Impact of Donald Trump’s Tariffs on Globalization, the U.S. Economy, and Geopolitical Dynamics | Money News
For many years, trade and trade policy have remained an economic and political afterthought—unquestionably dull and seemingly free of conflict.
Trade was largely unrestricted and trending towards greater freedom, with tariffs continually decreasing and the world becoming increasingly interconnected.
However, along with these long-standing trends, there have been significant repercussions.
Trump latest: US president introduces extensive global trade tariffs
Established economies such as the UK and US grew more dependent on affordable imports from China, which led to a decline in their manufacturing industries.
Extensive areas of the US rust belt—and much of England’s Midlands and North—experienced considerable economic decline.
To some degree, this is where the narrative regarding Donald Trump’s “Liberation Day” commenced—highlighting the fact that free trade and globalization can have a more troubling facet, a facet he believes can be addressed through tariffs.
During his first term, he implemented a series of tariffs—some targeted at China and others on specific materials like steel and aluminium. However, the scale and magnitude of these new tariffs are unprecedented in comparison.
It has been since the 1930s that the US has so drastically raised tariffs on all nations worldwide. At that time, such tariffs worsened the Great Depression.
The outcomes of these new tariffs remain uncertain. However, consequences are inevitable—effects on globalization, impacts on the US economy (as tariffs tend to drive inflation), and repercussions for geopolitical dynamics.
Imports from the UK will incur a 10% tariff, while EU goods will face 20% rates. Pic: Reuters
Nonetheless, merely understanding a bit more about the White House’s intentions will provide some comfort to financial markets, which have been anxious over the imposition of tariffs for months, reaching unprecedented levels of uncertainty.
However, don’t assume this saga has reached a conclusion. Far from it. In the days ahead, we anticipate further details—more information on the specifics of these policies and on the countermeasures being prepared by other nations.
We might also gain more insight into whether certain nations—including the UK—will receive exemptions from the tariffs.
To paraphrase Churchill, this isn’t the end of the trade war, nor the beginning of the end—it may merely be the end of the beginning.
