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Trump's tariffs & the end of globalization
Ian Bremmer's Quick Take: It is the day after 'Liberation Day,' April 2nd. I'm not sure that day is going to stick. It was good not to do on April 1st. Not only because it's April Fools, but also because you had a couple of key elections in the US, in Florida and in Wisconsin. And Trump clearly wanted to go after that because he knew that these weren't going to be super popular. And yet, this is exactly what he was promising.
He has been promising tariffs. He's been promising securing American borders, securing borders from people coming into the US illegally, also securing US borders from unfair trade practices. And that is precisely what we're seeing right now. Overnight, the United States is moving to having the highest tariffs against countries of any major economy in the world by a very long margin, and also the largest average trade tariff in over a hundred years.
This is a new era. It's a post globalization era. It's a post post-war era. It's kind of the equivalent of what the Brits did with Brexit just on a global scale. Now, why these tariffs and what's behind the percentages? Because Trump's been talking about reciprocal tariffs for a very long time, and yet these aren't reciprocal. There are no countries that have the percentage tariffs on the US that the US is now putting on them in terms of goods. So how did they do that? That's the extraordinary thing, is the calculation wasn't based on the tariffs that are imposed on US goods. Rather, it was a look at the trade deficit that the US runs against those countries and taking the percentage of what the trade deficit is and applying a tariff that would get you to parity. In other words, what reciprocal from Trump's perspective is whatever would actually bring that trade deficit into trade neutrality and then just impose half of that, which makes no sense economically whatsoever.
Why not? Well, first of all, because there are a lot of poor countries around the world that have trade deficits with the US because they can't afford American goods, and the US wants to buy commodities, for example, from those countries or low tech manufacturer like from Bangladesh. And are you angry because the Bengalis aren't capable of buying Teslas from the US or buying smartphones? And the answer is, of course not. And all that's going to be is a tax. The US government will pick up revenue and the Americans will have to pay more for inexpensive goods that the US isn't going to produce. Some cases, these are goods that the Americans not only wouldn't want to produce because the labor quality and cost is really, really low and no one's going to do that work, especially when you're closing borders and taking illegals out of the population. But also, because the US economy couldn't produce them.
I mean, your tropical fruits, I mean some of them can be in the United States, but most of them need to come from other places. Coffee beans, I mean all sorts of things that the Americans are just not going to be substitution effect producing that now are just going to be higher costs for the United States, for average Americans. And then in places where the US was not in deficit, then you're just throwing a 10% tariff against. Why? Is that about fair trade? No, that's just about the Americans wanting to ensure that there are tariffs on absolutely everyone. It reminds me of the January 6th conversation where originally Trump was talking about, "Well, maybe we've got to look more carefully at all the really violent types and we're not going to want to give them amnesty. But there are a lot of people that were treated very badly, very unfairly, and so they should have amnesty and they should be pardoned."
And as the details and the debates on who should and shouldn't get a pardon came out, Trump got sick of the debate, got sick of the nuance, and said, "I'm just giving it to everybody." And I think that's what happened with tariffs. There were debates going on with large numbers of advisors around Trump, right until the last minute and he just said, "Ah, I'm just putting tariffs on everybody." And that's what's happened. And now there will be individual deals that will be cut with a bunch of countries to try to get out of that. But the reality is that the biggest trade partners of the United States, there's no quick fix. Not with Europe, not with Mexico, not with Canada, not with China. And given that, we are clearly not only out of a US-driven globalization era... That's been gone for some time now. Globalization has been moving apace, but the US has not been driving it.
The US had been kind of standing on the sidelines and pushing their own industrial policy. But now you have the United States actively unwinding globalization. And the question will be how effective will other countries be in playing defense, in hedging, and in bringing some production, more production to the United States? Because in the near-term, you expect to see a lot of countries will try to limit the damage that's being done. And the US economy is, of course, stronger and more powerful. So that will mean that a lot of countries won't immediately do reciprocal tariffs, but will try to cut deals with the Americans. A lot of companies will try to find ways to manufacture more in the US. That's near-term.
In the medium and long-term, there will be hedging. There will be efforts to find ways to de-risk their economies from the United States, from the uncertainty, the volatility, the high costs. And sure, you'll want to produce things in the US for US consumers, but most things are not being consumed by Americans. And that is increasingly true around the world. And therefore you wouldn't want to produce most things in the US in that environment. So you'll see more hedging of the Europeans towards other countries, including in some non-AI fields towards China. And I think you'll see that in bigger ways in the Global South who already have their principal trade partners as China anyway.
