Trump's tariff trade war is no accident

President Donald Trump's tariff policy has received numerous criticisms from various parties, including several Nobel Prize laureates, for being against the economic principles of free trade.

- Chartchai Parasuk

The policy would surely bring havoc to both the US and the world economies. The financial markets were quick to agree, causing Mr Trump to hold the tariff increases for 90 days and allow zero tariffs on certain computer products. The markets temporarily calmed down, but they have been damaged. The Dow Jones Industrial Average Index has lost 5.3% of its value, and the US dollar has depreciated about 4% against major currencies.

If the tariff increase were to be a lose-lose strategy, why would Mr Trump follow such a “shot-in-the-foot” policy? His popularity is now at rock bottom. Does he not know that the US constitution provides several means of quick impeachment? Or does he have specific reasons for doing so, which many quietly agree with, including the IMF and the World Bank?

This is not the first time that Mr Trump has raised tariffs on imports. During his first term as president, he increased tariffs on Chinese imports from 3.0% to 19.3%. His successor, President Joe Biden, did not attempt to lower them but left the tariff rate untouched. I have a theory that Mr Biden agreed with the rate but lacked the guts to raise it further.

Mr Trump was voted back into the Oval Office for a second term and, sure enough, he continued his job of raising tariffs to “Make America Great.” This time, it is not only Chinese imports that are targeted, but all imports coming into the United States. Has Mr Trump gone mad? Or did something so bad happen during Mr Biden’s administration that Mr Trump felt compelled to correct it, even at a high political and economic cost?