Trump's 'zombie tariffs' harm allies and erode U.S. hegemony

Former U.S. President Donald Trump's "zombie tariffs," initiated under the guise of a "Liberation Day" declaration, are described as a "Trump show" that disrupted global trade. Trump unilaterally declared high tariffs on numerous countries, claiming the U.S. had been "robbed" for decades. The tariffs, initially presented as a response to unfair trade practices, were later revealed to be based on a simplistic formula of trade surplus, amounting to "tyranny of the strong nation."

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For decades, the United States has been robbed, ravaged, and plundered by allies and enemies, by close and distant countries.

The article argues that the "Make America Wealthy Again" event was a political performance aimed at Trump's Rust Belt voters. The ensuing trade war, marked by constant threats and chaos, lacked legal basis. After the Supreme Court struck down the use of the International Emergency Economic Powers Act (IEEPA), the administration resorted to Section 122 of the Trade Act for temporary measures, and now relies on Section 301 for unfair trade practices. Nobel laureate Paul Krugman criticized these tariffs as "zombie tariffs" that "should have died" but continue to persist.

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The tariffs imposed on various countries were based on a formula of trade surplus relative to exports to the U.S., which was nothing short of the tyranny of a strong nation, attributing all trade surpluses to unfair practices.

Trump's justifications for tariffs were inconsistent, ranging from reducing trade surpluses to citing drug smuggling and illegal immigration with Mexico and Canada. He even imposed tariffs on Switzerland for perceived disrespect during negotiations. These actions are likened to an emperor punishing vassal states. While the tariffs may have energized his base, they failed to achieve their stated goals of improving the trade balance, reviving manufacturing, or increasing fiscal revenue. Experts note that trade balances are influenced by fiscal policies, and the U.S. administration's expansionary fiscal policies, including tax cuts and increased defense spending, likely counteracted any potential benefits.

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Clearly illegally imposed tariffs that should have died are somehow surviving and crawling around.

Instead of achieving its objectives, the tariffs led to rising import prices, increasing the burden on American consumers and businesses. The article points out that while strategic tariffs can protect domestic industries, Trump's unpredictable implementation made it difficult for U.S. companies to plan investments. The tariffs also exposed U.S. limitations, particularly in its trade war with China. Despite raising tariffs significantly, the U.S. could not force China's hand, leading to concessions and a reduction in tariffs. The article concludes that for tariffs to be effective weapons, the U.S. market must hold absolute influence, which is no longer the case as the U.S. share of global imports has fallen to 13%.

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The emperor arbitrarily wielded tariffs like punishment for vassal states he disliked.