The announcement of President Donald Trump of radical tariffs in imports from almost all countries overturned the global commercial order and yielded to agitation markets. He left countries fighting to respond by imposing the accountants or looking for negotiations to ensure lower rates. The US stock market lost $ 5.4 billion within two days after the announcement, while global stock markets lost $ 5t as the fears intensified on a global recession. The perspective of a complete commercial war shook investors confidence. The IMF warned that this would significantly affect global economic growth already slow. The head of the Central Bank of the United States warned that the increase in tariffs would lead to “greater inflation and slower growth.”
Using emergency powers, Trump slapped the so -called “reciprocal tariffs” in the United States commercial partners ranging from 10 % base to 50 percent, an action that did not discriminate between a friend and enemy. The most pronounced tariffs were imposed on Asian countries with China initially facing 34 % (added to previous taxes and additional 50 percent, took the net rate later at 104pc). The EU was submitted to a general tax of 20pc. Trump’s justification was based on weak reasons: that this will boost the economy of the United States by reducing its commercial deficit, bringing home and jobs home, promoting investment in the country, increasing income to finance deep national tax cuts and protecting US companies and workers. Most of these cases are deeply defective, but the Trump administration rejected the opinion that the measures would harm US industries and lead to a higher recession and prices for US consumers.
He Financial Times He described Trump’s decision as “one of the greatest acts of self -harm in American economic history.” In a similar line, The economist He wrote in his leader that Trump’s announcement, which marked the greatest rest in the United States commercial policy in more than a century, “made the deepest, harmful and unnecessary economic error in the modern era.” He seized Trump’s economic ideas as delusional “nonsense.” The former Treasury Secretary of the United States, Janet Yellen, described the tariffs as “the worst self -inflicted wound” that had seen an economy that works well.
The world’s response was fast and strong. The largest commercial partner of the United States and the largest exporter in the world, China took reprisals by announcing a 34 percent tax at 34 % on US imports. When Trump imposed additional duties, Beijing also raised the tariffs and said that “he would fight until the end.” This marked a dangerous escalation in the commercial war and brought the two world powers towards a historical division. European leaders denounced Trump’s tariffs as “illogical” and “paranoid.”
Trump’s tariff policy has caused a commercial war and has damaged American credibility.
With the markets that Hanking, American bankers and entrepreneurs panic and a large amount of liquidation in US bonds., Trump suddenly changed. He retreated against a variety of countries that said he wanted negotiations and did not take retaliation actions.
He announced a 90 -day pause on the rates, but added more levies on China taking them to 145pc. The policy that you revolve, so characteristic of Trump, was apparently the result of the combined pressure of the United States business community, foreign governments and congress leaders, including Republicans. But while temporarily stops the highest tasks in many countries, uncertainty does not end on Trump’s next protectionist movements. A 10 percent tax in most countries is still in force, while some evaluations show that although Trump’s withdrawal “the tariffs average more than 25PC in all commercial partners, when imports from the United States are weighted by the United States last year.”
Until now, Trump’s tariffs are a negotiation tactic to force commercial partners to align with Washington’s interests will soon be evaluated. Its 90 -day break suggests that negotiations can allow some countries to negotiate lower rates in exchange for concessions. The concessions will be determined by Trump. But although Trump’s escalation has been a relief for many countries, no one can be sure that he will not turn again. In any case, the damage to the credibility of the United States has been incalculable. The markets remain nervous, while Trump’s erratic policies have injected volatility in the global economy. The American-China commercial shock, with the hiking retaliation rates of China to 124PC, will reduce global growth and increase inflation in the United States.
The geopolitical consequences could be even greater as nations around the world begin to recalculate their relationship with an unpredictable, capricious and intimidating power whose reliability is increasing doubts. Trump’s economic war did not distinguish between friend and adversary; Almost all are considered “cheats.” He enraged nations worldwide, placing traditional relationships with allies under tension and tensions with them. This can also affect cooperation for them on other fronts. It could establish training a realignment of relationships and even remodel geopolitics over time.
It is likely that Trump’s unilateralist action Erosione the confidence and trust of the allies who urge them to adopt coverage strategies and consider reducing their exposure and dependence on the United States in the long term. Such recalibration of foreign policies can leave Washington without the firms friendships and alliances with which he has counted in the past. This has strategic implications for the United States contained strategy, especially in Asia, where allies such as Japan, South Korea and others were beaten in rates (even if they are now ready to negotiate), some of which were persuaded in the past to move their businesses from China away.
Before a non -reliable business partner in the US, the economic imperative for the countries would be to pursue the commercial diversion. As some commentators have pointed out, the EU, far from decoupling, can consider getting up again with China. Countries will seek commercial opportunities with each other and can gravitate more towards China. That the senior officials of China, Japan and South Korea met twice in the last fifteen days to improve ‘trilateral commercial cooperation’ on emerging commercial alliances.
If Trump has chosen an isolationist policy, the isolation is what the US economy will end. The biggest beneficiary will be China even when it fits now to limit the damage caused by Trump’s tariff war. As Howard French wrote in foreign policy, “if a country has to choose a superpower to hook its car, China can be the preferable option” because it seems a more moderate and stable force.
The consequences of the agitation caused by Trump at home and abroad will persecute their country whose international reputation has already fogged severely.
The writer is a former ambassador to the United States, the United Kingdom and the UN.
Posted in Dawn, April 14, 2025
