With the decision to "eat for the part" of the US like that, Canada and the EU are aware that the new US administration will continue to increase the level of trade shock and both will have to continue to respond to the US.
The US side's strategy is to use guns to force US trading partners to make concession and submit. The response strategy of Canada and the EU is to first respond at the same level and only then negotiate with the US. In other words, both Canada and the EU are using the " pre- repayment, negotiate later" strategy with the US.
Both will have to deal with the new US administration for nearly 4 more years, which is a long time, not a short time. Both have experience in handling relationships with the Trump administration since his previous term as president.
When responding to the US by imposing trade protection tariffs on US, Canada and the EU not only showed a strong reaction to the new US government but also sent a message to the psychology of people in the US.
Trade protectionist tariffs help protect certain manufacturing industries in the US and help the state increase budget revenue, but production costs, inflation and consumer prices will increase and consumers will suffer the most losses sooner or later. At that time, consumers in the US will not be satisfied with this government's trade protection policy.
The dissatisfaction of the people will then force the new US administration to negotiate with Canada and the EU to end the trade crisis. Canada and the EU responded with a chance to get back to the US, but at the same time they were aware that they must always keep room and seek opportunities to negotiate with the US side about a new trade deal, because the longer the trade conflict between the two sides, the more severe it will be, the more difficulties will be made in overcoming it and there will be more third parties benefiting from their trade conflict.
Canada and the EU must respond strongly when the US imposes trade protection tariffs because of urgent internal needs. Mr. Trump also sees Canada as the 51st state of the United States and believes that the EU was founded to hurt the United States. These are very sensitive about internal politics in Canada and in the EU, and only when the EU leadership and the Canadian government, former Prime Minister Justin Trudeau and new Prime Minister Mark Carney, show their readiness to face the US with courage and determination can they cover.
Looking further in the outside world, other major and important US partners also seem to be using similar strategies to Canada and the EU to cope with being pushed into a new round of bargaining by the new US administration. Therefore, after achieving the initial internal effect, the new US administration will gradually enter negotiations to ease the disaster and end this new trade crisis, which may be slow and late but no different.
