Donald Trump’s August 1st tariff deadline achieved exactly what it was meant to do. It created uncertainty, keeping markets and nations guessing until the last minute. The move aimed to showcase the dominance of the U.S. economy while putting Trump squarely in the spotlight—exactly where he wants to be.
At the eleventh hour, some agreements were reached—though few were fair or logical in trade terms. Most were simply attempts to restore some commercial stability. Other disputes remain unresolved, with legal challenges questioning Trump’s authority to wage trade wars this way.
Even now, it’s unclear whether this marks the end of Trump’s tariff policies—probably not. For him, tariffs are less about economics and more about flexing political muscle. His hostility toward the European Union is a prime example. The recent deal struck by Ursula von der Leyen in Scotland highlights the EU’s ambition to be a global economic force, but it couldn’t stop Trump from making European goods 15% more expensive in the U.S. or from lifting EU tariffs on American products.
China, however, hasn’t bowed to Trump’s pressure. Instead, it has retaliated with its own tariffs and restricted exports of key materials like rare-earth minerals. Unsurprisingly, no deal has emerged, and the latest deadline has been postponed—likely not for the last time.
Trump isn’t using tariffs to boost global trade or even the U.S. economy. Congress has given him broad authority to impose or remove tariffs at will, and he wields this power for multiple purposes—from generating government revenue without oversight to shifting the tax burden from the wealthy (like himself) onto the middle and working classes.
But economics isn’t the main driver. Trade talks with Brazil have been derailed by Trump’s anger over the prosecution of former President Jair Bolsonaro. Negotiations with India are stuck because Trump wants to punish Delhi for buying Russian energy and weapons. And tensions with Canada flared over Ottawa’s plan to recognize Palestine.
Ultimately, the success of Trump’s tariff policy will be judged economically. So far, markets seem to think the impact is manageable. But if rising costs slow growth and fuel inflation, that could change quickly—and so could American voters’ patience.
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