U.S.A. first Nationalism, Tariffs and rest of the world - part 01 - by Ajith Rohan J.T.F.

 

One of the main issues with the “USA First” socio-political-economic-cultural viewpoint of actual U.S. President Donald Trump is the emphasis on domestic industrial protection and promotion through tariffs. We know tariffs are taxes imposed on imported or exported goods and services between countries. Ultimately, the customer bears this indirect tax as part of the market price of the purchased goods or services.

Some analysts argue that this approach reflects economic nationalism. Others suggest it may be a geopolitical strategy targeting countries like China to curb their growing economic and political influence. A third possibility could be fulfilling electoral promises to Trump’s supporters, particularly in regions affected by globalization, where he positioned himself as a defender of American jobs. Could there be other motivations? Regardless, these policies sparked significant debate. Critics argue they risk trade wars and economic instability, while supporters view them as necessary to reassert U.S. economic sovereignty.

Economically, these protectionist measures aim to shield U.S. industries but have destabilized global supply chains, particularly in technology and manufacturing sectors. Countries like China, Canada, and Mexico have been directly impacted, with tariffs reaching as high as 25% on certain goods. This has led to increased costs for consumers and businesses, potentially fuelling inflation.

Politically, these moves might weaken international alliances and institutions, as Trump’s policies often challenged global norms and prioritized unilateral action. This could create opportunities for other powers, such as China and Russia, to expand their influence. It’s a complex situation with far-reaching consequences.

Here’s a deeper dive into the implications:

• Economic Impact: Disrupted global supply chains, increased production costs, and higher consumer prices. This tit-for-tat approach risks slowing global economic growth.
• Political Ramifications: Strained diplomatic relations and weakened international alliances.
• Domestic Effects in the U.S.: While tariffs aim to protect domestic industries, they could lead to job losses in sectors reliant on international trade. Stock markets have reacted negatively, reflecting investor concerns about economic instability.

The situation remains dynamic, with potential for further escalation.

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