Trump, Trade Wars, Tariffs, and A New World Order
Zillur Rahman | 19 March 2025
Recently, we've seen many news headlines regarding US President Donald Trump's plans to reduce the federal government and eliminate funding for organisations like the United States Agency for International Development (USAID), leading to massive job losses. But geopolitical analysts are another surprising profession impacted by Trump's leadership.
The explanation is straightforward: nobody can say what the US government will do next. As nations that have historically depended on the US for economic and security support have come to realise that they need to become more independent, this uncertainty generates profound changes in global geopolitics.
The Trump administration has undoubtedly brought about a significant shift in the world order. Over the past few decades, the US has contributed to developing a liberal, rules-based international system, but it seems less interested in continuing to hold this position. A new multipolar global order is thus taking shape, with regional actors like Japan and India and superpowers like China, Russia, and the European Union vying for influence to further their national agendas.
Even though the Trump administration's actions can occasionally appear arbitrary, the president's overarching policy has not altered since his first term; it has just gotten more intense. Fundamentally, this approach gives the US financial interests precedence in international politics. The US has retained substantial international debt since the dollar is still the world's reserve currency. It also has a trade imbalance with its main allies. Regardless of the repercussions, the president has made fixing these problems his top priority.
One may wonder: when something is not broken, why strive to fix it? The US-led rules-based international order has cultivated one of the most prolonged periods of world peace and cooperation in history since the end of the Cold War. Furthermore, concerted international action is needed to handle major global issues like climate change and refugee crises, like Bangladesh's own Rohingya situation.
The Trump-led Republican Party's political approach mirrors a more significant rightward movement in US and international politics, and holds the key to the solution. Western proponents of globalisation have neglected the plight of blue-collar workers for far too long. These workers fear losing their jobs to AI and cheap foreign labour. These worries have contributed to a rise in anti-immigration sentiment in wealthy countries. The political growth of the Global South or European security are far-flung concerns for many American workers. The main problem of the locals is the effects of foreign variables on local labour markets.
This stance, which attracted supporters of Trump's "America First" foreign policy, including many Bangladeshi expats in the US, was a significant factor in the Republican Party's electoral success.
The administration has made this requirement a top priority. The pace and character of US disengagement, rather than Trump's policy views, are the genuine global threat. The administration seems intent on pushing international boundaries to see how much the country can get away with. It is currently testing reciprocal tariffs on major trading partners to stop US companies from offshoring jobs. However, the aggressive strategy is like attempting to squeeze a square peg into a round hole.
The ongoing trade battle with essential allies like Canada and Mexico has recently caused a steep drop in the US stock market. This compelled Trump to halt the tariffs and re-evaluate his strategy. However, there are growing worries that he would eventually implement protectionist measures, even if doing so puts the economy at risk of experiencing another recession.
The way that Trump has handled Ukraine is a significant shift in US foreign policy. How a country handles its allies is frequently used to assess its reputation. Since the Budapest Memorandum was signed in 1994, Ukraine and the US have maintained a close partnership. Ukraine then had the third largest arsenal of nuclear weapons from the Soviet era, which it gave to Russia in return for security assurances from Russia and the US. The 2014 annexation of Crimea by Russia was a breach of that agreement. By negotiating with Russia and putting pressure on Ukraine to give up territory that it has forcibly seized, the US is now also breaking its promises. Additionally, in exchange for the military assistance it has given Ukraine, Washington has asked Kiev to share its minerals.
This judgement arrived like a wrecking ball and further upended the delicate international order. Taiwan and other US allies dependent on American security guarantees are now highly alarmed. Canada and Europe are the most outspoken opponents of the Trump administration's policies. Singapore's defence minister compared the US to a landlord requesting rent, while the newly former Canadian Prime Minister Justin Trudeau publicly denounced the trade war as dangerous. Furthermore, some NATO countries have said they can no longer depend on American defence.
The old order is disintegrating, whether we like it or not. Even with a lot of uncertainty, one thing is sure: waiting for the past to return is no longer an option. This is the time for those who care about international collaboration, climate change, and human rights. People must not waver, even if governments do. Alternative channels must be used if official diplomatic channels are unsuccessful. Track 2 diplomacy and collaboration between academic institutions, industry leaders, civic society, and think tanks will be more critical than ever in maintaining global connectivity. We need to build bridges where governments are burning them at a time when established power structures are changing.
So be it, if the globe is turning into a multipolar place. We need to organise, adjust, and go forward. A broken world doesn't need to be broken. Those who continue to support international cooperation must build new partnerships, never give up on finding answers, and make sure that political shortsightedness does not sabotage global advancement. Indecision is not tolerated by history. The struggle for an equitable, sustainable, and peaceful world must continue, irrespective of how the map is altered.
Zillur Rahman is executive director at the Centre for Governance Studies (CGS) and a television talk show host. His X handle is @zillur.
This article was originally published on The Daily Star
Views in this article are author’s own and do not necessarily reflect CGS policy.