Tariffs have long been used as a tool for economic policy and US President Donald Trump made them a central pillar of his economic reforms. While tariffs are meant to protect domestic industries, they often hurt local consumers by driving up prices. Wealthier nations may absorb these costs more easily, but in poorer economies, expensive imports can trigger inflation and economic slowdowns. If the US truly wants to embrace “Make in America,” why do American businesses continue to manufacture in China and other countries? The answer lies in cost efficiency. Similarly, India’s “Make in India” campaign has not fully succeeded in attracting large-scale investments or significantly increasing employment. The big question remains: Can American consumers afford domestically produced goods? High production costs in the US make imported goods more attractive, despite tariffs. Beyond trade, Trump also aims to redefine America’s global role. His focus on ending wars could impact the US defence industry, a key economic player. However, history shows that tariff wars are rarely sustainable. Trump’s frequent shifts in policy ” announcing tariffs, then reversing them ” add to global uncertainty.
