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Trump’s ‘Liberation Day’ tariffs ignite global backlash as allies break from US

With NATO unity fraying and America’s closest partners seeking distance, President Trump’s unilateral economic and military policies are threatening to unravel decades of transatlantic cooperation.

April 02, 2025 / 13:04 IST
Trump’s ‘Liberation Day’ tariffs ignite global backlash

US President Donald Trump’s plan to announce sweeping “Liberation Day” tariffs has triggered an international reckoning. Once-loyal allies like Germany, Canada, and even Greenland are openly distancing themselves from Washington, marking a turning point in global alliances that once revolved around shared values and US leadership. Trump’s America First agenda, now infused with trade belligerence and security conditionality, is isolating the United States from the very alliances that have underpinned its global influence since World War II, the New York Times reported.

Allies turn away from Washington
Germany’s incoming chancellor has outlined a strategy to reduce the country’s dependence on the United States, particularly in defence and trade. Canada’s new prime minister declared the “old relationship” with Washington to be “over,” signalling a break from one of the most enduring military and economic partnerships in modern history. Even Greenland, long home to key American air bases, rejected President Trump’s longstanding expansionist overtures with an unequivocal statement: “We do not belong to anyone else.”

These rebukes are responses to Trump’s latest round of unilateral decisions — among them, imposing tariffs on close allies, demanding higher defence contributions, and threatening military withdrawal. Political leaders across Europe and Asia are increasingly interpreting these moves as hostile acts, not negotiating tactics.

A global alliance in retreat
The impending “Liberation Day” tariffs — the details of which remain vague — are heightening concerns in global markets and among political leaders. Trump has signalled the levies will not only target adversaries like China but also traditional allies in Europe, Canada, and the Pacific. His argument: these countries benefit unfairly from US defence protection and market access.

But backlash has been swift. Canada, the EU, and even Pacific allies like Japan and South Korea have begun exploring joint responses with China — a move that, until recently, would have been politically unthinkable. Beijing has embraced the diplomatic opening, signalling a willingness to work with America’s disaffected allies to shore up alternative trade alliances and supply chains.

The crumbling three-pillar alliance
Trump’s policy shift threatens the three foundational pillars of post-WWII US strategy: mutual defence, open trade, and shared democratic values. Those pillars — carefully woven together over decades — are now unravelling.

The most acute damage may be to NATO. Trump has repeatedly questioned the alliance’s relevance, pushed allies to pay for US military operations, and expressed disdain for what he calls “European freeloaders.” Internal administration communications leaked via Signal chat have shown senior officials echoing Trump’s frustration and calling for Europe to “pay up” if it wants American military support.

In one exchange, Vice President JD Vance dismissed aiding European shipping interests in the Red Sea, saying, “I just hate bailing out Europe again.” US Secretary of Defense Pete Hegseth responded, “I fully share your loathing of European free-loading. It’s PATHETIC.” The administration’s stance appears to be: military support is for sale, and allies must offer economic concessions in return.

Fallout at NATO and beyond
The result is that some NATO countries are exploring life without the US as a central pillar. There are talks of European-led peacekeeping forces in Ukraine, and even proposals that Britain and France — the only European nuclear powers — extend their nuclear umbrella to the rest of NATO in case the US disengages.

Ivo Daalder, former US ambassador to NATO, said the new message is clear: “The US military is for hire, even if there has been no request for its services.”

Adding to tensions is the administration’s apparent willingness to normalize relations with Russia — a move seen as undermining collective Western efforts to hold Moscow accountable for its invasion of Ukraine. Many allies now view Trump’s foreign policy as undermining the very system of international cooperation that has kept global conflicts in check.

Tariffs as permanent policy, not a negotiating tool
Unlike earlier tariff threats that were used to force trade deals, Trump’s upcoming “Liberation Day” tariffs are being positioned as a permanent feature of his economic doctrine. Officials such as US Commerce Secretary Howard Lutnick have said the tariffs will be used to “balance the budget” and shift the financial burden of US security onto foreign economies. “Let the people who live off our economy pay,” Lutnick said.

But economists and diplomats warn that retaliatory tariffs could devastate US agriculture and manufacturing. Markets remain jittery, and analysts are concerned that these policies will accelerate the de-dollarization trend and push more countries into trading blocs that bypass the US altogether.

Allies brace for a post-American world
As Trump’s second term continues to reshape the global order, leaders across Europe and North America are preparing for a long-term pivot. NATO countries are ramping up defence spending, even as they quietly plan for military contingencies that no longer include the US

Former Bush administration official Kori Schake summed up the moment: “Who does President Trump think will help us when we need allied forces for operations critical to the security of the United States? And who is going to sympathize with Americans if there is another 9/11, given the behaviour of the government of the United States?”

The question, once rhetorical, is now being asked in capitals around the world — not in theory, but in preparation.

MC World Desk
first published: Apr 2, 2025 01:04 pm

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