Latest: Key US trading partners, global officials react to Trump's new tariffs

New York, Apr 3 (AP) Sweeping new tariffs announced Wednesday by US President Donald Trump provoked dismay, threats of countermeasures and calls for further negotiations to make trade rules fairer.

But responses were measured, highlighting a lack of appetite among key trading partners for an outright trade war with the world's biggest economy.

Trump said the import taxes, ranging from 10 per cent to 49 per cent, would do to US trading partners what they have long done to the US. He maintains they will draw factories and jobs back to the United States.

European Commission President Ursula von der Leyen said they are a “major blow to the world economy,” while Japanese Prime Minister Shigeru Ishiba said they will have a “great impact” on US-Japan relations and Korean Prime Minister Han Duck-soo called for emergency measures to support industries affected by the tariffs.

Asian markets fell in Thursday trading and US futures tumbled.

Here's the latest: Stock market in Vietnam plunges and people rush to buy gold Vietnam's stock market plunged Thursday while gold prices reached a record high after US President Donald Trump slapped 46 per cent tariffs on Vietnam's exports. Meanwhile people lined up to buy gold in Hanoi despite the high prices.

“Investing in gold would be at lower risk because the economy is very uncertain at the moment,” said Nguyen Trung, a buyer.

Vietnam has long realised that it was too reliant on the US and has been diversifying its trade relations by signing free trade agreements with over a dozen countries, said Dan Martin, international business adviser of Dezan Shira & Associates.

“The lesson is clear now, the reliance that Vietnam had as a US export market, it's not safe,” he said.

Especially hard-hit will be the garments and sportswear section, including household names like Adidas and Nike. Nike made of its shoes and about a third of its clothes in Vietnam last year, while factories in Vietnam made 39 per cent of Adidas's shoes and 18 per cent of its clothes.

US tariffs on goods from Vietnam among the highest on any country Vietnam's Prime Minister Pham Minh Chinh said that the country still hoped to reach its economic growth target of at least 8 per cent despite the Trump administration imposing 46 per cent tariffs on its exports.

Chinh chaired a Cabinet meeting Thursday to assess the impact of the tariffs, among the highest imposed on any country, and said that Vietnam hoped that US policy would be “consistent with the good relations between the two countries.” He added that Vietnam was still overcoming the consequences of the long war between the two nations.

The tariffs will deal a severe blow to Vietnam since the US is its largest export market. Exports to the US, valued at USD 142 billion, in 2021 made up a third of the country's GDP.

Ukrainian minister says her country can get better tariff conditions from US Ukraine is working to get better tariff conditions from the United States, Ukrainian Economy Minister Yuliia Svyrydenko wrote on her X account.

Svyrydenko says Ukrainian tariffs on US goods are “quite low” and that Ukraine imported more goods from the US in 2024 than exported to the country.

She said the 10 per cent tariff Trump imposed on Ukrainian goods will mainly impact small producers. “Ukraine has something to offer the United States as a reliable ally and partner. Both our countries will benefit from fair tariffs,” she wrote.

Fiji criticises tariffs as 'disproportionate' and unfair' Among the small island nations of the South Pacific Ocean, a few were singled out for higher tariff rates than the 10 per cent baseline. Fiji's Deputy Prime Minister Biman Prasad on Thursday criticised as “disproportionate” and “unfair” the 32 per cent tariffs announced on Fiji's exports to the US.

The US is a major trading partner for the nation of 924,000 people, accounting for 10 per cent of total imports and exports, Prasad said Thursday on social media. Fiji's biggest export to the US is bottled water, with its most famous brand — Fiji Water — owned by a US conglomerate.

The US administration justified Fiji's higher tariffs with a claim that the Pacific nation imposes 63 per cent tariffs on American goods arriving on its shores. Prasad rejected that figure, telling reporters that Fiji does not impose such tariff rates on any country.

Israeli finance minister says his office is analysing' tariff implications Israeli Finance Minister Bezalel Smotrich says his office is studying Trump's tariff order and “analysing its implications for the economy,” in the country's first reaction to Trump's announcement of a 17 per cent tariff on imports from Israel.

On Wednesday, ahead of Trump's announcement, Israel cancelled all remaining tariffs on imports from the US. The Prime Minister's Office said in a statement the move would go into effect after final approval by the economy minister and the parliament's finance committee.

Smotrich said in a statement on X he was talking with industry leaders about Trump's new order and would meet Thursday with the Finance Ministry leadership to decide on “courses of action” in response to it.

Spain's economy minister says negotiations with US essential Spain's Economy Minister Carlos Cuerpo said a negotiated solution with the United States was essential for the eurozone's fourth-largest economy, but that Spain was prepared to take steps to protect its companies and industries.

