Washington, D.C. — Americans are already paying the price for President Donald Trump’s tariff-driven trade agenda, and the long-term costs could be far steeper. A new analysis from the Center for American Progress finds the administration’s corporate-style short-termism in trade policy will have significant long-term consequences for the country, its economy, and the world. The damage is already visible domestically in lost working-class jobs, declining industrial investment, small-business bankruptcies, and higher consumer costs, but the cost to the United States abroad must not be overlooked.
The administration’s coercive tariff tactics and self-interested deal-making are accelerating a global shift away from the United States. It will be future American diplomats, companies, and leaders that will need to engage a world tilted against U.S. interests.
“Each time the administration seemingly bullies, embarrasses, or coerces a sovereign nation into a deal, the costs add up and grow for Americans,” said Ryan Mulholland, senior fellow at CAP and author of the analysis. “Corporate short-termism is a bad business practice, and the Trump administration’s trade agenda shows that it’s disastrous as government policy too.”
CAP’s analysis highlights:
- Allies are hedging against U.S. reliability. Countries including Canada, members of the European Union, Japan, South Korea, and India are pursuing new trade relationships that could permanently reduce U.S. market share.
- North American economic ties are fraying. Trump’s tariff threats have pushed Canada, the United States’ largest trading partner, to diversify its economy away from U.S. supply chains.
- Europe is reorienting economically and militarily. EU leaders have described recent trade pressure using terms such as “coercion” and are expanding defense investments that may exclude U.S. firms.
- Indo-Pacific partnerships are under strain. Key allies such as Japan and South Korea are deepening economic ties with China as confidence in U.S. leadership erodes.
Read the analysis: “The Trump Administration’s Trade Deals Are the Epitome of Corporate-Style ‘Short-Termism’ in Foreign Policy, and the American People Will Pay the Price for Years To Come” by Ryan Mulholland
For more information or to speak with an expert, please contact Christian Unkenholz at [email protected].