Trade partners in America have largely failed to take revenge on the introduction of the Bonald Trump War, which allowed the president to ridicule “Al -Farah always” to raise approximately $ 50 billion in additional customs revenue at a small cost.
Four months after Trump launched Salvo’s commercial war, China and Canada only dared to return to Washington with at least 10 percent of the global tariff, 50 percent of steel and aluminum fees, and 25 percent on cars.
Meanwhile, US revenue from customs duties reached a record increase of $ 64 billion in the second quarter – 47 billion dollars more than the same period last year, according to data published by the US Treasury on Friday.
Chinese reprisals on American imports, the most sustainable and important in any country, had no effect with total income of allocated duties only by 1.9 percent in May 2025 for the previous year.
In addition to the limited revenge of Canada, which has not yet been issued customs data in the second quarter, the duties imposed on American exports around the world represent a small part of American revenue during the same period.
Some other commercial partners in the United States decided not to respond in kind while negotiating with Trump to avoid the high definitions of the threat.
The European Union, the largest commercial bloc in the world, planned counter -conflicts, but it has been repeatedly postponed to implement, and now linking them to the deadline of Trump on August 1 of the conversations.
The supply chain experts say that the cost of Trump’s tariff is not only decreased on American consumers, as international brands are looking to spread the impact of cost increases around the world to reduce the impact on the American market.
Simon Gill, CEO of Proxima, a supply chain of supply chain, said the main brands such as Apple, Adidas and Mercedes will look forward to reducing the impact of price increases.
Gil said: “World brands can try to try to swallow some cost of tariffs by providing smart sources and providing costs, but the majority must be distributed through other markets, because American consumers may swallow a 5 percent increase, but not 20 or even 40.”
However, although the American tariff that has reached levels has not been seen since the 1930s, the shyness of Trump was prohibited by Trump’s spiral vortex of the type that destroyed global trade between the first and second world wars.
Economists said that the dominant position of the United States as the largest market for consumers in the world, as well as Trump’s threats to double the definitions of the countries that challenge him, means that for most countries, the “chicken” decision was not a cheese, but sound economic instinct.
Modeling by Capital Economics, a consulting company, was found that the high -escalation trade war has reached the average mutual tariff rate to 24 percent that would cause 1.3 percent of GDP over two years, compared to 0.3 per cent in an essential condition that remained 10 percent.
“In contrast to the 1930s when countries have the most balanced trade relations, today’s world includes a focusing system with the United States at the center,” said Marta Benjoa, a professor of international economics at New York City University. “This makes revenge less economically appreciated for most countries, even when it is political satisfactory.”
Alexander Klein, professor of economic history at the University of Sussex, added that the short-term considerations-which reduce exposure to tariffs and reduce the risk of inflation-were leading most negotiations with Trump, which gave the White House the upper hand.
He said: “I would like to think that the leaders were learning the lessons of history, but I am afraid that it would be optimistic. Most likely, the European Union, Canada and many other governments fear success in the global offer links and inflation from escalation.” “Trump cares less, so he takes advantage.”
The largest trade partner of the United States in Mexico did not diminish after a 25 percent tariff in March on exports that are not covered by the United States and Mexico-Canada agreement. Since the start of her talks with Trump, President Claudia Shinbom said it prefers an agreement.
The world’s failure to unite and facing Trump’s threats collectively has left the US president more space to pick up individual countries. A 50 percent tariff threatened Brazil last week, citing large political justifications.
“Trump has explained that he is ready to raise definitions in the face of revenge,” said Benjoa from New York City University. “I learned many countries from the 2018-2019 trade war that revenge often leads to reinstallation rather than negotiating solutions.”
Even within the unified blocs such as the European Union, the competing interests of individual member states, along with the broader concerns of whether confrontation with Trump can undermine US security guarantees to Europe, have been very cautious.
Trump’s decision to threaten to increase Definitions to 30 percent There was no major reaction in Brussels, partly because senior US officials, including Treasury Secretary Scott Pessant, continued behind the scenes to be careful.
The European Union official added that the negotiations did not occur in isolation, at a time when Europe was looking for our continued support for Ukraine. They said: “It affects the entire spectrum of American relations, including those related to security.”
As a result, unlike China, which matches the Trump tariff for a tariff in April, the European Union was repeatedly delayed in implementing its packages of reprisals as it seeks to leave a space to cut a deal with Trump before August 1.
When the European Commission Published The latest list of possible revenge targets over 72 billion euros of goods on Tuesday – including Boeing aircraft, cars and bourbon – did not put any specific tariff rates against individual products, in a clear attempt to not take off Trump.
Even Canada and China were wary of Trump’s antagonism despite being the only two countries to impose a revenge tariff.
The American tariff on China escalated to 145 percent by mid -April, causing Chinese exports to the United States by a third in May. Both sides decreased quickly, and agreed to a temporary stop for 90 days in Geneva in May, reducing the rate to 30 percent.
In February and March, Canada imposed approximately $ 155 billion in retaliatory tariffs, including on spare parts and cars. In recent weeks, although it has fallen against the pressure of the United States despite the promises of elections by Canadian Prime Minister Mark Carney to confront Trump.
With American Commercial Accounting by 20 percent of Canadian GDP – compared to 2 percent for the United States – Carney calibrated his responses. He abandoned digital services tax under the pressure of the United States and did not match Trump’s decision last month to double the steel definitions to 50 percent.
“I worked” the attached Karane “during the election campaign, but we cannot be a confrontation with the United States,” said Dan Nawilan, former Canadian Prime Minister Stephen Harper, said. “It is now a more realistic approach.”
Diplomats say whether the world will eventually unite to confront Trump will partially depend on where the tariff levels stabilize on the deadline on August 1.
Trade Commissioner Maros He said this week The customs tariff by 30 percent on the exports of the European Union will leave the bloc without losing it because the Atlantic trade will be “almost impossible”. He added that the European Union was talking to commercial partners “similar in thinking” about possible joint measures.
Chaton Bater, head of the global economy in Chatham House, said that failure in revenge would also give American companies a relatively free pass to global supply chains while the European Union and Asian manufacturers are still facing a high tariff in the United States.
“The account is short -term for a long -term,” he said. “It is logical in short in the short term, but in the long run, there is an account of other countries about the extent of fighting global supply chains outside the United States.”
You want additional reports Henry Voy in Brussels and Christine Murray
https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F191eedd9-1d69-4ef4-bdf9-dc423651e7c5.jpg?source=next-article&fit=scale-down&quality=highest&width=700&dpr=1
Source link