Tariff Wars and Government Priorities

The new U.S. administration aims to prioritize America, but its current course may unintentionally weaken the country, potentially allowing China to surpass its position. China could be viewing developments under the Trump administration favorably, as it appears the U.S. is entering a period of significant challenges. China's top leaders and policymakers strongly believe that the U.S. economy is in an unavoidable decline, especially as Trump imposes tariffs on allies. Beijing's swift response to the announcement of retaliatory tariffs indicates that it had long been prepared for such an escalation. Over the past several years, China has focused on internal stability and gradual economic recovery. The immediate imposition of counter-tariffs on U.S. imports, just hours after Trump's announcement, further demonstrates Beijing’s readiness for this trade conflict.

Trump launched the Department of Government Efficiency (DOGE) to combat fraud and cut federal spending, claiming it reflects the people's vote for reform. Before taking office, Trump appointed Elon Musk and Ramaswamy as chiefs of DOGE, but Musk later sidelined Ramaswamy, assuming sole leadership and surprising Americans. This unprecedented approach has shocked both the country and the world, with a democratically elected president acting in an anti-democratic manner.

Musk declared, “The people voted for major government reform, and that’s what they’ll get.” However, both Trump and Musk have spoken vaguely about fraud without providing specifics. Musk falsely claimed the U.S. spent $50 million on condoms for Gaza but later admitted some of his claims about government waste were inaccurate. He also acknowledged working with Secretary of State Marco Rubio to restore funding for Ebola and HIV prevention, despite his broader spending freeze efforts.

Since both leaders are businessmen, they prioritize business interests over the country. The government should balance business and public welfare. Prioritizing profit may boost the economy short-term, but governance should focus on people, not just taxes. The rich should support the poor, but excessive strictness may hinder prosperity.

After assuming non-literal power, Musk cut U.S. aid to other countries and laid off employees without notice, which seems unreasonable. DOGE aims to shrink the federal workforce, leading to thousands of layoffs. If this decision is final, stakeholders need time to adjust, and affected employees may take legal action.

Musk also reduced staff in the Education Department, replacing contract workers with AI chatbots. Many special education specialists and student aid officials lost their jobs. Education is crucial for the country's future, and sudden changes could harm students' privacy and learning. Using robots in education may negatively impact children’s minds. The goal is to shift government jobs from bureaucrats to technocrats, but this approach needs careful consideration.

The U.S. attracts millions of students yearly, relying on government support for top education. With DOGE cutting education funding, it's uncertain if the U.S. will remain a global leader in education. Many students may now look for alternatives.

Musk identified losses and cut costs in the health department, leading to layoffs in key government services. Special educators, veterans, and medical researchers—people dedicated to public service—were most affected.

The Department of Veterans Affairs laid off over 1,000 employees, including researchers working on cancer, opioid addiction, prosthetics, and burn pit exposure. The CDC also dismissed nearly 1,300 probationary employees.

The government’s focus on profit and loss is shutting down important departments. The President and his associates must remember that the government's role is to serve society, not just make money.

The Trump administration imposed a 10% tariff on Chinese exports to the U.S. and a 25% tariff on imports from Canada and Mexico. In response, China placed 15% duties on coal and liquefied natural gas, plus 10% tariffs on U.S. crude oil, agricultural machinery, and large engine cars. This could be just the beginning or set an example for other nations.

A tit-for-tat approach will only weaken America. If other countries don’t benefit from the U.S., they have no reason to listen. Previously, the U.S. balanced taking and giving, but if it shifts to only threats and exploitation, its influence will fade.

The U.S. is running out of time. Wealth alone isn’t enough; a wise approach is essential. If America forgets this, it may soon lose the fear and respect it now holds.

SAJIKUMAR

https://sajikumar.co.in