Trump's 100% import tax triggered sharp retaliation from major economies. These shifts strained trade routes and raised costs across sectors, and created a broader clash that now touches agriculture, retail, and international policy. Let’s look into how different countries responded to U.S tariffs.

Australia



Australia answered Trump's 10% tariff with a strategy. Prime Minister Anthony Albanese called the move "illogical" and "not the act of a friend," but chose not to escalate. Instead, he rolled out a five-point plan to protect industries and expand trade ties elsewhere. A $50 million package supported exporters like beef producers in pivoting to new markets.

Brazil



Washington's tariff hike landed hard in Brasília, but Brazil chose a controlled response over quick retaliation. Rather than matching the 10% blanket tariff and 25% steel penalty with equal force, lawmakers passed the "Reciprocity Law," allowing targeted countermeasures if talks stall. President Lula's administration kept pressure on U.S. officials through negotiations while quietly deepening trade discussions with China and the EU.

Canada



In a bold counterpunch to Trump’s sweeping tariffs, Canada hit back with 25% tariffs on C$29.8 billion (approximately $20 billion USD) worth of U.S. goods. Prime Minister Mark Carney, fresh off a federal election win, called the tariffs an “American betrayal” and pledged to protect Canadian industries. Ottawa’s retaliation didn’t stop at tariffs—Canadians began boycotting U.S. goods, and cross-border tourism dipped sharply.

China



China's response to the U.S.'s 145% tariff hike was swift and strategic. Beijing imposed a 125% tariff on American goods, targeting key exports like soybeans, pork, and industrial machinery. Simultaneously, it restricted rare earth exports—vital for electronics and defense industries—tightening the supply chain for U.S. manufacturers.

France



France responded to the U.S. tariffs with a multifaceted strategy. President Emmanuel Macron criticized the 20% tariffs on EU imports as "brutal and unfounded" and urged major European companies to pause investments in the U.S. Finance Minister Éric Lombard suggested stricter data regulations and digital service taxes as potential responses.

Germany



German Chancellor Olaf Scholz publicly denounced Trump’s sweeping tariffs as “fundamentally wrong,” describing them as an attack on the trade order the U.S. helped build. With 25% duties hitting German carmakers like Volkswagen, Mercedes, and BMW, Berlin made clear it wouldn’t stay silent. Economy Minister Robert Habeck warned of “tariff mania” and called for the EU to strike back—possibly through targeted taxes on dominant American tech companies.

India



India navigated Trump’s tariff spike with strategic concessions. When the U.S. imposed a 26% tariff—later dialed down to 10%—New Delhi lowered duties on key American exports like bourbon and Harley-Davidsons and offered cuts on over half its U.S. imports, worth $23 billion. Prime Minister Narendra Modi avoided escalation and chose to protect trade growth with the U.S., which topped $129 billion in 2024. Vulnerable sectors like gems, auto parts, and seafood braced for losses, while India eyed export gains in textiles as China faced steeper penalties. Talks for a broader bilateral trade agreement are underway.

Malaysia



Mexico



After Trump imposed new tariffs on Mexican goods, President Claudia Sheinbaum sent him evidence showing significant drops in fentanyl trafficking tied to Mexico’s security efforts. The tactic worked—Trump waived tariffs on USMCA-covered goods until April 2. Sheinbaum’s firm-yet-measured approach also earned Mexico critical exemptions, including a one-month delay on auto tariffs. Her popularity at home and investor confidence abroad have helped stabilize markets, with Mexico’s stock exchange up 6% this year.

South Korea



Rather than retaliate, Acting President Han Duck-soo emphasized diplomacy in the face of sweeping U.S. tariffs that included a 25% levy on steel and auto imports. He ruled out aligning with regional powers like China or Japan for joint pushback and stressed that confrontation wouldn’t yield productive outcomes. Instead, Han advocated calm negotiations and dispatched his trade minister to Washington, aiming to preserve South Korea’s export-heavy economy and long-standing alliance with the U.S.

Netherlands



Rather than retaliate with new tariffs, the Netherlands responded by recalibrating its economic strategy. The Bureau for Economic Policy Analysis downgraded the 2025 growth forecast from 1.8% to 1.4%. Dutch policymakers emphasized internal fiscal support in an attempt to shield households and maintain economic momentum. The government didn't fire back with direct trade penalties; it used policy tools to buffer the shock and positioned itself for longer-term competitive gains within the EU. The approach was defensive, but calculated.

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