By CHEN HONGXIN
Global Business Journalism reporter
Donald Trump has rapidly redefined the U.S. approach to the global economy, reframing it as a
battleground of survival, rivalry, and constant threats.
“Trump sees the economy as a game with only a few winners,” Matti Posio, a leading Finnish
journalist, told Global Business Journalism students at Tsinghua University on February 25.
Unlike the traditional American globalist view of the economy as a cooperative effort governed by
multinational institutions, Trump’s trade policies deem economics as a zero-sum game, where
tariffs, intimidation, and uncertainty serve as the economic superpower's primary weapons.
Trump's approach has strained U.S. relations with longtime allies in Europe and North America
while fostering closer ties with Russia, a historical adversary. Posio, who has a background of more than 20 years covering world affairs, said this shift in approach has not only strained international relationships but also has created an unstable business and investment environment, leaving countries uncertain about the future of global economic order.
The full consequences of Trump’s actions remain uncertain, Posio said, but the potential fallout
could be immense, reshaping not only global alliances but also the very fabric of American
governance. As longtime partners in Europe and North America struggle to adapt to a rapidly
shifting landscape, questions loom over the stability of international cooperation and of existing institutions such as NATO, the European Union and the World Trade Organization.
"The possible damage is not only to the American political system and democracy," Posio told
the Global Business Journalism students, "but also to America's and the West's standing in the
world."
Since taking office on Jan. 20, Trump has reshaped U.S. trade policy with a focus on tariffs and protectionism. His administration’s decision to impose heavy tariffs on steel, aluminum, and a variety of goods from key trading partners like China, Canada, and the European Union was part of a broader strategy to reduce the U.S. trade deficit and bring jobs back to American soil. This approach aligns with his administration's philosophy of reducing income and corporate taxes while shifting the tax burden onto consumption through tariffs.
Posio argued that this approach, which Trump often described as a rigged “game” the United States is losing, has exacerbated tensions and fractured longstanding alliances. The consequences have been felt globally, as retaliatory tariffs from China and Europe have affected U.S. exports, particularly in sectors like agriculture and manufacturing. Although the political impact has yet to be seen in U.S.-China relations, it has already stunned America's longstanding allies, especially in Canada, Mexico, and Europe.
The chill was obvious when French President Emmanuel Macron visited the White House in February, marking the first European leader to meet with Trump since his second term began. Their discussions on Ukraine, European security, and trade underscored the growing strain in U.S.-Europe relations, with Trump highlighting the increasingly contentious trade differences between the two sides.
Trump, citing persistent trade imbalances across the Atlantic, has demanded that Europeans buy more American products and has vowed to impose significant tariffs on European allies like he already has announced for China, Canada and Mexico.
Traditional economists, both liberal and conservative, have expressed skepticism about Trump's tariff strategy. Nobel laureate economist Paul Krugman, a prominent liberal, noted that "the U.S. trade policy has been a complete failure, with tariffs causing more harm to the U.S." The conservative Wall Street Journal editorial page dubbed Trump's plan to impose 25% tariffs on top trade partners Canada and Mexico "the dumbest trade war in history."
But Europe stands to lose much more. As Posio explained, "The U.S. economy is more self-
sufficient compared to the European economy," meaning that even if Europe strikes back, the
consequences for the U.S. would likely be "less harmful than [those to] Europe." While European economies are more dependent on international trade, the U.S. has the capacity to weather such trade disputes with fewer repercussions.
However, this economic dynamic is only part of the story. The real impact, Posio argued, lies in
the broader sense of global uncertainty that Trump’s policies have stirred.
As trade tensions rise, Europe’s trust in U.S. leadership continues to erode, especially in the
context of the ongoing Russia-Ukraine conflict. With Europe looking to the U.S. for support, the
unpredictability of Trump’s trade war has added to an already volatile situation, leaving Europe
questioning whether it can still rely on the U.S. to uphold its global responsibilities.
Trump’s trade policies have transformed global dynamics into a “geopolitical chess playing
field,” said Posio.
With tariffs intensifying U.S.-Europe tensions and Europe already stretched by Russia’s conflicts
with Ukraine, the U.S.’s unpredictable approach has added uncertainty to the world stage. As
alliances fray, the question that whether the Trump's policies will continue reshaping the global
order, leaving nations to navigate an increasingly complex geopolitical landscape remains.
"Trump is very impulsive and he can change his mind quickly," Posio said. "This unpredictability, combined with his sudden policy shifts, has deeply affected international relations, particularly between the U.S. and Europe. I’m sure it will leave a wound to any alliance, any friendship."
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