3 April 2025, 09:21
World leaders react to US tariffs
World leaders react to US tariffs. Picture: Alamy
By Emma Soteriou
World leaders have reacted to sweeping new tariffs announced by US President Donald Trump.
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Trump gave a rundown of the trade barriers the US will put up on foreign countries on Wednesday evening outside the White House.
The import taxes, which he called "reciprocal tariffs" and ranged from 10 per cent to 49 per cent, were presented in the simplest terms: the US would do to its trading partners what he said they had been doing to the US for decades.
"Taxpayers have been ripped off for more than 50 years," he said. "But it is not going to happen anymore."
The president promised that "jobs and factories will come roaring back into our country".
He framed it not just as an economic issue, but a question of national security that threatens "our very way of life".
The tariffs have been described as a "major blow to the world economy", with world leaders claiming they are "unwarranted".
Read more:EU threatens further countermeasures against US tariffs after 'major blow to world economy'
Read more:UK 'won't hesitate to act' on Trump's tariffs, Cabinet minister says - with Starmer to meet businesses on Thursday
British PM Keir Starmer told business chiefs that "clearly, there will be an economic impact" from the tariffs, but the Government planned to respond with "cool and calm heads".
"Today, I will act in Britain's interests with mine," he said.
He added that the UK was "prepared" and that "one of the great strengths of this nation is our ability to keep a cool head".
Italy's conservative premier Giorgia Meloni described the new 20 per cent tariffs against the European Union as "wrong", saying they benefit neither side.
"We will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players," she said in a Facebook post.
Brazil's government said it was considering taking the case to the World Trade Organisation.
In a rare display of unity, Brazil's Congress unanimously passed a reciprocity bill to allow its government to retaliate against any country or trade bloc that imposes tariffs on Brazilian goods.
Our Government will always stand up for Australia.
These are uncertain times - but all Australians can be certain of this: we will always stand up for Australian jobs, Australian industry, Australian consumers and Australian values.
These tariffs are not unexpected, but they… pic.twitter.com/bXaFTcvnN8
— Anthony Albanese (@AlboMP) April 2, 2025
Meanwhile, Australian PM Anthony Albanese said the US tariffs imposed on his country were totally unwarranted, but Australia will not retaliate.
The US and Australia have a free trade agreement.
"President Trump referred to reciprocal tariffs. A reciprocal tariff would be zero, not 10 per cent," said Mr Albanese.
"This is not the act of a friend."
New Zealand also took issue with Mr Trump's tariff logic.
"We don't have a 20 per cent tariff rate," said trade minister Todd McClay, adding that New Zealand was "a very low tariff regime" and the correct figure was below the 10 per cent baseline rate applied by the US to all countries.
"We won't be looking to retaliate. That would put up prices on New Zealand consumers and it would be inflationary."
European Commission President Ursula von der Leyen described the tariffs as a major blow to the world economy.
"We are already finalising the first package of countermeasures in response to tariffs on steel," she said in a statement read out in Uzbek city Samarkand on Thursday, ahead of an EU-Central Asia partnership summit.
"And we're now preparing for further countermeasures to protect our interests and our businesses if negotiations fail."
Irish Prime Minister Micheal Martin said: "We see no justification for this.
"More than €4.2bn worth of goods and services are traded between the EU and the US daily... Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk."
Mexico and Canada were spared from the latest round of tariffs. However, the previously announced 25 per cent tariffs on auto imports were scheduled to take effect at midnight.
Mexico President Claudia Sheinbaum said she would wait to take action on Thursday when it was clear how the announcement would affect the country.
"It's not a question of if you impose tariffs on me, I'm going to impose tariffs on you," she said on Wednesday morning.
"Our interest is in strengthening the Mexican economy."
Canada had imposed retaliatory tariffs in response to the 25 per cent tariffs Mr Trump tied to the trafficking of fentanyl.
Donald Trump holds a report on foreign trade barriers as he delivers remarks on new tariffs during a 'Make America Wealthy Again' event
Donald Trump holds a report on foreign trade barriers as he delivers remarks on new tariffs during a 'Make America Wealthy Again' event. Picture: Alamy
Speaking from a business forum in India, Chilean President Gabriel Boric warned such measures, in addition to causing uncertainty, challenge the "mutually agreed rules" and the "principles that govern international trade".
Colombia President Gustavo Petro, who has clashed with Mr Trump before, said in a post on X: "Today the neoliberalism that proclaimed free-trade policies all over the world has died."
South Korea's acting leader prime minister Han Duck-soo told officials to work with business groups to analyse the potential impact of the new 25 per cent tariff to "minimise damage", the trade ministry said.
China's commerce ministry said Beijing would "resolutely take countermeasures to safeguard its own rights and interests", without saying exactly what it might do.
China has reacted to earlier rounds of higher tariffs by imposing higher duties on US exports of farm products, while limiting exports of strategically important minerals used for high-tech industries such as electric vehicles.
"China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue," it said.