Donald Trump raised tariffs, intimidated rivals, and so far won. According to a survey by Financial TimesWhile US business partners have failed to respond tightly to the new tariff offensive of the US President, Trump raised nearly $ 50 billion in extra customs revenues.
Four months after the reprint of the trade war, only China and Canada imposed formal retaliation for US sanctions. Even so, these actions were punctual and limited, while American tariffs have reached the highest level since the 1930s.
US Treasury data show that tariffs boosted US revenue to a $ 64 billion record in the second quarter of 2025, a $ 47 billion jump over the same period last year. Most of this revenue comes from countries that, despite the criticism, have not yet implemented significant medies.
The European Union, for example, has repeatedly postponed its response to Trump’s offensive. Last week, he published a list of possible tariff targets on € 72 billion in products – including Boeing aircraft, whiskey and cars – but chose not to set specific rates. The strategy seems to keep the negotiation channel open until August 1, a deadline given by Washington.
According to European diplomats heard by the FTthere is fear that active retaliation may impair cooperation on other fronts, such as support for Ukraine or NATO safety guarantees.
China, Canada and the domino effect
China imposed high tariffs – reaching 145% in April – but the consequences were felt on both sides: Chinese exports to the US plummeted in May, leading Beijing to negotiate a 90 -day truce. Canada, after imposing C $ 155 billion in tariffs, gave in to US pressures and retreated in measures such as digital tax and increased steel and auto parts.
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For analysts heard by FTGovernments avoid confrontation with Washington for fear of triggering a global protectionist spiral. According to modeling from the capital Economics cited by the British newspaper, a large -scale trade war could reduce global GDP by up to 1.3% in two years.
