Donald Trump's imposition of tariffs at the beginning of his second term as US President is causing strong reactions and shocks in the global economy. Trump, aiming to address the huge US trade deficit, imposed tariffs on imported products from various countries, mainly China and the European Union.
Trump believes that the US trade deficit, which is approaching one trillion dollars, is unsustainable and poses a huge threat to the American economy and independence. He believes that tariffs are necessary to protect American businesses from unfair competition and to create jobs in the United States. Trump understands that what is happening with trade cannot continue. If it continues like this, the store will go bankrupt, to put it simply.
The U.S. trade deficit is the result of the country importing far more goods and services than it exports. This means that the U.S. spends far more money buying products from other countries than it earns from selling its own products to those countries. The difference in the balance is a trillion dollars a year.
Here's something interesting: The entire debt of the American government is equal to the sum of its trade deficits over the last 30 years. Because, as is the case in Greece, the government borrows money and then lends it to individuals and businesses, who use it to buy imported products.
But is it just tariffs?
Tariffs are only one part of the bigger picture of international tradeThe real question is not just about the level of tariffs, but also about the ease with which products can move from the producer in one exporting country to the consumer in the other importing country. Bureaucracy, delays at ports, and various taxes along the way can significantly increase the cost of products and discourage one country from exporting to another. So the question is not just whether China has more tariffs on America or whether the Americans put more tariffs on China or the European Union. The real question is how easy it is to sell a product that leaves port A and goes to port B, and how much more expensive it is for the consumer in port B compared to the consumer in port A.
The Impact on Consumers and Businesses
Tariffs and other trade distortions have a direct impact on consumers, who pay higher prices for imported goods. They also affect companies like Apple, which makes most of its products in China. But let's look at what happens here: when a major manufacturer like Apple, which sells products in America, has 90% of its factories in China and brings its products from China to America, there's a problem. So what does Trump do? He rocks the boat, and when you rock the boat, you put in the effort and really cause a stir, enough to force a company like Apple to bring many of its factories in China back to America.
Uncertainty and the Tremors
The tariffs imposed by Trump have created uncertainty in the global economy, causing shocks in markets and trade relations between countries. The outcome of this policy is still uncertain, as it depends on many factors, such as the reactions of other countries and changes in the global economy.
Geopolitical Dimensions
Beyond the economic impact, the US tariffs also have geopolitical dimensions. The trade war with China and the European Union has affected relations between countries and new alliances and rivalries have been created. However, there are many factors that make up this puzzle: producers, traders, politicians, and generally people who have interests − the Western elite has many interests in China because it has gained a lot from it. So you don't know exactly where the boat will go. What I can say for sure is that Trump is rocking the boat to see what can happen and what can be done to change the situation. Namely: a) the huge deficit in the US trade balance, b) the fact that the US is hugely dependent on other countries, especially when it comes to basic products, such as medicines from China. This problem, of course, is shared by the entire Western world, which is resting by living on loans and selling land and water to populations in other countries, while thinking it is having a good time, at least for the time being.
The Complexity of Tariffs and Trade
It is important to understand that tariffs are only one aspect of the larger problem in trade. When we refer to tariffs, we usually mean the additional cost imposed on a product when it is imported. For example, a product that costs 100 euros at the port of origin may be subject to a 50% tariff when imported into another country, increasing its price to 150 euros. However, this is a simplistic approach. And it is one thing. The other thing is: how easily can this product get to the consumer, to its destination. In other words, it is not enough to consider only the level of tariffs, but also the ease and speed with which the products are moved. Because blocking products along the way, as many countries do, is another kind of “tariff”. This is how many countries operate, especially when it comes to American products. That is, in many countries, to get an American product, you have to wait and you will pay a high price for it, and this happens because many countries, while they want to sell their products in the American market, do not want to import many from America.
In this context, bureaucracy, delays and various taxes can significantly increase the time and cost of transporting products. A product imported into China can be delayed for months at customs due to bureaucratic procedures, either accidentally or intentionally, increasing its costs and reducing its competitiveness.
