August 7, 2025

President Donald J. Trump’s strict and stringent tariff strategy—targeting not only rivals like China and Russia but also long-standing partners such as India—has caused significant economic disruption. The result? A noticeable rise in consumer prices across the United States is affecting households and businesses alike. Initially promoted as a move to protect American manufacturing, the policy now faces criticism for potentially harming the very economy it aimed to strengthen. Labeling major global economies like Russia and India as “dead” may prove counterproductive. Together with China, these three nations account for nearly 45% of global trade. India, in particular, is currently the world’s fastest-growing economy, with its August 2025 growth rate reaching 7.8%, which is well above projections. Please read my blog on the following topics to gain a better understanding of the background behind this blog. Let’s examine how the American economy is responding—and whether the president’s approach is truly helping. Tariff Rates and Their Reach From smartphone components to pharmaceuticals, textiles to auto parts, tariffs ranging from 10% to over 200% have been imposed on imports from multiple countries. These sweeping measures have placed pressure on American supply chains and consumer budgets. The more strained America’s international relationships become, the more tariffs are introduced. Questioning the Rationale Country’s Buying Russian Oil/products One justification for tariffs has been India’s purchase of Russian oil. The US administration suggests this indirectly supports the Russia–Ukraine conflict. But if that logic holds, then Western nations supplying weapons and financial aid to Ukraine must also acknowledge their role in prolonging the war directly. The geopolitical tension between Russia and NATO has existed for decades. Some nations aim to isolate Russia, others seek to weaken its economy, and some profit from arms sales. The US appears to pursue all three. Countries that diverge from this stance often face penalties, such as tariffs or sanctions. Meanwhile, European nations continue to import Russian energy to manage their own crises. Will the US impose similar tariffs on them? Domestic Manufacturing: A Long Road Ahead If the American government’s goal is to produce everything domestically, that is hardly possible in the short run. Building a robust manufacturing base requires: Many essential resources, such as rare earth metals and semiconductors, are not readily available in the US. Without them, inflation is likely to rise. And once prices increase, they rarely return to previous levels. The “Great Again” Question President Trump’s slogan, “Make America Great Again,” implies that America has lost its edge. But globally, the US is viewed as a leading power. Perhaps the real aim of the president is to reduce the national debt, which currently stands at $37 trillion—more than the total economic output of many nations over the past century. If these tariffs are meant to curb spending and boost domestic consumption, Americans must ask: at what cost? Underlying Motives Higher Debt Affecting world’s economies on large scale. Strategic or Self-Serving? Tariffs can destabilize foreign markets. When exports drop, job losses and economic anxiety follow. This scenario often leads to stock market dips—potentially creating buying opportunities for American investors. Could this be a calculated move to benefit American investors or allied nations? If so, it raises ethical questions about market manipulation. Investment Flow and Inflation While tariffs may attract foreign investment through higher interest rates on US treasuries, they also increase debt servicing costs. Inflation is already squeezing American consumers, and domestic investors have fewer opportunities to grow their wealth. Exporters from countries such as India are shifting their focus toward Europe and the Middle East, seeking more stable trade relationships. This shift disrupts supply chains and contributes to rising prices in the US. Healthcare, for example, is feeling the strain. “We used to sell affordable generic medicines to hospitals. Now, with the import duty spike, prices have nearly doubled. Patients are suffering,” says Dr. Martha Collins, a procurement head in Texas. However, when inflation rises, the government may have to increase the interest rates on treasuries and deposits to control inflation. Investors worldwide may invest in the USA’s treasuries due to higher interest rates, resulting in a higher investment flow. However, the catch is that this also increases the debt burden as well as the interest cost. Already, the debt owed by Americans is as high as $37 trillion. How is this beneficial for Americans? Is “Make America Great Again” really working? Will this tariff war truly accelerate US manufacturing? It’s unlikely, given the higher costs of labour, materials, and production. When all six M’s—Men, Money, Material, Method, Machinery, and Marketing—become more expensive, competitiveness suffers. Instead of boosting industry, the policy may be fueling global resentment toward the US. Inflation has surged from 3% to nearly 10% in just three months and may continue to rise. Experts warn that growth could slow further if current strategies persist. Conclusion The primary reason for tariffs on India is its oil trade with Russia. But if that’s considered war-fueling, what about direct arms support from the US and EU to Ukraine? Or their own energy deals with Russia? The American government must grow out of the mindset that, if it is you (USA), it is allowed, but if it is any other country, it is entirely not allowed. The president of the USA must acknowledge that every country has the right to put its nation’s interest first, as the US is trying to do. Is President Trump truly making America great again? Until this tariff war ends, global economic uncertainty will continue—and may escalate. Please don’t forget to comment your views or suggestions in the comment box below.