THE PRICE OF POWER

The king strikes again. In April 2025, President Donald Trump imposed a new set of tariffs, marking a major shift in U.S. trade policy. Under this new regime, all imports into the United States will face an average tariff of 24%, with countries like China and the European Union facing even higher rates of 34% and 20%, respectively. This so-called “Liberation Day” promises to repatriate supply chains and build a self-reliant economy — in short, to make the U.S. produce everything it consumes, as if it were still 1955 and globalization never happened. However, what Trump calls “freedom” looks more like costly isolation, with global retaliation just around the corner.

The global consequences of Trump’s tariff policy are already being felt. As The Economist highlights, the 24% average tariff is one of the most aggressive protectionist moves in recent U.S. history. Rather than reviving the American industry, it has introduced considerable instability into the global economy. Major exporters are preparing retaliatory tariffs, raising the chances of a trade war that could destabilize markets worldwide. These tariffs pose serious risks for countries like Vietnam and Mexico, which are key players in the U.S.-linked supply chains. They are now caught in the middle of an economic conflict they didn’t choose, threatening the growth of their export-based economies.

This pressure is also already hitting multinational corporations. Industries in the automotive, electronic and pharmaceutical sectors are among the first to suffer. According to The Wall Street Journal, companies are facing higher input costs, logistical delays and growing uncertainty about trade rules. Some are putting investments on hold, while others are trying to relocate factories, despite the high costs of doing so. These disruptions are expected to affect consumers next, with rising prices and inflation. While Trump frames these policies as a way to make America more independent, they weaken the global economy. For much of the world, the message is clear: the U.S. isn’t just stepping off the world stage, it’s pulling down the curtain on the very act it once led.

Beyond trade, these tariffs also carry serious geopolitical consequences. By acting alone and ignoring institutions like the World Trade Organization, the U.S. shows that it no longer sees itself bound by global trade rules. This weakens international institutions and makes other countries more likely to do the same, increasing the chances of global division. As trust in cooperation fades, countries may start forming new partnerships, such as closer ties with China and the EU, or expanded trade among developing countries, with the goal of reducing reliance on the now unpredictable U.S. market. Perhaps most concerning, traditional allies are being pushed to choose between maintaining economic relations with China or remaining politically aligned with the U.S government. Trump’s tariff policy is slowly pushing the world into a zero-sum game.

Within the U.S., Trump’s tariffs are unlikely to make the country truly self-reliant. Bringing back industries that moved overseas isn’t only about reopening factories; it also requires workers, infrastructure, and time. That’s not something the U.S. can fix quickly. Many of the products Americans use every day, such as smartphones and electric cars, rely on parts made in other countries. Even if some companies move production back to the U.S., it would likely mean higher prices for consumers and not many new jobs, especially in industries that now use machines more than people. In the end, the people who will feel the biggest impact are the working and middle-class Americans Trump says he’s helping. As The Economist points out, this plan might sound patriotic, but it could turn out to be just an expensive return to the past with even more problems.

Therefore, Trump’s new tariffs represent more than just a change in trade policy, also being a direct challenge to the institutions and alliances that have shaped the global economy for decades. Economically, they disrupt trade flows and weaken supply chains. Politically, they weaken international cooperation, leading to an increasingly divided world. Domestically, they promise industrial renewal while ignoring the real issues that make self-reliance so difficult. In the end, these tariffs won’t build a stronger America — they start a slow-moving crisis that could harm both the world’s stability and the United States’ own position in it.

Autoria: Nina Neves

Revisão: Giovana Rodrigues, Artur Santilli, André Rhinow

Foto da capa: TIME Magazine

References:

ECONOMIST. Trump takes America’s trade policies back to the 19th century. The Economist. Disponível em: https://www.economist.com/finance-and-economics/2025/04/03/trump-takes-americas-trade-policies-back-to-the-19th-century.

ECONOMIST. President Trump’s mindless tariffs will cause economic havoc. The Economist. Disponível em: https://www.economist.com/leaders/2025/04/03/president-trumps-mindless-tariffs-will-cause-economic-havoc.

ECONOMIST. Can the world’s free-traders withstand Trump’s attack? The Economist. Disponível em: https://www.economist.com/finance-and-economics/2025/04/02/can-the-worlds-free-traders-withstand-trumps-attack.

WALL STREET JOURNAL. What to Know About Trump's Latest Tariffs. The Wall Street Journal. Disponível em: https://www.wsj.com/economy/trade/what-to-know-about-trumps-latest-tariff-policy-moves-8d9f8b37.

WALL STREET JOURNAL. Trump Tariffs Aim to Bring Down Curtain on Era of Globalization. The Wall Street Journal.

https://www.wsj.com/economy/trade/trump-tariffs-us-global-manufacturing-294b0f55.

WALL STREET JOURNAL. Trump's Tariffs Aim to Create a New World Economic Order. The Wall Street Journal.

https://www.wsj.com/economy/trade/trumps-tariffs-aim-to-create-a-new-world-economic-order-f48057ae.