Since launching his 2024 presidential campaign, president Donald Trump has made it clear that tariffs are central to his economic strategy.
Calling them a way to fight back against foreign nations he claims are “ripping us off,” Trump’s zeal for aggressive tariffs materialized in policy soon after he took his second term in office.
Of course, the irony of this situation lies in the fact that the impact of Trump’s tariffs land squarely on American citizens.
Tariffs, simply put, are taxes on imports. However, the burden of those taxes doesn’t fall on the countries exporting the goods; it lands on American businesses and consumers who pay higher prices as a result.
Globalization has been the trend of modern history, and today’s world and economies are interconnected on an unprecedented scale.
This means the American industries that Trump claims his tariffs will protect will instead be weakened, as many rely on parts and materials from international suppliers.
In actuality, the tariffs’ biggest impact on American companies is driving production costs — and thus prices for American consumers — higher.
Evidently, Trump’s trade agenda is grounded in faulty logic. The narrow perspective driving his tariffs ignores the complexity of global supply chains and today’s interdependent economies.
Approaching trade relations as a win-lose battle doesn’t just reflect a poor understanding of economics; it risks pushing the U.S. into entirely avoidable conflict with critical trading partners.
In a surprising pivot, on April 9, the Trump administration announced a 90-day pause on tariff rates for most countries. However, the administration doubled down on tariffs against China, raising them to 125%.
The move triggered an immediate response from global markets and foreign governments. China is now raising its tariffs on U.S. goods to 84%, while the European Union has approved 25% tariffs on American exports.
While the temporary pause was enough to spark a brief stock market rebound, the underlying issues of Trump’s tariffs remain. His approach remains reactive and politically motivated.
Unless the Trump administration drastically shifts its foreign trade policies, the fallout will only grow worse.
