The Latest: Trump’s new tariffs lead to the biggest Dow wipeout since 2020

After a long wait, the Senate is launching action on Trump’s “big, beautiful bill” of tax breaks and spending cuts at a risky moment for the U.S. and global economy.

More than a month after House Republicans surprised Washington by advancing their framework for Trump’s tax breaks and spending cuts package, Senate Republicans voted Thursday to start working on their version.

The 52-48 vote sets the stage for back-to-back Senate all-nighters spilling into Friday and the weekend.

Work on the multitrillion-dollar package is coming as markets at home and abroad are on edge in the aftermath Trump’s vast tariffs scheme, complicating an already difficult political and procedural undertaking.

▶ Read more about the “big, beautiful bill”

International Monetary Fund Managing Director Kristalina Georgieva said the announcement of U.S. tariffs “clearly represent a significant risk to the global outlook” at a time of sluggish global growth.

“It is important to avoid steps that could further harm the world economy,” Georgieva said in a statement. “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”

The IMF and World Bank will hold meetings later this month to discuss the world economic outlook and other issues. U.S. tariffs will be a part of that discussion.

Democratic officials in 19 states are suing over Trump’s attempt to reshape elections across the U.S., calling it an unconstitutional invasion of states’ clear authority to run their own elections.

The lawsuit is the fourth against the executive order issued just a week ago. It seeks to block key aspects of it, including new requirements that people provide documentary proof of citizenship when registering to vote and a demand that all mail ballots be received by Election Day.

The lawsuit says forcing such changes on the states violates the broad authority the Constitution gives states to set their own election rules.

Trump has argued his order secures the vote against illegal voting by noncitizens, though multiple studies and investigations in the states have shown that it’s rare.

▶ Read more about the lawsuit

Trump backed a bipartisan proposal from a House Republican who has been pushing to allow proxy voting, rather than voting in person, in the House for new parents.

The president said he spoke with Republican Rep. Anna Paulina Luna, of Florida, a leading proponent of the idea, about her effort and said of it: “I don’t know why it’s controversial.”

Trump, speaking to reporters on Air Force One, said he would defer to House Speaker Mike Johnson to make the ultimate call on those changes.

But “you’re having a baby, I think you should be able to call in and vote,” the president added. “I’m in favor of that.”

▶ Read more about the proxy voting proposal

Chilean Finance Minister Mario Marcel said Trump’s tariffs are “unjustified,” warning they will be “a shock to the global economy.”

Marcel said the 10% tariffs imposed on his South American nation will have a “limited” impact because the taxes don’t apply to Chile’s most crucial exports — lumber and copper. Still, the tariffs could affect the competitiveness of Chile’s agricultural production, he said.

The U.S. is Chile’s second-largest trading partner after China.

“It’s a situation we must face calmly and intelligently,” he told journalists.

“Laura Loomer is a very good patriot and a very strong person,” said Trump, who described the far-right activist as usually “constructive.”

Trump acknowledged that Loomer “recommended certain people for jobs” during their Wednesday conversation at the White House

“Sometimes I listen to those recommendations, like I do with everybody,” Trump said.

Asked if Loomer had anything to do with aides being ousted from their jobs at the National Security Council, Trump replied, “no.”

“Always we’re letting go of people,” Trump told reporters aboard Air Force One as he made his way to Miami. “People that we don’t like or people that we don’t think can do the job or people that may have loyalties to somebody else.”

The president told reporters aboard Air Force One that his most powerful and disruptive adviser will likely be leaving in the near future.

Trump said “Elon is fantastic” but that he has “a number of companies to run.” The billionaire entrepreneur owns Tesla, Space X and X, among others.

Speculation about Musk’s future has been swirling in Washington, and there have been growing indications that he’ll start winding down his work for the administration soon.

▶ Read more about what Trump said about Musk

A federal judge plans to temporarily block Trump’s administration from cutting billions in federal dollars that support COVID-19 initiatives and public health projects throughout the country.

U.S. District Judge Mary McElroy in Rhode Island said she will grant the temporary restraining order sought by a coalition of attorneys general and officials from the District of Columbia and 23 states.

The lawsuit said the loss of money — which was allocated by Congress during the pandemic and mostly used for COVID-19 pandemic-related initiatives, as well as for mental health and substance use efforts — will devastate U.S. public health infrastructure, putting states “at greater risk for future pandemics and the spread of otherwise preventable disease and cutting off vital public health services.”

