Trump’s Global Tariffs Spark Concern, Confidence Grows

Trump’s Global Tariffs Spark Concern, Confidence Grows \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Trump is rolling out aggressive new tariffs, betting on economic gains despite warnings from economists and global partners. The policy revives trade tensions but with markets largely stable—for now. Trump’s tariff letters, rather than negotiations, signal a shift in U.S. trade strategy.

Quick Looks

• Trump announces tariffs up to 70%, with some future rates possibly hitting 200%.
• Past high tariffs triggered market turmoil, but this round sees muted financial reaction.
• Trump replaces trade talks with letters listing tariff rates to foreign leaders.
• 14 countries already notified, with more letters planned this week.
• Japan, South Korea, and others seeking negotiations before Aug. 1 start.
• Critics say Trump’s erratic strategy weakens U.S. credibility in global trade.
• Treasury projects over $300 billion in tariff revenue for 2025.
• Analysts warn of slowed income growth, long-term market risk.

Deep Look

President Donald Trump is once again rewriting the rules of international trade—this time through an aggressive wave of import tariffs that signal a major gamble on economic policy, global diplomacy, and domestic political momentum. Less than three months after financial markets recoiled at his last sweeping round of tariffs, Trump is doubling down, betting that this new rollout will be seen as strength rather than instability.

The centerpiece of Trump’s approach? Letters.

Instead of entering into drawn-out trade negotiations, the president is directly informing foreign governments of new tariff rates by mailing formal letters, a tactic he claims is more “powerful” and time-efficient. “You read the letter. I think it was well crafted,” Trump said at Tuesday’s Cabinet meeting. “Mostly it’s just a little number in there: You’ll pay 25%, 35%. We have some of at 60, 70.”

These letters replace his April 2 “Liberation Day” tariff event at the White House, where a visual presentation led to a brief market shock. The current letter campaign, which includes random capitalizations, formatting errors, and rate variability, is raising eyebrows among diplomats and economists alike.

So far, 14 countries have received letters outlining tariffs ranging from 25% to 40%, with Laos and Myanmar hit with the highest rate so far. Trump says more letters are coming—at least seven more on Wednesday, with others to follow. Countries affected include Japan, South Korea, Malaysia, Thailand, Tunisia, and South Africa, among others.

The policy represents a radical departure from traditional tradecraft, which has relied on years-long negotiations, compromise, and complex dealmaking. Trump’s strategy is rooted in the belief that tariffs create leverage, restore U.S. manufacturing, and generate revenue—despite warnings that they could fuel inflation and suppress consumer spending.

“This time is different,” Trump told his Cabinet, contrasting current market calm with the backlash that followed earlier tariff hikes. He added that presidents who failed to embrace tariffs were “stupid” and suggested that dealing with world leaders via form letters is more productive than sitting at the negotiation table.

But there’s a catch.

Economists say the outcomes of Trump’s tariff blitz fall into three likely paths:

1. He proves critics wrong—and the tariffs lead to job growth, economic resilience, and trade rebalancing.
2. He backs off again, continuing the pattern some critics have labeled “TACO” (Trump Always Chickens Out)—suggesting the threats are more bluster than policy.
3. He harms both the U.S. economy and global markets, setting off a backlash that could damage not only international relations but also the very American communities that helped him return to office.

So far, markets are holding steady. The S&P 500 remained flat on Tuesday after a modest drop Monday. Inflation has not surged, which has helped Trump justify his tactics—even as many warn that the longer-term effects are still unfolding.

Sen. Ron Wyden (D-Ore.) sharply criticized the approach, calling it a “tariff purgatory” that’s paralyzing economic planning. “The TACO negotiating tactic pioneered by Trump is making his threats less and less credible,” Wyden said. “There’s no sign he’s any closer to striking durable trade deals that would actually help American workers.”

Some economists argue that by floating extreme tariffs as high as 100%, the administration has “normalized” 25% to 40% tariffs, even though they remain historically high. Cornell University economist Wendong Zhang warned that the staggered rollout makes radical policy seem routine: “It’s still one of the most aggressive and disruptive tariff moves in modern history.”

Meanwhile, administration officials are touting the revenue potential. Treasury Secretary Scott Bessent projected Tuesday that tariff revenues could top $300 billion this year, a figure significantly higher than the $98.2 billion already collected—more than double last year’s total. The Congressional Budget Office estimates $2.8 trillion in tariff revenues over 10 years, though Bessent called that “probably low.”

These revenues, Trump argues, would offset the costs of his extended 2017 tax cuts, passed into law last Friday. But the math, as usual, is disputed.

There are also questions about target selection. Nations like Tunisia, which conduct minimal trade with the U.S., are among those facing new tariffs. It’s unclear what Trump aims to gain in these cases, suggesting a broader geopolitical statement rather than an economic one.

Despite calls for negotiations, Trump has dismissed the idea. “Too complicated,” he said of formal trade talks. “No extensions will be granted,” he added Tuesday on Truth Social, affirming the August 1 start date for the new tariff rates.

With no clear administrator currently running the TSA—after Trump dismissed David Pekoske earlier this year—the White House’s broader approach to economic and trade policy appears to rest almost entirely on the President’s own instincts, supported by a rotating cast of loyalists and informal advisors.

As Trump prepares to escalate his global tariff campaign, the world is watching. Allies are uneasy. Economists are skeptical. And voters—especially in manufacturing regions—are bracing for the results.

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