Caution, condemnation, retaliation: Shell-shocked, global leaders react

Ripples felt across the world

- Agencies

NEW DELHI: President Donald Trump's move to impose sweeping tariffs on US imports on allies and rivals alike sparked threats of retaliation on Thursday, intensifying a global trade war that threatens to stoke inflation and raises fears of recession.

The penalties unleashed condemnation from other leaders facing the end of an era of trade liberalization that has shaped the global order for decades.

Industry bodies warned of price rises, a fall in sales, and job cuts, saying the tariffs were expected to upend a globalized trade system and add to the economy's stress.

European Commission President Ursula von der Leyen said the European Union (EU), which has been targeted with a 20% reciprocal tariff, was finalizing countermeasures to protect its interests and businesses if negotiations fail.

The Chinese commerce ministry responded to a 34% reciprocal tariff and said China "firmly opposes" the reciprocal tariffs and "will take countermeasures to safeguard its rights and interests".