The U.S. Health and Human Services Department has defended the decision, saying that the money was being wasted since the pandemic is over.

Sen. Bernie Sanders led a group of senators Thursday in a failed fight to block a new multibillionaire bomb sale to Israel. Two different attempts received only 15 votes in support, with more than 80 senators opposed.

As Israel’s main source of military aid, “We are deeply complicit,” Sanders told lawmakers from the Senate floor.

In February, Trump bypassed normal congressional review to approve a nearly $3 billion sale to Israel with more 2,000- and 500-pound (900- and 230-kilogram) bombs and other warheads.

Sen. Chris Van Hollen, a Maryland Democrat, pointed to what he called the “twisted vision” of Trump and Prime Minister Benjamin Netanyahu to move Gaza’s more than 2 million Palestinians out of the territory.

“What happened to the man who pledged to bring peace to the Middle East?” Van Hollen asked.

The S&P 500 fell 4.8% Thursday, more than other major stock markets. The Dow Jones Industrial Average dropped 1,679 points, and the Nasdaq composite sank 6%.

▶ Read more about the markets’ reaction to Trump’s tariffs

The Consumer Brands Association, which represents big food companies like Coca-Cola, General Mills, Nestle, Tyson and Del Monte as well as consumer product makers like Procter & Gamble and Colgate-Palmolive, said its companies already make the majority of their goods in the U.S.

But there are critical ingredients and inputs – like wood pulp for toilet paper – that must be imported because of scarce domestic availability. Cinnamon is harvested from trees that can’t survive in the U.S., for example. Domestic production of coffee and cocoa is also limited.

“We encourage President Trump and his trade advisors to fine-tune their approach and exempt key ingredients and inputs in order to protect manufacturing jobs and prevent unnecessary inflation at the grocery store,” said Tom Madrecki, the association’s vice president of supply chain resiliency.

Javier Milei, a libertarian who frequently showers praise on the American president, posted on X a link to the Queen song “Friends will be Friends” as global markets slumped and trade tensions spiked.

Milei said he hopes to meet informally with Trump during Thursday night’s “American Patriots Gala’ where his office said both he and Trump will be receiving an award.

Meanwhile, his spokesperson dismissed the irony of Milei defending Trump’s 10% tariffs on Argentine products, even as he staunchly opposes protectionism for Argentina’s long-constricted economy.

“Trump is not a protectionist,” Manuel Adorni said. “We believe his approach is pro-trade, and he raises tariffs on countries that are either protectionist or have a disproportionate level of tariffs.”

The president commented as he left the White House for a trip to Florida, saying, “I think it’s going very well.”

“The markets are going to boom, the stock is going to boom and the country is going to boom,” Trump said.

The Dow Jones Industrial Average dropped more than 1,300 points as U.S. stocks lead a worldwide sell-off after Trump’s announcement of tariffs against much of the world ignited a COVID-like shock.

▶ Read more about what Trump said about the tariffs

Giorgia Meloni told Italian state TV on Thursday that she believes Trump’s decision to impose 20% tariffs on exports from Europe is “wrong,’’ but “it is not the catastrophe that some are making it out to be.’’

The U.S. market represents 10% of Italy’s total exports, but she argued that retaliatory tariffs could do more harm to Italy’s economy.

She said that the government would meet next week with representatives of affected sectors to formulate proposals to present to Italy’s European partners. “We need to open an honest discussion on the matter with the Americans, with the goal — at least from my point of view — of removing tariffs, not multiplying them,’’ Meloni said.

The watchdog at the Pentagon said he would review Pete Hegseth’s use of the Signal messaging app to convey plans for a military strike against Houthi militants in Yemen.

The review will also look at other defense officials’ use of the publicly available encrypted app, which is not able to handle classified material and is not part of the Defense Department’s secure communications network.

▶ Read more about developments involving this probe of the Signal chat controversy

Trump’s pick as ambassador to China told lawmakers it’s time to “stand up” against unfair trade practices by the United States’ top trade rival.

David Perdue, a wealthy businessman and former U.S. senator from Georgia, acknowledged that some sacrifices are needed, because “what we’ve become seduced by are the cheap prices that we gave in to over the last 30 years coming out of China.”

