Latest news with #tradewar
South China Morning Post
an hour ago
- Business
- South China Morning Post
Why US exceptionalism and the export of crassness is finally losing its shallow appeal
In early May, as Roman Catholic cardinals convened for their conclave , US President Donald Trump posted an AI-generated image of himself as the pope . Shortly afterwards, he declared that he would like to become a pontiff. Reactions from around the globe were swift, though not everyone was shocked. After all, this was American crassness at its finest – a spectacle the world has grown accustomed to. Trump is neither the first nor the only US figure to inure the world to such behaviour; there is a long list. Advertisement When Trump announced sweeping tariffs on global trading partners in April , with China bearing the brunt, financial markets plunged into their worst turmoil since the early days of the pandemic. Ignorance, arrogance, exceptionalism, and fear of 'the other' converged in a display of American crassness on steroids. Trillions of dollars evaporated from stock valuations. Only when the fallout became too severe did Trump pause tariffs for most countries, eventually negotiating with China in mid-May. Yet much of the American public missed the larger picture: these tariffs weren't about sparking a trade war or addressing claims of the world 'ripping off' America. They were a desperate gambit to prop up the American brand – a brand that was sustained for decades by economic hegemony and the 'exorbitant privilege' of the dollar, but is now facing its moment of decline. Donald Trump holds a chart outlining 'reciprocal' tariffs at the White House on April 2. Photo: AFP Desperate to project strength, Trump boasted that world leaders were queuing up to make deals and even 'kiss his a**'. To call such behaviour crass would be an understatement, but the world barely blinked. This crude bravado has long been central to the American way, manifesting in entertainment, politics, media, finance and even sports. To much of the world, it reflects the immature culture of a brash young settler nation. Wealth accumulated through the colonisation of Native American lands bred an unfettered arrogance that normalised such behaviour. The world once playfully dubbed this the 'Ugly American', but that playful tolerance only emboldened the American psyche. Today, this has culminated in a rogue state run by supremacists, supported by a large majority. The US trade deficit, often cited as justification for protectionist tariffs, is merely a symptom of a deeper malaise. The real issue is that American goods – and the culture that sells them – are losing their appeal. Nations like China South Korea , and before them Japan , now produce superior goods. Meanwhile America, high on its own rhetoric about globalisation, shifted its economy towards services dominated by the financial sector, hollowing out its manufacturing base. Yet Americans continued to borrow and consume at unparalleled levels, encouraged by the state. Living beyond their means, they amassed crippling debt. All the while, they were led to believe that their consumerism was the engine of global growth, a myth perpetuated by American business media like Bloomberg and CNBC. For decades, this propaganda painted American life as the global standard. What was once irresistible now feels unsustainable, replaceable and, to the rest of the world, deeply crass. The world has finally woken up to the unsustainable mechanisms of the US-led 'rules-based order' and the hollowness of the so-called American dream. So why did it take so long for the world to realise that this dream is, in truth, a paper tiger? The myth of American superiority
Al Arabiya
an hour ago
- Business
- Al Arabiya
Trump says he will double steel, aluminum tariffs to 50%
US President Donald Trump said Friday that he would double tariffs on steel and aluminum imports to 50 percent starting next week, the latest salvo in his trade war aimed at protecting domestic industries. 'We're going to bring it from 25 percent to 50 percent, the tariffs on steel into the United States of America,' he said while addressing workers at a US Steel plant in Pennsylvania. 'Nobody's going to get around that,' he added in a speech before blue-collar workers in the battleground state that helped deliver his election victory last year. Shortly after, Trump wrote on Truth Social that the elevated rate would also apply to aluminum, with the new tariffs 'effective Wednesday, June 4th.' Since returning to the presidency in January, Trump has imposed sweeping tariffs on allies and adversaries alike, in moves that have rocked the global trade order and roiled financial markets. The tariffs saw a brief legal setback earlier this week when a court ruled Trump had overstepped his authority, but an appellate court on Thursday said they could remain in effect while litigation continues. Trump has also issued sector-specific levies on goods such as automobiles. On Friday, he defended his trade policies, arguing that tariffs help protect US industry. He said the steel facility where he was speaking would not exist if not for his earlier metals duties. 