Karachi:
In the driveway to the US presidential election, Donald Trump advanced sweeping trading dollars for foreign goods as a magical wand that will help “make America great again” by earning billions of dollars in revenue, spuring industrial growth and creating millions of jobs. Policy repeated a debate on trade protectionism, economic nationalism and health in the world’s largest economy. Trump followed through on his promise after returning to the White House and announcing unprecedented tariffs on both friends and enemies through executive orders.
It was no coincidence. The policy involved a strategic approach based on trade balances and security conditions. Countries with US trade deficits and defense ties, like Australia, received 10% duties. Japan and South Korea stood despite having similar security allians over 15% due to greater profits. The rest of Asian nations were beaten with average tariffs of 22.1%, though those who were willing to negotiate – such as Pakistan, Thailand, Indonesia, Malaysia and the Philippines – secured a “discount” rate of 19%. The most surprising victim of Trump’s tariffs was America’s strategic allies India, facing 50% duties – the highest after Brazil – to refuse to stop buying crude oil from Russia.
Trump seems to have gotten over in the Customs War, as most of America’s trading partners – including the European Union – ultimately accepted unfavorable terms of trade, on duty of financial retaliation and the risk of losing access to the lucrative US market. Even Canada, who originally responded with retaliatory gums, has begun to scale back some of them. China, the most important goal of Trump’s customs strategy, however, refused to give in and responded with significant counter-goals. This standoff prompted Trump to declare two consecutive 90-day “Truces” as both nations continue to negotiate a compromise.
While Trump may have won the round of the trade war on the diplomatic front, the financial goals he sought remain largely unfulfilled. The US president’s relocation may not have set up the international financial system that analysts feared earlier, recent data reveals that the customs strategy is driving inflation, disrupting supply chains and stopping the labor market at home – consequences that affect US workers and consumers the most difficult.
Trump tried to protect American jobs, especially in manufacturing, by incenting domestic production and deterred imports by making foreign goods more expensive through customs. Such measures claim supporters can restore industrial hearts that are eroded by globalization, but critics say the financial costs of tariffs dwarves their benefits.
One of the immediate consequences of tariffs has been a visible increase in prices throughout America. According to the Consumer Index (CPI) report (CPI) in July 2025, total prices increased by 2.7%with food costs alone climbing by 2.9%. Much of this inflation is attributed to customs for both agricultural and industrial imports. This price increase is not limited to food; Other consumer goods, including electronics and cars, have also become more expensive, disproportionately affecting Americans with low and intermediate income who spend a greater part of their income essentially.
If Trump’s economic logic is to trust, the US would expect a robust job growth – especially in industries that are directly targeted at protection. However, US media reports tell the opposite story: Job creation has almost stopped since the beginning of 2025. While unemployment remains low, fresh employment has subsided and the most important industrial sectors are fighting. The July Report in July 2025 indicates a net benefit in jobs, but it fell under expectations and revealed retirement in manufacturing and construction, the sectors that, according to Trump’s calculations, should benefit from customs duties.
Trump’s tariffs were bound to relieve retaliation. And that’s exactly what happened. The US president managed to bully some countries to accept adverse offerings, but America’s three most important trading partners – China, Canada and Mexico – responded with targeted measures against American agriculture, technology and manufacturing sectors.
As a direct result, US exporters are now struggling to remain competitive in markets abroad and build additional pressure on the workers themselves, which Trump claims to protect. Similarly, US farmers have seen a dwindling demand for soybeans, pork and dairy exports, leading to agricultural closures and a growing dependence on federal subsidies to remain fluid.
An March 2025 analysis of CNBC indicates a broad consensus among economists, both conservative and liberal, that Trump’s tariffs will be unlikely to provide sustained economic benefits. These economists claim that customs rates act as a regressive tax affecting households with lower income hardest. Their assessments predict a long -term feature of GDP and a net loss of jobs, especially when taking into account a retaliatory post. While some industries may experience modest employment gains, these are expected to be offset by loss of jobs in other sectors, especially those that depend on imported input or export markets.
Politically, Trump’s tariffs offer a simple message: “We’re doing America well again.” But the sharp economic reality is far more complex. While trying to protect US industries, customs have instead exposed the economy’s vulnerability to global shock and its dependence on imports for both consumer goods and industrial input.
In addition, many manufacturers appear to be absorbing the cost of customs by passing them on to consumers or cutting corners elsewhere, reducing working hours, freezing employment or cutting investments in growth. This feedback -loop – higher prices, reduced investments, slower employment – creates the conditions for economic stagnation, not resuscitation. Wall Street strategists are already warning that the US economy is driving against stagflation. Data suggests a nearby period of sticky inflation and slow economic growth, according to analysts.
Instead of clinging to outdated models of economic nationalism, Trump demands a forward-looking strategy that tackles globalization disturbance, while the economic dynamics and shielding everyday Americans from undue difficulty. As implemented, customs rates are not that strategy; They are a short -term political tool with long -term financial costs.
While Trump seems relentless to pursue his customs strategy, the US court may be able to offer a glimpse of hope. Last week, a federal appeal court struck several of his tariffs and gave up that he was illegally leaning on emergencies to impose import duties. The court found that the International Law on Economic Powers does not approve the type of tariff rates introduced by Trump earlier this year, thereby maintaining a lower court decision against them.
However, the White House defended the president’s powers when court lawyer Pam Bondi said the administration will appeal the decision. Attention is now turning to the Supreme Court, which will give the final judgment.
The author is an independent journalist with special interest in Pakinomist -economy
