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Malay Mail
3 days ago
- Business
- Malay Mail
Trump's addictive tariff doctrine: Pinching, pummelling, and the price of global compliance — Phar Kim Beng
JULY 12 — The leaked audio of former President Donald J. Trump during a 2024 fundraiser—recently revealed by CNN—should not be dismissed as mere campaign bravado. When Trump admitted that he had initially asked for one million dollars but walked away with twenty-five times that amount, he sounded both amused and amazed. More revealing, however, was his offhand remark: 'It's about getting into the mindset.' That moment of candour explains far more than his fundraising psychology—it offers a blueprint for his foreign economic policy. Indeed, Trump's second presidency has been shaped not just by tariffs as an economic tool, but by tariffs as psychological warfare. Whether allies or adversaries, all are subject to his self-proclaimed principle of 'maximum extraction.' Tariffs are no longer just about market correction or economic protectionism; they are a means of tribute, coercion, and ultimately submission to Trump's worldview of American primacy. The executive order that redefined trade On January 20, 2025—the very first day of his second term—President Trump signed a sweeping Executive Order instructing the Secretary of Commerce and the Treasury Secretary to ensure that every possible tool be used to extract maximum revenue from global trade. Section B of the second paragraph of that Executive Order makes the objective brutally clear: to increase tariffs, duties, levies, and restrictions to yield up to US$400 billion in revenue for the US government within the calendar year. This is not trading policy. It is economic conquest. Unlike the tariffs of previous administrations that targeted dumping or strategic industries, Trump's approach is indiscriminate. It is premised on the idea that friends are easier to squeeze than enemies because they are less likely to retaliate in kind. 'It's easier to get more from friends—they won't fight back,' he was heard saying in another portion of the leaked audio. This has led to punitive tariffs on countries like Japan, South Korea, Germany, and Malaysia—nations that have historically enjoyed stable ties with the United States. Tariffs as tools of tribute Trump's method of tariff pummelling has three consistent features: First, it begins with a shock tariff—a sudden, often unannounced imposition of duties. This was evident on July 8, 2025, when the White House abruptly imposed 25 percent tariffs on key sectors from Asean, Japan, and South Korea, well before the previously floated deadline of August 1. The idea is to throw diplomatic teams off balance and create maximum psychological leverage. Second, Trump offers exemptions or 'carve-outs' as bargaining chips. Malaysia, for example, found its exports of semiconductors and integrated circuits—making up the bulk of its US$80 billion two-way trade with the US—exempted from the new tariffs. But this was no accident. Malaysia had just announced the purchase of 30 Boeing aircraft. The pattern is unmistakable: pay tribute in kind (defence purchases, foreign direct investments, or public endorsements of Trump), and you might receive reprieve. Third, he escalates the pressure through vague threats of future penalties. These are often announced at rallies or in interviews, keeping the world perpetually guessing about what comes next. The unpredictability is intentional, a form of controlled chaos that he believes gives America the upper hand in negotiations. Why the addiction? Trump's use of tariffs is not simply strategic. It is compulsive. The psychological high he receives from watching countries scramble to adjust, to mollify, or to appease him, feeds into a cycle of economic brinkmanship. His personal satisfaction seems rooted not in policy outcomes but in submission rituals—press conferences by foreign leaders pledging allegiance to US supply chains, or headlines about retaliatory restraint from trading partners. As former National Security Adviser John Bolton once observed, Trump sees foreign policy as a series of transactions. But in his second term, it has evolved into something more primal. The leaked audio proves that Trump sees economic policy as theatre—and he, the self-appointed master of ceremonies. The world is a stage for his psychological dominance. The friends he loves to punish The irony of Trump's doctrine is that it targets allies far more often than adversaries. China, for all its geopolitical rivalry with the US, remains cautiously respected by Trump for 'playing hardball.' On the other hand, allies like Canada, Germany, and South Korea are routinely slapped with tariffs not because they are unfair traders—but because they are perceived as 'too comfortable' under the US umbrella. In Asean's case, Trump's tactics are creating deep anxiety. Malaysia, as Group Chair of Asean and Chief Coordinator of Asean-China relations, finds itself pulled in multiple directions. While attempting to chart a neutral and balanced foreign policy, it is simultaneously exposed to unilateral US economic coercion. Even though key exports like semiconductors remain exempted, the message is clear: exemptions today can become punishments tomorrow, unless political alignment is made explicit. Revenue as power, not policy The US$400 billion target is not just about balancing America's books. It is about transforming revenue into geopolitical leverage. Trump believes that with enough economic weight, the US can force the world to comply with its rules—whether on