Editorial: Trade war — Trump surprises none
Trump’s tariff threat is a risky shortcut that could deepen uncertainty, provoke retaliation, and ultimately isolate the US from the very trade flows it seeks to dominate
United States President Donald Trump’s shenanigans have stopped surprising anyone. His latest trade war threat to over a dozen countries aligns with his signature style of bullying. As is his wont, his actions won’t spare even the long-standing allies. Japan and South Korea are among the friendly countries that have come under the firing line. The maverick President took to his social media platform, Truth Social, to announce new reciprocal tariffs on 14 countries — including Bangladesh, Malaysia, and Cambodia — setting rates between 25 per cent and 40 per cent, and warning that rerouting foreign goods or retaliating would attract even higher US tariffs. India, which is awaiting an interim trade deal with America, does not figure among the 14 countries named in the initial list as the pause on reciprocal tariffs draws to a close. Six of the 14 countries named on Monday were ASEAN (Association of Southeast Asian Nations) members, with Laos and Myanmar receiving the highest tariffs of 40 per cent. Thailand and Cambodia — both of which have received significant Chinese investment and have deepened economic integration with China over the last decade — were hit with 36 per cent US tariffs. Meanwhile, Indonesia, which imports nearly a third of its goods from China, was subject to a 32 per cent reciprocal tariff. Japan and South Korea would face tariffs of 25 per cent from August 1, unless they finalise trade deals with America by then. Countries that have so far agreed to trade arrangements, even the preliminary ones, qualify for lower tariff rates compared to the ones announced in April.
So far, the US has reached only two preliminary trade deals with Britain and Vietnam. Despite being close allies of America, Japan and South Korea have been hesitant to offer concessions while still being hit with high levies on some of their most important industries. As the world is bracing for Trump’s new tariffs, BRICS members are looking for ways to reduce dependence on the US. The bloc vowed to strengthen ties and explore ways to cut red tape, making trade between members easier. The effort to increase trade within the BRICS group shows how Trump’s tariffs are redrawing global economic relations and pushing America’s trading partners to other markets. An infuriated Trump hit back with a threat to impose an additional 10 per cent tariff on countries that align themselves with what he called the “anti-American” policies of BRICS nations. The Trump Administration’s decision to bypass negotiations and impose pre-set tariff structures negates decades of hard-won norms in international economic relations. While it may resonate with a domestic audience primed for economic nationalism, globally, it is a risky shortcut that could deepen uncertainty, provoke retaliation, and ultimately isolate the US from the very trade flows it seeks to dominate.
