Customs Duties: The “Day of Ruin” Announced by Trump

“The Economist” predicts “economic chaos” following Donald Trump’s announcement on Wednesday, April 2, regarding the imposition of customs duties affecting all of the United States’ trading partners. The British liberal newspaper criticizes the policy of the occupant of the White House, deeming it the “gravest” and “most damaging” mistake for the entire world.

Donald Trump features prominently on the cover of The Economist. To adorn the front page of its April 5 edition, the British weekly chose an illustration of the American president methodically cutting the borders of the United States drawn on the ground. This makeshift crafting is likely intended to completely isolate this green enclave from the outside world. However, one begins to wonder if the Republican might inadvertently open a trapdoor and precipitate his own downfall.

On Wednesday, April 2, from the White House, Trump officially announced the imposition of tariffs on all foreign products, regardless of their origin: 34% on imports from China, 20% from the European Union, 24% from Japan, and so forth. He proclaimed a “Liberation Day” heralding the rebirth of American industry. The Economist interprets it as “the greatest break in American trade policy in over a century” and refers to it as “Ruination Day.”

“With his ‘Liberation Day,’ America is completely turning its back on the global trading order to embrace protectionism. For the countries shaken by the absurd vandalism of the president, the question is how to limit the damage.”

The liberal-leaning newspaper and advocate for free trade describes a president who “indulges in illusions,” selling his supporters on a return to a fantasized “golden age”—specifically, the period preceding the 1930s, marked by the Great Depression. However, his assertions appear unfounded, based merely on shaky knowledge of how the global economy operates and unchecked historical revisionism.

“[He] has committed the gravest, most damaging, and most unnecessary mistake of modern times.”

It remains to be seen what the consequences of this trade war will be. The title predicts widespread inflation for American consumers and a decrease in the competitiveness of businesses, which are now less exposed to international competition.

There are also concerns about the snowball effect of retaliatory responses and countermeasures taken by the United States’ trading partners. In the event of escalation, the world could be plunged into an economic crisis as catastrophic as that of the 1930s. “President Trump’s absurd tariffs will lead to economic chaos.”