How America’s Trading Partners Are Reacting To U.S. Tariffs

Global Trade and Innovation Policy Alliance (GTIPA) members from 16 countries analyzed how their economies are reacting to U.S. tariffs. Many countries are seeking to support their local producers and establish trade arrangements that are less reliant on the United States. While many nations increasingly do not consider America a reliable trade partner, China’s influence is growing; however, most countries are concerned about its predatory practices.

Several common patterns were observed among the countries included in this analysis:

• Most countries prefer to prioritize trade negotiations with the United States over taking retaliatory measures.

• Countries are prioritizing economic resiliency measures.

• Moderate optimism that countries will adapt to the new global trade environment in the years to come.

• Countries are seeking to boost alternative trade routes.

• The U.S. Trade war is boosting China’s influence worldwide

• Countries are taking extraordinary measures to reduce shock volatility

The drive to build economic resilience is creating a paradox: countries are considering both protectionist measures to shield their economies from trade disruptions and proactively pursuing new trade agreements. This paradox underscores the uncertainty surrounding the new global trade system under development.