Trump tariffs and US Imperialism

In the section on “fair trade,” Navarro—Trump’s key pro-tariff advisor in both administrations—concludes that “America gets fleeced every day in the global marketplace, both by a predatory Communist China and by an institutionally unfair and nonreciprocal WTO.” Focusing on the large trade deficit by which the US imports significantly more than it exports, he asks: “Might America even lose a broader hot war because it sent its defense industrial base abroad on the wings of a persistent trade deficit?” The answer, for Navarro, is clear: tariffs are imperative to “restore American greatness, both economically and militarily,” by bringing manufacturing back home. Unlike Navarro and others who see the trade deficit as the central existential threat to the US, the authors of the so-called Mar-a-Lago Accord are primarily concerned with what they regard as the gross overvaluation of the dollar. “As the economic burdens on America grow with global GDP outpacing American GDP,” Miran writes, “America finds it more difficult to underwrite global security, because the current account deficit grows and our ability to produce equipment becomes hollowed out.” Hence, the push for policies that “recapture some of the benefit our reserve provision conveys to trading partners and connect this economic burden sharing with defense burden sharing.” Even so, the “User’s Guide” issues a sharp warning against disruption and volatility: “There is a path by which the Trump Administration can reconfigure the global trading and financial systems to America’s benefit, but it is narrow, and will require careful planning, precise execution, and attention to steps to minimize adverse consequences.” Naturally, the preposterous tariffs that Trump unveiled on April 2 (reputedly dreamed up by Navarro) run directly counter to these cautious recommendations—leaving Bessent and Miran to bluster about the President’s “extraordinary negotiating skills.” As the markets melted down and Trump threatened to sack the chair of the Federal Reserve while ramping up attacks on China, Bessent increasingly found himself in the awkward position of having to leash the rampaging orange bulldog.

Author: Gillian Hart

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