“If the American public says enough’s enough, what will happen to their economy?” Republican Sen. Rick Scott of Florida asked of China.

“It’ll collapse,” Perdue answered.

Sen. Tommy Tuberville, R-Ala., brushed off the harsh reaction financial markets are having to Trump’s new tariffs.

“They’re all emotional. I’ve invested in the stock market for years. They go up and down on whether it rains or doesn’t rain,” Tuberville said. “It’ll all turn around.”

Sen. Jim Justice, R-W.Va., said it’s ok to have concerns about the tariffs, but he has confidence in Trump, and “as we move along, if we need to adjust, we adjust.”

Justice also said “we got to give it some time” in evaluating whether the tariffs are working. “It is a major reset to what we’re doing in this country, and anything that is a major reset, the markets usually act pretty severely to it.”

Federvini has denounced the new U.S. tariffs as a “severe blow against free trade” that will impact 2 billion euros($2.2 billion) in Italian exports of wine and spirits, 40,000 producers and 450,000 workers.

“We have been through this before, and we know the cost all too well: such measures in the past have led to a drop in exports to the United States of up to 50%,’’ Federvini President Micaela Pallini said in a statement.

“Now we risk reliving that economic trauma, with devastating consequences.’’ She warned of a looming production and employment crisis if a solution cannot be negotiated, underlining that U.S. companies that import and distribute wines will also be impacted.

Emmanuel Macron said it’s important “that future investments be suspended for a while until we’ve clarified things with the U.S. ... because what would be the message of having major European players investing billions of euros (dollars) in the American economy at a time when they’re hitting us?”

Macron met Thursday in Paris with representatives of wines and spirits, food, cosmetics, health, metals, aeronautics and other industries. He called Trump’s announcement “brutal” and “unfounded because you can’t correct trade imbalances by imposing tariffs.”

The European Union needs to respond in “the most effective way” to send “a very clear message that we’re determined … to defend and protect ourselves,” Macron said, noting that American tech giants now profit from digital services in Europe.

Prime Minister Mark Carney said Canada will match the U.S. president’s 25% auto tariffs with a tariff on vehicles imported from the United States — but not on their parts, as Trump did with his previously announced 25% tariffs on auto imports that took effect Thursday.

The prime minister said he told Trump last week in a phone call that he would be retaliating.

“We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said. He said Canada won’t tariff the parts because Canadians know the benefits of the integrated auto sector, where parts can cross the border multiple times as vehicles are assembled in Ontario or Michigan.

▶ Read more on Canada’s response to Trump’s auto tariffs

“Donald Trump is using tariffs in the dumbest way imaginable. Donald Trump slapped tariffs on penguins and not on Putin,” the minority leader said on the Senate floor Thursday.

Schumer was referring to Trump’s 10% sanctions on the Heard and McDonald Islands, an Australian territory in the remote Antarctic. They’re mostly barren, with active volcanoes.

Vladimir Putin’s Russia, meanwhile, was left off Trump’s list, which also includes Jan Mayen, a small Norwegian island in the Arctic that possibly has more polar bears than people.

▶ Read more on remote island tariff targets

The legislation pushed by Iowa Republican Chuck Grassley and Washington Democrat Maria Cantwell would require presidents to justify new tariffs and secure congressional approval within 60 days, otherwise they would expire.

Grassley said he was working on this long before Trump introduced sweeping global tariffs. Whether it gains traction in the Republican-controlled Congress remains to be seen.

Congress already technically has authority over tariffs, but over the last century it has given much of that power to the president. This has effectively removed most of its check on executive power. Lawmakers have some standing to counter tariffs, such as nullifying a presidential emergency declaration, but such resolutions need to pass both chambers and then either be signed by the president, or have the votes to override a veto.

The NEH distributes hundreds of millions of dollars each year to state humanities councils, along with museums, historical sites, educational institutions and independent researchers.

Now NEH grant recipients are getting termination notices, according to the American Federation of Government Employees Local 3403.

“Cutting NEH funding directly harms communities in every state and contributes to the destruction of our shared cultural heritage,” reads a statement from the National Humanities Alliance, a nationwide coalition of humanities advocates.

