By South China Morning Post | Created at 2025-03-23 00:42:48 | Updated at 2025-03-24 06:55:43
1 day ago
US President Donald Trump is waging a trade war against the world with tariffs. He has imposed a 25 per cent tariff on some imports from Mexico and Canada, a 20 per cent levy on Chinese imports, and a 25 per cent duty on imported steel and aluminium.
He also plans to add a 25 per cent tariff on European goods and enact reciprocal tariffs for all US trading partners. And he has threatened to implement a 100 per cent tariff on goods from Brics countries – an alliance initially comprising Brazil, Russia, India, China and South Africa, and recently expanded to include several other economies – if they “play games with the dollar”.
The response to the blitz of tariffs and threats has been varied. Countries such as Japan and India have tried to pacify Trump with investment commitments and improved market access for US companies, in the hope of being spared.
Meanwhile, Britain, Mexico and Australia chose to effectively do nothing beyond expressing their grievances, presumably fearful that any countermeasures would provoke Trump’s zero-tolerance retaliation.
Some tried to dodge the bullet by diverting Trump’s gunfire. French President Emmanuel Macron reminded Trump that America’s priority was China, not the European Union. Others put up a fight. China, Canada and the EU have separately announced retaliatory tariffs.
None of these responses has proven effective. The appeasement strategy has quickly revealed its limitations. Japan remains concerned that the tariff Sword of Damocles may fall. Canadian and Mexican help with America’s illegal immigration and drug crisis also appears to be of no avail.
