US New Tariffs Shake Global Trade: EU, China, And Allies Respond

New tariffs come into force: “I support Trump, but not the tariffs”

Starting today, special US New Tariffs apply to numerous countries – including the EU. There are no signs that the US government might change its controversial course. But even among Trump’s Republicans, criticism is growing.

“When America gets hit, it hits back harder” – this is how Donald Trump’s press secretary, Karoline Leavitt, sums up the latest escalation in the trade war. While the saying sounds like a schoolyard squabble, it succinctly sums up how the Trump administration perceives the tariff dispute: as a battle that will ultimately produce a winner and a loser.

China made a mistake when it countered the recent US surcharges of 34 percent with another 34 percent, Leavitt said. Trump believes Beijing will now make a deal with the US. Just like South Korea and Japan, the other two major East Asian economies, have actually already begun new tariff negotiations with Washington.

New Tariffs: Support from the auto union

Leavitt claims that nearly 70 countries have now contacted the White House. Their heads of state will immediately board a plane and fly to Washington to negotiate new trade agreements.

A change of course sounds different – ​​and the Trump administration is still receiving support from a completely unexpected source. Shawn Fain, for example, the chairman of the United Auto Workers (UAW), the union representing employees in the auto industry, approves of additional tariffs on cars. “Blanket tariffs on everything are reckless,” Fain says. But in the auto industry, politicians have stood by for 30 years as more and more jobs have moved abroad. Perhaps this could be reversed with the 25 percent tariffs on car imports.

Criticism from within

Starting today, additional surcharges of 20 percent must be paid on imports from the EU. This is also being criticized by more and more of Trump’s party colleagues: “I support Donald Trump, but I don’t support the tariffs,” says Republican Senator Rand Paul of Kentucky. He will fight the battle.

Warning words are also increasingly being heard from the business world, for example from the head of the major bank JP Morgan, Jamie Dimon, who is concerned about rising inflation and slowing growth.

And even from Trump’s closest circle, contradictory sentiments are emerging: “I think both Europe and the US should ideally move to a zero-tariff situation,” said Elon Musk . He, of all people,  recommends a transatlantic free trade zone. Musk also called Trump’s top trade representative, Peter Navarro, the architect of his tariff policy, a “moron,” “dumber than a sack of bricks.”

Trump’s spokeswoman smiles off the controversy: Boys will be boys, so let them continue to publicly squabble. Never before has a US government been so transparent. “You should all be very grateful that we have the most transparent government in history,” she claims.

Trump mocks trading partners as subservient supplicants

His tariff policy is causing massive turmoil in the financial markets, but Donald Trump is reveling in being the center of attention once again. Affected countries are begging for exemptions from the restrictions.

The long-term consequences of the new US tariff policy cannot yet be fully assessed. What seems certain is that President Donald Trump’s special tariffs, which come into effect today, will pose major challenges to global trade. This outlook has been causing severe turbulence on the stock markets for days.

While investors and businesspeople despair, Trump seems to be enjoying his role in the spotlight. As CNN reports  , the president is apparently waiting for long-standing trading partners to seek exemptions from the tariffs.

“These countries are calling us. They’re kissing my ass. They’re dying to make a deal,” Trump told a group of Republicans Tuesday evening, according to the network.

“I’ll do anything, sir.”

Foreign leaders are allegedly begging him for mercy to avoid the new tariffs, Trump said: “Please, please, sir, make a deal. I’ll do anything, sir.”

Trump’s spokeswoman Karoline Leavitt had previously confirmed this account. Leavitt said the phones at the White House have been ringing off the hook for days. Foreign governments are trying to talk to the president and his trade team and reach an agreement, Leavitt said.

As CNN reports, citing government insiders, CEOs of major corporations are currently trying to contact leading members of the Trump administration to convince them of the damage caused by the new US trade policy.

Foreign governments are also already trying to mitigate the drastic impact of the US measures on their own economies. On Wednesday, for example, Vietnam’s Deputy Prime Minister Ho Duc Phoc will meet with US Treasury Secretary Scott Bessent to discuss the tariffs.

The United States has imposed tariffs of 46 percent on Vietnamese exports, which account for approximately 30 percent of the country’s gross domestic product. Vietnamese President To Lam announced in a phone call with U.S. President Donald Trump last week that he is open to talks on a zero-tariff agreement with the United States.

No exceptions – not even for Israel

The new US tariffs were also discussed during a visit to Washington by Israeli Prime Minister Benjamin Netanyahu . The US had previously announced plans to impose a 17 percent tariff on Israeli products. The US is Israel’s most important trading partner.

But Netanyahu has been unable to secure an exception for the time being. Asked whether he might change his mind about the tariffs against Israel , Trump said, according to Reuters, “Maybe not.”

The US President referred to the billions of dollars the US gives Israel in military aid each year. “We give Israel four billion dollars a year. That’s a lot,” Trump said.

---

Sources used:

• With material from the News agencies Reuters news agency. With information from news.google.com. Statement and reports from reputable news sources, including  Wikipedia, BBC, CNN. The content has been independently analyzed and rewritten to provide original insights.

---