Trump faces the final test of his life's beliefs on tariffs

Trump faces the final test of his life's beliefs on tariffs

President Donald Trump's belief that tariffs can make the United States richer by forcing other nations to comply with his demands is borne out by the early conflicts in his trade wars.

The impact on the American economy

But this view faces a crucial challenge as Americans soon face the painful consequences. Treasury Secretary Scott Bessent will meet with Chinese officials this weekend in neutral Switzerland, a site reminiscent of the U.S.-Soviet summits of the Cold War, marking the most serious economic confrontation between these two superpowers of the 21st century.

Important conversations about trade issues

The talks, which also include U.S. Trade Representative Jamieson Greer, represent the critical moment in the trade wars so far. Global markets are hoping for a temporary de-escalation in a conflict that Trump himself fueled with his draconian 145% tariffs on Chinese goods.

Trump and his belief in tariffs

But Trump's strategy and rhetoric in recent days are likely to complicate Bessent's mission. The president shows his belief in tariffs despite a current decline in US growth and signs of one to come Supply shortage is unbroken. In fact, he is becoming increasingly convinced that using massive trade penalties against other countries is not only the right thing to do, but also works.

The expectations of investors and consumers

Investors, business leaders and consumers hope the president gets out quickly its trade wars gets out. But Trump's statements suggest that tariffs could be not just a means to an end, but the end itself. While trade deals with the US are possible, conditions for other nations will likely be harsh and a return to a global economy with low tariffs may never happen.

Strategic talks with China

Despite several days of predicting a rush of trade deals, theAdministration so far no new breakthroughs announced, so there is no prospect of tariffs being lifted any time soon. Trump's unpredictability and penchant for changing his mind on the fly means that none of his statements should be taken as definitive.

The talks in Switzerland as a key moment

Talks with China will be crucial to determining whether a smooth exit from the trade wars is possible and potentially avoiding a significant economic slowdown. Bessent told Fox News on Tuesday that his initial plan is to de-escalate the confrontation and that talks with Chinese officials represent the "missing piece of the puzzle" in the administration's strategy.

Trump's trade vision

Trump sees the USA as a kind of “luxury store” in which every customer pays a certain price. In his talks with Canadian Prime Minister Mark Carney, he explained that the tariffs are not intended to achieve fair trade deals, but to impose a fee to do business with the United States. “Think of us as a super luxury store,” Trump said.

A new era of austerity?

Trump's thinking may be radical, but it also shows that he foresees a new era of austerity for American citizens, even as he promises to make America rich again. His comments suggest that many everyday products may become more expensive and harder to obtain.

The idea of ​​a president setting the price of access to the U.S. market would be an extraordinary way to run a 21st century economy. However, this approach poses serious risks to the US economy and could result in impending price increases and supply shortages.

The consequences for other nations

Trump not only appears to pursue a vision of self-sufficiency, but also embraces the idea of ​​weakening other nations economically to make them dependent on the United States. Not only has he hinted at a territorial claim on Canada, but also that his trade practices could have global effects.

Overall, Trump's current trade strategy raises many questions and will undoubtedly change the US's relationship with other nations and the global economic landscape.