The global trading system has reached its critical point after Donald Trump declared economic wars against other countries. The former president has used a Supreme Court decision to establish a new tariff system that will cut off trade with both friendly and hostile nations.
The situation has shifted from a typical trade disagreement to a new period of “reciprocal extortion” trade relations.
The policy change process revealed its actual goal when it stopped using judicial and legislative protections. The Trump administration used Supreme Court executive authority interpretations to avoid international trade treaties and congressional regulation, which had restricted previous presidents.
The executive branch is using tariffs as “national security tools” and “negotiating hammers” to avoid the regulatory system that once controlled international trade.
Trump warns that countries that charge even minimal tariffs on US imports will experience severe retaliatory actions that match their imposed tariffs. The scorched-earth strategy disregards the complex supply chains that have shaped modern international trade.
The G7 and emerging markets received an explicit message that the “free market” period has ended and now operates as a “pay-to-play” system through which the White House controls all transactions.
The economists warn that the United States uses its dollar as a tool for enforcement because the country follows unilateral policies that receive backing from its judicial system. The Supreme Court has established a pattern that allows future presidents to exercise complete control over international trade decisions because it refuses to limit executive power.
Foreign capitals currently develop their contingency plans because they realize that the American market has become a secure fortress that will soon raise its entrance bridge. The country implements protectionism to achieve its objective of destroying the economic framework that established international trade following World War II.
The trade war has entered a new phase because it now exists as an ongoing economic conflict between two countries.
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