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Trump Targets Global Trade System with New Tariffs, Threatening Business Stability

WASHINGTON DC: President Donald Trump immigration policies faced significant backlash during his first term. However, his stance on immigration is now a key strength, with voters expressing greater approval of his second-term handling of the issue.

Trump’s advisers are hopeful that his current focus on tariffs will have a similar long-term payoff, shifting both domestic and global dynamics in the U.S.’s favor.

Despite skepticism in current polling, they argue that this strategy will ultimately yield significant results.

In his second term, tariffs on major trading partners, including key allies, have become a defining issue. Trump has set April 2 as America’s “Liberation Day,” announcing plans to implement reciprocal tariffs on countries that impose their own tariffs on U.S. imports.

This shift marks a significant break from decades of U.S. trade policy, with potential consequences for global businesses.

Trump argued that the U.S. has been taken advantage of in trade and military relationships. We’ve been ripped off by every country in the world, friend and foe,he declared. We protect people, and they don’t do anything for us.

This approach mirrors his first-term stance on immigration, where his proposed border wall and travel bans were met with resistance but later became a winning issue as President Biden’s border policies faltered.

Now, with trade as the next battleground, Trump is pushing for tariffs on hundreds of billions of dollars of goods from China, Mexico, and Canada, with more measures in the pipeline. This ambitious strategy faces opposition from foreign allies and domestic business interests, as well as free-trade advocates.

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Experts caution that these tariffs could lead to disruptions, including higher consumer costs and supply chain shocks.

However, Trump remains steadfast in his belief that short-term pain will ultimately result in a stronger U.S. economy, reshaped by the return of manufacturing jobs and improved trade conditions.

Nick Iacovella, executive vice president of the Coalition for a Prosperous America, believes the long-term benefits will be significant.

In 10 to 15 years, we will look back and see massive gains in the U.S. manufacturing sector, rising incomes, and a stronger GDP. We’ll become a manufacturing superpower again, he said.

Despite concerns about stock market volatility, Iacovella notes that the American people clearly expressed their dissatisfaction with the previous administration by voting for Republicans in the last election.They gave single-handed control to Republicans.

So the American people have pretty much made their voice clear,he said.

Steve Bannon, former White House chief strategist and a key figure in Trump’s populist movement, acknowledged the political risks but emphasized the long-term vision. It’s one thing to bring manufacturing jobs back, but he’s redoing the world system, Bannon said. “Tariffs are the key economic tool for that.

Trump’s team has expressed optimism about the new tariff policy, suggesting that many of the new tariffs may be lower than the ones other nations have imposed on the U.S. over the years.

However, critics argue that tariffs could raise prices for consumers and disrupt global supply chains. Trump’s tariffs have already pushed up steel prices, which could disadvantage U.S. manufacturers.

The European Union, Japan, and South Korea, long-standing allies, have expressed concerns over the new tariff measures, preferring a more gradual adjustment. Nevertheless, Trump’s team contends that the old trade policies were unsustainable, leading to a manufacturing decline and rising trade deficits.

Polling on Trump’s trade policies shows considerable opposition, with 61% of respondents disapproving of his tariff approach, according to a recent poll. In contrast, Trump’s immigration policies enjoy more positive approval, with 56% of voters supporting his handling of border security in a recent NBC News poll.

Trump’s first term saw a significant drop in approval for his immigration policies, but after Biden’s policies triggered backlash, immigration became a positive issue for Trump’s 2024 campaign. Similarly, he hopes that his bold tariff policies will eventually be vindicated by voters and history.

In a report, Stephen Miran, the chairman of Trump’s Council of Economic Advisers, explained that tariffs are part of a long-term plan to reform the global trading system, with the goal of securing a more favorable position for American industries.

The U.S. consumers have options. The countries selling to the U.S. do not. They’re the ones who will bear the burden of these tariffs,” Miran argued.

Despite opposition and uncertainty surrounding the tariffs, Trump’s team is betting on a transformation of the global trade system.

They hope that, in time, the U.S. will emerge stronger, with more manufacturing jobs and a reshaped economy.

The President Donald Trump tariffs take the ‘kick me sign off the backs of American workers, said Sen. Jim Banks, R-Ind., underscoring the president’s focus on putting American interests first.

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