Trump seems to have confused having a lot of leverage with “having unlimited leverage”.
Europe and the rest of the world will absolutely roll him on trade.
1) his tariffs are dumbly designed. If he really wanted to lower the trade deficit, he should have place tariffs on finished goods and not raw materials. This is basically trade war 101. Now that increased costs on steel and aluminum is going to be passed through on every domestic US produced item, so now our cars will
Be more expensive in the US AND abroad, even if the other country has no tariffs on cars.
Now if I am Ford, and suddenly I will have $500 in additional cost on every American produced car, how much more attractive does a factory in Mexico look?
2) the United States is a very attractive market, but trump is kidding himself if he doesn’t think that the EU, Canada, Mexico, China, Brazil, and India won’t eventually just join together formally or informally and say “you know what, fuck this guy” and collectively engage in a trade war with the US while calling a t Ice between each other.
Trump is not particularly popular at home, and and is very unpopular overseas, so it’s likely their citizens will support this strategy as long as they are sticking it to Trump to put enough economic pressure on the US to ensure he either backs down or loses reelection.