Tariffs as a tool for war preparation

Let me remind you that the U.S. trade deficit has existed for decades, and the U.S. national debt last equaled zero back in the 1830s, 200 years ago.

The purpose of high tariffs is to make other countries impose similar tariffs. It sounds crazy, but it’s true. Trump’s tariff wars will result in American companies losing export markets, and in order to compensate for the losses, they will fight for the U.S. domestic market, pushing out exports.

Given that high tariffs limit international trade and make it unprofitable, production will return to the United States.

Bringing manufacturing back to the U.S. is the main goal of the U.S. leadership. Because when you're at war, you can't rely on trade partners; you need domestic production so you're independent and strong.

A great example here is Ukraine. At the start of the large-scale invasion, it didn’t have enough domestic production, so it had to ask for practically everything—from helmets and bulletproof vests, first-aid kits and tourniquets to howitzers, drones, and planes—from around the world.

And now, when we're being urged to capitulate on Putin’s terms, Ukraine really has few trump cards to defend its interests because the Ukrainian industry is not capable of carrying the war.

America doesn’t want to find itself in Ukraine’s position, which is why it’s trying to bring production back to the U.S. I’m not sure if Trump’s approach will succeed, but the main point here is not the economy, but the war.

The world is heading toward World War III, and strategically, this is in Ukraine's interest. Because, for now, the Ukrainians are the only ones fighting against the barbaric half of the world. It would be nice to share this burden with other states.

*Published with the author's style preserved

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About the author. Serhiy Marchenko, labor market expert, blogger.

The editorial team does not always share the opinions expressed by blog or column authors.