The EU, Japan, and other nations have wisely responded with restraint to President Trump’s improvised tariff threats. With a 90-day pause in execution, there's a chance to craft a cooperative solution. The stakes are high—continued escalation risks global recession, while collaboration could stabilize markets and rebalance the structural imbalances long plaguing the world economy., writes Richard Samans, Non-Resident Senior Fellow, Brookings Institution.

A meaningful “G3” accord between the US, Europe, and China must include coordinated fiscal, monetary, development, and trade policies. From reducing the US fiscal deficit to boosting China’s domestic consumption and reforming global trade norms, such a grand bargain could modernize outdated systems and spark a long-overdue recalibration of global economic governance, he adds.