The US president is applying primitive tactics in both the economic and political issues he’s dealing with, Henry Johnston tells RT
US President Donald Trump’s tactics in both political and economic matters are very similar and are tantamount to using a sledgehammer for a problem that requires nuance, financial analyst Henry Johnston has told RT. On Wednesday, Trump announced a new round of sweeping tariffs on scores of trading partners, part of what he has branded his ‘Liberation Day’ plan.
“I think there’s a very interesting parallel between Trump’s approach to the Ukraine conflict and what he is doing economically. And that is that he is attempting to address very deep-seated, longstanding problems with rapid unilateral and aggressive measures,” the analyst told RT. “And in both cases, I think he’s going to encounter more of what we’re already seeing: his very primitive tactics are not getting to the root of the issue. The economic problems that he’s attempting to address are very deep-seated. They’ve been in play for half a century and they will not be addressed by a bludgeoning with tariffs.”
In his speech, Trump presented a detailed chart highlighting the reciprocal tariffs he is applying to different nations. “We will charge them approximately half of what they are and have been charging us,” Trump said of his reciprocal tariff plan. “So, the tariffs will be not a full reciprocal,” he added.
According to Johnston, there’s a perception in the White House that other nations take advantage of the US because American goods are not as welcome elsewhere, whereas the US has kept a relatively open market. “The trade balance certainly speaks for itself, but I think what’s important to understand here is that the US was a willing participant in this system. By using the dollar as the reserve currency and encouraging other countries to build up surpluses of dollars and then reinvest those in the US, in US Treasuries, it essentially allowed the US to finance domestic consumption without creating inflation,” the analyst explained to RT. “I think it’s not entirely in good faith to claim that the US is being abused, even where US goods don’t have the same access to other markets, because the system itself has been very beneficial to the United States.”
The plan has drawn swift backlash from US trading partners. European Commission President Ursula von der Leyen said on Tuesday that the EU has “a strong plan” in response. Chinese Foreign Minister Wang Yi said on Tuesday, as cited by CCTV, that Beijing would “counterattack” if the US continues to engage in “blackmail.”
“And I think there’ll certainly be a lot of scrambling among American trade partners to respond to this,” Johnston told RT. “I think the European Union will see this as a hostile move, without question, I think it will be fairly painful for the EU. We could be seeing trade wars among allies.”
Since returning to office in January, Trump has imposed a series of tariffs targeting a wide range of imports – from sweeping duties on Chinese goods to non-compliant products from the EU, Canada, and Mexico, and also steel, aluminum, and most recently, foreign cars and critical auto parts.
Trump has particularly singled out the EU for what he calls unfair trade practices, including high tariffs on American goods and restrictive regulatory barriers that disadvantage US companies.
