‘Nothing Is Certain but Uncertainty’: How the World Is Reacting to Trump’s Tariff Reversal

Hours after Donald Trump’s sweeping “reciprocal” tariffs—which were announced with much fanfare last week, jolting world leaders and roiling global markets—kicked in on Wednesday, the U.S. President pulled a 180.

Trump announced a 90-day pause on countries that have not retaliated, temporarily lowering the high tariffs on nearly all trading partners to a baseline 10%, while raising the tax rate on imports from China, which had retaliated with tit-for-tat hikes on U.S. imports, to 125%.

“I thought that people were jumping a little bit out of line, they were getting yippy,” Trump told reporters on Wednesday after the reversal. Although, he added, “nothing’s over yet.”

But while Trump allies like Bill Ackman praised the move, which stoked stock gains after a week of volatility, as “textbook, Art of the Deal,” others say the abrupt climbdown has only made things more confusing. 

Here’s what to know about how countries around the world have begun responding to the whiplash.

Germany

Germany’s chancellor-in-waiting Friedrich Merz said Trump’s move is a “response to the determination of the Europeans.” The pause came hours after the European Union voted to approve retaliatory tariffs on $23 billion in goods, starting April 15, in response to Trump’s previously announced 25% tariffs on steel and aluminum—which remain in effect.

In an interview with broadcaster RTL Direkt, Merz said, “We are determined to defend ourselves,” echoing E.U. President Ursula von der Leyen’s statement last week. “Unity helps,” Merz added. The E.U. faced a 20% “reciprocal” tariff.

Merz said a “trade conflict” would not benefit anyone. “Trump is currently seeing the problems of his tariff policy at home. The inflation rate is rising, imports are collapsing, and exports are experiencing major difficulties,” he added.

“The best thing is for us all to work together to achieve zero percent tariffs in transatlantic trade. And then the problem will be solved,” he said.

Read More: How Trump’s Tariffs Could Lead to a Global Recession

Malaysia

Malaysia’s Minister of Investment, Trade and Industry posted on LinkedIn that the country welcomes Trump’s pause on higher tariffs, even as “this volatility creates significant challenges for ASEAN economies.” Malaysia had been hit with a 24% “reciprocal” U.S. tariff, and other members, including Vietnam and Thailand, of the Association of Southeast Asian Nations, which Malaysia holds the rotating chairship this year, also faced significant levies, which had briefly gone into effect on Wednesday after Trump’s initial announcement last week.

“Nothing is certain but uncertainty when it comes to Trump tariffs!” Tengku Zafrul Aziz said, adding that the latest development will be discussed at Thursday’s Special ASEAN Economic Ministers’ meeting. The meeting, which was scheduled prior to the pause, was intended to deliver a coordinated ASEAN response to Trump’s trade policies.

“Malaysia is actively assessing the implications of these changes and remains dedicated to collaborating with ASEAN partners to mitigate disruptions, enhance regional economic resilience, and advocate for balanced and predictable trade relations,” Zafrul wrote. “ASEAN unity and regional economic integration will be more crucial than ever before and we welcome the support of partners that share this vision and want to see us thrive.” Malaysia will continue to diversify its trade and develop new markets as a “hedge against the current uncertainties,” he added.

This is a developing story and will be updated.