By Agboola Aluko | GLiDE NEWS | April 10, 2025
U .S. President Donald Trump's intensifying trade war is rattling economies around the globe, with major trading partners scrambling to respond to a new wave of sweeping tariffs. From targeted retaliatory measures to diplomatic overtures and strategic alliances, the world is recalibrating its economic posture in the face of what many see as a renewed era of protectionism.
Here’s how key nations and blocs are responding:
China Strikes Back
China has emerged as the most forceful responder. Following the imposition of U.S. tariffs as high as 104% on Chinese goods, Beijing has retaliated by hiking its own tariffs on U.S. imports to 84%, more than doubling its initial response. Chinese authorities vowed to pursue their trade battle against Washington “to the end.”
Beyond tariffs, China is wielding additional economic weapons—most notably, new export restrictions on rare earth minerals critical to industries such as electronics, defense systems, and advanced medical imaging. The move signals a strategic attempt to hit at the heart of America’s tech and industrial supply chains.
China has also deepened coordination with South Korea and Japan, working to maintain a stable regional trade environment amid global uncertainty.
European Union: Cautious but Calculated
The European Union, while avoiding an immediate tit-for-tat, is preparing a significant counterpunch. Initially seeking room for negotiation, the EU is now planning to impose €20 billion in retaliatory tariffs on a range of U.S. goods—including soybeans, motorcycles, and beauty products—in response to earlier steel and aluminum duties.
As Trump’s newest wave of tariffs targets over 60 countries, including a 20% levy on EU goods, Brussels is expected to unveil its next move within days. With mounting pressure from France and Germany, the EU may pivot toward targeting the services sector—particularly U.S. tech companies, where American dominance is most felt.
Japan Chooses Diplomacy
Japan has opted for a less confrontational path. Prime Minister Shigeru Ishiba engaged Trump in a diplomatic call this week, agreeing to hold further trade talks. Tokyo is leveraging its status as the largest foreign holder of U.S. Treasury bonds—worth over $1 trillion—as a stabilizing tool rather than a bargaining chip.
Despite escalating tensions, Japan has refrained from introducing retaliatory tariffs. However, concerns are rising domestically over market instability and a potential U.S. recession, which could erode the value of Japanese-held American assets.
South Korea Rolls Out Emergency Aid
Rather than retaliate through trade barriers, South Korea is supporting its industries directly. In response to the U.S.’s 25% tariffs on Korean car exports, Seoul has announced a $2 billion emergency support package aimed at cushioning its automotive sector, which is highly dependent on American consumers.
Canada Mirrors U.S. Tariffs
Canada, long a close economic ally of the U.S., has adopted a more direct strategy—mirroring Washington’s car and auto parts tariffs with a matching 25% duty on certain U.S. vehicles not covered by North American trade deals.
This comes on the heels of Canada’s earlier retaliatory tariffs against $21 billion worth of U.S. goods, following Trump's initial rounds of steel and aluminum tariffs.
ASEAN Eyes Regional Solidarity
Malaysia is preparing to host Chinese President Xi Jinping for a high-stakes three-day visit, as both nations align on a common response to Washington's protectionist policies. As chair of the ASEAN bloc this year, Malaysia will also convene an emergency economic summit on Thursday, with ministers from across Southeast Asia set to discuss unified strategies to navigate the growing trade turmoil.
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