Countermeasures vowed on U.S. tariff threat

When the United States issues tariff threats, other countries may take the following countermeasures:

For other major economies
Retaliatory tariffs
   Just as China did in the U.S. China trade friction. When the U.S. imposed tariffs on a large number of Chinese goods, China also imposed tariffs on an equivalent amount of U.S. products. This is to safeguard its own economic interests and show that it will not passively accept unfair trade coercion.
   The European Union also considered retaliatory tariffs against the U.S. when the U.S. imposed tariffs on steel and aluminum imports from the EU. For example, targeting iconic U.S. products such as Harley Davidson motorcycles and bourbon whiskey.
Diversifying trade partners
   Look for alternative markets to reduce dependence on the U.S. market. For example, countries may strengthen economic and trade cooperation with emerging economies. Asian, African, and South American countries are increasingly becoming important trade partners for those facing U.S. tariff threats.
   Promote regional free trade agreements. The Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) is an example. After the U.S. withdrew from the Trans Pacific Partnership (TPP), the remaining countries continued to promote this agreement, which helps member countries expand trade and investment within the region and reduce the impact of potential U.S. trade protectionism.
Domestic support and industrial upgrading
   Provide support to domestic affected industries. This can include financial subsidies, tax incentives, and assistance in technological innovation. For example, providing R & D subsidies to domestic manufacturing industries to help them improve production efficiency and product quality, so as to enhance their competitiveness in both domestic and international markets.
   Accelerate industrial upgrading to move towards high value added industries. This can make domestic industries less vulnerable to the impact of tariff hikes on traditional products. For instance, some developing countries are gradually shifting from simple assembly type manufacturing to high tech manufacturing and service oriented economies.

Appeal to international organizations
   Use the World Trade Organization (WTO) dispute settlement mechanism. Many countries have filed complaints with the WTO against the United States' improper tariff related actions. The WTO provides a platform for resolving trade disputes based on international trade rules, although the effectiveness of this mechanism has been challenged in recent years due to the U.S. blocking of the appointment of Appellate Body members.

For developing economies with relatively small economies
Seek economic cooperation within regional blocs
   Strengthen cooperation within existing regional economic cooperation organizations. For example, some African countries may enhance trade facilitation and economic integration within the African Continental Free Trade Area (AfCFTA) to jointly resist the negative impact of external tariff threats from the United States.
Lobby through diplomatic means
   Through diplomatic channels, try to communicate with the United States to explain the negative impact of its tariff policies on both sides and seek solutions through dialogue. At the same time, they may also seek the support of other major powers to jointly promote the United States to adopt more rational trade policies.