Qamar Bashir
Donald Trump’s return to aggressive protectionism—through sweeping tariffs on allies and
rivals alike—has ignited what can only be described as a global trade war, or more aptly, a form
of “tariff terrorism.” Cloaked in the rhetoric of “America First,” these economic policies were
touted as the tools that would restore American greatness. Instead, they have exposed the
diminishing grip of U.S. hegemony and accelerated the emergence of a multipolar world where
unilateralism no longer commands submission.
China’s response to Trump’s tariffs is equally telling. Initially targeted with punitive duties
reaching 145% on certain goods, Beijing did not fold. Instead, it recalibrated. By diversifying its
trade relationships and reducing reliance on the U.S. market—now only accounting for 12% of
China’s total exports—China insulated itself from American economic warfare. State
propaganda turned Trump into a laughingstock, nicknaming him “Tariff Grandpa” and mocking
U.S. inflation, while Chinese consumers embraced patriotic boycotts and switched from iPhones
to Huawei.
More importantly, China didn’t come begging. Instead, it issued its own ultimatum: all tariffs
must be removed, ab initio, or there will be no negotiations. Trump’s boast that President Xi
would come “running on his knees” proved a fantasy. The tables have turned. Today, Trump’s
team is the one chasing a deal while China plays hardball with its own set of strategic
levers—like restricting rare earth exports vital to U.S. tech and defense.
Trump’s tariff strategy was initially framed as a corrective measure against trade deficits and so-
called unfair practices, especially targeting China. But soon, the net widened to include
America’s closest allies—Canada, Mexico, and the European Union. Steel and aluminum tariffs
on Canada, for example, struck at the heart of a nation that sends 75% of its exports to the U.S.,
risking over 2.5 million jobs and nearly 20% of its GDP. To many Canadians, this was akin to a
trusted firefighter torching their home and then demanding they hand over the deed for the
promise of rebuilding.
Canada, once America’s most dependable partner, struck back with retaliatory tariffs on $155
billion worth of U.S. goods—from coffee and cars to ketchup and orange juice. Simultaneously,
consumer prices in the U.S. rose due to higher import costs, pushing inflation up and GDP
growth down. According to independent economic analyses, Trump’s tariffs contributed to a
nearly 3% hit on U.S. GDP and stoked a persistent inflationary trend. The Yale Budget Lab
estimated that his blanket tariff regime lifted the effective U.S. tariff rate to its highest level since
1943—an astounding shift in a matter of months.
Yet, Trump insists these measures are about reciprocity. “Other nations have taken advantage of
us,” he says. But what is rarely acknowledged is that the U.S. has enjoyed an 80-year advantage
since it established the dollar as the world’s reserve currency post-WWII. That singular privilege
has allowed it to run deficits others could not afford. Trump’s zero-sum worldview ignores this
history, bulldozing through nuanced economic relationships in favor of brute-force diplomacy.
What he and his acolytes misunderstand is that trust—not fear—is the bedrock of global trade.
When the U.S. unilaterally imposes tariffs on allies and tears up treaties like the USMCA, it
shatters that trust. Trump has turned America’s traditional leadership role into a transactional,
coercive enterprise. As a result, even America’s friends are turning elsewhere. In 2024, China
overtook the U.S. in trade volume with the European Union—€856 billion versus €822
billion—a symbolic but significant shift in global allegiances.
Meanwhile, Europe, another target of Trump’s scorn, has closed ranks. His attacks on NATO,
his support for authoritarian-leaning figures like Viktor Orbán, and his lecturing of EU leaders
by political novices like JD Vance have unified the continent in resistance. They are no longer
willing to accept the U.S. as the sole arbiter of global order. What Trump saw as leverage turned
into alienation. A once-cohesive transatlantic alliance now navigates its future with less
dependence on Washington.
This unraveling of global goodwill is compounded by economic damage at home. Tariffs don’t
make America stronger—they hurt American families and businesses. One importer, who once
paid $26,000 in annual tariffs, now faces a $346,000 bill due to the new 104% tariff on Chinese
goods. Small manufacturers have seen input costs skyrocket. And while some champions of re-
industrialization argue for building local supply chains, the short-term impact is crushing.
Trump’s protectionism may eventually lead to a more roboticized, domestic manufacturing
base—but at what social and economic cost?
Far from creating a golden age, Trump’s trade policies are inviting stagflation—a toxic
combination of stagnant growth and rising prices. This chaos has eroded America’s standing,
both economically and diplomatically. At a time when coordinated responses to climate change,
AI governance, and global debt crises are desperately needed, Trump’s America is retreating into
isolationism and infighting.
The irony is brutal. The tariffs meant to punish foreign adversaries have instead punished
domestic consumers. The trade wars meant to lower deficits have likely widened them. The
vision of renewed American strength has manifested as global disillusionment. And the promise
to bring adversaries to heel has revealed an unsettling truth: the world is no longer America’s to
command.
What remains now is the wreckage of broken agreements, the fraying of alliances, and the slow
but steady realization that the 21st century will not be defined by a single superpower. The
multipolar world has arrived—with China, the EU, and even smaller economies like Canada
standing their ground. America still matters, immensely so, but it must lead by example, not
coercion. Trump’s tariffs have done what no global coalition could achieve: they’ve exposed the
limits of American power.
And so, as the dust settles on Trump’s tariff regime, one fact becomes clear—economic
nationalism may win elections, but it rarely wins wars.
-Writer is Press Secretary to the President (Rtd)
Former Press Minister at Embassy of Pakistan to France
Former MD, SRBC
Macomb, Detroit, Michigan
