US President Donald Trump continues to escalate trade conflicts, threatening countries around the world with new tariffs. In recent weeks, the Trump administration has announced potential tariffs on imports from at least ten countries, raising concerns about the isolation of the United States on the global stage and the formation of new trading blocs without US participation.
On Thursday, 29 January, Trump signed an executive order imposing tariffs on goods from any country that sells or supplies oil to Cuba. This measure is aimed at increasing pressure on the communist regime in Havana, which the US president has called an ‘unusual and extraordinary threat’ to American national security. The order particularly affects Mexico, which supplied Cuba with up to 20,000 barrels of oil per day last year through the state-owned company Pemex. After US Secretary of State Marco Rubio’s visit to Mexico City, supplies were reduced, but Mexican President Claudia Sheinbaum said the country would continue to provide humanitarian aid to Cuba and mediate in the dialogue with the US. Cuban Foreign Minister Bruno Rodriguez condemned the decree as an ‘act of aggression’ and ‘blackmail,’ emphasising Cuba’s right to import fuel without interference from Washington.
In addition to Cuba, Trump increased pressure on Canada. On the same day, he threatened to impose 50 per cent tariffs on Canadian aircraft sold in the United States in response to Ottawa’s refusal to certify aircraft manufactured by the American company Gulfstream. This follows a previous threat of 100% tariffs on all Canadian goods due to Canada’s trade agreement with China, which Trump says will make Canada a ‘transit point’ for Chinese goods into the US. Canadian Prime Minister Mark Carney dismissed the threats as a negotiating tactic, but Bombardier has already contacted the government to discuss the situation.
Earlier in January, Trump threatened South Korea with tariffs – an increase from 15% to 25% on cars, timber and pharmaceuticals – due to delays in approving a trade agreement. On 18 January, 10% tariffs (rising to 25%) were announced on imports from eight European countries (Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and the United Kingdom) for opposing the annexation of Greenland by the United States. These tariffs were suspended after a framework agreement with NATO Secretary General Mark Rutte.
Experts warn that such policies make the US ‘a completely unreliable trading partner,’ accelerating the formation of new blocs, such as the EU’s agreements with Argentina, Paraguay, Brazil, Uruguay, and India. This could lead to higher prices for American consumers, slower global growth and diversification away from the US dollar in favour of other currencies, including the Australian dollar. The long-term effects are being compared to ‘cancer’, while the short-term effects are being likened to ‘breaking an arm’.
The Trump administration continues to pursue an ‘America first’ policy, but critics fear that this will isolate the country and undermine its economy.