Is Trump’s tariff war a disaster for America’s future?

Trump’s tariff war isn’t just an economic misstep, it’s a self-imposed disaster that threatens to redefine America’s global standing, writes Nigel Green.

Is Trump's tariff war madness? Nigel Green thinks so. Pic via Getty Images

Donald Trump’s tariff war isn’t just an economic misstep, it’s self-imposed madness that threatens to redefine America’s global standing.

His aggressive trade policies, built on outdated assumptions, are pushing the US into a financial quagmire that could have lasting consequences.

His latest move? A threat to slap a staggering 200% tariff on European wine and spirits unless the EU removes its duties on American whiskey. This comes on the heels of his vow to retaliate against Europe’s counter-tariffs on US steel and aluminium.

What he touts as ‘tough negotiation’ is in reality a chaotic series of policy swings that are destabilizing businesses and financial markets.

The economic fallout is undeniable. Investor confidence is eroding, supply chains are being disrupted, and businesses are absorbing rising costs.

Trump’s claim that tariffs will force better trade deals has proven hollow—what’s unfolding instead is uncertainty, rising consumer prices, and a global economy adjusting to move forward without the US.

Trump operates under the illusion that the US has unmatched leverage, but the market is proving him wrong. Corporations aren’t standing still, waiting for Washington’s volatility to settle. They’re restructuring their supply chains and shifting operations to places like Vietnam, Mexico, and India.

Instead of bringing manufacturing back to American soil, Trump’s policies are encouraging companies to diversify away from the US entirely.

Financial markets demand consistency and stability: two things entirely missing from this administration’s trade approach. Investors aren’t just reacting to tariffs; they’re reacting to the erratic and unpredictable nature of Trump’s decision-making. His policy reversals, mixed messaging, and impulsive threats have turned US trade strategy into a liability rather than a tool for economic strength.

Even Wall Street—once a key pillar of Trump’s economic agenda—is feeling the impact. Stock prices are swaying unpredictably, driven not by market fundamentals but by Trump’s latest threats. Beyond equities, commodity prices, bond markets, and global currencies are all caught in the turbulence created by an administration more focused on confrontation than on constructive policy.

The impact isn’t theoretical, it’s already being felt in boardrooms and on balance sheets. Companies facing higher import costs are passing those increases onto consumers. Manufacturers, burned by sudden policy changes, are reconfiguring supply chains in ways that will have long-term consequences. The idea that firms will simply pivot back to the US when the dust settles ignores how businesses operate: they plan years ahead, and trust once lost is not easily regained.

While Washington plays its tariff game, the rest of the world is moving on. Europe is deepening economic ties with Asia, China is expanding its global trade influence, and post-Brexit Britain is striking new agreements.

The US, once the key player in global commerce, is now at risk of being sidelined. Trade routes are shifting, economic alliances are strengthening, and when this era of trade war ends, America may find itself with less leverage than before.

Even the almighty dollar, long seen as the world’s safest asset, is beginning to show cracks. A weaker dollar might help exporters in some scenarios, but not when it’s driven by declining investor confidence in US trade policy.

Global capital chases stability, and right now, Washington’s unpredictability is shaking trust in the broader US economy.
Trump’s tariff obsession is based on a fundamental misreading of modern trade. Protectionist policies don’t force better deals—they invite retaliation, disrupt industries, and encourage global competitors to fill the void.

The belief that the US can dictate terms while alienating key trading partners is outdated and dangerous. The world isn’t waiting for Washington to get its act together; it’s adapting, forming new economic blocs, and pushing ahead without US involvement.

Even if the administration were to reverse course immediately, the damage is already done. Companies have adapted, trade flows have been redirected, and America’s reputation as a reliable partner has been weakened.

The world is changing fast, and the US is at risk of falling behind. If Trump continues to wage war on global commerce, the result won’t be economic strength—it will be an America increasingly sidelined, struggling to reassert itself in a marketplace that has learned to move on without it.

This isn’t a policy failure. It’s a self-inflicted wound. And the deeper Trump digs, the harder it will be to climb back out.

The views, information, or opinions expressed in the interviews in this article are solely those of the author and do not represent the views of Stockhead.

Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article.

Nigel Green, is the group CEO and founder of deVere Group, an independent global financial consultancy.

Originally published as Is Trump’s tariff war a disaster for America’s future?