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Trump Escalates The Trade War Between China And the United States. His idea is Naive
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Trump has escalated the U.S.-China tariff war to unprecedented levels, launching a bold — some would say reckless — economic offensive. His administration has slapped a staggering 104% tariff on Chinese goods, many of which American consumers rely on daily. Major commodity-exporting nations face tariffs between 25% and 50%, and even the rest of the world isn’t spared, with a universal baseline tariff of at least 10%.
How should we understand Trump’s approach?
What is he truly aiming for with a trade war that seemingly targets the entire globe? To many rational observers, his behavior is simply incomprehensible — bordering on madness. Even if countries like Vietnam were to eliminate tariffs entirely, could they possibly erase their trade surplus with the United States? If Washington forces Vietnam to buy more U.S. energy, soybeans, or aircraft, how much can a small nation realistically absorb? What, then, is the Trump team really trying to achieve?
Recently, Vice President Vance, Secretary of State Rubio, and Trade Representative Jimmy Singler appeared on conservative media platforms, finally shedding light on their strategy. Their true goal? To apply “fix-it therapy” and create a “price breakthrough” within the U.S. economy — a radical application of late-20th-century free-market theory.
This approach, once lauded as the pinnacle of neoliberal economic thought, is also one of the most destructive tools in the economic arsenal. Its core principle is deceptively simple: trigger extreme price fluctuations to force a spontaneous reorganization of a society’s productivity and production relations. The intended outcome? A rapid restructuring and revitalization of the economy.
It sounds elegant in theory — but history tells a darker story. Consider the Soviet Union. Gorbachev, along with Western-advised economists, implemented a similar “shock therapy” approach. The result? Economic collapse, institutional chaos, and the disintegration of a superpower within a few short years.
Likewise, in the late ’80s and early ’90s, another major country experimented with similar reforms. Though it eventually stabilized, it did so at great cost — only thanks to robust government intervention and a massive domestic market that could absorb the shock.
Now, Trump wants to apply this very same theory to the United States itself. His strategy is crystal clear: by imposing high tariffs on Chinese goods, he intends to trigger massive price shifts in the U.S. market. These shocks, he hopes, will force a domestic reconfiguration of supply chains and production structures. But this is not reform — it’s economic delusion. It’s a poison pill being willingly swallowed by right-wing ideologues in a bizarre act of economic self-destruction.
Thirty years of global economic history have already disproven this fantasy. Yet Trump and his inner circle appear to believe that if they inject enough “shock therapy” into America and tear down the old system, a glorious new era will emerge. What they fail to grasp is a fundamental truth of policymaking: no economic strategy works in a vacuum. Success depends on context — on institutions, social cohesion, political will, and economic resilience.
And the United States, in its current state, lacks the foundation to support such radical transformation. Political polarization is extreme. Inequality is widening. Social and racial tensions run deep. The Trump administration has proposed no comprehensive reform plan. Instead, they’ve doubled down on chaos — pursuing extreme tariffs while ignoring the systemic weaknesses tearing the country apart.
Recently, Vice President Vance, Secretary of State Rubio, and Trade Representative Jimmy Singler appeared on conservative media platforms, finally shedding light on their strategy. Their true goal? To apply “fix-it therapy” and create a “price breakthrough” within the U.S. economy — a radical application of late-20th-century free-market theory.
This approach, once lauded as the pinnacle of neoliberal economic thought, is also one of the most destructive tools in the economic arsenal. Its core principle is deceptively simple: trigger extreme price fluctuations to force a spontaneous reorganization of a society’s productivity and production relations. The intended outcome? A rapid restructuring and revitalization of the economy.
It sounds elegant in theory — but history tells a darker story. Consider the Soviet Union. Gorbachev, along with Western-advised economists, implemented a similar “shock therapy” approach. The result? Economic collapse, institutional chaos, and the disintegration of a superpower within a few short years.
Likewise, in the late ’80s and early ’90s, another major country experimented with similar reforms. Though it eventually stabilized, it did so at great cost — only thanks to robust government intervention and a massive domestic market that could absorb the shock.
