US trade partners threaten to escalate trade war amid tariff onslaught
4 Min Read
As the Trump administration announces its drastic tariffs on the globe, the US' trade partners have threatened to escalate and retaliate.
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Artist Kaya Mar poses with his painting of US President Donald Trump in Westminster in London, Thursday, April 3, 2025 (AP)
Washington's trading partners threatened to escalate the trade war with the United States on Thursday after President Donald Trump's broad tariffs sparked concerns over rising prices in the world's largest consumer market.
The White House unveiled sweeping new tariffs, sparking immediate upheaval in global markets as leaders around the world denounced the measures and vowed to retaliate against the levies.
Trump’s trade measures would establish the highest import barriers in over a century, imposing a 10% minimum tariff on all imports, with even steeper duties targeting key trading partners. The base 10% tariff goes into effect on April 5, and the higher reciprocal levies on April 9.
These tariffs could drive up costs for a wide range of consumer goods, from running shoes to Apple’s iPhones.
As a result, global stock markets took a heavy hit as analysts warned that the tariffs could disrupt supply chains and erode corporate profits, with tech and retail stocks suffering the most.
#TrumpTariffs pic.twitter.com/wf7Pm38DRK
— Al Mayadeen English (@MayadeenEnglish) April 2, 2025
Trade partners react
Businesses scrambled to adjust, with automaker Stellantis announcing temporary layoffs of US workers and plans to shut down facilities in Canada and Mexico, while General Motors responded by ramping up domestic production.
Canadian Prime Minister Mark Carney accused the US of abandoning its traditional leadership role in global economic cooperation.
“The global economy is no longer the same as it was yesterday,” he said while unveiling a limited set of countermeasures.
Facing newly imposed 54% tariffs on exports to the US, China pledged to retaliate with countermeasures, while the European Union also threatened to respond, as both allies and rivals of Washington united in condemning the move, fearing it could deliver a crippling shock to global trade.
For example, French President Emmanuel Macron urged European nations to halt investment in the US.
Other trading partners, including South Korea, Mexico, and India, said they would hold back from immediate action while seeking negotiations.
Both Washington’s allies and adversaries cautioned that the tariffs could severely damage global trade, with the impact likely to be most devastating for poorer nations like Madagascar, which now faces a 47% tariff on vanilla exports.
“The consequences will be dire for millions worldwide,” said EU President Ursula von der Leyen.
#Japan criticized US President #DonaldTrump's broad new tariffs on Thursday as "extremely regrettable," warning that they could violate WTO regulations and the bilateral trade agreement.
— Al Mayadeen English (@MayadeenEnglish) April 3, 2025
"I have conveyed that the unilateral tariff measures taken by the United States are… pic.twitter.com/MerqJaazfJ
Trump admin. defends tariffs as global economic disaster brews
The average US import duty has now risen to 22.5%, a steep increase from 2.5% the previous year, according to Fitch Ratings.
Trump defended the tariffs as a response to trade barriers placed on US goods, though his list of targeted countries includes uninhabited Antarctic islands and some of the world’s poorest nations, which now face tariffs nearing 50%.
Administration officials argued that the tariffs would boost domestic manufacturing and open new export opportunities, though they acknowledged that tangible benefits would take time to materialize.
“We understand that many Americans are concerned,” Vice President JD Vance told Fox News. “But people need to recognize that fixing this problem won’t happen overnight.”
Economists warned that the tariffs could fuel inflation, heighten the risk of a US recession, and increase household expenses by thousands of dollars—potentially undermining Trump’s promise to reduce the cost of living. According to the Federal Reserve, regions that supported Trump in the last election could be among the hardest hit.
Trump had no public events scheduled before leaving Washington for a golf tournament at one of his resorts in Florida.
"THE OPERATION IS OVER! THE PATIENT LIVED AND IS HEALING," he wrote on social media.
Read more: US dollar falls 1% vs euro, US stocks drop as Trump unveils tariffs
