Opinion: How Far Can Trump’s Economic Policies Go?

Chaotic, contradictory and unpredictable policies are doomed to fail, harming both America and its partners

Demonstrators gather outside City Hall in San Francisco on April 5, 2025, as part of the "Hands Off" rallies held across the U.S. Photo: VCG

On April 2, U.S. President Donald Trump announced details of his “reciprocal tariffs” plan, which will impose levies on imports from all trading partners. While the full impact on global trade relations remains to be seen, this move clearly represents an escalation of the administration’s unilateralism and protectionism, and will inevitably face opposition from most countries and regions. For its part, China has announced a package of retaliatory measures including a 34% tariff on all U.S. imports that matches Trump’s latest levy on Chinese goods.

As the world’s largest economy and consumer market, bolstered by the dollar’s status as the global reserve currency, America’s tariff policies deeply influence the global economy. Barely two months after returning to the White House, Trump has rapidly introduced a series of economic initiatives that have created turmoil both at home and abroad. Trump’s economic “combination blow” broadly includes: cutting government spending, eliminating federal agencies and employees, deporting undocumented immigrants, raising tariffs and encouraging the reshoring of manufacturing. Even cursory analysis reveals these policies lack systematic design, often contain contradictory objectives and change erratically — guaranteeing they will fail in the long term.