Trump's trade offensive echoes Thatcher's 1982 Falklands War

It's surprising how so many countries have taken the American President's aggression lying down

- BARRY EICHENGREEN

U.S. President Donald Trump's trade war resembles nothing so much as UK Prime Minister Margaret Thatcher's Falklands War in 1982: one side deploys massive force and the other withdraws with its tail between its legs. Of 57 countries and territories included in Trump's 'Liberation Day' list of targets for 'reciprocal' tariffs, just three—Brazil, Canada and China—credibly threatened retaliation. The Heard and McDonald Islands, populated only by penguins, were understandably supine. But it is more than a little surprising that so many others have taken U.S. aggression lying down.

The European Commission's agreement with the U.S. is especially stunning. It has accepted Trump's 15% baseline tariff, with exemptions only for aircraft parts, critical minerals and a couple of other items. U.S. duties on steel, copper and aluminum remain at 50%. European Commission President Ursula von der Leyen has pledged that Europe will buy additional U.S. energy and invest $600 billion in the U.S.

In return, the EU receives basically nothing, only a U.S. promise not to impose still higher tariffs, at least for now. Moreover, the deal enhances U.S. exporters' access to European markets, while Europe's exporters face additional barriers in the U.S.