Former U.S. President Donald Trump’s aggressive tariff strategy has delivered a staggering $50 billion boost to U.S. customs revenue — and, so far, triggered only limited retaliation from global trading partners. According to data reported by the Financial Times, countries such as China and Canada are the only ones to have meaningfully pushed back against the sweeping levies, while others, including the European Union, have largely opted for caution or delay.
Despite fears of a full-blown trade war when Trump imposed a minimum 10% global tariff, 50% duties on steel and aluminum, and 25% on auto imports earlier this year, the international response has been muted. In the second quarter of 2025, U.S. customs revenue soared to a record $64 billion — up $47 billion from the same period in 2024, U.S. Treasury data showed.
While China enacted counter-tariffs and saw U.S. duties on its exports spike to 145% before both sides agreed to a de-escalation in May, other nations have treaded more carefully. Canada, which briefly retaliated with C$155 billion in duties, has since dialed back its stance under U.S. pressure, despite earlier campaign pledges by Prime Minister Mark Carney to confront Trump’s trade policy head-on.
Mexico, the U.S.’s largest trading partner, notably declined to retaliate after being hit with 25% tariffs on goods outside the USMCA framework, preferring to negotiate rather than escalate. President Claudia Sheinbaum made clear her priority was securing a deal rather than confrontation.
The European Union, meanwhile, has prepared countermeasures on €72 billion worth of goods — including iconic American exports like Boeing aircraft, bourbon, and automobiles — but has repeatedly delayed implementation, instead linking action to an August 1 deadline for renewed talks with Washington.
Behind the hesitation is a mix of strategic restraint and hard economic realities. “Trump has made it clear that he is prepared to raise tariffs further in the face of retaliation,” said Marta Bengoa, professor of international economics at City University of New York. “Many countries learned from the 2018-2019 trade war that retaliation often leads to counter-retaliation rather than negotiated solutions.”
Experts also point to America’s dominant role as the world’s largest consumer market, which gives it outsize leverage in trade disputes. “Unlike the 1930s when countries had more balanced trading relationships, today’s world features a hub-and-spoke system with the U.S. at the centre,” Bengoa added. “That makes retaliation economically less desirable for most countries, even when it might be politically satisfying.”
Supply chain specialists note that the costs of tariffs are not being borne entirely by American consumers. Global brands like Apple, Adidas, and Mercedes are spreading the impact across international markets to soften the blow. “The majority of cost increases will have to be distributed globally,” said Simon Geale, executive vice-president at Proxima, a Bain & Company-owned consultancy. “U.S. consumers might absorb a 5% increase, but not 20% or more.”
Despite tariffs reaching levels not seen since the 1930s, the absence of a major coordinated response has allowed Trump to pick off individual trading partners. Last week, he threatened Brazil with a 50% tariff on largely political grounds, reinforcing a go-it-alone strategy that has so far paid off financially and politically.
Analysts warn, however, that this short-term tactical gain may come at long-term strategic cost. “The calculation is short term versus long term,” said Creon Butler, head of the global economy program at Chatham House. “It makes sense not to retaliate in the short term, but longer term, countries have to decide how far they’re willing to fight for global supply chains outside the U.S.”
Within the EU, divergent national interests and broader geopolitical concerns — particularly over U.S. security guarantees amid the war in Ukraine — have encouraged caution. According to an EU official, recent outreach from senior U.S. figures, including Treasury Secretary Scott Bessent, has further tempered Brussels’ response.
Still, pressure is mounting. Trade Commissioner Maroš Šefčovič warned this week that a 30% tariff on EU exports would make transatlantic trade “almost impossible,” and revealed the EU is in talks with “like-minded” nations on potential joint action if Trump’s tariff threats escalate.
The world’s reluctance to confront Washington has left many U.S. companies with preferential access to global supply chains, while European and Asian firms face mounting obstacles into the American market. Whether this dynamic holds will depend in large part on the outcome of talks leading up to Trump’s August 1 deadline — and whether trading partners are finally prepared to push back.
