The I Global War implemented by President Trump, “Liberation Day”
- Admin
- 2 days ago
- 4 min read
Overview of the New Tariff Measures
On April 2, 2025, President Trump announced a sweeping shift in U.S. trade policy. In his speech—declaring the day “the day of liberation”—he detailed plans to impose reciprocal tariffs against nations that levy duties on American products. These measures are designed to redress what the administration views as longstanding trade imbalances. Notably, while tariffs are slated for many countries—including major players in Asia, Europe, and beyond—the decision was made to exempt Canada and Mexico, America’s key North American partners.
Economic Data and Expert Analysis
Recent analyses from leading university economists and financial experts underscore both the risks and potential benefits of these tariff measures. For example:
• Inflation and Consumer Impact: Research by Harvard and MIT economists suggests that broad-based tariffs could contribute to an overall consumer price increase of 1–2% over the coming quarters.
• Supply Chain Efficiency: Economist Douglas Irwin of Dartmouth College has argued that maintaining an integrated supply chain is critical to minimizing production costs; disrupting long-established trade relationships may lead to higher production costs and inefficiencies.
• Market Volatility: Financial experts such as Nouriel Roubini and Paul Krugman warn that while tariffs might provide short-term leverage in negotiations, they risk triggering broader economic instability if retaliatory measures follow.
The Role of USMCA in North American Trade
Central to the decision to exempt Canada and Mexico is the United States–Mexico–Canada Agreement (USMCA). This agreement, which replaced NAFTA, supports over $1 trillion in annual trade by streamlining supply chains and ensuring regulatory harmony among the three nations. Preserving this trade relationship is seen as essential to:
• Maintaining Supply Chain Stability: Ensuring that American manufacturers continue to benefit from reliable and efficient supply networks.
• Mitigating Inflationary Pressures: Avoiding disruptions that could increase the costs of raw materials and intermediate goods, thereby impacting domestic prices.
WTO Provisions for Developing and Undeveloped Countries
The World Trade Organization (WTO) provides guidelines that recognize the unique challenges faced by developing and undeveloped nations. The “Enabling Clause” (adopted in 1979) allows these countries greater flexibility in implementing trade policies. This provision:
• Supports Economic Growth: Permits emerging economies to adopt protective measures for their nascent industries without facing the full force of trade sanctions.
• Strives for Global Trade Balance: Seeks to create a more equitable trading environment by acknowledging that strict tariff policies may disproportionately affect less developed nations.
Global Reactions
Global market responses to the new trade measures have been varied:
• European Union: Warned of retaliatory measures, expressing concerns over potential disruptions to established trade flows.
• Canada: Senator Susan Collins (R-ME) criticized the proposed tariffs on Canadian goods, warning that they could harm integrated industries such as Maine’s lobster and blueberry sectors.
• Wall Street: Analysts report a bearish sentiment, with stocks recording the worst start to the year since 2022.
Political Tensions
The announcement has also ignited political debate:
• Republican Caution: Figures like Sen. Ron Johnson (R-WI) express cautious support while acknowledging the inherent risks.
• Administration’s Defense: President Trump’s team—including VP JD Vance and trade adviser Peter Navarro—defends the strategy as necessary for “economic liberation.”
Expanded Tariff Measures and Global Implications
In a further dramatic move, the president imposed tariff reciprocity on all 185 countries worldwide. This measure covers nations at war, those suffering from earthquakes, and countries with little historical trade with America. However, the largest country in the world, Russia, and Belarus were notably left out—a decision that raises questions likely to be answered in the coming days. Additional details include:
• Regional Tariff Rates: Angola and Mozambique face tariffs set at 10%.
• Tariffs on Nontraditional Partners: Even countries such as Australia—despite having relatively modest trade ties with the United States—are included.
• China’s Escalated Tariff Burden: China, already subject to a 25% tariff related to fentanyl imports, now faces an additional 34%, culminating in a total rate of 59%.
• Retaliatory Risks: Government officials have warned that any country responding with its own tariffs will see these measures multiplied.
• North American Response: Canada and Mexico, our longstanding partners—previously affected by measures related to drug policies—have indicated they will respond with their own measures as early as tomorrow.
The U.S. administration’s decision to impose reciprocal tariffs against nations taxing American products—while sparing key partners like Canada and Mexico—reflects a complex balance of strategic and economic considerations. By preserving the benefits of the USMCA and leveraging WTO provisions for developing nations, the administration aims to shield critical supply chains and mitigate inflationary pressures. Yet, with global reactions ranging from cautious warnings in the European Union to bearish sentiments on Wall Street, and with politically charged responses on all sides, the coming days will reveal how these measures reshape both international trade and political alliances.
In Geopolitics there is no friendship, but rather interests that combine.
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