Tariffs, Trump, and the Illusion of Greatness: A Closer Look at America’s Economic Nationalism

Tariffs, Trump, and the Illusion of Greatness: A Closer Look at America’s Economic Nationalism

📅 By Habtamu Nini Abino

📍 Published: July 31, 2025

Introduction

Now serving as the 47th President of the United States, Donald J. Trump has reintroduced a key pillar of his economic agenda: tariffs. In a widely circulated Truth Social post, President Trump triumphantly declared that tariffs are “making America GREAT & RICH again,” asserting that the U.S. has transformed from a “dead country” to the “hottest” economy in the world in just one year.

Like much of Trump’s rhetoric, this bold and captivating claim warrants a sober and critical examination. Are tariffs truly the engine of America’s resurgence? Or are they a political mirage masking more profound economic distortions?

The Return of Economic Nationalism

President Trump’s worldview has long rested on economic nationalism—a belief that the U.S. has been exploited through globalisation and that the path to national greatness lies in protecting American industries from foreign competition. In his narrative, tariffs are not just tools of trade—they are symbols of sovereignty, pride, and economic justice.

But the reality is more complex. Tariffs are taxes on imports, and their effects ripple across supply chains, consumer prices, and global diplomatic relations. They are rarely neutral and rarely without unintended consequences.

Tariffs as Taxes, Not Magic

Trumpian rhetoric paints tariffs as a cure-all, but they function as regressive consumption taxes that affect ordinary consumers. During Trump’s first term, multiple studies—including those by the Peterson Institute and the Federal Reserve—found that his tariff regime raised costs for U.S. households by hundreds of dollars per year and hurt exporters caught in retaliatory measures.

In 2025, we’re seeing similar patterns:

Auto manufacturers report higher production costs due to tariffs on steel and aluminium.

Farmers face unstable foreign markets as China, the EU, and others retaliate.

Retail prices on electronics, tools, and home goods remain high due to ongoing tariffs on Chinese goods.

While some domestic industries gain temporary protection, the net effect is increased inefficiency, consumer burden, and geopolitical tension.

Tariffs as Foreign Policy Weapons

President Trump is not only using tariffs as economic tools—he’s weaponising them to pursue foreign policy goals. In recent months, his administration has:

Threatened trade penalties against Canada for recognising the Palestinian state.

Expanded tariffs on Chinese high-tech goods, intensifying the tech war.

Signalled a potential review of AGOA benefits to African nations that oppose U.S. policy.

This transactional approach to trade undermines multilateral institutions like the WTO and reshapes diplomacy into a loyalty test. It risks turning the U.S. from a global rule-maker into a unilateral enforcer, alienating long-standing allies and partners.

Is the U.S. Economy Really Booming?

Trump declares that America is now the “hottest country in the world.” Economically, the U.S. has shown strength in 2025—GDP growth is steady, and innovation in AI and clean tech is thriving. But the driving forces of that success are structural, not tariff-induced:

Post-pandemic resilience

High investment in automation, data, and digital infrastructure

Labour market recovery, especially in services and tech

Tariffs may marginally improve trade balances, but do not explain broader trends. If anything, they distort long-term competitiveness by inviting inefficiencies and inflating prices.

Conclusion:

 Between Political Showmanship and Economic Reality

Tariffs may serve as political theatre—loud, visible, and emotionally satisfying—but their real economic outcomes are uneven and often counterproductive. They can protect specific sectors, but they also stoke inflation, harm diplomatic ties, and weaken global economic cooperation.

President Trump’s revival of protectionism appeals to a population frustrated with inequality and economic insecurity. However, real national strength comes not from punishing imports but investing in innovation, skills, resilience, and alliances.

While the illusion of greatness may win elections, only substance and strategy can sustain prosperity.

✍️ About the Author

Habtamu Nini Abino is a legal scholar, author, and former Secretary General of Ethiopia’s House of Federation. He writes on international politics, trade, governance, and constitutional reform. His recent works include The Second Republic and the Politics of Article 39 in Ethiopia and Liberal Democracy and the Constitution of 1994: The User's Handbook.