AuntieE
Is it too much to hope that every country that finds itself the target of any kind of unreasonable demand from Trump would just tell him to go and chase himself?
Or we could all hope that our politicians just thump a hearty extra tax on any goods coming in from the US, and that businesses find alternative markets for their goods.
The issue is that the US imports more than it exports, which I must admit I find a bit surprising, given the size and potential of the US. Trump is hoping that Americans will switch to buying American-made goods, so the balance of trade deficit will decrease and employment should rise. The tariff on cars will be particularly appealing to cities such as Detroit, which will hope for an upturn in the American car industry.
In the short term, exporters to the US will have to find new markets for their goods, which isn't going to happen overnight, so it's likely that exporting countries will lose revenue. They will pay a heavy price for telling Trump to "chase himself".
Tit-for-tat raising of tariffs on goods coming from the US will just increase prices in the importing countries, so that's not an ideal solution.
America is the richest economy in the world, so of course it's going to be a huge market. The second biggest economy is China, which is a difficult market apart from luxury goods. China can produce most goods much more cheaply than the UK, so it's not going to be interested in importing British goods - apart from premium goods and intellectual services. One successful export to China is English language teaching, but that's not going to help pharmaceutical manufacturers. It's going to take time to find markets for those which will be lost and will inevitably result in turmoil in businesses which rely on exports to the US.
It really isn't a question of knee-jerk retaliation.