Tariff Bullying Is Working Too Well in Europe

Donald Trump's April tariff barrage felt like the height of hubris. It infuriated allies, damaged his popularity at home and triggered financial-market chaos so acute the whole thing was paused within days — the latest sign of America’s Icarus-like tendency to try to remake the world every few decades. Yet three months on, as the deadline for a compromise looms, Europe’s own syndrome risks emerging: a tendency to look more like a collection of Asterix villages than a cohesive whole.

It’s now looking increasingly likely that the European Union’s 27 members, whose common trade policy is led by Brussels, will be faced with what is called an “asymmetric” deal. There will be no removal of all tariffs imposed or threatened by Trump, including a baseline levy expected at 10%. If that’s the case, the UK’s bare-bones deal — which failed to cancel its own 10% tariff or a 25% levy on steel and aluminum — has become a kind of precedent: a few carve-outs, a gushing tweet and hope that Trump moves on. Canada has also become a precedent, withdrawing its digital services tax on tech companies after the US made it a red line for talks. Financial markets see cause for cheer as a de-escalation path takes form.