We must not forget that it’s not only about trade. There’s also a military dimension, and if all US support to Ukraine ends abruptly and completely, then there’s a very real chance that Putin will win soon. That creates an entirely new security situation, where Russia may well attack EU countries next (like the Baltics, for example).

One can only hope.

China pretty much did it, and they ended up with 30% - for now, as that may change in August, or at any given moment, of course. Their example, and also the examples of UK and Vietnam, may be used both to argue that escalation is not the solution, and nothing, including whatever concessions, lets anybody to escape tariffs completely; but also that maybe China still got the best it could get out of its tough stance. China, of course, is perhaps not the best example to follow, as they had the most leverage of all against US. EU is now the next in line.

As counterintuitive as it may be, it may be wisest not to retaliate, and just accept the US tariffs as they come, because any broad tariffs this high damage first and foremost the tariffing country. So the best way forward may well be to let the US screw itself with its tariff policy, and wait until somebody with an ounce of brain comes to power there.

Unfortunately Europe can’t very well afford to play hardball with him - not just because it’s economically harmful to Europe, but also because Europe wants to keep at least some sort of foreign policy and military alliance, and cooperation in the midst of the war in Ukraine.

So EU already scrapped the plans of digital tax, giving Trump a win and gaining exactly nothing from this. There is still hope that Europe will pressure him at least a little bit - but not much hope, I’m afraid.

It is indeed bad for US businesses and consumers, and therefore for US economy in general, but as US market is so big and important, it’s also bad for countries doing business with US, including in Europe, like, for example, German carmakers or French and Italian alcohol exporters.