Wealth, Re-industrialization, and Challenging China: Trump’s Tariff Plan
The US president aims to create prosperity amid a shifting world order.
Anthony Constantini
March 22, 2025
What’s happening
The Trump administration has re-ignited a global trade war with allies and adversaries alike. His moves are spooking investors and driving down the stock market amid the uncertainty surrounding the White House's objectives.
President Trump placed 25 percent tariffs on steel and aluminum from all countries and a 20 percent tariff on Chinese products. When the European Union threatened tariffs on Kentucky bourbon and Harley Davidson motorcycles in response to the steel and aluminum tariffs, Trump responded by threatening to levy 200 percent tariffs on European alcohol.
But the world is waiting for arguably Trump’s biggest move: reciprocal tariffs, scheduled to go into effect on April 2. These will see the US place equal tariffs on any country which has tariffs on it, unless the US already tariffs them at higher (or equal) rates.
The shift to protectionism is economic whiplash from past American presidential administrations; both Presidents Barack Obama and George W. Bush strongly pushed for massive free trade deals. Trump’s shift is happening for a multitude of reasons: the protection of US industry and wealth creation, the shift to a multipolar world order, and the rise of China.