When we think of economic warfare we generally assume sanctions and blockades. There are more subtle means to attack a nation economically.
“Policies and measures in economic warfare may include blockade, blacklisting, preclusive purchasing, rewards and the capturing or the control of enemy assets or supply lines. Other policies, such as tariff discrimination, sanctions, the suspension of aid, the freezing of capital assets, the prohibition of investment and other capital flows, expropriation, and debasing the target’s currency by counterfeiting, even without armed military war, may constitute economic warfare” Wikipedia
Tariffs are a means of influencing another nation to some purpose. If the target nation is committing humanitarian violations or has unfair labor or trade practices tariffs can be used as a diplomatic tool. If the targeted nation complies with the wishes of the nation imposing tariffs they can be lifted.
The power to impose tariffs on other nations, as with all taxes in the United States, lies with Congress. Congress has passed laws granting the President power to impose tariffs under certain conditions. One of these is against a foreign enemy and requires an emergency declaration by the President (Congressional Research Service). US President again Donald Trump used this argument to threaten tariffs.
One downside of tariffs is the citizens of the nation imposing them pay higher prices for goods. In the instance of a 10% tariff on Chinese imports we the people will be paying the higher price. 10% will not make the Chinese goods less competitive against US goods as the price difference is more than 10%. It is a tax on the US citizens. If it’s because of the trade deficit with China, 10% will not be sufficient.
The BOT (Balance of Trade) on its own is not an indicator of economic health, and a negative trade balance is not necessarily bad. In order to use the trade balance as part of an economic health assessment, context is needed. One must look at why the balance is positive or negative Investopedia
Also, there is no official reason given for this tariff. What is it that Trump is trying to get the Chinese to do? Does he want them to quit persecuting the Uyghur minority (BBC)? Is it in protest of Chinese imposed ethnocide of Tibetan culture (NBCNews)? Is it because China has been intimidating Taiwan and other Island Nations of the South Pacific (Reuters)? If so, he hasn’t made this position clear. Is this a declaration by the president that China is an enemy state?
The tariffs on Canada and Mexico are more puzzling. These nations are definitely not enemies of the United States. Mexico has problems; over 30,000 civilian deaths were reported each year since 2018 due to cartel violence (CFR). By comparison during the Iraq War in 2006, the year with the highest incidence, there were 29,526 civilian deaths. The violence is driving immigration. The answer to this problem is not tariffs, it’s assistance to the Mexican government in their struggle against the cartel insurgency.
Canada doesn’t pose a problem for the US at all. If the reason for tariffs is to try to force manufacturing back to the United States why pull out of the global corporate tax agreement made by former President Joe Biden (Reuters)? Trump has also called for an end to Joe Biden’s US stimulus investment in domestic chip manufacturing (Bloomberg).
Imposing tariffs on the European Union, particularly at a time when he has demanded they fund Ukraine’s fight for independence against Russian aggression, is egregious. Further, if these economic infringements on Congressional authority are designed to create a recession, and succeed, the pain will be felt in the EU as well (CFR). This will further decrease their collective defensive stance and ability to support Ukraine. The US runs a trade surplus with the EU.
Is the Trump administration attempting to manufacture a recession? Some economists believe so (Marketwatch). Consider Trump also wants to lift sanctions against Russia. These efforts appear to be designed to assist his buddy Vladimir Putin and their gods’ invasion of Ukraine and threatens Western European nations.
- Is the White House trying to engineer a recession? This Wall Street pro explains the vision. MarketWatch
- Is the U.S. Heading Into a Recession Under Trump? Here’s What to Know Time
- The market is worried about a recession Axios
- The Global Consequences of Financial Contagion Council on Foreign Relations
- Trump tells Congress tariffs will be ‘a little disturbance.’ Why it’s more than that, according to economists. MarketWatch
- China: UN experts alarmed by separation of 1 million Tibetan children from families and forced assimilation at residential schools United Nations
- China’s Repression of Uyghurs in Xinjiang Council on Foreign Relations
- Chinese Naval Task Force Circumnavigates Australia, Creates Local Stir Naval News

