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'Nobody wins in a trade war': World leaders react as Trump announces new tariffs on imports
US Treasury Secretary Scott Bessent warned after Trump's announcement: 'My advice to every country right now is, do not retaliate, because it will lead to escalation'
- PUBLISHED: Thu 3 Apr 2025, 11:55 AM
As sweeping new US tariffs were announced on Wednesday, which Trump dubbed 'Liberation Day', world leaders were quick to react, with some saying they 'deeply regret' the new duties.
Trump had earlier imposed tariffs on steel and aluminium imports as well as cars and auto parts. The European Union, on which Trump will impose a tariff of 20 per cent, said it was ready to respond with countermeasures while opening the door for last-ditch negotiations.
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The 27-member bloc's chief Ursula von der Leyen called the levies a "major blow to the world economy" and said Brussels was "preparing for further countermeasures".
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"I deeply regret this choice," von der Leyen said on a visit to Uzbekistan.
"There seems to be no order in the disorder. No clear path through the complexity and chaos that is being created as all US trading partners are hit."
But she said it was "not too late to address concerns through negotiations", aiming for a cool-headed response to the tariff threat facing the bloc.
Speaking in front of a Swedish, EU and NATO flag, Sweden’s Prime Minister Ulf Kristersson said his country "deeply regrets" US President Donald Trump's new tariffs on imports to the United States.
"My hope and our goal is that through negotiations we will be able to limit the tariffs that the US has now presented", he added.
Meanwhile, UK Prime Minister Keir Starmer stressed that "nobody wins in a trade war", and vowed to respond with "pragmatism, cool and calm heads".
Starmer told business chiefs at his Downing Street office on Thursday that "clearly there would be an economic impact" from a 10 per cent tariff imposed on British exports to the United States.
He added that trade negotiations would continue with Donald Trump's administration and that "we will fight for the best deal for Britain".
After Switzerland was hit with 31 per cent tariffs, President Karin Keller-Sutter said the government would quickly decide on the next steps, adding respect for international law and free trade were "fundamental".
Just before Trump unveiled his list of tariffs, the French government said that there would be a sector-by-sector study before the EU announces its response "before the end of April".
French President Emmanuel Macron's office said Thursday that he would meet representatives of French sectors "impacted by the tariff measures".
Italian Prime Minister Giorgia Meloni on Wednesday called the new tariffs "wrong" and said the bloc would do all it can "to work for a deal with the United States, aiming to prevent a trade war that would inevitably weaken the West in favour of other global actors".
Meloni's foreign minister, Antonio Tajani, wrote on X that he would meet with EU trade chief Maros Sefcovic in Brussels on Thursday to discuss a response "based on a pragmatic approach, based on dialogue".
Polish Prime Minister Donald Tusk said friendship with the US meant partnership, and therefore "really and truly reciprocal tariffs" would be necessary.
There are also concerns in Europe that Trump's higher customs duties will lead to a flood of cheap goods from other countries, especially China.
Von der Leyen said the EU would be "watching closely what indirect effects these tariffs could have" and vowed to protect the continent's industries.
Brazil's President Luiz Inacio Lula da Silva told reporters in Tokyo on Thursday that his country "cannot stand still" in response to US President Donald Trump's trade tariffs.
In February, Lula vowed "reciprocity" in response to a 25 percent levy on steel imports announced by Trump, but decided not to retaliate once the policy came into effect.
Lula said Trump needs to "measure the consequences" of his tariffs on the United States, such as inflation.
"We have two options: one is to resort to the World Trade Organisation, which we are going to do, and the other is to overtax the American products that we import; that is, to put the law of reciprocity into practice," he said.
Lula, 79, had said on Wednesday that he expects talks between South America's Mercosur bloc and Japan on a trade deal to begin in the second half of the year. Lula has portrayed such an agreement as a way for the two economies to boost trade in the face of growing protectionism under Trump.
'Do not retaliate'
Bernd Lange, who leads the EU parliament's trade committee, slammed Trump's "unjustified, illegal and disproportionate measures".
European industry groups also took aim at Trump's move, calling it counterproductive for nations and customers alike.
The German Automotive Industry Association said the tariffs would "only create losers" and urged the EU to act "with necessary force, while continuing to signal its willingness to negotiate".
The Association of the German Chemical Industry called on the EU to "keep a cool head," warning that "a spiral of escalation would only increase the damage".
The EU had already been hit by several US tariff announcements since Trump returned to office in January, including a 25 percent levy on auto imports announced last week that came into force on Thursday.
The bloc's producers were also affected by a 25 percent US tariff on steel and aluminium from around the world, to which Brussels has already promised countermeasures to begin in mid-April.
US Treasury Secretary Scott Bessent warned after Trump's announcement that "My advice to every country right now is, do not retaliate."
Speaking to Fox News, he advised the impacted countries and territories to "sit back, take it in... Because if you retaliate, there will be escalation".