Trump’s Tariff Gamble May Backfire
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Summary:
Trump’s aggressive tariff strategy risks global retaliation, economic fallout, and isolation, with few gains and mounting political costs. Tariffs invite counter tariffs. Not good at all.
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Trump’s tariff tactics risk triggering global retaliation. Countries are gearing up to strike back economically and politically. For example, in a bid to support Brazil’s Trump-like former president, Trump doubled tariffs on Brazil—a move many see as reckless. He alienated India by cozying up to a radical Pakistani general, threatened BRICS with tariffs for moving away from the dollar, and slapped Canada with harsh duties despite needing its energy. Only China managed to rein him in by halting rare earth exports.
Behind the MAGA slogan lies a flawed hope: reversing decades of offshoring by taxing imports. Like President McKinley over a century ago, Trump aims to boost revenue and reduce deficits through tariffs—but McKinley failed, and Trump likely will too.
Tariffs invite counter-tariffs, dampening consumption—the engine of the U.S. economy—and fuelling inflation. Trump may not stop until global growth, including America’s, takes a serious hit.