Facing Trump's tariff threats, countries are rolling out countermeasures. Countries like Canada are responding cautiously, and the EU said it has formulated a "strong" plan to prepare for retaliation.

The Trump administration began imposing tariffs on imported steel and aluminum products in March this year, and plans to further increase tariffs on imported cars starting this Thursday. Trump will also unveil his "reciprocal tariff" plan on Wednesday.

Experts warn that Trump's reciprocal tariff strategy may trigger a chain reaction of retaliatory measures from major trading countries such as China, Canada, and the EU, posing a risk of igniting a global trade war.

In response to Trump's tariff threats, countries are rolling out countermeasures. Canada and other countries are responding cautiously, while the EU is preparing to retaliate.

According to a Reuters report, European Commission President Ursula von der Leyen stated on Tuesday that although the EU still prefers to resolve differences through negotiation, it has prepared a "strong" plan to address the tariff policies already implemented or about to be implemented by Trump.

Von der Leyen expressed her understanding of the U.S. government's view that "global trade rules have been abused by some countries," and acknowledged that the EU has also been affected; however, she warned that the U.S. government's tariff measures are essentially a tax on American consumers, which may exacerbate inflation. Additionally, these tariffs will increase the cost of purchasing components for American factories, potentially leading to layoffs by companies.

Von der Leyen stated during her speech at the European Parliament in Strasbourg, France, that "our goal is to reach a solution through negotiations. If necessary, we will take action to defend our interests and protect our citizens and businesses." Von der Leyen said, "We do not wish to take retaliatory measures, but if the situation requires, we are ready with a strong response plan and will implement it."

Von der Leyen also emphasized that the EU should promote trade diversification and reduce barriers to cross-border trade within the internal market. She pointed out that the International Monetary Fund (IMF) estimates that obstacles within the EU's internal market are equivalent to a 45% tariff on manufacturing and as high as 110% on services.

She stated that the European Commission will propose relevant initiatives next month to reduce trade barriers and prevent new ones from emerging.

Multiple countries are carefully weighing their options as the risk of a trade war looms.

Global countries are conducting difficult diplomatic balancing acts, emphasizing their determination to firmly uphold their own interests while attempting to maintain dialogue with the United States to ease tensions.

Trump's spokesperson stated, "He is always willing to answer calls and eager to engage in fair negotiations, but he is determined to correct past unfairness."

Canadian Prime Minister Mark Carney said on Tuesday that Canada will remain "very cautious" in responding to the U.S.'s "unreasonable measures."

Taiwan's Minister of Economic Affairs, Guo Zhihui, revealed that Taiwan has prepared response plans for different tariff scenarios, such as specific reactions when the U.S. imposes 10% or 25% tariffs.

Some countries are hoping to reach special agreements with the U.S. For example, Vietnam has proactively reduced tariffs on certain goods in exchange for the U.S.'s "mild" treatment. UK Prime Minister Starmer stated that the UK is "fully striving" to reach a bilateral trade agreement with the U.S. to avoid being hit by high tariffs. However, he admitted, "We are likely to face tariff issues regardless."

Mexican President Claudia Sheinbaum stated on Tuesday that Mexico will not adopt a "tit-for-tat" approach toward the U.S. Sheinbaum stated at a press conference, "We do not believe in this approach because it will lead to an unfavorable situation." She added, "Of course, Mexico has taken corresponding measures because actions have been taken against us, but dialogue must continue."

"Magic Wand" Effect in Doubt, Economic Risks Intensify

Trump described the new tariff policy as a "magic wand" that can revitalize American manufacturing, reduce trade deficits, and even fill fiscal deficits.

However, analysts from Goldman Sachs warned that if the U.S. initiates a large-scale tariff war, its economic impact would be no different from taxing consumer goods, directly weakening household purchasing power.

Meanwhile, America's protectionism is prompting countries to accelerate regional cooperation. Last weekend, China, Japan, and South Korea announced they would "speed up" free trade agreement negotiations. EU officials also called for strengthening economic ties with Canada.

Since Trump returned to the White House, the U.S. has increased tariffs on some imported goods from China, Mexico, and Canada, and imposed additional rates on global steel and aluminum products.

At 4:01 AM GMT on Thursday morning, Washington plans to impose a 25% additional tariff on foreign-made cars and auto parts, further escalating global trade tensions.

Source: rfi

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