The Trump administration has recently raised tariffs on many countries, raising fears around the world and receiving sharp rebukes from other leaders. It’s no secret that the administration’s tariffs—which mainly focus on China, the European Union, Vietnam, and Taiwan—have spiked tensions with our trading partners.
That’s the administration that has recently imposed a jaw-dropping 34% tariff on China. This is in addition to the current 20% tariff, leaving us with a total tariff rate of 54% on Chinese goods. The administration has already acted by imposing a 20% tariff on imports from the European Union. They have imposed an unprecedented 46% tariff on goods coming from Vietnam. Under this new policy, Taiwan would now be subject to a 32% tariff rate. These blown-up tariffs are being rolled out amidst mounting global economic strife and trade tensions.
South Korea’s acting President, Han Duck-soo, has moved quickly to address these changes. He ordered emergency relief measures to help the impacted industries and businesses. The automobile industry, one of the tariffs’ biggest supporters, would be at major risk from these tariffs. In turn, state officials have been furiously negotiating with Washington to blunt the force of the new levies.
The reactions are happening apace. Australian Prime Minister Anthony Albanese said the tariffs are a bad idea, vehemently opposing the tariffs. In addressing the measures, he cautioned that they are “not the moves of a friend,” alluding to the strain this interaction put on diplomatic relations.
“not an act of a friend” – Australian Prime Minister Anthony Albanese
Also from the White House on that front, the administration provided additional clarification on tariff actions against Beijing in a recent letter to CNBC’s Eamon Javers. China’s Ministry of Commerce has claimed strong desire to retaliate in kind. Shaken by the incident, US officials vowed to respond with severe counter-measures. They further promised to take swift action to cancel their own unilateral tariff creation in reaction to the U.S. measures.
Canadian Prime Minister Mark Carney weighed in on the issue. He promised that Canada would act “with purpose and with force.” This feeling proves how wary countries are becoming about the impact these tariffs will have on the overall structure of global trade.