Countries targeted by Trump's tariffs may strike back at U.S. services.

[dalton99a]

https://www.nytimes.com/live/2025/04/02/business/trump-tariffs-liberation-day

Countries targeted by Trump’s tariffs may strike back at U.S. services.

President Trump says he is outraged by the fact that the United States imports more goods than it sends to the rest of the world. What he rarely mentions, though, is that when it comes to services, the tables are turned.

Service sectors — which include the finance, travel, engineering and medical industries and more — make up the bulk of the American economy. Exports of these services brought more than $1 trillion into the United States last year.

But that dominance also gives other countries some clout in negotiations — including the ability to impose some pain on the U.S. economy as they look to retaliate against Mr. Trump’s tariffs on goods.

The European Union, for instance, could use tools designed to restrict services coming into the bloc as a cudgel.

“The real leverage that the Europeans have is ultimately on the services side,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group, a political research firm. “It will escalate before it de-escalates.”

The United States is the largest exporter of services in the world, and a large share of those services, from financial services to cloud computing, are delivered digitally. The country ran a trade surplus in services of nearly $300 billion last year.

Every time a European tourist stays at a U.S. hotel, for example, the money spent is counted in the services export basket. And every time someone in Canada or Japan or Mexico pays to listen to music or watch movies and television shows made in the United States, they are adding to America’s surplus in the services trade.

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[tanyev]

1. Trump: "How dare those bullies retaliate against me!"

I predict.

[Irish_Dem]

2. Bullies hate it when people fight back.

They pretend they are the victims.

[Mike 03]

3. Exactly. The "retaliation" need not be restricted to tariffs, a point

made by European leaders and economists over the past weeks. They have some other ideas that have nothing to do with tariffs. (Canada does too).