Source: Global Times

[Global Times correspondents in France, Germany, and the United States - Shang Kaiyuan, Yushan, Feng Yaren, Han Wen, and Wenyuan] As the U.S. government is set to announce specific measures for "reciprocal tariffs" on April 2 and impose a 25% tariff on all imported cars starting April 3, the Office of the United States Trade Representative released its annual "Assessment Report on Foreign Trade Barriers" on March 31. The New York Times reported that the report lists dozens of "trade barriers" imposed by U.S. trading partners, which may affect President Trump's tariff plans this week. Although Trump stated that he would "very kindly" treat trading partners, against this backdrop, Australian Prime Minister Albanese said on April 1 that he will not give in, stating that there was no room for negotiation regarding issues involving his country in the report. European Commission President von der Leyen also mentioned in her speech on the same day that "this confrontation was not initiated by Europe. We do not necessarily want to retaliate, but if necessary, we have a strong retaliatory plan and will implement it." According to the Associated Press, more retaliatory statements may be seen this week.

In the context of the U.S. planning to impose a 25% tariff on all imported cars, on April 1, Volkswagen Group vehicles were loaded onto cargo ships in Lower Saxony for export. (Visual China)

Australian PM: "No Room for Negotiation"

According to reports by Reuters, The New York Times, Kyodo News, and others, on March 31, the Office of the United States Trade Representative released the annual "Assessment Report on Foreign Trade Barriers," listing major trade barriers imposed by approximately 60 countries and organizations against the U.S., including tariffs as well as laws, regulations, and policies deemed to disrupt competition by the Trump administration.

The New York Times noted that the report may suggest some potential targets for trade wars initiated by the Trump administration. For example, regarding Canada, the report focuses on the "supply management system" regulating the dairy, chicken, turkey, and egg industries in the country. This system sets production quotas, prices, and supply levels while controlling the volume of imports. The report claims that this system "severely limits the ability of U.S. producers to increase exports to Canada."

South Korean newspaper Maeil Gyeongje and others noticed that the report dedicates seven pages to listing trade barrier issues involving South Korea. It is reported that although these issues have been mentioned multiple times in previous reports, due to Trump's announcement this year about considering implementing "reciprocal tariffs" for non-tariff barriers, this report may serve as an important reference for future tariff wars. Industry insiders in South Korea believe that if the U.S. lists network usage fees paid by foreign content providers to South Korean internet service operators as a trade barrier, it could increase the operational pressure on domestic communication companies in South Korea.

Australian Prime Minister Albanese has stated that he will not yield to Trump. According to reports by The Guardian of the UK and Bloomberg of the U.S., the report from the Office of the United States Trade Representative highlights Australia's biosecurity systems for importing U.S. beef, pork, and poultry as a primary concern. Additionally, the report criticizes Australia's practice of providing generic drugs at lower prices without notifying U.S. patent holders, as well as plans to strengthen legislation requiring foreign social media companies to pay news fees to Australian media companies. In response, Albanese stated on April 1 that the aforementioned issues "leave no room for negotiation."

Details of "Reciprocal Tariffs" Likely to Be Announced as Early as the Night of April 1

White House Press Secretary Caroline Letvitt stated on March 31 that Trump will announce the "reciprocal tariff" policy in the Rose Garden at the White House on April 2. At that time, he will announce "country-based" tariffs, but the president is also "committed" to announcing sectoral tariffs at other times. According to The Guardian, Trump stated on March 31 that he might release details of the "reciprocal tariffs" as early as late April 1 locally, or possibly on April 2.

The Washington Post cited sources as saying that White House aides have drafted a plan to impose approximately 20% tariffs on most U.S. imports. Against this background, according to Sky News of the UK, UK Prime Minister Starmer stated on April 1 that the UK is "making rapid progress" in efforts to reach an economic agreement with the U.S. However, he also acknowledged that the possibility of imposing tariffs still exists, "I must prioritize national interests, which means keeping all options on the table."

According to Agence France-Presse, EU Commission President von der Leyen stated in her speech at the European Parliament on April 1 that the EU still hopes to reach a solution to the U.S. tariff issue through negotiations this week, but "all tools are on the table," and countermeasures will be implemented if necessary.

On April 1, German Channel Two reported that an EU spokesperson revealed, "(The EU) is preparing countermeasures that can maximize impact." It is reported that special tariffs suspended by the EU on products such as jeans, bourbon whiskey, motorcycles, and peanut butter imported from the U.S., which are scheduled to resume implementation in mid-April, aim to respond to the special tariffs already imposed by the U.S. on imported steel and aluminum. The European Parliament also called for action against technology companies such as X, Google, Amazon, and Netflix. According to reports by Die Welt of Germany, the EU's countermeasures against Trump's car tariffs will become more specific, with the sanctions list likely including branded clothing and agricultural products.

According to Agence France-Presse, Japanese Prime Minister Ishiba stated on April 1 that "Japan is the largest investor in the U.S. Considering this, we will continue to strongly appeal for tariff exemptions," "If I consider it necessary to personally visit the U.S., I will do so without hesitation."

BBC: Tariff War May Cause $1.4 Trillion Loss

According to a study by Aston University in the UK, if countries impose 25% tariffs on each other, the impact would be similar to the trade war that exacerbated the Great Depression in 1930, potentially causing $1.4 trillion in losses to the world economy. An analysis of the worst-case scenario (i.e., U.S. trading partners retaliating against Washington) indicates that the tariff war triggered by Trump will lead to widespread trade disruptions, rising prices, and declining living standards.

According to Reuters, Trump's introduction of a series of new tariffs has raised concerns about the potential damage to global economic growth and inflation, resulting in the worst quarterly performance for the S&P 500 Index and the Nasdaq Composite Index since 2022. In the first quarter of 2025, the S&P 500 Index fell by 4.6%, and the Nasdaq Composite Index fell by 10.5%.

AP reported that Trump and some of his advisors believe that increasing tariffs will help reverse the long-standing U.S. trade deficit. However, last year, the U.S. trade deficit still rose to $918 billion, the second highest on record. Economists stated that the deficit is a result of the uniqueness of the U.S. economy. Due to the federal government's massive deficits and American consumers' tendency to spend lavishly, U.S. consumption and investment far exceed savings, leading a significant portion of demand to flow to foreign goods and services. Kimberly Clowser of UCLA said, "Unless you address these issues, we will face trade imbalances."

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