So everyone will be having a trade war with the US, but not with each other?
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Yes. The US will be putting tariffs on everyone, and they will reciprocate. But Canada has a free-trade deal with the EU. They are in CPTPP, so tariff-free trade should continue outside the US.
Well it looks like tariffs including VAT are definitely going ahead - Trump signed an executive order. So we shall find out how this works in practice.
All this policy does is copy the same exact fees put on US goods. It’s crazy anyone thinks this is Trump being insane. It’s just matching how said country treats US.