Trump: "Other countries impose tariffs... We must impose them too to survive"
Summary
- President Trump argued that imposing tariffs is essential for the United States' economic survival.
- He announced that the U.S. will maintain its open market and the dollar's reserve currency status while also keeping its tariff policies.
- This could suggest potential changes to the United States' economic leadership and free market principles.
U.S. President Donald Trump reiterated his claim that the United States must impose tariffs because other countries are doing so.
On the 3rd (local time), President Trump wrote on Truth Social, "Other countries have been allowed to impose tariffs on the U.S., but if we are not swiftly allowed to retaliate with tariffs, then our country has no chance of surviving economically. Not even the slightest chance." he argued.
Trump's supporters are backing his stance by creating various memes about why tariffs are good for the American economy. For example, they say, "If tariffs are so bad for the economy, why do other countries impose them?" or "Trump tariffs will replace federal income tax, revive manufacturing, strengthen the dollar, and usher in a new era of prosperity," and so on.
According to the Trump administration's argument, the U.S. can also impose tariffs through legitimate procedures. However, after World War II, under the Bretton Woods system, the U.S. lowered and opened its market barriers to secure the status of the U.S. dollar as the global reserve currency, thereby ensuring its leadership in the world, a position it has maintained for more than 70 years.
During this time, the U.S. has acted as a proselytizer of the free market economy, urging other countries to lower their barriers and remove tariff walls. International organizations such as the International Monetary Fund (IMF), the World Bank (WB), and the Organisation for Economic Co-operation and Development (OECD) were formed around the U.S., and they have played an active role in promoting U.S. values and 'one market economy' to the world.
President Trump's argument means that the U.S. intends to maintain this leadership role and the dollar's status as a reserve currency, but abandon the responsibilities that came with such arrangements. It also sends an ambiguous message about leadership competition with other major powers such as China and Russia.
Washington = Sang-Eun Lee, Correspondent selee@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
