The fallout from the sweeping U.S. tariff changes continues to send shockwaves through global markets as April 7, 2025, marks another day of uncertainty. With the 10% blanket tariff on imports now in effect and steeper duties set to begin on April 9, businesses and governments worldwide are scrambling to respond.

Key International Reactions

Trump’s Threat of 50% Tariffs on China

President Donald Trump escalated tensions with China by threatening an additional 50% tariff on Chinese goods. In a statement on Truth Social, he declared, “If China does not withdraw its 34% increase above their already long-term trading abuses by tomorrow, April 8, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th”. This move has further strained relations between the two largest economies, with China vowing to retaliate.

European Union’s “Zero-for-Zero” Proposal

The European Union has proposed a “zero-for-zero” tariff policy, offering to eliminate industrial tariffs on U.S. goods in exchange for the U.S. removing its new duties. European Commission President Ursula von der Leyen stated that the EU is open to fair trade agreements and has made similar deals with other partners.

Japan’s High-Stakes Negotiations

Japan’s Prime Minister Shigeru Ishiba is set to speak with President Trump on Monday, making a final push to soften a looming 24% tariff on Japanese exports. The Nikkei 225 has tumbled into bear market territory, rattled by fears of a deepening trade war.

Canada’s Response

Canada has imposed new duties on certain U.S. vehicle imports. Canadian automakers are bracing for disruptions, and some manufacturers have already paused production at plants in response to the tariffs.

Political and Economic Reactions

• Federal Reserve Chair Jerome Powell has warned that the tariffs could increase inflation and slow economic growth.
• Tesla CEO Elon Musk has called for a zero-tariff agreement between the U.S. and Europe.
• Congressional leaders are considering legislation to rein in presidential tariff authority.

What’s Next?

With April 9 marking the start of higher tariffs on 185 countries, global trade tensions are expected to escalate further. Businesses should prepare for supply chain disruptions, and consumers may soon feel the effects through higher prices on imported goods.