News ID : 211604
Publish Date : 2/4/2025 5:36:47 PM
Tariff war: A double-edged sword that cut Trump’s hand

Tariff war: A double-edged sword that cut Trump’s hand

Donald Trump, who has consistently used aggressive trade policies as a tool to display the economic power of the U.S., was forced to back down just hours before new tariffs were set to be implemented.

Nournews: The agreement with Mexico and Canada to delay these tariffs, although on the surface linked to border and immigration issues, reflects a deeper truth: the U.S. can no longer bear the economic pressures caused by these policies. This shift not only signals a decrease in America’s economic power but also reflects the rising influence of other nations and the end of Washington's era of economic unilateralism.

Trump’s retreat from imposing new tariffs on goods from Mexico and Canada, just hours before they were to take effect, carries significant domestic and foreign policy messages for the U.S.

The delay, following agreements with the leaders of the two neighboring countries, highlights the structural and economic challenges the U.S. faces in dealing with other global powers. This retreat goes beyond border and immigration issues, signaling the weakening of America's economic unilateralism and the increased bargaining power of other countries. This piece explores the consequences of this decision and its impact on America’s position in global politics and economics.

Trump's political immaturity and repeated trial and error

During his first term, Trump repeatedly announced policies and then backed down due to internal and external pressures. This pattern resurfaced in his recent tariff decisions. His attempt to showcase power through tariffs collided with economic realities and widespread opposition, forcing him to delay his decision. This unstable behavior paints a picture of an unpredictable and immature politician, both domestically and internationally, which could lead to greater distrust among America's economic and political partners.

Domestic discontent and public opinion pressure

A major reason for Trump’s retreat was widespread domestic opposition. His tariff policies faced strong backlash from citizens and business groups, as they led to higher living costs and instability in U.S. financial markets. Public protests and media opposition intensified pressure on the White House. This indicates that the U.S. government is struggling to secure domestic support for its trade policies, and this weakness could hurt Trump in the upcoming elections.

Economic effects and fragility of the U.S. economy

Tariffs always have a two-way impact, and the U.S. was not immune to their consequences. U.S. financial markets experienced severe fluctuations as soon as the new tariffs were announced, and many investors expressed concerns about the economic future. Trump implicitly acknowledged that these policies would be “painful” for the U.S. economy. This reflects a decline in America's economic resilience to strict trade policies and signals that the U.S. can no longer control the global economy on its own.

Global reactions and the decline of U.S. unilateralism

As the U.S. threatened tariffs, other countries responded. Mexico, China, Canada, and even the European Union declared they would take retaliatory actions. China imposed a 10% tariff on U.S. crude oil, and the EU mentioned the possibility of retaliatory tariffs. These reactions show that other countries are no longer willing to accept America’s unilateral policies and instead are seeking independent economic collaborations and multilateralism. This trend has strengthened the role of groups like BRICS and has shaped a new economic order in which the U.S. is no longer the uncontested power.

The decline of U.S. sanction policies

Sanctions and tariffs have been key tools for the U.S. to apply pressure on other nations, but these tools are no longer as effective as they once were. Sanctioned countries are gradually developing alternative structures and new collaborations to reduce dependence on the dollar and the U.S. financial system. The early failure of Trump’s tariff policy is a sign that the U.S. can no longer force countries to accept its terms through economic threats.

Trump’s retreat from imposing tariffs, more than being about border agreements with Canada and Mexico, reflects a decline in U.S. economic and political power in the world. This decision showed that U.S. trade policies face numerous internal and external challenges and can no longer manage the global economy alone. On the other hand, the swift reactions and countermeasures from other countries indicate the formation of a new, multilateral economic order that challenges America’s traditional position. If this trend continues, the U.S. will face increasing limitations not only in the economic field but also in international politics.

 


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