And then final point is keep in mind that the Americans are not really good at being patient. And Trump has been talking the entire way, not one of the most patient people in the world that, "Look, I mean, yeah, they're going to be costing in the near-term, and I don't care if the cost of cars go up. But long-term, this is good for Americans." And certainly near-term there's going to be a significant economic hit, not just in the stock market, but also in US GDP and also in inflation. And Americans, I suspect are going to be pretty angry about that because Americans are very short-term in orientation. It's a nature of free market capitalism, kleptocratic or not in the US and it's also the nature of the political system.
So that's where we are. A lot to think about on the back of these unprecedented policy moves. And remember, it is a marathon, not a sprint. We are only a couple months in. Trump has four full years, and a lot is going to happen over the course of that administration. And I'll be here to talk to you about it. Thanks a lot, and I'll talk to you all real soon.
What if Japan & South Korea sided with China on US tariffs?
Ian Bremmer shares his insights on global politics this week on World In :60.
If China, Japan, and South Korea formed a united front, what kind of leverage would they have in negotiating against US tariffs?
Oh, if that were to happen, they'd have incredible leverage because China's the second-largest economy in the world, Japan's the third. This would be a really, really big deal. Except for the fact that it's not going to happen. Their trade ministers did just meet, and they've had some interesting coordinated statements. They do a lot of trade together, and they want to continue that. But the fact that the security of South Korea and Japan is overwhelmingly oriented towards the US, and they would not want to undermine that, means that they will certainly not see China as a confederate to coordinate with against the United States, not least on trade. The American response would be belligerent. So no, that's not going to happen.
Will Syria's newly formed transitional government be enough for Arab and Western leaders to lift sanctions and restore diplomatic ties?
I think they are heading in that trajectory. The question is, will it be enough to keep Syria stable and away from descending into civil war? And there, there's a huge question because this is a completely untested government, completely inexperienced, no governance background, very little background in terms of military stability, especially with all of the new members, militias that have been integrated from across a very diverse country. And a lot of internal opponents that are sitting back and waiting to fight. So I'm more worried about that than I am about international support. I think largely the international support they need is going to be there.
Why does Trump want to take Greenland?
I have no idea. Maybe somebody showed him a globe from the top and he saw how big it was, and he's like, "Oh, that'd be kind of cool to have." It's not like there's anything he needs that he can't get directly from negotiating with Denmark. Plenty of willingness to allow the US to have expanded bases, troops on the ground. Plenty of willingness from other countries in the region to do more in terms of patrolling, build more icebreakers to deal with. The Finnish President, Alex Stubb, who just went to see him golfing with him, spent seven hours over the weekend moving in that direction. But you saw from Vice President Vance, he's like, "Well, the President wants it. So of course I got to respond to that." Yeah, but they don't have any reason. And I do think that it is sufficiently blowing up in their faces on the ground in Denmark and in Greenland, that the Danes understand not to make a big deal out of this and it will eventually blow over. It is annoying to them symbolically, but it doesn't matter all that much. In that regard, we can spend a little bit less time on it. Okay, that's it for me. I'll talk to you all real soon.
Why China's Xi Jinping needs Jack Ma
Jack Ma, the billionaire founder of tech giant Alibaba, was once synonymous with entrepreneurship in China. But in 2020, he disappeared from public view after criticizing the country’s financial system amid President Xi Jinping’s crackdown on the tech sector. Recently, however, it seems Jack Ma may be back in the Communist party’s good graces. On GZERO World, Ian Bremmer spoke with China analyst and Sinocism author Bill Bishop about the meaning behind Ma’s apparent reemergence and rehabilitation. He appeared alongside Xi at a symposium for business leaders in February, an indication that the Chinese president is trying to engage with the private sector as he works to revive China’s sluggish economy. But is this a fundamental realignment of Xi’s priorities or a temporary reprieve?
“I don't think there's a lot of people who believe that the Communist Party changed its view of private business, which is they're there to be harnessed and managed and controlled,” Bishop explains “But they understand that they need people like Jack Ma, they're not just the best entrepreneurs in China, they're some of the best entrepreneurs in the world.”
Watch full episode: China’s next move
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).GZERO World with Ian Bremmer airs on US public television weekly - check local listings.
