Trump's Tariff War Forces Allies to Choose Resistance or Surrender

President Trump's trade war is forcing America's closest allies to choose between fighting back, or acquiescing.

- Vipal Monga, Kim Mackrael & Santiago Pérez

The trouble is, nobody has figured out which is the best way to get Trump to do what they want.

The European Union and Canada have led the charge against Trump's tariffs, threatening their own duties on tens of billions of dollars of American goods after the U.S. leveled blanket tariffs on steel and aluminum, and on imports in North America. Officials in both regions have calculated there is value in showing strength.

"Of course, we have to retaliate," said Anna Cavazzini, a member of the European Parliament from Germany. She said the European Commission wants a deal, but: "We also have to show our teeth because it's the only language that this Trump administration is basically understanding."

On the other side are the U.K. and Mexico, among others, which have decided to hold fire in hopes of striking a deal. Some countries are also loath to disrupt their security alliances with the U.S., which are viewed as increasingly fragile under Trump.

"Who is going to do better: the people that poke the bear in the eye, or those who wait for the people who are poking to be eaten first?" said Barry Appleton, an international trade lawyer and co-director of the New York Law School's Center for International Law.

The decision is going to be even more tricky on April 2, when the Trump administration plans to move forward with a list of so-called reciprocal tariffs that aim to match the duties and nontariff trade barriers that other countries impose on American products, an act that would rewire global trade. Trump has called it "Liberation Day."

So far, choosing between retaliation and compliance hasn't mattered at all for Canada and Mexico, which have used different tactics—Canada being more aggressive with retaliation and Mexico taking a firm but cooperative approach. Both countries were still slapped with a 25% duty on many of their exports in March.