The United States has fired the first economic shots sparking a global trade war against allied nations and foes alike. A massive increase in tariffs of imported goods into America, signed by President Donald Trump.
And retaliatory increases by affected countries on American exports threw longstanding trade agreements into chaos. Consequently, the tensions can trigger skyrocketing prices on everyday goods, further hurting America’s poor and marginalized.
A 25 percent tariff on all steel and aluminum imports officially took effect on March 12, preceding an increase on goods across-the-board starting April 2.
Economists and analysts caution this is only the beginning. The move has ignited a malicious tit-for-tat war of words and threats between the U.S. and primarily Canada, Mexico, the European Union and China.
“I’m not going to bend at all,” said President Trump, in an Oval Office news conference, on March 13. “We’ve been ripped off for years,” he added, when asked if by any chance he would change his mind about the wider sweep of tariffs scheduled for April. “We’ve been ripped off as a country for many, many years … subjected to costs that we shouldn’t be subjected to,” said President Trump.
In the case of Canada, the president argued the U.S. subsidizes its northern ally with $200 billion a year—an oft-repeated claim of Mr. Trump; however, a Final Call fact check with foreignassistance.gov shows the most Canada has received from 2001 to date was $35.1 million in 2020.
Canada, Brazil, Mexico, South Korea and Germany are the top exporters of steel to the United States, while Canada, the United Arab Emirates, Russia and China are the main exporters of aluminum to America.
In global responses, Canada imposed a reciprocal tariff of $29.8 billion on imported U.S. goods including steel, tools, computers and servers, display monitors, sport equipment, and cast-iron products.
“With these tariffs, the U.S. administration is needlessly disrupting an incredibly successful trading partnership,” said Finance Minister Dominic LeBlanc, in a statement. He called it an “unwarranted” and “unjustified” move destined to raise costs for Americans and Canadians.
Mexico refrained from retaliatory measures, taking a wait and see approach to Washington.
“Given that we have a trade agreement and there are no tariffs from Mexico to the United States … there shouldn’t be any reciprocal tariffs,” President Claudia Sheinbaum said at her daily news conference. “So, we’ll wait until April and then make our decision on whether or not to impose reciprocal tariffs.”
The European Union condemned the tariffs as regrettable, unjustified, and harmful.
“We deeply regret this measure. Tariffs are taxes. They are bad for business, and even worse for consumers,” said Ursula von der Leyen, president of the European Commission, in a statement on March 12.
The EU is applying a countermeasure of tariffs worth 26 billion euros ($28.2 billion) matching the U.S. tariff. The measure is set to begin April 2 and be fully in place by April 13, said Ms. Von der Leyen.
Chinese Foreign Ministry Spokeswoman Mao Ning told reporters on March 13: “China believes that protectionism leads nowhere, and trade and tariff wars have no winners.”
The U.S. is violating World Trade Organization rules and damaging the rules-based multilateral trading system. “China will take all necessary measures to defend its lawful rights and interests,” said Mao Ning.
Since President Trump’s return to office in January, the trade war intensified and drove uncertainty in the American economy, and on everyday folks already suffering from heightened costs on everyday goods.
Trade tensions, especially between the U.S. and China, can adversely affect Black and poor communities, compounding existing economic challenges. While trade wars are usually seen through the lens of broad economic impacts, consequences for marginalized groups can be more pronounced, analysts note. Notwithstanding the saber rattle between the powerful, the poor have no voice.
Furthermore, the U.S. has instigated the current trade war at a time of transition and universal change—or an “old world going out” and a “new world coming in,” as warned about by the Most Honorable Elijah Muhammad and his National Representative, the Honorable Minister Louis Farrakhan.
In his insightful and profound book, “A Torchlight for America,” Minister Farrakhan wrote about the root cause of America’s neglect of her poor. “The fundamental motivation in this society is greed and the preying upon the weak of the country and the weak of the world, versus sharing wealth in cooperation with the weak and the poor,”
Wrote Minister Farrakhan on page 29. “Greed is defined as a selfish desire for possessions and wealth beyond reason. When greed is exercised in the society, it is reflected by division among the people,” he continued.
In a trade war crisis, lower-income and Black communities, who are more likely to spend a significant portion of their income on essential goods like food, clothing, and shelter, can be hit the hardest.
Student Minister Dr. Abdul Haleem Muhammad, the Student Southwest Regional Minister for the Nation of Islam, explained that America sowed the seed of its dilemma by yielding much of her manufacturing offshore.