China’s next move
As the Trump administration continues to reshape US foreign policy and retreat from global commitments, does that create an opportunity for China to step in? On GZERO World, Ian Bremmer is joined by Bill Bishop, writer of the Sinocism newsletter, for a wide-ranging conversation on China's political and economic landscape under President Xi Jinping and global ambitions in the wake of Trump 2.0. So far, 2025 is off to a decent start for China—the release of DeepSeek sent tech stocks soaring and Chinese diplomats have cast Beijing as a “steadfast” global partner while the US ramps up criticism of European allies. But China’s economy is still struggling from a property market in crisis, high youth unemployment, and the specter of deflation. So what’s next for the People’s Republic? How strong is Xi's hold on power? Will Beijing benefit from US retrenchment and increasing global uncertainty, or will its domestic issues hold it back?
“One of the big goals of the Chinese over the last several years has been to pry the US and EU apart,” Bishop says, “From Beijing's perspective, Trump has just created more space and opportunity.”
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).GZERO World with Ian Bremmer airs on US public television weekly - check local listings.
Will America's global retreat open new doors for Beijing? Insights from Bill Bishop
Listen: In seven short weeks, the Trump administration has completely reshaped US foreign policy and upended trade alliances. Will China benefit from US retrenchment and increasing global uncertainty, or will its struggling economy hold it back? On the GZERO World Podcast, Bill Bishop, a China analyst and author of the Sinocism newsletter, joins Ian Bremmer for a wide-ranging conversation about China—its domestic priorities, global administration, and whether America’s retreat from global commitments is opening new doors for Beijing.
President Xi Jinping has consolidated power and control in China, but its economy is still dealing with sluggish growth, a property market in crisis, and the specter of deflation. Yet Xi is confident he can bring the People’s Republic into a new era, pushing through major structural reforms, working to transition to a more high-tech economy, and ramping up territorial aggression in the South China Sea. So what’s next for the People’s Republic? Can China shake its economic blues? Has the Trump administration's foreign policy approach created new opportunities for Beijing to expand its influence? Bishop and Bremmer break down China's political and economic landscape.
Subscribe to the GZERO World Podcast on Apple Podcasts, Spotify, Stitcher, or your preferred podcast platform, to receive new episodes as soon as they're published.
What is President Trump's stance on China?
What exactly is President Trump’s view on China? In the first few months of his presidency, Trump has radically reshaped US foreign policy and international relationships. Often, he’s appeared tougher on America’s allies, like the EU, than adversaries, like China and Russia. On Ian Explains, Ian Bremmer breaks down Trump’s complicated views on the People’s Republic, which can be, at times, hard to pin down. Trump had a friendly pre-inauguration call with Chinese President Xi Jinping and often calls him a “brilliant guy.” Yet, in the same breath, he also complains that China “takes advantage” of the US, and his administration says it's pulling back from Europe to focus on security in the Pacific. So where does the US-China relationship go from here? Will Trump cut a deal with Beijing, or will China hawks in Trump’s cabinet, like Secretary of State Marco Rubio, convince the president to be more aggressive?
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).GZERO World with Ian Bremmer airs on US public television weekly - check local listings.
Elon tries to DOGE China
Trump has deployed his most disruptive weapon yet against China. Will it work? #PUPPETREGIME
Watch more of GZERO's award-winning PUPPET REGIME series!
Is President Trump's Russia pivot a win for China?
Is the Trump administration’s rapid shift in diplomatic relations with Russia and push for a ceasefire deal in Ukraine a win for China? On GZERO World, Ian Bremmer asked US Senator Elissa Slotkin for her reaction to the 90-minute phone call between President Trump and Vladimir Putin, a move that upended three years of US-led efforts to isolate Russia from the West diplomatically. Slotkin, a former CIA officer, and Pentagon official warned that China is closely watching how the US handles Ukraine, viewing it as a test of America’s resolve that could have major implications for Taiwan and global stability. The Trump administration has made it clear it doesn’t want to play global peacemaker and that Europe needs to step up to maintain its own defenses. With global power dynamics quickly shifting, will America maintain its leadership role or leave a leadership vacuum for China to fill?
“This is a bigger issue than just Russia-Ukraine. The Chinese are watching everything that’s going on here,” Slotkin says, “They’re watching American staying power. They’re trying to understand if America cares about democracies getting invaded or if they’ll roll over eventually.”
GZERO World with Ian Bremmer, the award-winning weekly global affairs series, airs nationwide on US public television stations (check local listings).
New digital episodes of GZERO World are released every Monday on YouTube. Don't miss an episode: subscribe to GZERO's YouTube channel and turn on notifications (🔔).