The United States has increasingly leveraged presidential emergency powers to impose tariffs on numerous countries, sparking trade wars and economic shifts. Since 1970, the top 0.5% of the US population have doubled their share of the nation's total assets, now controlling a staggering 30%. Amid this concentration of wealth, US labor protections have weakened, leading to stagnant median wages. Meanwhile, both major political parties in the US have pledged to support trade policies that would benefit American workers by leveling the playing field. However, recent actions tell a different story.
Despite claims of supporting worker-friendly trade policies since 2016, the US has imposed tariffs on China, Mexico, and Canada. These tariffs have significantly impacted these nations, with China's economy particularly strained due to an ongoing trade war. The tariffs on China alone have cost the United States 3.7 million jobs, primarily in the manufacturing sector. The introduction of tariffs on steel and aluminum has further extended trade tensions to several other countries, leading to a complex web of economic repercussions.
Historically, wealthy nations, including the US, utilized industrial policies, export subsidies, and tariffs to bolster their economies before transitioning to consumption-driven growth. However, China has yet to make this shift fully. In contrast, the US has seen its labor protections dismantled over time, resulting in stagnant median wages and a growing disparity in wealth distribution. These economic changes have coincided with the US's withdrawal from certain international agreements, such as replacing the North American Free Trade Agreement with the United States-Mexico-Canada Agreement.
Furthermore, the US opted out of this year's G20 summit, citing differences with host South Africa's emphasis on diversity, equality, and climate action. This move highlights a growing trend towards nationalism in US economic policy. The administration is also contemplating an exit from significant global financial institutions like the International Monetary Fund (IMF) and the World Bank.
The imposition of tariffs has led to a decline in US imports while boosting exports, reflecting an aggressive stance in international trade. However, these measures have sparked backlash from affected countries. Canada and Mexico have faced direct economic hits due to these tariffs, further complicating diplomatic relations within North America.