It is getting harder and harder to keep up with the latest tariffs that are being imposed reciprocally by each country.
US President Donald Trump has imposed sweeping levies on nearly every trading partner, including some of America’s closest allies in Asia.
So far, China has been hit hardest with a 104% tariff on most exports, Japan faces a 24% blanket tariff with additional 25% duties on autos, while South Korea is also subject to 25% tariffs on steel, autos, and general goods.
The real story lies in how these Asian economies are responding and why their reactions could shape the next decade of global trade.
China is not backing down
China was hit hardest and reacted the fastest.
Days after the US imposed a 104% tariff on nearly all Chinese goods, Beijing responded with 84% tariffs on American imports and additional export controls on US firms.
China also banned business with several American companies, designating them as “unreliable entities.”
There’s been no effort to restart talks. Chinese officials say Washington is using “threats and blackmail” and that China will “fight to the end.”
This rhetoric is not new, but it’s now matched by policy.
Beijing is reportedly weighing further restrictions on critical materials like rare earths, gallium, and germanium, which are essential to US defense and electronics manufacturing.
What makes this escalation different is that China is no longer trying to calm markets.
State media and nationalist bloggers are framing the standoff as a sovereignty issue, not just trade.
This change in stance is important.
It reduces the room for negotiation and increases the chances that this becomes a long-term fracture in US-China relations.
Domestically, China’s economy is already under strain.
The yuan has dropped to record lows.
The CSI 300 index is down 8.4% since the start of the year.
Export-driven manufacturers along China’s coast are facing deep uncertainty.
Still, Beijing seems willing to absorb the economic hit to defend its position.
Japan is using diplomacy but is under pressure
Japan was also quick to act. Prime Minister Shigeru Ishiba called Trump within hours of the tariff announcement.
The two agreed to keep dialogue open, and Japan appointed economic minister Ryosei Akazawa to lead negotiations.
The US has responded positively, giving Japan priority status in the talks.
Japan’s message is that these tariffs are inconsistent with the US-Japan trade deal.
Officials say they will push for their review and eventual withdrawal.
At the same time, Japan is avoiding threats or public retaliation.
Behind the scenes, though, Japan is preparing for a hard negotiation.
The US has already made it clear it wants more access to Japan’s agricultural and industrial markets.
Japan is the largest foreign direct investor in the US, and it’s using that fact as leverage.
But it also faces a difficult domestic conversation.
Japan’s stock market has fallen nearly 25% since its July 2024 peak.
The auto sector, which is the main part of Japan’s exports, is directly affected.
Some opposition lawmakers are pushing for a tougher response.
The government has so far resisted, hoping to resolve the issue through quiet diplomacy.
South Korea is betting on talks, not threats
South Korea is taking a very different approach.
Acting President Han Duck-soo told CNN that his country would not join China or Japan in pushing back against the tariffs.
Instead, he’s chosen dialogue over confrontation.
Han sent a trade delegation to Washington within days of the tariff announcement and offered areas of cooperation, including shipbuilding, energy, and reducing South Korea’s $55.7 billion trade surplus with the US.
South Korea was hit hard, too.
Its auto and steel industries face 25% tariffs. To cushion the blow, the government has increased financial support for carmakers from 13 trillion to 15 trillion won ($10 billion) and temporarily cut taxes on vehicle purchases.
This response is shaped by more than economics.
South Korea depends on the US for defence and can’t afford to politicize the relationship while tensions with North Korea remain high.
Trump has already linked trade to military cooperation, raising the issue of South Korea’s financial contribution to hosting 28,500 US troops.
Han’s approach has gained praise in Washington.
US officials have described South Korea’s outreach as measured and constructive.
But the decision not to confront Trump has drawn criticism at home.
Some lawmakers say Han is being too passive.
With elections coming in June, this could become a political liability.
How are the markets reacting?
Asian stock markets fell sharply as tariffs took effect.
Japan’s Nikkei dropped 3.9% on the day the tariffs were activated.
Hong Kong’s Hang Seng Index fell more than 3%. The offshore yuan hit a record low.
But these numbers may not even reflect the longer-term changes now underway.
What’s happening is not just a trade fight but a realignment.
The US is no longer treating allies differently from rivals.
Trump’s tariffs apply nearly across the board.
Countries like South Korea and Japan, long seen as safe from economic pressure, are now being asked to make concessions to keep their market access.
This forces a new kind of decision.
Align with the US and absorb economic costs, or push back and risk further penalties.
At the end of the day, there’s no clear exit from the tariff standoff.
Trump has tied trade to broader issues such as military alliances, technology control, and national security.
Negotiations may lead to exemptions or adjustments, but the US is asking for more than tariff cuts. It wants structural changes.
China has chosen the second path.
South Korea and Japan are trying the first. Each path comes with consequences.
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