President Trump’s Tariff Threat and Its Implication for Global Trade and Development

Abstract

This study evaluates the aggressive tariff policies of President Donald Trump and its effects on the global trade and development. As a result of the ideological paradigm of economic nationalism, the Trump administration took a confrontational stance towards international trade, directed to such major economies as China, the European Union, and Mexico. This paper examines the reasons why these policies were implemented, the upheavals they brought about and the implications of these to the overall governance of the global economy. Based on the qualitative analysis, case studies, and secondary data sources of WTO, World Bank, and IMF, the research investigates how the threat of tariffs had impacts on global supply chains, changed trade partners, and challenged the multilateral trade system. The results indicate that although certain domestic industries benefited in short-term, the uncertainty and retaliation strategies led to the derailment of global progress particularly Global South. The paper finds that the unilateral tariff threats undermine trust in institutions of trade, increase economic instability and that changes are required to have a more inclusive global trade framework.