Global Trade Conflict Instigated by Trump Against All Nations
In April 2020, President Donald Trump announced sweeping new tariffs, marking the largest tax increase on American citizens since World War II. Known as the "Liberation Day" tariffs, these levies were aimed at countering the trade deficit with other countries.
The tariffs affected a wide range of goods, including items that cannot be produced domestically in the United States, such as coffee. This move was met with strong opposition from economists, who argue that these large tariffs are inefficient and could disrupt supply chains, slow productivity growth, and burden low-income Americans with higher prices.
The haphazard implementation of the tariffs has led some commentators to speculate that they were calculated using AI. However, the economic impacts of these tariffs are clear: they are predicted to raise the price of consumer goods, lead to more inflation, and potentially cause a recession.
If a recession occurs due to these tariffs, it will be entirely self-inflicted by the United States government. JP Morgan, among other firms, has put the chances of a recession in 2025 at 60 percent if these tariffs are not taken away. The S&P 500 fell almost 5 percent on the Thursday after "Liberation Day" and 6 percent on the following Friday, marking the US stock market's largest two-day point crash in history.
Trump's trade policy seems to be modeled after the Gilded Age, a period of extreme wealth disparity between the rich and the poor in the late 1800s. Critics argue that this approach is toxic when markets and countries crave stability. The reasoning behind this policy varies, including national security, trade imbalance, protectionism, and more.
However, it's important to note that unlike a budget deficit, a trade deficit is not necessarily a bad thing. Many trade wars are started to get better trade deals with other countries. Economists question the effectiveness of the tariffs, as the U.S. trade deficit is widely attributed to factors like dollar strength and consumer preferences rather than foreign trade barriers.
In 2025, Donald Trump was inaugurated for a second term as President of the United States. During his second inaugural address, Trump promised a new "Golden Age of America." Yet, the implementation of the tariffs on remote locations like Heard Island and even on islands inhabited only by penguins, raises questions about the effectiveness and fairness of this policy.
In summary, while the tariffs aim to enforce reciprocity and reduce the trade deficit by imposing high levies on imports from countries with high tariffs on U.S. goods, the economic consensus highlights increased consumer costs, risks of retaliation, small business strain, and overall economic inefficiency as major drawbacks and criticisms of the "Liberation Day" tariffs policy.
- The disagreement among economists regarding the 'Liberation Day' tariffs' effectiveness extends to politics, with some arguing that these tariffs could disrupt supply chains, slow productivity growth, and potentially cause a recession.
- In the general news, the economic impacts of the tariffs are of great concern, as they are predicted to raise the price of consumer goods, lead to more inflation, and potentially trigger a recession.
- Amid war-and-conflicts and policy-and-legislation debates, the unconventional implementation of tariffs on remote locations like Heard Island, even on islands inhabited only by penguins, raises questions about the fairness and effectiveness of the 'Liberation Day' tariffs policy.
