3 days ago
Here's why Trump's tariffs won't work
[SINGAPORE] US President Donald Trump's tariffs have been widely panned as reckless, short-sighted and self-defeating. Economists called them 'taxes on Americans' rather than the rest of the world – penguin-majority islands included. Many blame those tariffs – imposed under the banner of 'America First' – for worsening the global trade slowdown.
But zoom out, and Trump's actions are not so radical.
Throughout history, many leaders have believed that security lies in self-sufficiency. From imperial China to Nazi Germany, ancient Rome to modern-day Brexit Britain, the instinct to turn inward runs deep. The logic: Tighten borders, produce everything at home and cut reliance on other nations to shield against risk.
Two new books argue that this instinct, while understandable, is exactly what has led great powers to fall. It is not narrow self-interest that builds empires – it is exchange. Civilisations rise not by going it alone, but by embracing openness – even when it is messy or uncertain.
The two timely books are Exile Economics: What Happens If Globalisation Fails by Ben Chu, and Peak Human: What We Can Learn From History's Greatest Civilizations by Johan Norberg. Both were published in May 2025 – shortly after Trump waved around a cardboard chart that sent shockwaves through global markets – though their writing predates the latest phase of his trade war.
Chu is the British economics editor at BBC Newsnight; Norberg is a Swedish historian and bestselling author. They have observed the same global trends from very different angles – Chu from the world of policy and supply chains, Norberg through the long arc of history. Yet they arrive at a shared conclusion, which serves as a sobering warning about the deepening divide between China and the US, and the risks it poses to global stability and prosperity.
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When empires close themselves off
If you had to pick just one of the two books, I recommend Norberg's Peak Human. His grasp of history is sweeping, but he also knows how to keep things light and entertaining – which helps when you are sprinting through centuries of civilisation in a single chapter.
The book explores 'golden ages' such as ancient Athens, Song Dynasty China and Renaissance Italy – moments when humanity flourished economically, intellectually and artistically. What these societies had in common, Norberg argues, was openness. They welcomed outsiders, embraced trade and encouraged innovation. But when they turned inward, they stagnated.
Peak Human by Johan Norberg is an entertaining guide through the golden ages of human history. PHOTO: ATLANTIC BOOKS
In Song China, trade and cultural exchange drove technologies that Europe would not see for centuries. But when paranoia and conservatism took hold, progress ground to a halt. Similarly, Abbasid Baghdad was once a hub of Islamic learning and diversity. That golden era ended with religious orthodoxy and invasions.
If Norberg looks to the past to explain why empires thrive or collapse, Chu turns his gaze to the present. He coins the term 'exile economics' to describe a world turning its back on global trade in favour of national self-reliance. The appeal is obvious – who does not want independence, security and control? But the reality, he argues, is that autonomy comes with steep costs.
Want food independence? Expect higher prices and less variety. Want to make your own microchips? That is a decades-long, cross-border supply chain you will need to build from scratch. And good luck finding anyone else eager to handle rare earth metals like China does.
Ben Chu's Exile Economics explores anti-globalisation sentiment across economies. PHOTO: BASIC BOOKS
Chu offers real-world examples to show just how entangled the world is. Global trade is not just about cheap goods, it is about shared resilience and rising living standards. Break that in the name of sovereignty, and you often get more fragility, not less. He even points to history: Nazi Germany's push for self-sufficiency helped fuel its aggressive expansion. Resource nationalism, in other words, is not just inefficient. It is dangerous.
Lessons for today
Both Peak Human and Exile Economics warn that today's anti-globalisation sentiment threatens to undo decades of progress. It is not trade, immigration or openness that causes modern problems – it is poor governance and weak systems. The solution is not retreat, but reform.
Both authors highlight how interdependence, while complex, is more resilient than we give it credit for. Chu notes how supply chains adapted swiftly to pandemic shocks. Norberg reminds us that empires rarely fall because of enemies abroad – they collapse when they close in on themselves.
And the effects are already visible. In response to Trump's tariffs, China did not panic – it pivoted. Supermarkets swapped out US beef for cheaper Australian imports, thanks to the China-Australia free trade agreement. Meanwhile, US consumers are expected to pay more for beef – a tariff own-goal.
In April 2025, research and consulting firm Ipsos released a poll which found that the US' reputation had sharply declined in 26 out of 29 countries over the previous six months. For the first time in the survey's decade-long history, more respondents viewed China as a more positive influence on world affairs than the US.
What these books make clear is that prosperity is fragile. The systems that brought billions out of poverty and spurred innovation did not emerge by accident. They were built on trust, trade and cooperation. Undoing them is easy. Rebuilding them is not.
Exile Economics: What Happens If Globalisation Fails by Ben Chu and Peak Human: What We Can Learn From History's Greatest Civilizations by Johan Norberg are available at Kinokuniya
