World leaders condemn Trump new tariffs and prepare retaliation

​The global economy faces rising uncertainty as U.S. President Donald Trump imposes broad import tariffs, including a 10% minimum on all goods and 20% on EU imports. China, Canada, and Taiwan have condemned the move, with Beijing vowing retaliation.

Key Takeaways

- European Commission President Ursula von der Leyen called Trump’s tariffs a "major blow" to global trade, confirming that the EU will impose tariffs on U.S. goods worth up to €26 billion by mid-April, with additional countermeasures under discussion.

- China strongly opposed the move, promising countermeasures after Trump raised total tariffs on Chinese imports to 54%. Canada and Taiwan also criticized the decision, with both nations exploring diplomatic and economic responses.

- Bitcoin surged to $88,466 before plummeting to $82,182, fueling $232 million in short liquidations and $257 million in long liquidations, as investors reacted to Trump’s aggressive trade policies.

EU Finalizing Retaliation as Trade War Risks Rise

European Commission President Ursula von der Leyen did not hold back in her criticism of Trump’s latest trade measures, calling them a reckless move that could "destabilize the global economy and harm businesses on both sides of the Atlantic." Speaking from Samarkand ahead of an EU-Central Asia summit, she confirmed that the bloc was preparing swift retaliation if negotiations with Washington failed, reports Reuters.

The first phase of the EU’s response includes tariffs on up to €26 billion worth of U.S. goods, set to be enacted by mid-April as a countermeasure against previous U.S. steel and aluminum tariffs. However, von der Leyen warned that further countermeasures were being planned if Washington did not back down.

French President Emmanuel Macron has called for an emergency meeting with industry leaders to assess the impact on French exporters, while Italian Prime Minister Giorgia Meloni emphasized the need for negotiations but did not rule out a "firm and proportional" European response.

The EU faces a challenging position in a full-scale trade war, as its exports to the U.S. totaled €532 billion in 2024, significantly more than the €334 billion in imports from America. This trade imbalance leaves Brussels with fewer goods to target in retaliatory tariffs, prompting speculation that services and digital taxation may become part of Europe’s response.

China, Canada, and Taiwan Condemn Tariffs, Plan Responses

China swiftly denounced Trump’s new tariffs, calling them a violation of global trade norms. The Chinese Commerce Ministry issued a sharp statement condemning the decision, warning of "serious disruptions to global supply chains" and confirming that China would implement countermeasures.

Trump’s new measures include an additional 34% tariff on Chinese imports, raising the total levies on Chinese goods to 54%—nearing the 60% threshold he threatened during his 2024 campaign. Analysts fear these aggressive moves could further destabilize U.S.-China trade relations and fuel inflation in American markets.

Canada also reacted strongly, with Prime Minister Justin Trudeau vowing to protect Canadian workers. "We will not stand by while millions of Canadians face the economic consequences of these tariffs. Our government will act decisively," he stated, hinting at countermeasures.

Taiwan, which was hit with a 32% duty on its exports (excluding semiconductors), expressed deep regret over the decision. The Taiwanese government stated that it would seek direct talks with Washington, noting that previous U.S. technology restrictions on China had contributed to the trade imbalance that Trump now seeks to correct through tariffs.

Crypto Market Sees $489M in Liquidations as Bitcoin Swings Wildly

The impact of Trump’s trade war quickly extended beyond traditional financial markets, sending shockwaves through the cryptocurrency sector. Within 24 hours of the announcement, total liquidations across the crypto market soared to $489 million, with short positions suffering $232 million in losses and long positions losing $257 million.

Bitcoin experienced extreme volatility, surging to a 24-hour high of $88,466 before crashing to a low of $82,182. At the time of writing, BTC was trading at $83,673, reflecting a market struggling to price in the economic uncertainty.

BTC price dynamics (Feb 2025 - April 2025). Source: Tradingview

Many crypto investors expressed shock at how negatively Trump’s actions have affected the market. Several high-profile industry figures who previously supported Trump due to his pro-crypto rhetoric voiced their disappointment. "We thought he would turn the U.S. into the crypto capital of the world. Instead, we’re seeing chaos," one investor wrote on social media.

The market turbulence has reignited discussions about Bitcoin’s role as a hedge against economic instability. While some argue that Bitcoin should act as a safe haven in times of geopolitical turmoil, others point to its strong correlation with risk assets, making it vulnerable to market-wide shocks.

Trump’s aggressive tariff policy has triggered a global backlash, with the EU, China, Canada, and Taiwan all preparing countermeasures that could escalate into a full-scale trade war. European leaders are scrambling to finalize a response, while China and Canada have vowed to retaliate. Meanwhile, the cryptocurrency market has reacted with extreme volatility, witnessing significant liquidations and rapid price swings.

As global markets brace for further developments, investors and policymakers alike will be closely watching for signs of de-escalation—or further escalation—of this rapidly unfolding trade conflict.

​​​Additionally, Donald Trump has announced a sweeping 25% tariff on imported automobiles and key vehicle components, escalating trade tensions and signaling a broader push for protectionist economic policies.