World Responds to Washington's Tariffs

The global response to U.S. tariff measures has ranged from diplomatic negotiations to retaliatory actions. While the EU and Japan seek exemptions through dialogue, China and Canada have taken more direct countermeasures. Meanwhile, countries like Malaysia, South Africa, and India are exploring strategies to protect key economic sectors from the impact of U.S. tariffs. 

One certain outcome is that regional and country-specific trade agreements which exclude the United States will continue to be inked among countries determined to ensure their supply lines aren't jeopardized by the caprices of President Trump.

Canada’s Reaction

Canada has strongly opposed the new 25% tariff on lumber exports to the United States. The Canadian government argues that its lumber industry is not unfairly subsidized, contrary to U.S. claims. "Canada is the top lumber supplier to the United States, followed by China," President Trump stated. According to the U.S. Department of Commerce, Canada exported $8.5 billion worth of softwood lumber to the U.S. in 2022. The Canadian government warns that these tariffs could drive up housing costs in the U.S. and negatively impact the North American trade relationship.

European Union Negotiations

The European Union is actively engaging with U.S. officials to prevent a trade war. European Commissioner for Trade Maroš Šefčovič stated, "The EU is interested in making deals – deals that foster fairness, burden-sharing, and mutual benefits." He met with U.S. Commerce Secretary Howard Lutnick and White House economic adviser Kevin Hassett, seeking tariff reductions and greater European investments in the U.S. According to Reuters, the EU is prepared to respond "firmly and swiftly" if the U.S. proceeds with its planned tariffs.

South Korea

South Korean officials have requested an exemption from U.S. reciprocal, steel and aluminium tariffs during their visit this week to Washington, the industry ministry said in a statement on Friday.

Deputy Minister Park Jong-won, who led the first major South Korean government delegation to visit Washington since the announcement of the tariffs, argued that almost all tariffs between the two countries have already been eliminated under their free trade agreement.

China’s Trade Standoff

China has retaliated against new U.S. tariffs by imposing a 15% duty on American coal and liquefied natural gas, along with a 10% tariff on oil and agricultural machinery. "Trade and tariff wars have no winners and only serve to damage the interests of people all over the world," Chinese Foreign Ministry spokesman Guo Jiakun told reporters. China has also filed a complaint with the World Trade Organization. The phase-one trade deal signed during Trump's first term has been a point of contention, as Beijing has not fully complied with its commitments, according to the U.S. Trade Representative.

Southeast Asian Concerns

Malaysia and other ASEAN nations are planning a special summit to address U.S. tariff concerns. "This is a huge blow if we can't get this resolved soon," Malaysian Foreign Minister Mohamad Hasan said in Parliament. According to the Office of the U.S. Trade Representative, U.S.-Malaysia goods trade was valued at $80.2 billion in 2024, with the U.S. trade deficit at $24.8 billion. Electrical and electronics products make up 60% of Malaysia’s trade with the U.S., making new tariffs a significant economic risk.

Japan’s Response

Japan is lobbying for exemptions from new U.S. tariffs on steel and automobiles. Trade Minister Yoji Muto is set to meet U.S. officials in March to discuss these exemptions. According to Asahi newspaper, Japanese carmakers such as Toyota, Honda, and Nissan employ over 5 million people, representing 8% of the country’s workforce. Japan has emphasized the crucial role of its auto sector in its economy and warned that tariffs could have severe consequences.

South Africa’s Diplomatic Efforts

South Africa is preparing a diplomatic push to secure continued access to the U.S. market under the African Growth and Opportunity Act (AGOA). "We have not been in this position before and things are significantly bad compared to past instances," said Khulekani Mathe, CEO of Business Unity South Africa. Losing AGOA benefits could severely impact the country’s automotive and agricultural exports, which make up a large portion of its trade with the U.S.

India’s Pharma Industry at Risk

Indian pharmaceutical companies are in talks with U.S. officials to mitigate the impact of proposed tariffs on drug exports. "We are confident that continued dialogue among stakeholders will help address the subject," said Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance. According to the Indian government-backed trade body Pharmexcil, India exported $8.7 billion worth of pharmaceuticals to the U.S. in 2024. Research firm IQVIA reported that nearly half of all U.S. prescriptions for generic medicines were supplied by Indian manufacturers in 2022, saving the U.S. healthcare system approximately $408 billion.

UK’s Trade Relations with the U.S.

British Business Secretary Jonathan Reynolds acknowledged that the UK may not be exempt from U.S. tariffs but stressed ongoing negotiations. "We have a balanced, strong, mutually beneficial relationship, and that is what we need to build on," Reynolds said in an interview with Times Radio. The UK has pushed back against U.S. claims that VAT systems act as a trade barrier, arguing that VAT applies equally to domestic and imported products.