Trump should revisit his tariff schemes

President Donald Trump's tariff hikes, making "Liberation Day" for allies and friends of the US equally, The immediate effect is that Mr Trump has rallied the rest of the world to prepare for a future without US dominance.

- Kavi Chongkittavorn

To put it mildly, they must become less dependent on the US in every possible way — unless Mr Trump changes his approach.

No one can predict the unpredictable, as the current economic world and geopolitical environment are too complex for anyone to forecast. One thing is certain: After April 8, the US — known as the world's most powerful country — will not be as powerful as before, thanks to the ramifications of Mr Trump's disrupting tariff policy.

President Trump predicts that his tariff policy will liberate the country and make the United States so powerful that Americans "become so rich we're not going to know where to spend that money". History will be the judge. At the end of the day, no country can prosper alone at the expense of others. "It's all about others" means over 200 countries across the globe.

First of all, we need to understand the basis of Mr Trump's tariff policy.

According to the US Trade Representative's Office, each country's reciprocal tariff rate was based on the US trade deficit with that specific country, divided by the value of its exports to the US. Then, the total number was halved to show American "kindness".

Last week, Mr Trump imposed a 10% levy on imports from around the world, along with extra tariffs on major trading partners. Among the Asean countries, Cambodia and Vietnam hit the hardest at 49% and 46%, respectively. Thailand is among the so-called "Top 15" nations that have a trade surplus of US$43 billion with the US. Thailand-US trade has increased dramatically in recent years, especially during and after the Covid crisis.