Brazil President Luiz Inácio Lula da Silva says his administration will take all necessary actions, based on World Trade Organization principles and a new reciprocity bill approved by Congress on Wednesday, to protect Brazil’s companies and workers after the U.S. imposed a 10% extra tariff on all Brazilian exports.

“We stand for multilateralism and free trade, and we will respond to any attempt to impose protectionism, which no longer has a place in today’s world,” Lula said during an official ceremony in Brasília.

The U.S. is Brazil’s top trade partner after China, importing Brazilian crude oil, aircraft, coffee, cellulose and beef. America’s trade surplus reached $28.6 billion in goods and services last year.

Brazil has said it remains open to dialogue aimed at reversing the extra tariffs, while also considering taking the case to the WTO and imposing reciprocal tariffs.

The president took action involving several senior White House National Security Council officials soon after he was urged by the far-right activist to purge staffers she deemed insufficiently committed to his Make America Great Again agenda, according to several people familiar with the matter Thursday.

Loomer presented her research to Trump in an Oval Office meeting, making her case for the firings, the people said, speaking on condition of anonymity to discuss sensitive personnel matters. Vice President JD Vance, chief of staff Susie Wiles, national security adviser Mike Waltz and Serio Gor, the director of the Presidential Personnel Office, took part in the meeting, the people said.

NSC spokesperson Brian Hughes declined to comment on the meeting or the firings.

▶ Read more on Trump and Loomer’s loyalty research

The Trump administration is ordering schools nationwide to certify that they are following federal civil rights laws — and eliminating DEI practices — as a condition for receiving federal money.

A notice sent Thursday by the Education Department gives the nation’s states and schools 10 days to sign and return the certification. It marks another escalation in the Trump administration’s attack on diversity, equity and inclusion policies.

“Federal financial assistance is a privilege, not a right,” Craig Trainor, acting assistant secretary for civil rights, said in a statement.

Lesotho is one of the smallest countries in Africa with a population of 2.2 million people, yet exports $237.3 million worth of goods to the U.S. — mostly textiles and diamonds — sectors which create most of its jobs.

“There is no country immune from those tariff hikes he made. That means countries will have to renegotiate their positions with the USA and see how they will manage to trade in,” government spokesperson Thabo Sekonyela said.

The U.S. is Lesotho’s second biggest trade partner after South Africa. This a second blow for Lesotho after Trump withdrew foreign aid.

Democrats are blaming Trump for plunging financial markets and calling on him to rescind his tariffs.

Sen. Chuck Schumer, the Senate Democratic leader, said the tariffs amount to the biggest tax hike on families since World War II. He spoke on the Senate floor as financial markets tanked, saying, “Donald Trump has singlehandedly created a financial forest fire.”

“President Trump should reverse course on his disastrous tariffs immediately,” Schumer said. “Or else, he risks plunging America into recession.”

The Home Furnishings Association, which represents more than 13,000 U.S. furniture stores, predicted that the tariffs will increase prices between 10% and 46%. Vietnam and China are the top furniture exporter to the U.S.

The association said manufacturers in Asia are offsetting some of the costs by discounting their products and lowering ocean freight rates. But it still expects U.S. furniture prices to rise. Even domestically made furniture often relies on imported components, the association said.

Trump’s dramatic changes to the federal government haven’t emerged as an obvious political winner or loser, according to a new poll that indicates some Americans may be giving him the benefit of the doubt for now on his Department of Government Efficiency.

The Associated Press-NORC Center for Public Affairs Research poll found that about 4 in 10 U.S. adults “somewhat” or “strongly” approve of Trump’s handling of Social Security and a similar share approve of the way he’s managing the federal government. Those numbers are almost identical to Trump’s overall presidential approval.

The U.S. secretary of state and U.S. ambassador to NATO Matt Whitaker are in Brussels for a meeting of alliance foreign ministers.

Many hope Rubio will clarify Trump’s intentions amid persistent signals from Washington that NATO as it has existed for 75 years may no longer be relevant.

“The United States is as active in NATO as it has ever been,” Rubio told reporters as he greeted NATO chief Mark Rutte. “And some of this hysteria and hyperbole that I see in the global media and some domestic media in the United States about NATO is unwarranted.”

▶ Read more about Rubio in Europe

The vice president appeared on Fox & Friends, saying it will take some time for Trump’s tariffs, spending cuts and support for U.S. industries to help everyday Americans.

