Trump’s Tariff Tactics: A British Perspective

By Jomo Kwame Sundaram, Kuala Lumpur, Malaysia – Inter Press Service

A Bold Start

Ah, President Trump has once again rattled the global economic landscape in the second year of his term. His audacious attempt to revitalize American manufacturing jobs stands at the forefront of his agenda, ostensibly to ‘Make America Great Again’.

Unilateral Power Grab

Trump’s influence seems boundless, as he’s taken authority from Congress to manage federal budgets, tax laws, and even wage war. This consolidation of power is unprecedented and has evoked a myriad of responses from political pundits worldwide.

The Tariff Strategy

Raising the Stakes

A significant cornerstone of Trump’s strategy is the enforcement of tariffs. On 2nd April 2025, he launched “Liberation Day” tariffs with the aim of bolstering manufacturing employment. However, events took a controversial turn when he was overruled by the US Supreme Court in February, prompting an increase in tariffs—from 10% to 15% within a mere day.

Impact and Criticism

These tariffs are viewed as a blunt tool, intended to push manufacturers back onto US soil by hiking prices of imported goods. Particularly affected were nations with large trade surpluses, as Trump ignored the more favorable services trade balance for the US.

Revenue or Repercussion?

The promised financial windfall from tariffs turned out to be somewhat of a mirage. Trump claimed trillions would bolster the Treasury to support increased military expenditure. Yet, only $264 billion was collected in the inaugural year, a drop in the ocean compared to the soaring US federal debt.

Discontent Amongst the Masses

With the midterms on the horizon, Trump faces steep disapproval ratings. According to Forbes, 55% of Americans expressed dissatisfaction, doubting the administration’s commitment to tackling inflation.

Financial Woes and Economic Concerns

Ballooning Debt and Financialisation

The US federal debt looms large at $39 trillion, demanding over $1 trillion annually for servicing. Hedge funds now control a growing portion of US Treasuries, a risky shift that portends financial instability.

Manufacturing’s Elusive Comeback

Despite bold promises, Trump struggles to transform the US into a manufacturing behemoth. The likes of Dean Baker observed a dwindling labour market across Trump’s first year, further highlighting the challenges ahead.

Lessons to be Learned

President Trump could potentially steer his strategy towards more historical economic pragmatism. Yet, his administration seems reluctant to adjust, despite mounting evidence that tariffs may inadvertently hinder job creation.

The Road Ahead

In sum, the ambitious aims to resurrect US manufacturing may not produce the revival many hoped for. Only time will tell if adjustments will be made, or if the current path will lead to further economic turbulence.

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