I have a little bit of a different take on some of this. This is JMHO. I am no expert. This is just my gut feeling and my observations.
I do not believe we are in a trade war with anyone. Yet. I believe we are just posturing and threatening and trying to feel out what the next step is going to be between us and our trading partners. We hold the money. If our trading partners don’t like what we are doing they are welcome to raise their tariffs even higher. Which has happened on the first round. Then we raise or add our tariffs. I’m still waiting to see Canada, China, Mexico, etc. raise their tariffs again. I would think if we are in a trade war our trading partners would be raising tariffs again. So far, it has not happened. If this forces our trading partners to come back and renegotiate or lower/remove their tariffs then we win. I believe our trading partners are so tied in with our economy that they will be shooting themselves in the foot if they continue and don’t back down. Let’s face it, if China doesn’t want to provide us with cheap shit, there are another dozen countries that would love for us to make them our new trading partners and to come invest in their country. And we can continue to get cheap shit. China is as rich and as technologically advanced as they are because of us. As Trump said, we hold all the cards.
I believe that Trump won’t force any country to run a trade deficit with us. I believe he just wants to lessen the trade deficits with the countries that are taking full advantage of us.
I also don’t believe we are hurting our relations with our allies. I believe we are shaking things up. I believe we are pissing off the leaders of those countries. But I believe for the most part Trump has the support of the majority of the citizens of the countries that Trump is trying to shake up. Seriously, what’s stopping them from stopping trade with us? What’s stopping them from leaving NATO and siding with Russia? If they are that pissed off at us, we would seeing signs of them pulling away from us.
Personally, I think it is too premature to say we are officially in a trade war and we ruining our relationships with our allies/trading partners. It takes a whole lot more than what Trump has done so far to get to the point we are in a trade war and we are at the point of losing allies/trading partners. Be patient and let’s see how this all plays out. These things take time to right or to go wrong. We’ll see what the results will be.