Trump gambles big on tariff overhaul

US president overturns world trading order at stroke of a pen. By Danny Kemp

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As the former owner of several bankrupt casinos, Donald Trump knows all about taking a gamble. But his announcement of worldwide tariffs carries huge political risks for the US president.

The Republican billionaire defied warnings from many economists to insist that his trade war would bring the economic "Golden Age" that he pledged during his 2024 election campaign.

Trump and his party will therefore likely face anger from US voters if his "Liberation Day" promises fail and inflation-hit consumers end up with even higher prices and possibly a recession too.

"It's a huge gamble," Larry Sabato, a University of Virginia political scientist and author of the respected Crystal Ball newsletter, told AFP.

"And if the economy goes belly up, Republicans will pay an enormous price in both 2026 and 2028." Mr Trump's tariffs come just over a year and a half before US midterm elections, in which the party of the US president is often hammered on the economy.

The Republican party's tiny minority in Congress could be in jeopardy if the tariffs start to bite.