Nations Puzzle Over How To Respond To Trump’s Tariffs | EUROtoday

BRUSSELS (AP) — America’s buying and selling companions wrestled with responses to U.S. President Donald Trump’s blast of tariff hikes and a few deliberate to ship negotiators to Washington, whereas the pinnacle of the European Union’s government fee provided mutual discount of tariffs – whereas warning that retaliation was an possibility too.

“We stand ready to negotiate with the United States,” mentioned fee President Ursula von der Leyen. “Indeed, we have offered zero for zero tariffs for industrial goods, as we have successfully done with many other trading partners. Because Europe is always ready for a good deal.”

But she warned that “we are also prepared to respond through countermeasures and defend our interests.”

China has already hit again towards the U.S. with retaliatory tariffs and related actions from Europe and elsewhere stay a big chance.

The U.S. and the EU had a zero-for-zero deal on wine and spirits from 1997 to 2018, and lowering many tariffs to zero was a aim of advanced negotiations for a US-Europe free-trade deal earlier than negotiations stalled in 2016.

Yet there was little indication Trump is able to deal. The EU commerce commissioner, Maros Sefcovic, spoke for 2 hours with Trump administration Friday and would say solely that “we stay in touch.”

And White House commerce adviser Peter Navarro advised CNBC on Monday that a proposal by Vietnam to eradicate tariffs on U.S. imports wouldn’t result in a pullback on the the newly introduced 46% levy on its imports to the U.S.

“Let’s take Vietnam. When they come to us and say ‘we’ll go to zero tariffs,’ that means nothing to us because it’s the non-tariff cheating that matters,” Navarro mentioned on CNBC

Major commerce companion China was taking a more durable line and accused the U.S. of “bullying” after imposing a 34% tariff on Friday on all US items, the very same price Trump slapped China with in his newest spherical of latest import taxes.

Several different international locations mentioned they had been sending commerce officers to Washington to attempt to speak via the disaster, which has forged uncertainty over the worldwide financial outlook, hammered markets and left U.S. allies questioning concerning the worth of their ties with the world’s largest financial system.

European Union commerce ministers had been closeted Monday in Luxembourg to weigh doable steps that would embrace taxes on U.S. tech firms like Google, Apple and Amazon. The European Union’s government fee – which handles commerce points for the 27-country bloc – is about to impose tariffs on Jeans, whiskey and bikes on Wednesday in response to Trumps improve in metal and aluminum tariffs.

But it hasn’t determined a response but to Trump’s “reciprocal” tariff of 20% on European items introduced Wednesday and a 25% tariff imposed on autos from in every single place. French officers have raised imposing tariffs on providers like web commerce or monetary providers, the place the U.S. sells greater than it buys from Europe and is in idea extra weak than in items commerce.

Germany’s financial system minister, Robert Habeck, was defiant as he arrived, saying the premise of the wide-ranging tariffs was “nonsense” and that makes an attempt by particular person international locations to win exemptions haven’t labored prior to now.

It’s necessary for the EU to stay collectively, he mentioned. That “means being clear that we are in a strong position — America is in a position of weakness.”

So far the European strategy has been to selectively goal politically delicate items somewhat than impose sweeping retaliation since like most economists officers they view tariff wars as a lose-lose sport.

China, which hit again Friday at Washington with 34% tariffs on U.S. merchandise and different retaliatory strikes, sharply accused the U.S. of failing to play truthful. “Putting ‘America First’ over international rules is a typical act of unilateralism, protectionism and economic bullying,” Foreign Affairs spokesperson Lin Jian advised reporters.

The ruling Communist Party struck a word of confidence at the same time as markets in Hong Kong and Shanghai crumpled. “The sky won’t fall,” declared The People’s Daily, the occasion’s official mouthpiece. “Faced with the indiscriminate punches of U.S. taxes, we know what we are doing and we have tools at our disposal.”

China’s Commerce Ministry mentioned officers met with representatives of 20 American companies together with Tesla and GE Healthcare over the weekend and urged them to take “concrete actions” to deal with the tariffs challenge.

During the assembly, Ling Ji, a vice minister of commerce, promised that China will stay open to overseas funding, in keeping with the readout by the ministry.

Other Asian nations search negotiations

South Korea’s Trade Ministry mentioned its high negotiator, Inkyo Cheong, will go to Washington this week to specific Seoul’s considerations over the 25% tariffs on Korean items and focus on methods to mitigate the injury to South Korean companies, which embrace main automakers and metal makers. Asian international locations are among the many most uncovered to Trump’s tariffs starting from a baseline 10% to 50% since their export-oriented economies ship plenty of items to the U.S.

Pakistan additionally deliberate to ship a delegation to Washington this month to strive negotiate over the 29% tariffs on its exports to the U.S., officers mentioned. The prime minister ordered Finance Minister Muhammad Aurangzeb to evaluate the tariff’s potential affect on Pakistan’s fragile financial system and draw up suggestions.

The U.S. imports round $5 billion value of textiles and different merchandise annually from Pakistan, which closely depends on loans from the International Monetary Fund and different lenders.

In Southeast Asia, Malaysia’s Trade Minister Zafrul Abdul Aziz mentioned his nation will search to forge a united response from the Association of Southeast Asian Nations to Trump’s sweeping tariffs.

As chair of the 10-nation physique this yr, Malaysia will lead a gathering Thursday in its capital Kuala Lumpur to debate broader implications of the commerce warfare on regional commerce and funding, Zafrul advised reporters.

“We are looking at the investment flows, macroeconomic stability and ASEAN’s coordinated response to this tariff issue,” Zafrul mentioned.

He mentioned that he had met with the U.S. ambassador to Malaysia to attempt to make clear how the U.S. got here up with its 24% tariff.

Indonesia plans to extend imports from US

Indonesia, one of many area’s largest economies, mentioned it might work with companies to extend its imports of U.S. wheat, cotton, oil and fuel to assist scale back its commerce surplus, which was $18 billion in 2024.

Coordinating Economic Affairs Minister Airlangga Hartarto advised a information convention that Indonesia is not going to retaliate towards the brand new 32% tariff on Indonesian exports, however would use diplomacy to hunt mutually helpful options.

Some Southeast Asian neighbors, together with Vietnam, Cambodia, Laos and Myanmar, face tariffs of over 40%, giving Indonesia a slight benefit, he famous.

“For Indonesia, it is also another opportunity as its market is huge in America,” Hartoto mentioned. He mentioned Indonesia would purchase U.S.-made parts for a number of nationwide strategic tasks, together with refineries.

Associated Press journalists from around the globe contributed to this report.