US President Donald Trump recently announced an economic emergency and tariffs on almost all US trade partners on what he called “Liberation Day.” These tariffs are set to spur a new trade war and further impinge on the United States’ global hegemony.
The United States is already suffering to sustain its global hegemony due to the rapid rise of Russia, China, and the middle powers. Since the culmination of the Cold War, the United States has been exercising its hard power over third-world countries. From North America to Africa and Asia, numerous third-world countries are victims of US economic and military violence. For over two decades, the United States acted as the global policeman, rupturing its international image.
The US support of the Israeli war crimes and genocidal operations in Gaza have further tarnished its image as a superpower. The US government vetoed multiple UN resolutions demanding a humanitarian ceasefire in Gaza. Moreover, the US support of Ukraine’s provocation of Russia has exposed its agenda and its policy of inciting wars and conflicts to strengthen its war economy.
Trump’s Tariff Policies and Their Global Impact
The United States has long used dollar hegemony to influence poorer countries, imposing sanctions on those who do not comply. Iran and Pakistan are among the prime examples of economically hit countries by the United States. The latter has also used the Breton Wood System to influence the foreign policy decisions of third-world countries. It uses institutions like the IMF and the World Bank to dictate to poor nations, sparking global agitation and dissatisfaction against the United States.
This created a negative perception of the US among the citizens of third-world countries. The Trump administration’s recent tariffs on almost all of the US trade partners have further exacerbated the situation. Trump’s tariffs will not only hurt the poor economies but will also increase inflation within the United States. China is one of the largest trading partners of the US. However, the two countries are also competing for global dominance. The United States has the largest trade deficit with China, standing at $295 billion in 2024, followed by the European Union, at $235 billion.
The US and Its Strategic Allies: Tariffs and Retaliation
The United States has imposed significant tariffs on both of these partners. The Trump administration has imposed a 34 percent tariff on Chinese imports to the US and a 20 percent tariff on the EU, a key US ally for decades. Many European countries and China have vowed to retaliate to these tariffs, sparking fears of a new trade war and global inflation. The US government has not even exempted its strategic allies.
Taiwan and India, the two most significant US allies in the region, also became victims of these new trade tariffs. The US government imposed 32 percent and 26 percent tariffs on Taiwan and India, respectively. 24 percent tariffs are also imposed on Japan, another significant US ally and regional proxy against China. Ukraine is also hit by these tariffs. The US has imposed 10 percent trade tariffs on the Ukrainian goods, further crippling the Ukrainian economy.
The US officials claim that these tariffs will lead to increased domestic production and consumption, which will result in a higher employment rate in the United States. They further argue that this move will take some time to show a positive impact on the US economy. The US Vice President J.D. Vance has stated, “We know a lot of Americans are worried, what I’d ask folks to appreciate here is that we are not going to fix things overnight.
However, analysts and experts around the world believe that this move will spark an unprecedented reaction from all the countries around the world, increasing the risk of a recession and inflation in the United States. They maintain that this move will have a devastating impact on global trade. They have warned that this US move could hurt corporate businesses and upend the global supply chains. Ursula von der Leyen, the Chief of the European Union, has stated, “The consequences will be dire for millions of people around the globe.”
President Trump’s unpopular and dim-witted decisions are already hurting the US businesses. People around the world are boycotting US products, including McDonald’s, Coca-Cola, Tesla, and Netflix. Reports suggest that Tesla’s sales plunged 49 percent in the first quarter of 2025 in Europe due to the Trump administration’s reckless decisions. Tesla stores have also been vandalized in many European countries.
The Erosion of US Global Hegemony
This portends the impact of the new tariffs imposed by the Trump administration on the country’s trade partners. Trump’s decision has garnered significant backlash from all the allies and rivals. His impetuous move to ignite a new trade war will only accelerate the decline of the US global hegemony. China and Russia are the two major economic giants of the world. Both countries are vying to unleash a new, multipolar world order. Their inclusive policies have already diminished the US influence over the globe.
Moreover, the expansion of BRICS has provided third-world countries with an alternative to the US-backed pseudo-liberal institutions. The developing world already views Russia and China as more reliable allies than the US. They are already vying to introduce a new global currency and decrease global dependence on the US dollar. Trump’s move has made it easy for these two new superpowers to introduce the BRICS currency and alter the US-led world order. Undoubtedly, the Trump administration is merely leading the US into diplomatic isolation.
Abbas Hashemite – is a political observer and research analyst for regional and global geopolitical issues. He is currently working as an independent researcher and journalist