Fair Trade: An Alternative Proposal
In contrast to free trade, which I consider an oxymoron due to the different laws and production conditions between countries, I propose fair trade as the most correct and sustainable solution (see the book "Intelligence - Its 65 Characteristics", where I propose it). Fair trade seeks balance in trade between countries, taking into account their differences and promoting mutual benefit. For example, Germany can send tourism to Greece, generating revenue of one billion, so Greece can buy German products of the same value, creating a balanced trade relationship. And we are not talking about absolute balance, at 100%, let it be approximate, but that there be some balance in trade and that we do not import more than we export.
Impacts in Greece and the need for Fair Trade
The tariffs imposed by Trump, although they did not have a huge impact on Greece, created a climate of uncertainty and possibly indirectly affected certain export sectors. But the main problem for Greece is not Trump's tariffs. The main problem is that Greece has been buying more than it sells for decades. For this reason, the need for Greece to turn to fair trade is imperative, that is, reducing Greek imports and boosting exports. And other improvements are needed. The "bureaucracy" that exists in Greece, and specifically in banks, discourages investment and development. Of course, I believe that this is done intentionally or unintentionally. (On my Facebook page you can find and download my article "99% of Greeks do not have access to 95% of Greece's wealth"). The need to provide incentives for the creation of factories in Greece is important, in order to strengthen domestic production. Finally, to address the problem properly, Greece must focus on its internal problems, and not throw the ball elsewhere with the excuse that the cause of everything is global problems. No country in Europe has shrunk as much as Greece in the last 15 years, so our problems are not “global”. They are purely Greek.
You will say to me: “Yes, but how will this balance change if we can't?” We can do everything, everything is a matter of knowledge, and that is what I offer in my books.
An example: In my company I have over 100 computers that work on average 20-30 hours a week. If I don't have money but I have to "import" more computers, then, instead of "importing" more computers, I find a way and use my computers 60-80 hours a week or more.
Conclusions
Trump, by imposing tariffs, is attempting to reshape US trade relations and protect the American economy. However, tariffs are only one part of the complex picture of international trade. Facilitating trade, reducing bureaucracy, protecting intellectual property and promoting fair trade are equally important issues. The effects of these tariffs will continue to affect the global economy and geopolitical relations for years to come, but it was probably time for some shaking, because otherwise the boat would sink. In general, I am of the opinion that the Western world needs to wake up, and quickly, because otherwise it will be left far behind. Let alone losing individual freedoms every day. War today and oppression are done by impoverishing people. As a side note, in socialist Europe of no growth, none of its 100 largest companies have been created in the last 100 years. That is, they were created over 100 years ago. Think about it. Large and established European companies use socialism to stop potential competition from new ones, especially from their own executives, who in a freer market would start their own companies to compete with the old ones.
I personally believe that the more trade we do with other nations, the more peacefully we coexist and the more we rise, both economically and spiritually as people. But trade must be fair, and that way the majority wins, not just the few.
When it comes to the media and the way they cover the shockwaves caused by Trump's policies, it's not all that fair. The media is trying to sell information to the world to make money. So it's easy for a totalitarian regime like China to buy up the information they provide, and we in the supposedly more democratic countries eat the crap that the Chinese feed us through our own information centers.
For example, how many Europeans know that Trump started putting pressure on China in 2018? And that in 2018, a quarter of America's imports came from China? After the pressure exerted by Trump, which continued under the Biden presidency, today, in 2025, the percentage of American imports from China is only 13%.
During this period, the Chinese Stock Exchange bottomed out, returning to the level it was at 20 years ago. And also during the same period, the coronavirus “mistake” occurred in a Chinese laboratory. What does all this have to do with each other? Was it a distraction? I can’t know, I only write what I see and learn. I write things that others don’t write either because they haven’t done the necessary research or because they can’t draw any other conclusions than what the media serves them. You, the reader, draw your own conclusions.
photo TheDigitalArtist, https://pixabay.com
