Since the beginning of this year, the U.S. government has been taking a series of high-profile actions in the trade arena. A slew of new tariff policies, like stones cast into a calm lake, have created waves across global markets. On April 2 (local time), U.S. President Donald Trump signed two executive orders at the White House concerning so-called “reciprocal tariffs,” announcing a minimum baseline tariff of 10% on all trade partners, with higher tariffs for countries with significant trade surpluses with the U.S.
The scope of this policy is broad, impacting numerous countries and regions. The European Union will face a 20% tariff, Japan 24%, and South Korea 25%—even traditional allies of the United States have not been spared.
As early as March 26, Trump had signed an executive order imposing a 25% tariff on all imported cars, a measure that officially took effect on April 3 and even extends to all computers exported to the U.S. Previously, the U.S. had also implemented 25% tariffs on imported steel and aluminum. These tariff actions affect several key industries and are disrupting the global trade landscape significantly. The U.S. moves have sparked widespread international concern and strong opposition, ushering in a new phase of global trade tensions and strategic contestation.
In response to the U.S. tariff offensive, countries around the world have launched their own countermeasures to protect their national interests and uphold global trade norms.
Canada: Retaliation + WTO Complaint
Canada was among the first to strike back. On April 3, Prime Minister Justin Carney announced retaliatory tariffs, stating that Canada would impose a 25% tariff on all U.S. car imports that do not comply with the USMCA (United States–Mexico–Canada Agreement). This tit-for-tat move directly targets the U.S. auto export sector.
The automotive industry is vital to Canada’s economy, employing 125,000 people directly and nearly 500,000 through related sectors. The U.S. tariff policies are seen as a direct attack on Canada’s industry and workers, prompting this firm response. Additionally, Canada has filed a formal complaint with the World Trade Organization (WTO), arguing that the U.S. tariffs violate international trade laws and seeking resolution through global arbitration mechanisms.
European Union: Countermeasures + Long-Term Strategy
On the same day, the European Union also signaled resistance. A senior EU official revealed that member states plan to vote on April 9 on retaliatory measures against the U.S. 25% steel and aluminum tariffs. The European Commission has already proposed a response package, and unless a “qualified majority” of member states reject it, the proposal is expected to pass—paving the way for restrictions on U.S. steel and aluminum exports to the EU.
French government spokesperson Prisma previously noted that the second round of EU countermeasures might be ready by the end of April, potentially involving broad-based tariffs on U.S. goods and services. Although specific products and rates have not been finalized, sources suggest that the EU may target U.S. tech giants such as Google, Amazon, Facebook, Apple, and Microsoft. These actions show the EU’s tough stance and strategic depth in the ongoing trade conflict.
United Kingdom: Launches Consultation Process
The United Kingdom also responded promptly. On April 3, the British government announced the launch of a one-month public consultation on potential retaliatory tariffs against the U.S., in response to recent U.S. trade restrictions on British exports. Business and Trade Secretary Jonathan Reynolds stated that the government would solicit feedback from UK businesses to assess the economic impact of such measures and identify which goods may be included.
This consultation reflects the UK’s measured and comprehensive approach, aiming to protect domestic industries while preparing for possible countermeasures. It also highlights the UK’s resolve to safeguard its interests amid escalating trade disputes.
The tariff war initiated by the United States is disrupting global trade order, forcing countries to navigate a volatile economic landscape and craft strategic responses. As the situation continues to evolve, the future of global trade remains highly uncertain, with the potential for long-term shifts in international economic dynamics.
