The politics are about compromises. China “caved” as well but that’s just one battle “lost”.
In the long term the world will adjust to the new reality. As a simple example take the oil crisis from 1970s. The U.S adjusted and now is the world’s biggest producer.
It will take time but in 30 years I would be surprised if Europe would still buy U.S weapons, let U.S tech services rule EU digital markets and so on.