America is diminished

America is diminished since Donald Trump took office: his bullying and capriciousness have trashed its reputation and harmed its economy.

Heather Cox Richardson has described Trump’s attitudes:

“Now Trump is demonstrating his power over the global economy, rejecting the conviction of past American leaders that true power and prosperity rest in cooperation. Trump has always seen power as a zero-sum game in which for one party to win, others must lose, so he appears incapable of understanding that global trade does not mean the U.S. is getting “ripped off.” Now he appears unconcerned that other countries could work together against the U.S. and seems to assume they will have to do what he says.”

She points out that there is increasing concern and dissent within the Administration and the Republican Party, but Trump is gloating: “These countries are calling us up. Kissing my ass,” he told them “They are dying to make a deal. “Please, please, sir, make a deal. I’ll do anything. I’ll do anything, sir””.

Economic uncertainty

Trump’s style, as previously described on this website, is to set up a bargaining situation in which he believes that he can make a better deal than anyone else.  He announced a wave of new ‘reciprocal tariffs’ on 2nd April, describing it as ‘liberation day’; these included 20% on the EU, 54% on China, plus an additional 25% on all cars.  He was particularly targeting countries with which America has a trade deficit, in a bid to reverse globalisation and bring jobs back.  These tariffs sent financial shockwaves around the world, with the Dow Jones Index dropping 1600 for example.

A week later he changed tack: Trump freezes all tariffs at 10% for 90 days – but raises them again on China.  The 90-day delay was to allow more time for other countries to negotiate. “President Trump created maximum negotiating leverage for himself” according to his Treasury Secretary, but China had not wanted to negotiate under duress.

In the subsequent tit-for-tat tariff increases, culminating in America charging 145% and China charging 125% on each other’s goods, Beijing is not backing down: “it doesn’t have to …Before the tariff war kicked in, China did have a massive volume of sales to the US but, to put it into context, this only amounted to 2% of its GDP.”

America is diminished by its high-handed behaviour towards other countries, and by its sudden changes in policy.

Political uncertainty

America’s commitment to defend Europe has been thrown into doubt, as the BBC described How Putin and Trump shook up the world in a week: “It is a week that has upended traditional alliances, left Europe and Ukraine scrambling to respond, raised fears for European security and put Russia where it wants to be: at the top table of global politics, without having made any concessions to get there.”

America’s politics are deeply polarised.  Successive presidents sign executive orders to overturn the decisions and agreements made by their predecessors:

●  Donald Trump signed a series of executive orders in 2017, overturning Barack Obama’s policies.

●  Four years later, Joe Biden signed 15 executive orders on his first day in office to reverse Trump’s policies.

●  And in his second term, Trump says he’ll roll back Biden executive actions: “I’ll revoke nearly 80 destructive and radical executive actions of the previous administration”.

America is diminished as a moral beacon

The U.S. was a pioneer in the establishment of Universal Human Rights, which included the concept that every human being on the planet should have food, shelter, medical care, and education.  America has given generously to those in need since The Second World War, but this is no longer the case: with the US ‘officially cancelling 83%’ of USAID programs “as the Trump administration seeks to reorient its approach to foreign policy and government spending”.

Trump’s tariffs could be death knell for US-Africa trade pact, affecting some of the poorest countries in the world (but any expressions of their concern would merely feed his sense of wielding power over them).

There is now little difference between the aims of America’s, Russia’s and China’s leaders.  They are each trying to increase their country’s territory and influence:

●  Trump wants to “make America great again”. As reported by CNN, Trump’s threats to Greenland, Canada and Panama explain everything about America First: “His attitude …embodies the “America First” principle of using US strength to relentlessly pursue narrow national interests, even by coercing smaller, allied powers.”

●  As reported by Reuters: “President Vladimir Putin famously dubbed the 1991 dissolution of the Soviet Union the greatest catastrophe of the 20th century and he and many Russians have long lamented the blow its demise dealt to Moscow’s great power status.”

●  Professor Steve Tsang is quoted as saying of President Xi that “He is a man with a mission, and the mission is to make China great again in the mythical path of China.”  And Xi says no one can stop China’s ‘reunification’ with Taiwan.

Consequences

As Robert Reich has observed, Trump’s tariffs will be paid by the poor – while his tax cuts help the rich: “It will be a giant upward transfer of wealth.”  Trump and his fellow billionaires will benefit at the expense of less wealthy people.

As pointed out by The Economist, America can never be seen as a reliable trading partner after Trump’s behaviour.  And the magazine’s Economics Editor pointed out that prospective investors need certainty, which they no longer have.  It could take a generation to restore trust.

People are showing their dislike of America.  For example: Canadians and Danes are boycotting American goods and Foreign Travelers Are Rethinking Travel to the U.S.  And some Americans worry about being disliked: ‘It feels terrifying:’ Why some Americans are anxious about traveling abroad under Trump.

China is seizing the opportunities presented by America’s unpopularity.  As Trump alienates allies with US tariffs, China is poised to exploit the gaps: “As Trump preaches protectionism, China is sending a starkly different message: Its markets will only open wider, and the world can count on China for much-desired stability.”  China will strengthen its trading relationships with other countries for their mutual benefit.