“So now we’re importing things that we used to manufacture … importing from China … from Canada…from Mexico,” said Student Min. Haleem Muhammad. “So, this was something that America did to itself,” he added.
When the tariffs are implemented, the poor will suffer. Local governments might experience revenue shortfalls due to reduced tax income from businesses and workers. The trade spat could not come at a worse time for citizens in Colorado.
“Over 115,000 jobs in our state are linked to trade with Canada and Mexico, putting families directly in harm’s way,” said Colorado State Treasurer Dave Young in a statement.
He and Americans for Responsible Growth, a national advocacy group of state treasurers, auditors, and comptrollers are calling on President Trump to permanently end the tariff crisis.
As the dizzying back and forth reels between the U.S. and world nations, President Trump acknowledged there would be “a little disturbance” from the trade policy. “There’ll be a little disturbance, but we’re okay with that. It won’t be much,” he said March 4, to a joint session of Republican and Democratic lawmakers.
“April 2, reciprocal tariffs kick in, and whenever they tariff us …we will tariff them,” said President Trump. “That’s reciprocal back and forth. Whatever they tax us, we will tax them,” he added.
Tariffs were a central campaign issue in what President Trump dubbed the “common sense revolution” and a new “golden age of America.”
“Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries,” he said. He also argued that the European Union, China, Brazil, India, Mexico, Canada, and other nations charge higher tariffs than America.
“It’s very unfair,” he said. President Trump explained he wants to exercise “reciprocal tariffs”—taxes on imports set at a similar rate that other countries charge on goods America exports to them. Analysts predict the move will spin decades-long trade agreements into disorder and trickle down to the consumer.
According to a blog on the website of Trueflation, providers of real-time economic data, if used, the policy affects the entire world, and there is no doubt that much more is yet to happen.
“The key issue is that each country will face a unique situation, and the future remains uncertain,” said Trueflation.
Notwithstanding, the Trump administration is touting increased tariffs as a strategic measure in an American comeback on the world stage, but the anxiety barometer is elevating. Economic uncertainty is causing concern and panic. There has also been pushback from other countries calling on a boycott of American products.
According to an article by the international business news website Quartz, “The U.S. Chamber of Commerce said tariffs will only ‘increase the economic pain’ being felt by Americans, warning that some companies it represents could be forced out of business. The head of New York’s Federal Reserve Bank said tariffs are likely to lead to higher inflation if they persist.”
Price hikes could impact several areas, including automobile and agricultural industries. Farmers will be hurt by the trade war and “produce, including avocados and strawberries, is set to become more expensive because of the duties on Mexico,” reported Quartz.
“Where tariffs are very predictable is that it’s going to hurt consumers, said Jack Zhang, a political science professor who runs the University of Kansas’ Trade War Lab,” the news website continued.
“Tariffs essentially function as a regressive tax, meaning they create a larger burden on low-income taxpayers than wealthier people who can afford to pay those costs. ‘It’s a rich man’s war, poor man’s fight,’ Zhang said.”
To prepare for economic hardships and challenges on the horizon, Black people must be willing to help, support, and work with one another as taught by the Most Honorable Elijah Muhammad and the Honorable Minister Louis Farrakhan. Others agree that self-sufficiency and nation-building are what Black people must do.
“I think the Black people have to be very, very dedicated to building our own and working as hard as we can and as deliberately as we can to get away from White individuals and White institutions,” said Dr. Ricky Jones, professor of Pan African Studies at the University of Louisville.
Dr. Jones told The Final Call that Black people must be hyper-focused now on Black self-reliance. He said it is critical for Blacks to go for self and described integration as a failed experiment.
“I just don’t think our future lies in us continuing to participate and rely upon systems and structures that have never benefited us, are not benefiting us, and will benefit us less, as we move forward,” he stated.
He recommends:
• Focus on building and supporting Black-owned schools and educational institutions, especially K-12 schools and HBCUs.
• Actively distance yourself from participating in and relying on White institutions, even if you are currently employed by them.
• Shift your efforts towards self-reliance and community building within the Black community.
• Avoid getting distracted by discussions around broader economic and political issues that do not directly benefit the Black community.
Dr. Jones’ recommendations bare witness to what the Most Honorable Elijah Muhammad has been teaching for decades.
In his book, “Message to the Blackman in America,” in the chapter, “A Program For Self-Development,” the Most Honorable Elijah Muhammad cautioned Black people, “We must remember that we just cannot depend on the White race ever to do that which we can and should do for self.”
