WASHINGTON, D. C. President Donald Trump has once again applied his negotiation tactics through imposing a 25% tariff on any country that does business with Iran, an event that was not taken seriously in the global markets. Although the WhiteHouse terms it as a move meant “to keep the peace worldwide,” analysts see it for what it is, a geopolitical sledgehammer being swung around like a wrecking ball.
In a press
conference on Monday, Trump said the decision was intended to “punish nations
that enable Iran’s destabilizing behavior.” In truth, this is more of a
punishment for everyone else because they do not follow the American foreign
policy correctly. The tariff is effective on every commodity, service, and
digital trade related to those countries that have economic ties with Tehran,
including some of the United States’ closest allies.
Tariffs:
Trump’s Favourite Hobby Returns
For those
who may be interested, this is not the first time Trump has imposed tariffs. He
has always treated economic policy like a game of poker where he sets the rules, and everyone else must play along, but at their own risk.
“This is
about peace through strength,” Trump declared. However, there were no
celebrations on Wall Street. Stock futures fell as global shipping companies
tried to understand how they could recognize goods linked to Iran in a world
where there are suppliers from five continents.
According
to economists, this action may lead to chain reactions in global trade and
possibly increase prices for American consumers once more. “It’s like déjà vu
from 2018,” one analyst joked. “Only now it’s geopolitics rather than aluminium cans.”
Allies
Caught in the Crossfire
India,
Turkey, and parts of the European Union may be among those feeling the heat due to
continued limited trade with Iran under humanitarian exemptions. The European
leaders were caught unawares and described the move as an “act of aggression”
and “unilateral.” Translation: they are very angry but too diplomatic to
express it openly.
On the
other hand, oil prices went up suddenly overnight as traders anticipated
possible supply disruptions. Energy markets have learned one thing about
Trump-era policies: expect chaos, and maybe buy more popcorn.
The Global
Fallout Begins
Critics
say that the tariff is more of a show than a diplomatic act. With Iran already
heavily sanctioned, why would one think that Tehran will change its ways
because of a 25% tariff? It only goes to show that in Trump’s foreign policy
toolbox, there is only one setting, which is known as “Maximum Pressure.”