Starting from this April, the U.S. rolled out reciprocal tariffs on imports from multiple nations, including Canada, Mexico, the EU, India, and China. The policy calculates tariffs based on perceived trade barriers imposed by each country, a move Trump claims will "end unfair treatment" of the U.S.
"We've been treated very unfairly by Canada, Mexico, and every country all over the world," Trump declared in a recent address, vowing to "bring manufacturing jobs back" as part of his MAGA agenda. Earlier, Trump reignited his signature trade wars, this time targeting not only rivals like China but also traditional allies. However, critics argue the strategy risks isolating America.
It goes "tit for tat"
Those countries or regions targeted by the US tariffs responded quickly with counter-tariffs. The EU imposed €26 billion in counter-tariffs after the U.S. slapped $28 billion duties on European goods. Canadian Prime Minister Mark Carney warned his nation would maintain tariffs until the U.S. "shows us respect." China, meanwhile, targeted American agricultural exports like soybeans, a blow to farmers already reeling from trade tensions.
When discussing tariffs and trade wars, Marc Uzan, the Founder and Executive Director of the Reinventing Bretton Woods Committee, shared his insights as he drew a parallel to World War II. "These tariffs triggered currency wars and instability during WWII," cautioned Marc, "We're now flirting with a global recession." He pointed out that one of the most significant events during the entire war years was when the US administration imposed tariffs on the global economy.
It's true, Americans feel the pinch
From eggs to electronics, U.S. consumers brace for price hikes. Julia Kravitz, from Chicago, Illinois, lamented the rising prices in America, "A carton of eggs is $7. Avocados might hit $5 each. How will tariffs make things cheaper?"
Derek Holste, another U.S. citizen, likened tariffs to a "hidden tax": "If a $5 gadget becomes $11, families lose purchasing power overnight." According to the Peterson Institute, Trump's tariffs could cost households over $1,200 annually.
Another citizen in Virginia, who wished to remain anonymous, shared that local consumers are generally not very confident about the state of the economy and uncertain about where it is going under the new leadership."Due to tariffs and the uncertainty involved, investors and different companies have started to charge more," he said. "Many electronic companies, which he seemed to conflate with power companies at one point, began to charge higher prices in preparation for Trump's tariffs."
If it leaks, it sinks
Markets shudder as uncertainty looms. The unpredictability of US tariff policies has recently caused investors to sell stocks. The three major stock indexes of the New York Stock Exchange have also seen a sharp drop recently.
The 'Magnificent Seven' tech firms have seen their stock prices fall from their highs. A lot of wealth was wiped out. Nobel laureate Joseph Stiglitz warned that the U.S. has become "a scary place to invest," risking stagflation.
Agriculture remains a casualty. USDA data reveals $13.2 billion in losses for U.S. farmers from 2018–2019 due to retaliatory tariffs. "Farmers rely on exports. They're angry," said Princeton historian Harold James.
A hammer that hurts them all
Despite the short-term gains, Trump's tariff policy will continue to diminish U.S. leverage in negotiating trade deals with the rest of the world, according to Alan Zhang, a research associate at the Sino-American Research Center. "The next U.S. president could easily overturn these tariffs, making it difficult for the U.S. to maintain long-term influence in global trade," said Alan Zhang.
Trump's combative tactics have strained diplomatic ties. Anthony Moretti, a Robert Morris University professor, noted, "The U.S. risks isolation by alienating friends like Canada and South Korea. The Global South may seek stable partners elsewhere."
European leaders echoed calls for autonomy. Danilo Türk, former Slovenian president, urged Europe to "adjust to a multi-polar world," calling Trump's 25% tariffs a "wake-up call."
By all accounts, what most of the world perceives now from Trump's "America First" foreign policy is a kind of belligerent unilateralism. And it is dangerous for the U.S. to treat allies and adversaries alike as pieces to be moved around a chessboard.It will certainly bring consequences to itself and to global multilateralism. As capricious as it is, the U.S. tariff will only cause backlash and lead to a greater free trade crisis.
Reporter | Guo Zedong, Zhang Ruijun, Liu Xiaodi
Script | Guo Zedong
Video-geographer | Qin Shaolong
Video editor | Ou Nanying
Graphic design | Cai Junru
Editor | Yuan Zixiang, James, Shen He
