Mexico and the European Union are announcing a revamped agreement that they said would boost trade and investment, amid Trump's tariff threats.

Any EU offer to buy more US goods should be backed up by a credible threat to retaliate robustly if Trump goes ahead with tariffs. If there is a full-blown trade war, the EU will have retaliatory tariffs ready: a “negative list” of US products drafted to mirror Trump’s proposed tariffs could serve as a deterrent.

China isn’t the sole target. Trump has proposed 10% tariffs on European and Asian imports and 5% on Mexican goods. The International Emergency Economic Powers Act (IEEPA) could be invoked for swift, sweeping action,