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What are the reactions of various countries to the US tax increase?
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China responded quickly and forcefully to US President Trump's decision on April 2, 2025 to impose an additional 34% tariff on Chinese goods. China's State Council Tariff Commission announced on April 4 that starting from April 10, a 34% tariff would be imposed on all imports originating from the United States on top of the current applicable tariff rate. In addition, China has also imposed export controls on key resources such as medium and heavy rare earths, and filed a lawsuit at the World Trade Organization, accusing the US of violating international trade rules with its tariff measures. This series of measures shows China's firm stance in safeguarding its own rights and interests in trade disputes.
As one of the worst-affected countries, Vietnam faces tariffs of up to 46% from the United States. The Vietnamese government has moved quickly to seek a diplomatic solution to the dispute. General Secretary of the Communist Party of Vietnam To Lin held a telephone conversation with President Trump and expressed his willingness to reduce Vietnam's tariffs on American goods to zero in exchange for the removal of high tariffs on Vietnam by the United States.
European Commission President Ursula von der Leyen said the EU is willing to negotiate with the United States to seek mutual zero tariffs on industrial products, but at the same time warned that if the negotiations fail, the EU will take countermeasures.
Japanese Trade Minister Yoji Muto expressed regret over the U.S. tariff decision and said he would consider taking appropriate measures in response.
Australian Prime Minister Anthony Albanese criticized the U.S. tariffs, calling them unwarranted, but said Australia would not impose retaliatory tariffs.
This tariff war, like two invisible blades, is silently tearing the nerves of the global economy.
The first knife, the pain of supply chain reconstruction, has forced global companies to adjust their production layout at a huge cost, resulting in reduced efficiency and ultimately higher prices for consumers.
The second knife, the threat of stagflation trap, has put governments in a dilemma. They have to deal with inflationary pressure while avoiding further economic slowdown. Traditional monetary policy tools are stretched.
Faced with the risk of supply chain disruption and stagflation, some countries may turn their attention to their only shield, currency. A currency devaluation competition that harms neighbors may be quietly kicking off.
Today, this monetary shield is once again being used by various countries, and it seems to be able to temporarily alleviate the economic pain, but history tells us that it is actually a veritable poison that only quenches thirst.
