Trump's Tariff Resurrection Sparks Fears of Ineffective Economic Warfare

US President Donald Trump has resurrected 'zombie' tariffs, imposing steep reciprocal taxes on various nations. In April 2025, Trump announced tariffs ranging from 20% to 46% on countries like China, the EU, Vietnam, Japan, and Korea. The initial justification was to reduce trade deficits with trading partners, but subsequent reasons included punishing Mexico and Canada for not combating narcotics smuggling and controlling immigration.

Trump's tariff campaign has been met with criticism from economists, who argue that tariffs are ineffective at correcting trade imbalances or boosting manufacturing. Nobel Prize-winning economist Paul Krugman described these tariffs as 'zombie tariffs', those that should be dead due to their unclear legal grounds but continue shambling along.

The Trump administration's methods have been erratic and unpredictable, making it difficult for companies to plan investments. The trade war has led to higher costs for imported goods, placing a heavier burden on American consumers and companies. Even the US' dominant position in the global economy is not sufficient to weaponize tariffs effectively, as access to the US market needs to be a sine qua non for trading partners.