New Trump Tariffs: How Five Leading Economies Perceive the Impact

New trade tariffs announced by US President Donald Trump on Wednesday are likely to have a global impact, and have been criticised by the European Union (EU) and other key US allies.

But Trump’s new import tax could get a different reaction in China, where leaders may see it as a “gift”.

Europe may be hurt, but does not want to escalate

Katya Adler, Europe editor, Brussels

European Commission chief Ursula von der Leyen said on behalf of all European countries that the new import taxes would lead to “catastrophic” consequences affecting millions of people around the world.

She said there was no clear way out of the “complexity and chaos caused by the new tariffs”.

However, the Commission has promised to protect European businesses, some of which, such as Germany’s car industry, Italy’s luxury goods and France’s wine and champagne producers, will be more affected.

French President Emmanuel Macron has called an emergency meeting of French business leaders on Thursday.

As the world’s biggest single market, the EU could hurt the US, such as by targeting ‘big tech’ companies such as Apple and Meta. But the EU says their aim is not to escalate the situation, but to push Trump to negotiate.

On Wednesday night, Italian Prime Minister Giorgia Meloni said that while she considers these tariffs wrong, every effort would still be made to reach an agreement with the US.

A gift for China’s leader

Stephen McDonnell, China correspondent in Beijing

A tariff of 54% on goods coming from China is certainly huge and will hurt Chinese companies trying to sell their goods in the US market.

Beijing’s retaliatory measures will also make it harder for US companies to enter the Chinese market.

But in a way, Trump’s moves are also a “gift” to Chinese President Xi Jinping.

Xi is touting his country as a champion of free trade and a supporter of multilateral institutions, while portraying the world’s other superpower as flouting both.

Just last week, China’s leader was meeting with the CEOs of several large international companies, including in Europe, and the picture was pretty clear. America under Donald Trump = chaos, destruction of trade, national self-interest. China under Xi Jinping = stability, free trade, global cooperation.

The Chinese government has already activated its state media sector to attack the Trump administration’s new tariffs.

Whenever Trump takes steps like these, it makes Xi’s propaganda easier.

Many countries may move closer to China and away from the US due to economic necessity.

Relief in Britain, but no joy

Chris Mason, BBC political editor, London

People here in government already understood the mood – they had a sense that Britain was “in the good camp, not the bad camp”, as one person told me – but they had no idea what it would mean.

Now we know – 10% tariffs have been imposed on Britain’s exports to the US.

There is a sense of relief among ministers, but they are not happy. Tariffs imposed on Britain will have a significant impact, and tariffs imposed on Britain’s trading partners will also have a profound impact on global trade flows, jobs and industries, which will be felt in the weeks, months and years to come.

It will be “hugely disruptive”, as one government source said.

The impact on the car industry in particular is of concern.

Negotiations on a trade deal between Britain and the US are ongoing. I am told that the four-member British negotiating team is in “very intense” talks and is ready to go to Washington if an agreement is reached.

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India worries about impact, but some sectors hopeful

Nikhil Inamdar, India business correspondent in Delhi

Asian economies are set to be hit hardest by Trump’s new tariffs. The US will now impose tariffs of 46% on goods imported from Vietnam and 49% on goods imported from Cambodia.

India has fared better in relative terms.

But a general tariff rate of 26% is still too high, and will severely impact key “labour-intensive exports”, said Priyanka Kishore of the Asia Decoded consultancy.

“This will have a negative impact on domestic demand and gross domestic product (GDP),” according to Kishore.

But India’s electronics exports could benefit, as higher tariffs on rivals such as Vietnam could lead to restructuring of trade.

However, this is unlikely to mitigate the negative economic impact of Trump’s move.

Like Canada, Mexico or the EU, India has so far adopted a cordial approach with Trump and is negotiating a bilateral agreement with the US. Whether this will trigger any retaliation in Delhi will be closely watched.

India’s pharmaceutical industry, which exports $13 billion (£9.9 billion), will breathe a sigh of relief as medicines are exempt from these “reciprocal” tariffs.

South Africa criticised, continent hit by aid cuts

Wycliffe Muia, in Nairobi

Trump’s “reciprocal tariffs” are affecting several African countries, with South Africa facing a 30% tariff and Lesotho a 50% tariff.

Many of these countries are already grappling with the impact of cuts in US foreign aid that provided health and humanitarian aid.

The new tariffs imposed on South Africa, which has open trade agreements with the US, could affect existing economic ties.

South Africa’s president has slammed the new tariffs, calling them “punitive” and saying they could act as “a barrier to trade and shared prosperity”.