The United States and China have given themselves 90 days to address the current trade dispute, which has been relegated to headlines and hyperbole. For now, both parties have agreed temporarily to reduce the high tariffs they have imposed on each other, thereby avoiding painful economic consequences.
President Trump’s tariff war, intended to boost American manufacturing, didn’t turn out as planned. Instead of benefiting factories, it threatened to increase costs for Americans and businesses. In any event, it changed how our allies treat this country. In the case of Canada, the traditional relationship is “over.”
When Trump started the trade war in March, he wanted to rebuild America’s manufacturing base. Now that the mission has evolved to creating a level playing field, his supporters have changed their messaging without missing a beat. This shift glossed over the economic commotion and reinforced a populist narrative rather than a coherent industrial strategy.
“Nobody wins in a trade war, and raising tariffs further on American businesses and consumers will only result in slower economic growth, more farm bankruptcies, fewer jobs and higher prices,” said the free-trade group Tariffs Hurt the Heartland.
Indeed, the tariffs have upended the economic order. In this country, the S&P 500 fell by 10 percent in March while the Dow Jones Industrial Average lost 2,200 points on April 4 — the worst single-day loss in memory. Meanwhile, the U.S. economy contracted in the first quarter of 2025, which experts attribute to the tariffs and the uncertainty they created.
Rinse and repeat. In 2018, Trump initiated a tariff war with China, resulting in retaliatory measures between both countries that persisted until late 2019. The Federal Reserve indicated that the U.S. manufacturing industry suffered the most, leading to a decline in employment due to increased costs. One victim: U.S. liquefied natural gas exports to China plummeted by a staggering 80 percent.
While Trump may promote tariffs as a risk-free proposition funded by exporters, the reality is different. Studies show that importers pass these expenses on to us, making our goods more expensive.
There has been little evidence of major companies relocating manufacturing back home during Trump’s first term. Some companies considered this move but indicated it was too costly, there were not enough workers, and the process was too complicated.
That has not stopped the administration from trying to spin this chaos into a victory. Trump, undoubtedly, has a knack for turning failures into wins and keeping his supporters happy, even when his policies are flops. He knows his followers are exasperated, and he plays on that angst. The shift in rhetoric — the U.S. is tired of getting “ripped off” — is an attempt to save face.
Even more puzzling is how the president transformed conservative orthodoxy from a philosophy that has wholeheartedly endorsed free trade to one that ostensibly supports protectionism. It’s not about the greatest good for the greatest number. It’s political opportunism.
“Trump is a classic bully who craves submission and fears conflict. His fervent supporters want him to be Michael Corleone, but he’s more like Biff Tannen,” the Atlantic Monthly opines.
Certainly, the underlying trade issues with China, including forced technology transfers, theft of intellectual property, and market-access restrictions deserve a resolution. However, the way to address them is through diplomacy, not with blunt instruments that attempt to pound the other side into submission. Trump may have scored some political points among his flock, but he didn’t come close to fixing the deeper issues.
What happens next? Remember that the United States initiated this trade against the entire world, not just China. Instead of focusing on specific unfair practices, Trump’s tariffs were ill-defined, affecting our allies: the European Union and Canada. Economic growth stems from research and development and investing in infrastructure. Oddly enough, Trump threatens to cut funding for all of these under laws passed during the previous administration.
The United States of yesteryear has passed. Raising tariffs on our trading partners will not revive or bring older industries home. The economic fallout and decline in the stock market explain why Trump abandoned tariffs — and why such an ill-conceived strategy should never return.
