Just hours after Donald Trump’s extensive tariffs, which were heavily promoted the previous week, went into effect, the U.S. President reversed course.
Trump declared a 90-day suspension for countries that hadn’t retaliated, briefly reducing the high tariffs on almost all trading partners to a starting point of 10%. However, he increased the tax rate on imports from China, which had responded with matching increases on U.S. imports, to 125%.
“I felt people were getting a little too excited, a bit out of control,” Trump told reporters on Wednesday following the reversal. He did add, though, “nothing is final yet.”
While Trump supporters such as Bill Ackman praised the action, which boosted stock prices after a volatile week, as “classic, ‘Art of the Deal’,” others argued that the sudden turnaround has only increased the confusion.
Here’s a look at how countries worldwide are beginning to react to the abrupt shift.
Germany
According to Friedrich Merz, Germany’s future chancellor, Trump’s action is “a reaction to the resolve of the Europeans.” The suspension happened shortly after the European Union approved retaliatory tariffs on $23 billion worth of goods, starting April 15, in response to Trump’s previously announced 25% tariffs on steel and aluminum, which are still in effect.
Merz stated in an interview with RTL Direkt that, “We are determined to defend ourselves,” which echoed the words of E.U. President Ursula von der Leyen last week. Merz added, “Unity is helpful.” The E.U. was facing a 20% “reciprocal” tariff.
Merz stated that a “trade conflict” would not be advantageous to anybody. He added, “Trump is now witnessing the effects of his tariff policy at home. The inflation rate is increasing, imports are declining, and exports are facing significant challenges.”
He stated, “The ideal solution is for all of us to collaborate to achieve zero percent tariffs in transatlantic trade. That would solve the issue.”
Malaysia
Malaysia’s Minister of Investment, Trade and Industry stated on LinkedIn that the nation welcomed Trump’s pause on increased tariffs, even though “this volatility poses considerable challenges for ASEAN economies.” Malaysia had been subjected to a 24% “reciprocal” U.S. tariff. Other members of the Association of Southeast Asian Nations, including Vietnam and Thailand, which Malaysia is chairing this year, were also subject to substantial levies that had briefly taken effect on Wednesday following Trump’s initial announcement the previous week.
Tengku Zafrul Aziz said, “When it comes to Trump tariffs, nothing is certain except uncertainty!” He went on to say that the most recent development would be discussed at Thursday’s Special ASEAN Economic Ministers’ meeting. The meeting, which was planned before the pause, was intended to formulate a coordinated ASEAN response to Trump’s trade policies.
Zafrul wrote, “Malaysia is actively evaluating the implications of these changes and is still dedicated to working with ASEAN partners to lessen disruptions, improve regional economic resilience, and promote balanced and predictable trade relations. ASEAN unity and regional economic integration will be more vital than ever, and we welcome the backing of partners who share this vision and want to see us prosper.” He continued, Malaysia will keep diversifying its trade and developing new markets as a “hedge against the current uncertainties.”
This is a developing story and will be updated.
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