Global Disruptions

US President Donald J. Trump has made headlines as his administration has hiked up tariffs for numerous nations. On April 2, Trump announced a universal baseline tariff of 10 per cent on almost all imports that enter the United States. Later, he also announced a higher and individualised tariff to be imposed on countries with large trade surpluses with the US and those with higher duties on American imports. However, as of writing this, the US has then said that it will put a pause on tariffs (while maintaining the 10  per cent baseline tariffs) for up to 90 days for nations excluding China.  

While Trump and his administration have promoted this new trade policy of tariffs, it is the ordinary citizens both in the US and elsewhere who might have to face the repercussions. Tariffs are indeed necessary but it could mean increased prices for the daily consumers and traders. Their temporary halt might bring a momentary relief however, it could only be a band-aid solution. Trump keeps stressing that tariffs are necessary to address trade deficits and protect domestic industries. His slogan is Make America Great Again (MAGA) and he is putting in place the pledges made during his presidential campaign that won him the Oval Office.   

Globalisation is a concept that enables and supports businesses between nations. And the notion of free trade and globalisation are closely linked. Together, they protect mutual promotion by fostering trade while reducing or removing quotas, trade barriers and tariffs. Ultimately, they enable countries to focus on producing goods over which they have a competitive advantage. Likewise, free trade also facilitates the movement of goods and services as well as knowledge, innovation and technology, broadening the effects of globalisation.

 It means new technology, information, and trades are disseminated smoothly. However, as it appears today, anti-globalisation tendencies, rhetoric and policies are on the rise as globalisation takes a step back in the new political scene in the world. What Trump has unleashed is an economic upheaval that attempts to rewrite the way the United States conducts business with the rest of the world. Currently, its trade policies have led to major stock market shifts, signaling a trade war on a global scale. The US is a world superpower that has a long-reaching impact on global trade. 

Since the 19th century, the nation has been a stalwart figure in the global economy, profoundly shaping the world. It is known as a country of opportunities where people can achieve the American Dream through sheer perseverance. And the American Dream is a pursuit of liberty, equality and fraternity. However, now the American Dream is put to question as the poor keep getting poorer and the rich keep on getting richer. The income gap between the rich and poor has been increasing, with the rich benefitting from the market while the poor continue to be subjected to changing policies ill-suited to them. 

Along with regional wars and conflicts, climate change crisis, instability in governance and radicalising politics throughout the world, there is a rise of trade war, leading to deepening uncertainty. It remains to be seen how far-reaching the consequences will be but the ongoing speculations largely spell concern for the days ahead.