Photo: Telegraph
Donald Trump’s high-profile tariff war against China has turned into a demonstration of political weakness and economic incompetence. According to the Financial Times, after several days of market panic, the US president was forced to roll back some of the duties imposed on Chinese goods under intense pressure from the business elite.
First of all, it is about the cancellation of tariffs on smartphones, computers, chips and other critical electronics, the import of which to the United States is almost entirely dependent on China. For example, the share of Chinese smartphones in the US market is over 80%.
It was the fear of an immediate blow to the pockets of American voters that forced the Trump administration to abruptly change course.
According to the Financial Times, in private conversations, businessmen called the US president’s actions a “political mistake”, “utter stupidity” and a threat of an “economic nuclear winter”.
This is further proof that Trump is not a thoughtful strategist or a bold reformer – on the contrary, he acts aggressively and chaotically until he faces a real threat of losing power or the support of influential elites.
The FT emphasises that the Trump administration is destroying the basic rules of doing business in the US, and companies are forced to manoeuvre between the demands of the authorities and their own reputational risks.
In addition, the story of the tariffs showed that American business is ready to remain silent and adapt to authoritarian tendencies only to a certain extent. When the threat becomes direct and financially tangible, the rules of the game change instantly.
The Financial Times ‘ conclusions send a clear message: The United States of 2025 is not yet Russia or Germany of the 1930s, but the political logic of corporate behaviour there is becoming increasingly similar to examples from authoritarian regimes of the past.
And so far, the main conclusion for business is simple: Trump is dangerous for the economy until he is forced to step aside by those whose money forms the real power in the US.
