Source: Global Research    Published: 2025-04-16

By Peter Koenig

Research Associate of Global Research

Non-resident Senior Fellow of the Chongyang Institute for Financial Studies at Renmin University of China (RDCY)

Is anybody surprised that President Trump is seemingly turning out quite differently from what he promised during his campaign?

Admittedly, I am surprised. Unless there is something drastically changing in his policies —militarily, domestically and internationally— we, the world, may be in for an unpleasant rollercoaster. 

Tariffs are punishment of the world, especially aiming at China and to some extent also at Europe. Or just a game?

Trump is a deal-maker, a gambler of sorts. Already more than 70 nations have requested “negotiating” the tariffs, that’s the “deal-making” Mr. Trump loves so much. At the same time, he believes in intimidating and dominating the world.

But does he really? Who are his economic advisers? Who are the winners and losers in this gamble?Obviously, the country he wants to punish most is China. But China plays along, she plays the same gamble and just upped the ante of import duties for US goods and services to 125%; the same measure that Trump a day before announced would be the import duties for goods from China. That is the end of the escalation, said China. No higher for them “Les Jeux sont fats,” in casino language.

The thing is: the US needs China much more than China needs the US —a tremendous price increase in consumer goods (all made in China) may result in US inflation and unemployment, in  factory and shop closures. While China has already for years re-oriented her market to Asia and especially the BRICS and their extension, the Global South.