“We are not going to fix things overnight,” Vance said.

The sweeping tariffs could increase prices for Americans who depend on citrus from 1,400 producers across southern Africa, said Boitshoko Ntshabele, chief executive of the Citrus Growers Association in Johannesburg.

“South Africa does not compete with the citrus producers of the US,” Ntshabele said. “In fact, quite the opposite — we sustain customers’ interest when their local citrus is out of season, benefitting US citrus growers in the end.”

South African President Cyril Ramaphosa said Trump’s 30% tariffs on U.S. imports of South African products shows the urgent need for a new bilateral trade deal.

Greece’s exports of canned peaches to the U.S. in 2020 were worth 32 million euros ($35.3 million) and soared to 95 million euros ($105 million) in 2024. The new 20% tariff, on top of existing duties, could reverse those gains, according to Christos Giannakakis, vice president of Venus, one Greece’s largest peach canning cooperatives.

“This creates a huge problem,” Giannakakis told The Associated Press. “It means reduced exports, lower revenue and shrinking production.”

Norway’s Foreign Minister Espen Barth Eide said the new U.S. tariffs may violate NATO’s Article 2, which stresses the importance of economic cooperation among allies to avoid conflict.

“If you want a strong NATO, you should ensure that there is as much economic growth as possible in the NATO countries. That was the insight of those who established NATO, that economic cooperation would be good for the entire alliance,” Eide said during a visit to Brussels for a NATO meeting, according to the NRK broadcaster.

Eide told NRK that he will raise the tariff war with U.S. Secretary of State Marco Rubio during the meeting.

Polish Prime Minister Donald Tusk said the new U.S. tariffs many reduce Poland’s GDP by 0.4%.

He said it was “a severe and unpleasant blow, because it comes from the closest ally, but we will survive it.” The Polish-U.S. friendship, he added, “must also survive this test.”

Spanish Prime Minister Pedro Sánchez said Thursday that his government will implement a $15.6 billion (14.1 billion euro) spending package to mitigate the effects of U.S. tariffs on the eurozone’s fourth-largest economy.

The Spanish leader called the tariffs “19th-century protectionism,” against which the European Union and Spain had to act proactively and diversify their economic ties with the rest of the world.

Sánchez also called for a negotiated solution with the U.S.

The local government leader of Christmas Island, one of several Australian external island territories that like Australia have been assigned a 10% U.S. tariff, said his Indian Ocean atoll exported nothing to the U.S.

The Australian outpost of fewer than 2,000 people 360 kilometers (225 miles) south of the Indonesian capital Jakarta has used U.S. heavy machinery to mine phosphate for decades, Christmas Island Shire President Gordon Thomson said.

The uninhabited Heard and McDonald Islands in the remote Antarctic are another Australian territory included in the 10% tariff. The mostly barren islands include two active volcanoes and can only be reached by sea.

Australian Prime Minister Anthony Albanese said Australia imposes no tariffs on U.S. imports. The U.S. and Australia have a free trade agreement.

Hong Kong strongly opposed the extra tariffs announced by Trump and urged the U.S. to withdraw them. It said Hong Kong, as a free port, always practices free trade and doesn’t impose tariffs on imported goods, including those from the U.S.

It said the U.S. had a trade surplus of $271.5 billion with the semiautonomous Chinese territory over the past decade, the highest among its global trading partners.

“The U.S. imposing tariffs on Hong Kong products as so-called reciprocal tariffs defies logic,” Hong Kong’s government said in a statement, adding that it would take measures including filing complaints with the WTO.

Hong Kong, a former British colony returned to China in 1997, has a different economic and political system from mainland China that allows it to set its own policies most of the time.

India’s Trade Ministry is assessing the latest U.S. tariffs announced by Trump. It said the Indian government strives to expedite the negotiations for a trade agreement with the U.S. to potentially garner some concessions and offset the impact of higher import taxes.

“We remain in touch with the Trump administration and expect to take them forward in the coming days,” it said.

The U.S was New Delhi’s biggest trading partner in 2024 with trade estimated at $129 billion. The countries have now set an ambitious target of more than doubling their bilateral trade to $500 billion by 2030.

