Retaliate or capitulate? How countries are responding to Trump's tariffs

US President Donald Trump announced new import tariffs.Chip Somodevilla/Getty ImagesTrump's tariffs are threatening long-standing alliances across the globe.While some countries are fighting back, others are negotiating with the Trump administration.

The economies of some of the world's largest superpowers are at stake.In the days since President Donald Trump unveiled his "reciprocal" tariffs on dozens of trading partners, affected nations have announced a range of reactions.Some countries, like China, have already set countermeasures to Trump's tariffs, while others are looking to negotiate exemptions.



Here's how governments around the world are reacting to Trump's tariffs.ChinaTwo days after Trump announced his tariffs, China struck back, announcing it would implement 34% retaliatory tariffs on all US imports.China's Ministry of Commerce also placed 11 US companies on an "unreliable entities" list, effectively blocking them from conducting business in the country.

"China urges the United States to immediately lift its unilateral tariff measures and resolve its trade differences through consultations in an equal, respectful, and mutually beneficial manner," the ministry said in a statement.Trump has imposed 54% tariffs on China since he took office.In February, China implemented a 10% tariff on crude oil, agricultural machinery, pickup trucks, and some large cars.

China also imposed a 15% levy on coal and liquefied natural gas.CanadaFor months, Trump has threatened to annex Canada as part of his push to make it the 51st US state. He's threatened Canada with an array of tariffs, stunning government officials and residents who have long enjoyed a mostly conciliatory relationship with the US.

In March, Trump set 25% tariffs on Canadian goods that weren't compliant with the United States-Mexico-Canada Agreement, prompting an outcry from Canada, which retaliated by placing a 25% tariff on select US goods.On April 3, Canadian Prime Minister Mark Carney announced his country would impose a 25% tariff on vehicles imported from the US that aren't USMCA-compliant.Canada was spared further levies from the US last week.

AustraliaTrump announced last week that Australia would be subject to the administration's 10% baseline tariff rate. Australian Prime Minister Anthony Albanese responded swiftly."The [US] administration's tariffs have no basis in logic — and they go against the basis of our two nations' partnership," he told reporters on April 3.

"This is not the act of a friend."Albanese said Australia didn't plan to retaliate with reciprocal tariffs on US goods."We will not join a race to the bottom that leads to higher prices and slower growth," he said.

European UnionTrump announced 20% tariffs on imports from the EU.The EU is expected to respond to Trump with its own set of countermeasures in the coming days, according to Reuters.On April 5, Tesla CEO Elon Musk, the face of the White House DOGE Office and a political ally of Trump, said he wanted to see a "zero-tariff" system between the United States and Europe.

IndonesiaTrump announced 32% tariffs on Southeast Asia's biggest economy.Indonesia's chief economic minister said on Sunday that the country would focus on diplomacy and negotiations to find mutually beneficial solutions rather than retaliating against the tariffs."The approach was taken by considering the long-term interest of bilateral trade relation, as well as to maintain the investment climate and national economic stability," Airlangga Hartarto said.

He also said that Indonesia would support sectors likely to be hit by the tariffs, such as the apparel and footwear industries. Indonesia's main exports to the US include electronics, apparel and clothing, and footwear.JapanJapan will soon face a 24% tariff, Trump announced.

"We had been requesting that the US government review its unilateral tariff measures at various levels and we are extremely disappointed and regret that such measures have been implemented nonetheless," Japanese Prime Minister Shigeru Ishiba told reporters shortly after Trump's announcement.Trade Minister Yoji Muto later said his ministry had created a task force to examine the impact of the tariffs.When asked about the potential for retaliation, Muto replied: "We need to decide what is best for Japan, and most effective, in a careful but bold and speedy manner.

"MalaysiaMalaysia will see its exports to the US get hit by a 24% tariff.The country is not considering retaliatory tariffs and will "seek solutions that will uphold the spirit of free and fair trade," its Ministry of Investment, Trade and Industry said on Thursday.In a Sunday night video address posted to social media, Prime Minister Anwar Ibrahim said Malaysia will "prepare a coordinated ASEAN response" toward Trump's tariffs.

Malaysia currently chairs the Association of Southeast Asian Nations, a grouping of ten countries in the region, including Vietnam and Cambodia.The prime minister also said the nation's response will be "calm, firm, and guided by Malaysia's strategic interests."MexicoMexico dodged a baseline tariff from Trump last week.

Trump came into office promising to slap a 25% tariff on all imports from Mexico, but he later paused the levies on products that fell under the USMCA on free trade. Non-compliant USMCA products continue to be subject to a 25% tariff.Trump had earlier threatened Mexico with tariffs over his concerns regarding fentanyl smuggling and illegal immigration.

The White House said that for now, any USMCA-compliant imports can continue to enter the United States without added tariffs.Mexican President Claudia Sheinbaum lauded her "good relationship" with the Trump administration for avoiding any additional levies from the president last week.VietnamTrump said last week he would impose a 46% tariff on Vietnamese goods.

It's one of the highest tariff rates put into place by Trump against any country.And it's prompted the country to take quick action.Vietnam is "ready" to negotiate with the Trump administration to undo all tariffs on US imports, according to a senior official.

Read the original article on Business Insider.