China and Canada have imposed counter-tariffs on US goods, while the EU unveiled its own measures to start mid-April.

EU chief Ursula von der Leyen said Tuesday the bloc still hopes for a “negotiated solution”, but that “all instruments are on the table” to hit back if necessary.

The EU has already been hit by several US tariff announcements since Trump returned to office in January, including a 25-percent levy on auto imports coming into force on Thursday.

Besides reciprocal country tariffs, Trump’s “Liberation Day” announcement could entail additional sector-specific levies on the likes of pharmaceuticals and semiconductors.

Economists have expected the upcoming salvo could target the 15 percent of partners that have persistent trade imbalances with the United States, a group that US Treasury Secretary Scott Bessent dubbed a “Dirty 15.”

The United States has some of its biggest goods deficits with China, the EU, Mexico, Vietnam, Taiwan, Japan, South Korea, Canada and India.

– ‘Existential moment’ –

US trade partners are rushing to minimize their exposure, with reports suggesting India might lower some duties.

On Tuesday, Vietnam said it would slash duties on a range of goods including cars, liquefied gas and some agricultural products.

Japan announced it will set up around 1,000 “consultation centers” for businesses hit by US tariffs.

Speaking by phone to his US counterpart on Monday, Mexican Foreign Secretary Juan Ramon de la Fuente urged the preservation of free trade agreements between North American countries, and discussed the automobile industry, where 25 percent tariffs are poised to come into effect on April 3.

European Central Bank President Christine Lagarde said Monday that Europe should move towards economic independence, telling France Inter radio that Europe faces an “existential moment.”

Separately, British Prime Minister Keir Starmer spoke with Trump on “productive negotiations” towards a UK-US trade deal, while German Chancellor Olaf Scholz said the EU would respond firmly to Trump but was open to compromise.

It is “entirely possible” for fresh tariffs to be swiftly reduced or put on hold, said Greta Peisch, a former official at the US Trade Representative’s office.

In February, Washington paused steep levies on Mexican and Canadian imports for a month as the North American neighbors pursued negotiations.