Vietnam’s Prime Minister Pham Minh Chinh said the country still hoped to reach its economic growth target of at least 8% despite the Trump administration imposing 46% tariffs on its exports.

Chinh chaired a Cabinet meeting Thursday to assess the impact of the tariffs, among the highest imposed on any country, and said that Vietnam hoped that U.S. policy would be “consistent with the good relations between the two countries.”

The tariffs will deal a severe blow to Vietnam since the U.S. is its largest export market. Exports to the U.S., valued at $142 billion, in 2021 made up a third of the country’s GDP.

Ukraine is working to get better tariff conditions from the U.S., Ukrainian Economy Minister Yuliia Svyrydenko posted on X.

Svyrydenko says Ukrainian tariffs on U.S. goods are “quite low” and that Ukraine imported more goods from the U.S. in 2024 than exported to the country. She said the 10% tariff Trump imposed on Ukrainian goods will mainly impact small producers.

“Ukraine has something to offer the United States as a reliable ally and partner," she wrote. “Both our countries will benefit from fair tariffs.”

Japanese Prime Minister Shigeru Ishiba said it was “extremely regrettable” that the U.S. slapped the 25% auto tariff on Japan despite its huge contribution to the U.S. economy.

Japanese companies have been the world’s biggest investors in the U.S. since 2019, especially automakers, creating jobs for millions of Americans, Ishiba said.

Ishiba said Japan will continue to strongly request the U.S. to reconsider its tariffs measures and that he will directly negotiate with Trump, whenever it is considered appropriate.

German Chancellor Olaf Scholz says the tariffs are an “attack” on a trading system that brought global prosperity and that America itself helped design.

Scholz said in Berlin that “this is an attack on a trading order that has created prosperity across the globe — a trading order that is also to a very significant extent the result of American efforts.”

Among the small island nations of the South Pacific Ocean, a few were singled out for higher tariff rates than the 10% baseline. Fiji’s Deputy Prime Minister Biman Prasad on Thursday criticized as “disproportionate” and “unfair” the 32% tariffs announced on Fiji’s exports to the U.S.

The U.S. is a major trading partner for the nation of 924,000 people, accounting for 10% of total imports and exports, Prasad said on social media. Fiji’s biggest export to the U.S. is bottled water, with its most famous brand — Fiji Water — owned by a U.S. conglomerate.

The U.S. administration justified Fiji’s higher tariffs with a claim that the Pacific nation imposes 63% tariffs on American goods arriving on its shores. Prasad rejected that figure, telling reporters that Fiji does not impose such tariff rates on any country.

A Chinese Foreign Ministry spokesperson says “there are no winners in trade wars and tariff wars, and protectionism is not a way out. What the U.S. should do is to correct its wrong practices and resolve trade disputes with all countries, including China, through consultations based on equality, mutual respect and mutual benefit.”

Guo Jiakun added that the tariffs violate WTO rules, “harm the common interests of people of all countries, and do not help solve the problems of the U.S. itself."

“It is clear to everyone that more and more countries are opposing the U.S.’s unilateral bullying actions, such as imposing tariffs,” he said.

Israeli Finance Minister Bezalel Smotrich says his office is studying Trump’s tariff order and “analyzing its implications for the economy,” in the country’s first reaction to Trump’s announcement of a 17% tariff on imports from Israel.

Spain’s Economy Minister Carlos Cuerpo said a negotiated solution with the U.S. was essential for the eurozone’s fourth-largest economy but that Spain was prepared to take steps to protect its companies and industries.

“We have a lot at stake. We have to protect the very important trade and economic relationship we have between the planet’s two biggest partners,” Cuerpo said in an interview Thursday with the RNE radio station after the U.S. announced 20% tariffs against the European Union.

“This day is not going to become Liberation Day for consumers in the U.S., but Inflation Day,” said Germany’s vice chancellor and economy minister, Robert Habeck. “The U.S. mania for tariffs could set off a spiral that could also pull countries into recession and cause massive damage worldwide.”

Germany’s main industry lobby group, the Federation of German Industries, said “the EU must now strengthen its alliances with other major trading partners and should coordinate its reaction with them. A coordinated reaction is also necessary to counter diversionary effects in international trade.”

The group said the tariffs are “an unprecedented attack on the international trade system, free trade and global supply chains. The reasoning for this protectionist escalation is incomprehensible.”

