Mexico and Europe are grappling with how to respond to a U.S. administration that is using trade policy for a range of political and economic objectives.

Mexican President Claudia Sheinbaum called for the country to keep “a cool head,” but a sense of exasperation swept over people involved in the U.S. negotiations.

Economists had already downgraded growth for the European Union, and the new duties would hit industries there especially hard. Companies are looking for ways to blunt the impact.