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Just the explanation I was looking for...Thanks D!

I would assume the net result of US tariffs will be strong international cooperation outside of the US. Trump has made the US a bad-faith actor, one best avoided.

Tariffs are problematic, but how about retaliating by allowing violations of copyrights/patents from the country that targeted you with tariffs? Hurts them, helps you! Or place restrictions on their social media companies? Arguably has a similar result!

They may be able to have it both ways with "appeasement" - Americans pay more for stuff they're going to buy anyway, and their own residents may buy less US stuff by choice. Will see if this actually happens anywhere other than Canada though.

5/ The case for aggressive resistance is that if you can cause the US real economic pain, their public may be less willing to endure it than yours - because you have the more compelling story to tell about being the aggreived party... ... and that such pain will make them back off.

Trump may make the choice easier if/when he reneges on his latest deals - as he did with his renegotiated NAFTA deal with Canada and Mexico. The only choice then will be aggressive resistance.

The us imposing unequal tariffs on Europe is also state capitalism so the answer should be the same in both cases

Also, doesn’t have to be that long-term. Some of the energy production / electrification choices of EU nations have been aggressive and fairly quick in response to Russian aggression.

Not disagreeing with anything you wrote. I guess I’m saying that really leaning in on bolstering domestic production is a kind of 3rd option that makes resistance a bit more palatable and relieves the “pain”. I’d like to see more countries aggressively go this route and tell Trump to kick rocks.

What I would like to know is, what happens to the US budget deficit and Treasury rates if tariffs actually succeed in dampening the dollar value of US imports?