'Devil in the details' Trump also touted a planned partnership between US Steel and Japan's Nippon Steel, though he offered few new details on the deal, which has faced bipartisan opposition. He emphasized that 'US Steel will continue to be controlled by the USA,' and said there would be no layoffs or outsourcing of jobs. Upon returning to Washington later Friday, Trump told reporters he had yet to approve the deal. 'I have to approve the final deal with Nippon, and we haven't seen that final deal yet, but they've made a very big commitment,' he said. Last week, Trump said US Steel would remain headquartered in Pittsburgh and that the arrangement with Nippon would create at least 70,000 jobs and add $14 billion to the US economy. In Pennsylvania, he said Nippon would invest $2.2 billion to boost steel production at the Mon Valley Works–Irvin plant, where he was speaking. Another $7 billion would go toward modernizing steel mills, expanding ore mining, and building facilities in states including Indiana and Minnesota. The proposed $14.9 billion sale of US Steel to Nippon Steel had previously drawn political opposition from both parties. Former president Joe Biden blocked the deal on national security grounds shortly before leaving office. Concerns about the new partnership remain. The United Steelworkers union (USW), which represents thousands of hourly workers at US Steel facilities, said after Trump's speech that it had not participated in discussions involving Nippon Steel and the Trump administration. 'We cannot speculate about the meaning of the 'planned partnership,'' said USW International President David McCall in a statement. 'Whatever the deal structure, our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members, and the communities where we live and work.' 'The devil is always in the details,' he added. Trump had opposed Nippon Steel's takeover plan during his campaign, but since returning to office, he has signaled openness to some form of investment.
Wall Street Journal
2 hours ago
- Business
- Wall Street Journal
Heard on the Street Recap: On Hold
A federal appeals court temporarily put on hold a ruling that voided President Trump's tariffs. The appeals court said it was pausing the Wednesday decision by the U.S. Court of International Trade until it can hear further arguments. Market reactions were muted, amid signs the global trade war is far from over however the court rulings turn out.
Russia Today
3 hours ago
- Business
- Russia Today
Trump's trade war has cost firms $34 billion
Multi-national companies have suffered $34 billion in losses due to tariffs imposed by US President Donald Trump, according to a Reuters analysis. The measures have disrupted businesses and heightened tensions with Washington's key allies, notably the EU. The report, based on disclosures from 56 firms across the US, Europe, and Japan, attributes the losses to higher input costs, revenue losses, and supply chain uncertainty. Economists have warned the real cost could be far higher, owing to ripple effects including weaker investment, reduced consumer spending, and rising inflation risks. Trump has rolled out sweeping duties since returning to office in January, in the name of protecting US manufacturing which culminated in his 'Liberation Day' tariffs on April 2 that included a universal 10% levy on all imports and a threatened 50% rate on EU goods. 'The Administration has consistently maintained that the United States, as the world's largest economy, has the leverage to make our trading partners ultimately bear the cost of tariffs,' said White House spokesperson Kush Desai. However, data suggests American businesses are footing the bill, while relations with Washington's allies have grown increasingly strained. The EU prepared countermeasures targeting €100 billion worth of American goods, including cars, medical devices, and plastics. After a call between Trump and European Commission President Ursula von der Leyen, the 50% duties were delayed until July 9 to allow room for negotiation. Apple, Ford, Kimberly-Clark, Walmart, and others have warned of rising costs and lowered their own forecasts, blaming Trump's 'erratic' trade approach, Reuters reported. One of the few to endorse the measures is General Motors, which has backed the auto tariffs, arguing they allow US automakers to compete more fairly. Trump has defended his tariff strategy as a way of reshoring jobs and reducing the trade deficit. 'We're going to raise hundreds of billions in tariffs; we're going to become so rich we're not going to know where to spend that money,' he said in March. According to the Tax Foundation, tariffs imposed and scheduled for 2025 are projected to raise $152.7 billion in federal revenue, equivalent to 0.49% of GDP, the largest tax increase since 1993.
Yahoo
3 hours ago
- Business
- Yahoo
See 'Constructive' Capital Markets: Shift4 Incoming CEO
Shift4 Payments incoming CEO Taylor Lauber speaks with Sonali Basak at the 10th Annual Goldman Sachs Leveraged Finance and Credit Conference. They discuss the health of the consumer, the trade war and capital markets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