“We have a lot at stake. We have to protect the very important trade and economic relationship we have between the planet's two biggest partners,” Cuerpo said in an interview Thursday with the RNE radio station after the US announced 20 per cent tariffs against the European Union.

German economy minister says this day will become US Inflation Day “This day is not going to become Liberation Day for consumers in the US, but Inflation Day,” said Germany's vice chancellor and economy minister, Robert Habeck. “The US mania for tariffs could set off a spiral that could also pull countries into recession and cause massive damage worldwide.” “We have always pushed for negotiations, not confrontation. That remains right,” Habeck said. “So it is good that the European Commission still aims for a negotiated solution with the US. There is still some time for that. But if the US doesn't want a negotiated solution, the EU will give a balanced, clear and determined answer. We have prepared for this.” Germany's main industry federation calls for a coordinated reaction to tariffs Germany's main industry lobby group, the Federation of German Industries, said that “the EU must now strengthen its alliances with other major trading partners and should coordinate its reaction with them. A coordinated reaction is also necessary to counter diversionary effects in international trade.” The group, known by its German acronym BDI, said that the tariffs are “an unprecedented attack on the international trade system, free trade and global supply chains. The reasoning for this protectionist escalation is incomprehensible.” The United States was Germany's biggest single trading partner last year for the first time since 2015, displacing China.

Honda CEO says company will take some time to determine how to respond to tariffs Honda Chief Executive Toshihiro Mibe says the Japanese automaker will take some time to look at the market situation and other factors to determine the right way to respond to Trump's tariffs.

“Sudden changes like this are tough as it's hard to respond speedily,” he told reporters on Thursday.

Taiwan calls US tariffs 'strongly unreasonable' Taiwan responded to the imposition of a 32 per cent tariff on its high-tech economy by calling it “strongly unreasonable and highly regrettable,” adding it would “lodge solemn representations with the United States.” “The proposed tax rate does not reflect the actual economic and trade situation between Taiwan and the United States (and) is unfair to Taiwan,” Cabinet spokesperson Lee Hui-chih said in an official news release.

Lee said the tariff calculation method was unscientific and unclear and “cannot reflect the high degree of complementarity in the trade structure between Taiwan and the US and the actual trade relationship.” Taiwan's exports to the US and corresponding trade surplus have risen significantly in recent years, mainly reflecting the surge in demand from US customers for semiconductors and related products, especially AI products, Lee said.

British officials say they will push to secure a free trade deal with US The British government says it will push to secure a free trade deal with the United States rather than retaliate after Trump slapped a 10 per cent tariff on UK goods.

Labelling the announcement a “disappointment,” Business Secretary Jonathan Reynolds said “I'm pleased the UK is in a better position than other countries, but I'm not satisfied.” Reynolds told Sky News that the message he was hearing from businesses was “remain at the table, don't overreact.” Britain argues that it has a broadly balanced trade relationship with the US, and has been negotiating with Washington on a trade deal in hope of escaping import taxes.

Thailand says it is ready to negotiate with US over trade balance The Thai prime minister says her country is ready to negotiate with the US to find a fair trade balance for both sides, after Trump announced 36 per cent tariffs on Thailand.

Paetongtarn Shinawatra said Thursday that Thailand is committed to working with the US to achieve sustainable economic growth.

She added that Thai exporters should also look for additional markets for their products to reduce their risk of relying on one main market.

South and Southeast Asia are targeted with some of the highest tariff rates Vietnam, Sri Lanka and other countries across South and Southeast Asia are the targets of some of the highest tariff rates.

Trump imposed 46 per cent “reciprocal” duties on goods from Vietnam, 49 per cent on products from Cambodia, 37 per cent on Bangladesh and 44 per cent on Sri Lanka.

The duties will affect domestic exporters to the US but also Chinese, Japanese and South Korean companies that have over the past few years shifted production to Southeast Asian nations to escape the trade frictions during Trump's first term in office.

Japan's chief cabinet secretary calls tariffs 'extremely regrettable' Japan's chief cabinet secretary has called the tariffs “extremely regrettable,” saying officials thought the country deserved an exemption, after Trump slapped 24 per cent additional tariffs on Japan.

Yoshimasa Hayashi on Thursday also questioned whether the tariffs are compatible with Japan-US bilateral trade agreements and said the move would likely impact their economic ties, as well as the global economy and multilateral trade system.

He said Japanese officials are continuing to negotiate with Washington seeking an exemption. Asked if Japan would consider retaliatory tariffs or file complaints with the World Trade Organization, Hayashi declined to comment. (AP) GRS GRS

Source: PTI