The U.S. was Germany’s biggest single trading partner last year for the first time since 2015, displacing China.

Prime Minister Keir Starmer said the U.K. government would react with “cool and calm heads” to Trump’s announcement of a 10% tariff on imports from Britain.

Starmer told business leaders gathered in 10 Downing St. that “clearly there will be an economic impact,” but that he still hoped to get tariffs lifted through a trade deal with Washington.

“Negotiations on an economic prosperity deal — one that strengthens our existing trading relationship — they continue and we will fight for the best deal for Britain,” Starmer said. “Nobody wins in a trade war. That is not in our national interest."

Honda Chief Executive Toshihiro Mibe says the Japanese automaker will take some time to look at the market situation and other factors to determine the right way to respond to Trump’s tariffs.

“Sudden changes like this are tough as it’s hard to respond speedily,” he told reporters Thursday.

Taiwan responded to the imposition of a 32% tariff on its high-tech economy by calling it “strongly unreasonable and highly regrettable,” adding it would “lodge solemn representations with the United States.”

“The proposed tax rate does not reflect the actual economic and trade situation between Taiwan and the United States (and) is unfair to Taiwan,” Cabinet spokesperson Lee Hui-chih said in an official statement.

Taiwan’s exports to the U.S. and corresponding trade surplus have risen significantly in recent years, mainly reflecting the surge in demand from U.S. customers for semiconductors and related products, especially AI products, Lee said.

The British government says it will push to secure a free trade deal with the U.S. rather than retaliate after Trump slapped a 10% tariff on U.K. goods.

Labelling the announcement a “disappointment,” Business Secretary Jonathan Reynolds said, “I’m pleased the U.K. is in a better position than other countries, but I’m not satisfied.”

Reynolds told Sky News that the message he was hearing from businesses was “remain at the table, don’t overreact.”

Britain says it has a broadly balanced trade relationship with the U.S. and has been negotiating with Washington on a trade deal in hope of escaping import taxes.

Japanese Prime Minister Shigeru Ishiba says the tariffs are a matter of great concern and stressed that Japan’s contributions to the American economy are significant both in terms of investment and jobs.

He said he repeatedly made his case with the Trump administration not to move ahead with the tariffs.

“They will have a great impact not only on U.S.-Japanese economic relations but also on the global economy and various trade relations overall,” Ishiba told reporters Thursday. “We as the government will work as one to decisively protect people’s lives, jobs and industries."

The Thai prime minister says her country is ready to negotiate with the U.S. to find a fair trade balance for both sides, after Trump announced 36% tariffs on Thailand.

Paetongtarn Shinawatra also said Thai exporters should look for additional markets for their products to reduce their risk of relying on one main market.

Indian exporters and analysts say Trump’s new tariffs are a mixed bag for the country.

Trump announced a reciprocal tariff of 26% for India, as compared to 34% for China, 46% for Vietnam, 37% for Bangladesh and 36% for Thailand.

Observers said Thursday the move will likely impact Indian industry and pressure jobs, but that there is room for new business to come in since India is in a lower band than its Asian peers.

“These tariffs do present challenges, but India’s position remains comparatively favorable,” said S.C Ralhan, president of the Federation of Indian Exports Organisations.

Ajay Srivastava, a former Indian trade official and founder of the New Delhi-based think tank Global Trade Research Initiative, said the protectionist tariff regime could be a catalyst for India to gain from global supply chain realignments.

Vietnam, Sri Lanka and other countries across South and Southeast Asia are the targets of some of the highest tariff rates.

Trump imposed 46% “reciprocal” duties on goods from Vietnam, 49% on products from Cambodia, 37% on Bangladesh and 44% on Sri Lanka.

The duties will affect domestic exporters to the U.S. but also Chinese, Japanese and South Korean companies that have over the past few years shifted production to Southeast Asian nations to escape the trade frictions during Trump’s first term in office.

European Commission President Ursula von der Leyen says the tariffs are a “major blow to the world economy.”

“The consequences will be dire for millions of people around the globe,” von der Leyen said. Groceries, transport and medicines will cost more, she said, “And this is hurting, in particular, the most vulnerable citizens.”

Von der Leyen acknowledged that the world trading system has “serious deficiencies” and said the EU was ready to negotiate with the U.S.