Skip to main content

How will other countries respond to Trump’s tariffs?

The experience of the first Trump administration suggests that other countries will retaliate to the imposition of new US tariffs but in a way that is measured and minimises the risk of escalating tensions with Washington. The imposition of counter-tariffs did not force concessions from the US. However, some countries did succeed in getting tariffs lifted as part of wider deals to reform trade agreements, increase purchases of US goods, or support Washington in other policy areas, such as border control. The objectives of US trade policy could be very different under a second Trump administration, though, and it may be harder for governments to strike deals to avoid higher tariffs this time.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.

By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.