'World Massacre' Trump Tariffs... It's going to be a boomerang

“This American carnage stops right here and stops right now.”

That was how Donald Trump opened his first term in January 2017, invoking images of inner-city poverty, rusting factories, and a broken education system to depict the shattered American Dream. He vowed to fix it with one guiding principle: America First.

Then and now, his prescription remains the same. His weapon of choice is tariffs, a signature tool of his economic policy. The difference is that this time, he is wielding them with greater unpredictability, triggering what many call a “global carnage.” As global economic indicators falter, a White House insider told the Washington Post that Trump does not care about such matters at all.

Even American economists are voicing concern and warning of fallout. From the perspective of Asian nations like South Korea, which have been hit directly by retaliatory tariffs, the most likely outcome is that the United States becomes both the perpetrator and the victim. His diagnosis, treatment, and predictions are all based on a fundamentally flawed understanding.

Consider the auto industry, which Trump recently cited as a major sector harmed by trade imbalances. “Toyota sells a million cars in America, but GM barely sells one in Japan,” he said last week. He added that American companies are unable to expand abroad because of trade barriers.

American cars are indeed unpopular in Japan, but the claim that trade barriers are to blame is false. While the United States imposes a 2.5 percent tariff on Japanese cars, Japan eliminated its tariff on American vehicles back in 1978.

The real issue is consumer preference. Japanese buyers favor small, efficient, and affordable vehicles. Japanese automakers succeeded in the U.S. by targeting niche markets with similar tastes. Meanwhile, German luxury brands dominate the high-end segment in Japan. On the other hand, American automakers have clung to large models that do not suit Japanese preferences. U.S. cars, often called amesha, have a reputation for poor reliability and low fuel efficiency.

Trump’s insistence on blaming non-existent trade barriers is not limited to Japan’s car market. While the saying goes that all roads lead to Seoul, the Trump administration seems to be heading in the wrong direction. There is a strong chance it will end up somewhere far from solving the trade deficit.

India once maintained a closed economy with average tariffs nearing 130 percent. This protectionism left the country lagging in development. Mihir Sharma, a senior fellow at India’s Observer Research Foundation, said India had become a “spectator nation.” Until liberalization in 1991, the “Made in India” label was not a source of pride but a symbol of outdated, low-quality products.

Who can confidently say that “Made in USA” will avoid the same fate? The blade Trump now swings to prevent American carnage abroad may end up returning as a boomerang, delivering American carnage at home.