Now, Trump wants to apply this very same theory to the United States itself. His strategy is crystal clear: by imposing high tariffs on Chinese goods, he intends to trigger massive price shifts in the U.S. market. These shocks, he hopes, will force a domestic reconfiguration of supply chains and production structures. But this is not reform — it’s economic delusion. It’s a poison pill being willingly swallowed by right-wing ideologues in a bizarre act of economic self-destruction.
Thirty years of global economic history have already disproven this fantasy. Yet Trump and his inner circle appear to believe that if they inject enough “shock therapy” into America and tear down the old system, a glorious new era will emerge. What they fail to grasp is a fundamental truth of policymaking: no economic strategy works in a vacuum. Success depends on context — on institutions, social cohesion, political will, and economic resilience.
And the United States, in its current state, lacks the foundation to support such radical transformation. Political polarization is extreme. Inequality is widening. Social and racial tensions run deep. The Trump administration has proposed no comprehensive reform plan. Instead, they’ve doubled down on chaos — pursuing extreme tariffs while ignoring the systemic weaknesses tearing the country apart.
These tariffs — up to 10% on Chinese goods and more on others — are framed as protective measures for American manufacturing. But in practice, they raise the cost of living for ordinary Americans. Low-income families are hit hardest, as the price of daily essentials climbs. Small and mid-sized businesses that rely on imported components face unsustainable cost increases, pushing many toward bankruptcy.
In this environment, there is no “new prosperity” waiting on the other side. Instead, the U.S. faces a downward spiral: runaway inflation, rising unemployment, and mounting social unrest. Trump’s “solution” does not cure the disease — it deepens the wound.
Worse still, the Trump team seems to forget that “fix-it therapy” was never meant for domestic use. It was a strategic economic weapon, designed to destabilize geopolitical rivals — not to be turned inward. Just like the neoliberal models devised in elite Western institutions, these policies were typically exported to developing countries to undermine their sovereignty and bind them to the global system as subordinate players.
Trump, it seems, has wandered into the White House’s cold war archive, found a bottle labeled “Fast Cure for Global Rivals,” and, in a moment of delusion, decided to administer it to his own country. It’s economic masochism — an act of self-inflicted harm dressed up as strategic genius.
In this environment, there is no “new prosperity” waiting on the other side. Instead, the U.S. faces a downward spiral: runaway inflation, rising unemployment, and mounting social unrest. Trump’s “solution” does not cure the disease — it deepens the wound.
Worse still, the Trump team seems to forget that “fix-it therapy” was never meant for domestic use. It was a strategic economic weapon, designed to destabilize geopolitical rivals — not to be turned inward. Just like the neoliberal models devised in elite Western institutions, these policies were typically exported to developing countries to undermine their sovereignty and bind them to the global system as subordinate players.
Trump, it seems, has wandered into the White House’s cold war archive, found a bottle labeled “Fast Cure for Global Rivals,” and, in a moment of delusion, decided to administer it to his own country. It’s economic masochism — an act of self-inflicted harm dressed up as strategic genius.
In the end
Trade wars are not merely battles over tariffs and trade balances — they are tests of national strength, cohesion, and vision. In this long-term contest, China has shown remarkable strategic patience, a resilient domestic market, and a flexible, innovation-driven industrial structure.
Trump’s tactics, by contrast, resemble a self-destructive performance art piece — all drama, no strategy. So buckle your seatbelts. We are about to witness an even more dramatic showdown. On one side, Trump is casting suicidal economic spells, poisoning his own map in hopes of reshaping it. On the other, his challengers respond methodically, step by step.
As for who will prevail? History — and time — will soon provide the answer.
Trump’s tactics, by contrast, resemble a self-destructive performance art piece — all drama, no strategy. So buckle your seatbelts. We are about to witness an even more dramatic showdown. On one side, Trump is casting suicidal economic spells, poisoning his own map in hopes of reshaping it. On the other, his challengers respond methodically, step by step.
As for who will prevail? History — and time — will soon provide the answer.
