FRANKFURT, Germany >> President Donald Trump’s sweeping new tariffs on American imports shocked governments and investors around the world, swiftly spurring both threats of retaliation and calls for negotiation as industries scrambled and global stocks tumbled.

China accused the U.S. of “bullying” and the European Union promised “robust” countermeasures, with French officials suggesting taxes to hit U.S. tech giants.

Yet the United Kingdom and Japan, among others, expressed hope for a deal with Trump and refrained from talk of retaliation against the world’s biggest economy, fearing that slapping their own tariffs on American goods would only make things worse.

Trump imposed a 34% levy on goods from China on top of an earlier 20% tariff, as well as a 20% tariff on the EU, 24% on Japan and 25% on South Korea.

Trump has described the import taxes, ranging from 10% to 49%, as a way to reverse unfair treatment by American trading partners and draw factories and jobs back home.

Setting off for Florida on Thursday, he struck an optimistic note. “I think it’s going very well.”

“The markets are going to boom, the stock is going to boom and the country is going to boom,” Trump said.

Retaliatory measures

China, a key exporter to the U.S. of everything from clothing to kitchenware, has already announced a raft of retaliatory measures expected to raise prices for U.S. consumers.

“There are no winners in trade wars and tariff wars,” China’s Foreign Ministry spokesperson Guo Jiakun said. “It’s clear to everyone that more and more countries are opposing the unilateral bullying actions of the U.S.”

French President Emmanuel Macron met with representatives from key commercial sectors, like wines and spirits, cosmetics and aircraft, after urging businesses to suspend all investments in the U.S. “What would be the message of having major European players investing billions of euros in the American economy at a time when they’re hitting us?” Macron asked.

European Commission President Ursula von der Leyen denounced Trump’s levies as a “major blow to the world economy” but held off announcing new countermeasures. She said the commission — which handles trade issues for the 27 EU member countries — was “always ready” to talk.

Analysts say there’s little to be gained from an all-out trade war, since higher tariffs can restrain growth and raise inflation.

“Europe will have to respond, but the paradox is that the EU would be better off doing nothing,” said Matteo Villa, a senior analyst at Italy’s Institute for International Political Studies.

“Trump seems to understand only the language of force, and this indicates the need for a strong and immediate response,” Villa said. “The hope, in Brussels, is that the response will be strong enough to induce Trump to negotiate and, soon, to backtrack.”

Italian Prime Minister Giorgia Meloni told Italian state TV on Thursday that she hoped for exactly that.

“We need to open an honest discussion on the matter with the Americans, with the goal — at least from my point of view— of removing tariffs, not multiplying them,” Meloni said.

Targeting tech

Europe’s strategy so far has been to limit retaliation to a few politically sensitive goods, like whiskey and Harley-Davidson motorcycles, in an attempt to push the U.S. to the negotiating table.

Economists say that Europe could broaden the trade war to the vast services sector by targeting Big Tech — a category more vulnerable to retaliation because the U.S. exports more than it imports.

The EU response could include a tax on U.S. digital giants such as Google, Apple, Meta, Amazon and Microsoft, as French officials have recommended.

British Prime Minister Kier Starmer said his government would react with “cool and calm heads,” telling business leaders in London that he hoped to strike a trade deal with the U.S. that would see the tariffs rescinded.

“Nobody wins in a trade war, that is not in our national interest,” Starmer said.

Japan, the biggest foreign investor in the U.S. and its closest ally in Asia, plans to assess the impact, Chief Cabinet Secretary Yoshimasa Hayashi said, displaying a more conciliatory approach.

The head of the World Trade Organization warned that U.S. protectionist measures will likely cause global trade volumes to drop by about 1% this year.

“I’m deeply concerned about this decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that lead to further declines in trade,” said WTO Director-General Ngozi Iweala-Okonjo.