A test of political game theory: Short-term gains, long-term pain
Trump’s tariffs on China, Mexico, and Canada risk disrupting supply chains and unsettling markets. Renewed threats against the EU and UK add to global trade uncertainty. A 30-day pause for Mexico and Canada, secured through border security pledges, offers brief relief, but China remains the primary target.
While tariffs provide short-term boost to US industries, they fuel inflation and trigger retaliation. Trade rivals may further reduce USD reliance, strengthening blocs like BRICS and Regional Comprehensive Economic Partnership (RCEP). Protectionism risks isolating the US as alternative financial systems emerge, challenging its global dominance.
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