The White House has warned other countries not to hit back at President Donald Trump’s dramatic new tariffs. But many of the United States’ biggest trading partners aren’t listening.
World leaders were still processing Trump’s complex new tariff regime Thursday and few were prepared to unveil specific trade retaliation. But a number of them promised it was coming, raising the specter of an escalating tit-for-tat trade war that could devastate the global economy.
“We are already finalizing the first package of countermeasures in response to tariffs on steel, and we are now preparing for further countermeasures to protect our interests and our businesses if negotiations fail,” European Commission President Ursula von der Leyen told reporters early Thursday morning in Samarkand, Uzbekistan, where she was attending a summit.
The E.U. was among the dozens of countries that will face a higher “reciprocal” tariff starting on April 9, beyond the 10 percent flat tariff the White House said will apply to all imports entering the U.S. starting April 5. Trump is adding a 20 percent tariff to all EU imports, the White House revealed Wednesday. The rates were even higher for Asian trading partners: 34 percent on China, 26 percent on India, 25 percent on South Korea and 24 percent on Japan.
Speaking on Fox News Wednesday night, Treasury Secretary Scott Bessent had the following advice for countries hit by the tariffs: “Do not retaliate. Sit back. Take it in. Because if you retaliate, there will be escalation. If you don’t retaliate, this is the high water mark.”
China, the world’s second largest economy, still vowed to take countermeasures to combat the tariffs, although the government’s statement was vague on what they would be.
“This gravely violates WTO rules, and undermines the rules-based multilateral trading system,” said Chinese Foreign Ministry spokesperson Guo Jiakun. “China firmly rejects this and will do what is necessary to defend our legitimate rights and interests.”
Vietnam, which was hit with a 46 percent tariff, set up a “rapid response team” to gather stakeholder input on how to respond.
But other countries seemed to take Bessent’s advice to heart. The United Kingdom, which received the lowest tariff rate of 10 percent, is choosing not to pursue reciprocal tariffs citing Prime Minister Keir Starmer ongoing negotiations with the White House on an economic and tech partnership. Japan, another top trading partner, expressed disappointment with the tariffs but said it would push for an exemption from them.
Mexico and Canada were largely spared from Trump’s tariffs rolled out on Wednesday — the White House said they would remain under a 25 percent tariff for all goods that do not comply with USMCA, a Trump negotiated North American trade agreement.
In a press conference Thursday, Mexican President Claudia Sheinbaum credited that decision to her relationship with Trump — her response to previous rounds of U.S. tariffs this year has been muted, holding her fire until Trump paused or lowered them. While Sheinbaum said she plans to unveil an “economic package,” she will also continue to negotiate with the White House.
Canadian Prime Minister Mark Carney, in contrast, objected to the existing 25 percent tariff, which Trump levied last month, and new auto tariffs that went into effect. Carney announced Thursday morning at a press conference in Ottawa that Canada would impose a 25 percent tariff on all automobiles imported from the U.S.
“This is a tragedy. It is also the new reality. We must respond with both purpose and force. We are a free, sovereign and ambitious country,” said Carney, who faces parliamentary elections later this month.