trade, technology standards, digital taxation, or military basing rights. The logic is rooted in power, not principle. For Trump, tariffs are not a bridge to negotiation; they are a test of fealty. Countries that comply may get exemptions or defence guarantees. Those that resist face tariffs, travel bans, or diplomatic snubs. This reconfiguration of trade as tribute has turned even America's closest allies into cautious participants in an asymmetric relationship. Asean's narrow path Asean now faces the challenge of balancing Trump's tariff addiction with its own strategic autonomy. The region must avoid being perceived as either too accommodating or too resistant. Countries like Malaysia, Indonesia, and Vietnam must reinforce intra-regional trade, accelerate digital transformation, and deepen supply chain resilience to avoid being trapped in Trump's tariff vise. Track 2 diplomacy, regional summits, and multilateral coalitions—whether through Brics+, Asean+3, or the East Asia Summit—must be mobilised not to oppose the US, but to insulate against its erratic policies. If Trump's first term taught the world about disruption, his second term is teaching them about addiction—to tariffs, tribute, and total control. In conclusion, the Trump Doctrine in 2025 is not just about 'America First.' It is about 'America Extracts.' And as long as this addiction goes unchecked, the world must brace itself—not for another trade war, but for a global system held hostage by a leader who equates economic pain with political gain. * Phar Kim Beng is a professor of Asean Studies and Director of the Institute of Internationalization and Asean Studies at the International Islamic University of Malaysia ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Yahoo
5 days ago
- Business
- Yahoo
Trump Administration Pushes Out Pause on ‘Liberation Day' Duties
The Trump administration has effectively pushed back the start date of the president's 'Liberation Day' tariffs to Aug. 1 for countries that can't manage to broker trade deals with the United States beforehand. Treasury Secretary Scott Bessent on Sunday told CNN that about 100 smaller countries could be impacted by the decision, noting that if they aren't able to reach a consensus with the U.S. in trade negotiations, 'then on Aug. 1, you will boomerang back to your April 2nd tariff level.' More from Sourcing Journal Trump Releases Flurry of Tariff Announcements for Bangladesh, Cambodia and More Bessent Defends Duties, Says Fashion May Take Margin Hits Trump Announces 'Great Deal of Cooperation' With Vietnam, Lowering Tariff Rate Bessent said those nations would receive letters informing them that they will face the tariff rates laid out during the president's Rose Garden address three months ago. 'It's not a new deadline,' the treasury secretary added. 'We are saying this is when it's happening; if you want to speed things up, have at it, if you want to go back to the old rate, that's your choice.' Bessent hinted that there will be a flurry of dealmaking over the course of the coming days as countries scramble to hash out new trade terms with the administration, presumably to stave off the double-digit duty rates President Donald Trump promised to levy against them as a means of rectifying what he views as an unacceptable trade imbalance between the U.S. and the rest of the world. 'We are close to several deals,' Bessent added. 'As always, there's a lot of foot-dragging on the other side,' he noted, saying, 'I would expect to see several big announcements over the next couple of days.' Wednesday represents the formerly agreed upon expiration of Trump's 90-day tariff pause. Speaking to reporters in New Jersey on Sunday evening, the president said that 'most countries' would see trade deals by the original July 9 deadline. 'Either a letter or a deal,' he said. Commerce Secretary Howard Lutnick, who was traveling with the Commander in Chief, confirmed that new tariff rates will be implemented in August. 'I am pleased to announce that the UNITED STATES TARIFF Letters, and/or Deals, with various Countries from around the World, will be delivered starting 12:00 P.M. (Eastern), Monday, July 7th,' Trump wrote on Truth Social Sunday evening, adding in a later post, 'Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.' The president has previously called out the BRICS Alliance—which includes Brazil, Russia, India, China and South Africa as founding members, along with Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates as more recent additions, for forming a trade bloc that aims to destabilize the strength of the U.S. dollar. While senior administration officials like Lutnick, Bessent and U.S. Trade Representative Ambasador Jamieson Greer have touted over recent weeks finalized deals with the United Kingdom, China and Vietnam, many of the finer details of those agreements have not yet been released. According to the administration, the U.K. will face a 10-percent duty rate on most goods, including cars. China and the U.S. wrapped up a second round of trade talks a week ago, wherein officials agreed that tariffs on China-originating exports to the U.S. market would face a 30-percent tariff rate and the country would lower export barriers on rare earth minerals. On July 2, Trump announced on Truth Social that he had personally reached an agreement with the general secretary of Vietnam which includes a 20-percent tariff on goods shipped into the U.S. The deal also includes a provision for transshipments, wherein goods originating in another country (like China) that are routed through Vietnam will face a 40-percent duty rate.
