Trump’s Trade Tariffs: A New Plan to Fix an Unfair Global System

The US says it's fighting back against trade rules that favour other countries – but is it fair?

US President Donald Trump and his team believe that the global trade system is broken — and that tariffs are the way to fix it. According to Peter Navarro, one of Trump’s top trade advisers, the current rules leave the US at a disadvantage, and the new tariff policy will help create a level playing field.

What’s the Problem With Global Trade?

Navarro argues that under the current system, the US has been treated unfairly for decades:

• The World Trade Organization (WTO) forces the US to give its best trade terms to all member countries, but other countries can still keep their own tariffs high.
• The US faces a trade deficit of over $1 trillion a year, meaning it imports far more than it exports.
• Since 1976, the US has sent over $20 trillion in wealth overseas due to trade imbalances.

This, he says, has led to job losses, lower wages, and foreign control of key US industries.

How Do Tariffs Help?

Trump’s “reciprocal tariff” policy means that the US will now match the tariffs that other countries place on American goods.

• If a country charges 25% on US exports, the US will now do the same to their imports.
• The aim is to pressure countries into lowering their trade barriers and treating American exports fairly.

Navarro says this is not about punishment, but about fairness — charging other countries what they charge the US.

More Than Just Tariffs: The Hidden Barriers

Beyond tariffs, many countries use what are called “non-tariff barriers” to block US goods:

• Currency manipulation
• Unfair product standards
• Export subsidies
• Red tape at borders
• Tax systems like VAT that act as backdoor tariffs

These methods, Navarro claims, are just as damaging — and often harder to challenge.

The WTO Isn’t Working, Says the US

While the US has won several trade disputes at the WTO, the results haven’t made much difference. For example:

• The EU’s ban on hormone-treated beef was ruled illegal by the WTO — but the ban still stands years later.

This has led the Trump administration to lose faith in the WTO’s ability to enforce fair rules.

Is This a Trade War or a Fix?

Critics warn that Trump’s approach could spark a global trade war, making goods more expensive and hurting businesses on both sides. But Navarro insists this is a defensive move, meant to restore balance after decades of unfair treatment.

“All America wants is fairness,” he says. “We’re simply charging others what they charge us.”

In Summary

Trump’s new tariff strategy is a bold shift in global trade policy. While some see it as risky, the White House argues it's a long-overdue correction to a system that’s left the US on the losing end for too long.

Sources: (FT.com)