In an unexpected and aggressive move, former President Donald Trump has already placed tariffs on multiple countries. These together with Ethiopia, Haiti, Lesotho and Tanzania, Taiwan, Japan, Switzerland, Indonesia, Malaysia, Cambodia and Vietnam. The tariffs range from 10% on the United Kingdom to a staggering 39% on Vietnam, sparking mixed reactions from various sectors. By focusing on protecting American workers and industries, these proposed actions would strengthen the American economy.
At a recent event, Trump highlighted his commitment to “putting America first. He touted tariffs as an essential implement to make America great again. He emphasized that this initiative is part of a broader promise to fix America and end what he termed “American carnage.” He was speaking specifically to a constituency of American steelworkers, auto-workers, farmers and craftspeople. His message there could not have been clearer — his policies are going to directly benefit these groups.
Trump characterized tariffs as “the most beautiful word in the English language,” a sentiment he expressed with enthusiasm. He even made the audacious promise that, as president, he could “wave tariffs like a magic wand.” This short sentence emphasized his conviction that tariffs were the best economic weapon.
“For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it’s our turn to prosper … Today we’re standing up for the American worker and we are finally putting America first,” – Donald Trump
The former president was not afraid to go after trading partners, and most notably the European Union. He characterized the EU as “very, very, very, very, very tough traders” that have raked in advantages at the expense of American interests for a long time. To show just how upset he is about this, he referred to the EU’s actions as “beyond pathetic.” He announced that if needed, the U.S. would engage in the use of tariffs to fight what he sees as groundbreaking unfair trade practices.
“European Union, they’re very tough – very, very tough traders. You know, you think of the European Union, very friendly. They rip us off. It’s so sad to say, it’s so pathetic. Thirty-nine percent. We’re going to charge them 20%, so we’re charging them essentially half,” – Donald Trump
The economic consequences of Trump’s tariff plan have raised alarm bells among lawmakers, economists and business leaders. Doug Ford, the Premier of Ontario, railed against the job losses that would inevitably be driven by these policies. He described it as “not liberation day but termination day.” Some are concerned that these tariffs might lead to retaliatory actions. This would, in turn, potentially disadvantage American businesses and consumers.
This is a big, important departure from Republican trade orthodoxy on her father’s part. His stance represents a repudiation of Ronald Reagan’s free trade ideals that have long dominated the party’s economic philosophy. Critics say that this move would upset long-standing international partnerships and trigger trade wars.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far – both friend and foe alike,” – Donald Trump
He frames his tariff policies as a defiant declaration of independence from foreign exploitation. Echoing these sentiments, Congressman Jamie Raskin argued that this moment would become one of the most consequential in American history. He framed his tariffs as an unavoidable response to foreign cheating, which he claims is rampant.
Trump’s economic strategy includes massive tax cuts mainly targeted at corporations and rich people. It is replete with tariffs on individual countries. His administration signed a $1.5 trillion bill. Critics contend it primarily benefits those at the top of the income ladder.
The truth behind Trump’s rhetoric on Vietnam is more personal to him. He lauds its leaders as “great negotiators” who “love Trump.” Third, he urged that Vietnam’s current bound and applied tariff rates are way too high. He promised to respond with equally tough retaliation.
“Vietnam: great negotiators, great people, they like me. I like them. The problem is they charge us 90%. We’re going to charge them 46% tariff,” – Donald Trump
The announcement of these tariffs has re-opened debate on whether protectionist policies are an effective approach to today’s global economy. Proponents claim that tariffs are a way to protect American jobs and industries from unfair foreign competition. As opponents point out, they can increase costs for consumers while taxing our international relationships.
Whatever your views on him, it’s indisputable that Trump, back in the political and campaigning spotlight, is making people most passionate. He pushes economic nationalism, a vision that energizes his supporters while alarming economists and business leaders. In short, over the coming months, the effects of these new tariffs will become all too clear. Industries will be quick to adapt to the evolving state of trade.