‘Trump Always Chickens Out’? Not really: US president is winning this trade war - Here’s how US raked in $50 BILLION as world backed down

US President Donald Trump entered his second term with a powerful economic weapon: tariffs. Despite delays and repeated threats that earned him the nickname “TACO” (Trump Always Chickens Out), the policy has brought in nearly $50bn in extra customs revenues and left most trading partners on the back foot and in fear of striking back.

US customs revenue hits record high

According to figures released by the US Treasury, the United States collected $64bn in customs duties during the second quarter of 2025, a $47bn increase from the same period last year. This follows four months of heightened tariffs imposed under Trump’s economic agenda. While the trade war Trump initiated has faced threats of retaliation, only two countries, China and Canada, have retaliated so far.

Why are most countries holding back against in Trump's trade war?

As per economists, the reason for limited retaliation is that the US remains the centre of the global trade system. Trump’s threats of even higher tariffs and potential damage to trade relationships have left many nations opting to negotiate rather than retaliate. The European Union, for instance, has delayed counter-tariffs multiple times, instead linking their response to an August 1 deadline for talks. Even Canada, despite initial pushback, has scaled back its retaliatory approach. Mexico, the US’s biggest trading partner, declined to retaliate entirely, with President Claudia Sheinbaum saying she wants negotiation over confrontation.

Trump’s tariffs and the global supply chain

Although US tariffs are now at levels not seen since the 1930s, they have not triggered a global trade collapse. Supply chain analysts note that international companies are spreading costs globally to shield the US market from the full burden of rising prices. Trump’s approach appears calculated, applying pressure, then offering deals, often individually. This strategy has faced limited resistance and allowed the US to maintain leverage.

China and Canada step back; EU treads carefully

In April, China matched Trump’s tariffs with retaliatory measures. But when Chinese exports to the US fell by a third in May, both sides stepped back and agreed to a 90-day pause. Tariffs were scaled back from 145% to 30%. Canada, meanwhile, imposed C$155bn in retaliatory duties earlier this year but has since softened its stance. Despite election promises to confront Trump, Canadian Prime Minister Mark Carney dropped a digital tax and refused to match recent US tariff hikes on steel. With 20% of Canada’s GDP tied to US trade, compared to just 2% for the US, the economic pressure on Canada is higher.

When the European Commission published a list of potential countermeasures targeting €72bn worth of US goods, it stopped short of assigning tariff rates. Officials hoped this move would avoid provoking Trump while leaving space for compromise. EU Trade Commissioner Maroš Šefčovič warned that a 30% tariff on European exports would make transatlantic trade “almost impossible” and hinted at possible joint responses with other nations. Still, Brussels has largely chosen caution over confrontation.