Hold back, absorb the hit, wait to see how things evolve. If you retaliate, there will be escalation,” said Bessent.
UK: Seeking a Deal, Not Retaliation
The UK, for its part, is looking to strike a deal with the U.S. to “soften” the impact of the tariffs and has no immediate plans for retaliation, according to British Trade Secretary Jonathan Reynolds.
“The U.S. is our closest ally. Our approach is to remain calm and work toward a deal that we hope will mitigate the impact,” he stated.
Notably, the UK received relatively favorable treatment in Trump’s announcement, with only a 10% tariff imposed on British goods entering the U.S.
Canada: Preparing Countermeasures
In contrast, Canadian Prime Minister Mark Carney said his country would respond with countermeasures to President Trump’s tariff decision.
“It’s absolutely necessary to act with purpose and strength — and that’s what we’ll do,” Carney told reporters ahead of a cabinet meeting.
China: Resolve Disputes Through Dialogue
China called on the U.S. to immediately cancel the unilateral tariffs and to resolve disputes with trade partners through “equal and fair dialogue.”
“Many trade partners have expressed strong dissatisfaction and clear opposition,” China’s Ministry of Commerce stated.
The ministry said China “firmly opposes” the measures and would take “resolute countermeasures” to defend its rights and interests.
Japan: Tariffs Violate Bilateral Deal
The Japanese government expressed concern that the 24% tariffs announced by President Trump on Japanese goods may violate WTO rules and the bilateral trade agreement between the two countries.
“We have serious concerns about whether these measures comply with WTO rules and the U.S.-Japan trade agreement,” said Chief Cabinet Secretary Yoshimasa Hayashi.
Earlier, Japanese Trade Minister Yoji Muto called the tariffs “extremely regrettable” and confirmed he had spoken with U.S. Trade Secretary Howard Lutnick before Trump’s announcement.
“I made it clear that the U.S. unilateral tariff measures are extremely regrettable and strongly urged Washington not to impose them,” Muto said.
Brazil: All Options on the Table
The government of Brazilian President Luiz Inácio Lula da Silva announced it is considering “all” possible measures to respond to the 10% U.S. tariffs on Brazilian exports.
“Brazil is reviewing all potential actions to ensure reciprocity in bilateral trade, including bringing the matter before the World Trade Organization to defend its legitimate national interests,” the government said in a statement.
It added that Brazil remains open to dialogue but rejected U.S. claims that the tariffs were reciprocal in nature, saying they “do not reflect reality.”
Earlier, Brazil’s parliament passed a law empowering the government to retaliate against trade restrictions. The so-called “economic reciprocity” law passed unanimously across party lines.
