How the world has been preparing for Trump’s ‘liberation day’ tariffs

Major trading partners of the United States have vowed to respond to Donald Trump’s “liberation day” tariffs, amid concerns they will have negative economic impacts around the world.

The US president is expected to announce sweeping import duties on many global economies around 7am Thursday Australian Eastern Daylight Time, that will take effect almost immediately.

They will follow levies already in place on steel, aluminium and cars for some countries, prompting alarm among world leaders about how far the US could go. 

Many countries have already set out how they are likely to react.

China, South Korea and Japan have indicated they would jointly respond to US tariffs, according to Chinese state media.

Japan and South Korea are seeking to import semiconductor raw materials from China, and China is also interested in purchasing chip products from Japan and South Korea, the account, Yuyuan Tantian, linked to China Central Television, said in a post on Weibo.

All three sides agreed to strengthen supply chain cooperation and engage in more dialogue on export controls, the post said.

Meanwhile, European leaders have promised to respond if the continent is targeted with tariffs.

European Commission President Ursula von der Leyen warned the bloc would “protect our interests, our people and our companies”.

“We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate and we will use it.”

European Central Bank President Christine Lagarde said US trade duties would be a “negative the world over”. 

Italian Prime Minister Giorgia Meloni, who has been careful to avoid criticising Trump, warned tariffs would hit Italian companies hard and also be “unfair” on American consumers.

“This is the reason why I remain convinced that we must work to avert a trade war,” she said.

British Prime Minister Keir Starmer on Tuesday said he hoped any tariffs implemented against the UK would be quickly reversed by a new economic partnership.

He said talks to strike a deal were “well advanced”. 

He told the House of Commons on Wednesday that he was working closely with industries who could be affected, before adding that no response to the US tariffs would be off the table. 

Canada, whose citizens have reacted angrily to Mr Trump’s assertion that the country should become America’s “51st state”, has vowed to respond with tariffs of its own. 

“We will not disadvantage Canadian producers and Canadian workers relative to American workers,” Prime Minister Mark Carney said in Winnipeg.

Amid frantic election campaigning, both sides of Australian politics have appeared on a unity ticket when it comes to responding to Mr Trump.

The Albanese government is likely to oppose any US tariffs on Australian trade through the World Trade Organisation.

Prime Minister Anthony Albanese said he did not want to “pre-empt” any announcement.

“What I can say is that we are prepared for all possibilities going forward and I repeat what I’ve said before — tariffs are an act of economic self-harm by those who have imposed them.”

Australia imposes zero tariffs on American imports, but recently had tariffs placed against imports to the US of Australian steel and aluminium.

As of Wednesday morning, the White House had not published an official notice of either set of tariffs, as it is required to do before they take effect. 

The administration also has declined to comment on reports that Trump was considering a 20 per cent universal tariff.

Mr Trump took to his Truth Social profile on Wednesday morning to write: “IT’S LIBERATION DAY IN AMERICA!”

ABC/Reuters