Monday 07 Apr 2025 @ 10:20
Chatham House
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Trump’s ‘liberation day’ tariffs are likely just the beginning of a longer-term vision

EXPERT COMMENT

Amid strident rhetoric and shifting targets, many observers have written off Trump’s tariff agenda either as a thoughtless time bomb that may wreck the global economy or as a negotiating tactic. But they are missing the bigger picture.

President Trump’s ‘liberation day’ tariffs were both bigger and broader than many observers expected. It is now time to understand that the moves – the largest single  imposition of tariffs in at least 70 years – are not a one-off or a negotiating tactic.

Beyond the chaos, Trump’s key advisers have a set of theories that they believe will transform politics and economics at home, as well as the foundations of US power abroad. In their telling, a mix of tariffs and negotiations can help the US dramatically increase manufacturing employment, cover a significant fraction of government spending, and reserve security alliances for countries that balance trade and exchange rates with Washington. 

Although this worldview has thus far failed to convince everyone in Trump’s administration – and many mainstream economists – its seductive promise that the US can have both power and freedom of action, at home and abroad, likely means that it is here to stay.

Click here to continue reading the full version of this Expert Comment on the Chatham House website.

 

Channel website: https://www.chathamhouse.org/

Original article link: https://www.chathamhouse.org/2025/04/trumps-liberation-day-tariffs-are-likely-just-beginning-longer-term-vision

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