How countries respond to Trump's tariffs is what matters next

Retaliatory taxes against the US by other nations could lead global trade into uncharted territory.

British Broadcasting CorporationWatch LiveHomeNewsSportBusinessInnovationCultureArtsTravelEarthVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthVideoLiveAudioWeatherNewslettersHow world responds to Trump's tariffs is what matters next2 days agoFaisal IslamEconomics editor, BBC News•@faisalislamReutersMexican goods coming into the US will face a 25% tariffIt was not a bluff, the tariffs are here - and this is just the opening salvo from the Oval Office.

The world trading system has not been here before. A slide towards a wider trade conflict is very much on the cards, as President Trump prepares similar tariffs firstly against Europe, and then at a lower level universally.

But what matters as much as the actions the US takes, is how the rest of the world responds.

That, in turn, requires a judgement about what the president is actually trying to achieve.

Trump regularly changes his rationale for tariffs - either to coerce diplomatic change, to deal with trade imbalances or to raise significant revenues.

https://www.bbc.com/news/articles/c0lzxz7kg4wo

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