Colombia’s Ecopetrol polluted hundreds of sites, including water sources and wetlands, the BBC finds.

Experts warn that the sudden lack of funds may spur further migration of Venezuelans beyond neighbouring Colombia.

Americans hold all sorts of views on tariffs. Some are opposed on free-market grounds. Others are in favor for reasons of national security or to bring back American manufacturing. Those debates are part of a normal democratic process. But President Donald Trump’s first weeks in office have shown that a principled discussion over tariff policy is simply not on the agenda, because the administration’s tariff policy is nonsense.

What we have is chaos. One U.S. uncertainty index of economic policy, which goes back to 1985, has been higher at only one point in the past 40 years: when the coronavirus pandemic began. That, of course, was a global phenomenon that the United States could do little to avoid. What’s going on now, by contrast, is entirely self-inflicted.

[Read: Trump’s most inexplicable decision yet]

Chaos is Trump’s calling card, but few could have expected how quickly the president would ricochet all over the place on the size, nature, and timing of—not to mention the justifications for—one of his signature policies. Before markets can adjust to one pronouncement, the world’s smartphones buzz in unison announcing that the wealthiest nation in the world, whose dollars hold up the global financial system, is hurtling in another direction once again.

Just consider this abridged timeline of the most significant twists and turns thus far:

November 25, 2024: Trump posted on Truth Social that on the first day of his new term, he would “sign all necessary documents to charge Mexico and Canada a 25 percent Tariff on ALL products coming into the United States, and its ridiculous Open Borders.”

January 20, 2025: The first day of Trump’s term. No tariffs announced. Instead, Trump signed a memo directing the Commerce secretary to “investigate the causes of our country’s large and persistent annual trade deficits.”

January 26: After the Colombian president rejected U.S. military flights carrying deportees, Trump threatened 25 percent tariffs on all Colombian goods. Colombia threatened to respond but deescalated before the new taxes were put in place.

February 1: Tariffs against China, Mexico, and Canada are on.

February 3: Tariffs (for Mexico and Canada) are off.

February 4: Chinese tariffs go into effect, and the Chinese government announces retaliatory tariffs as well as export controls on key minerals.

February 11: Trump imposes a 25 percent tariff on steel and aluminum from all countries.

February 13: Trump threatens reciprocity to any country enacting tariff policies against the United States.

February 25: Trump raises the possibility of tariffs on copper.

February 27: Canada and Mexico tariffs maybe coming back on?

March 1: In the middle of a housing crisis, Trump raises the possibility of tariffs on lumber and timber.

March 4: Okay, yes, the Canada and Mexico tariffs are back on.

March 6: Just kidding, only for some stuff.

March 9: Tariffs “could go up,” Trump says on Fox News.

March 11: Ontario threatens 25 percent tariffs on electricity, causing Trump to promise a 50—yes, 50—percent tariff on Canadian aluminum and steel. By the end of the day, both countries backed off these threats.

March 12: A big day for tariffs. The 25 percent tax on all imports of steel and aluminum go into effect, and in retaliation, the European Union enacted duties on $28 billion worth of American goods, while Canada announced $21 billion in tariffs on American goods.

March 13: Not to be outdone, Trump threatened 200 percent tariffs on wine and other alcoholic beverages from Europe.

To recap, the United States is now in a trade war with its largest trading partner (Canada), its second-largest trading partner (the European Union), its third-largest trading partner (Mexico), and its fourth-largest trading partner (China).

It’s obvious to the point of cliché that businesses rely on regulatory—and fiscal—policy predictability in order to plan hiring, capital investments, and pricing strategies. And that means these past few weeks have been very rough. How can you begin a capital-intensive project if you have no idea what anything will cost? The chaos of the current trade policy is a strange parallel to the chaos that the Trump administration has unleashed on the federal government. One difference is evident, however: Although markets expected the new president to go on a deregulatory spree, they failed to take his affinity for tariffs seriously—or at least thought things would be executed a little more deliberately.  

An adviser to prominent energy companies told me that because “infrastructure projects require five to 10 years for permitting and construction,” some of her clients are pausing normal business decisions. “The current environment is so chaotic that it’s difficult to understand effects [on] permitting pathways, community approvals, and supply-chain costs.” She requested anonymity to speak freely about her clients’ struggles in the early days of the new Trump administration.

The big companies are in a better spot than small businesses. As we’ve already seen when the Big Three automakers were able to get direct relief from the tariffs, large companies that can provide Trump with good PR are able to get carve-outs from tariffs. But small businesses are less suited to absorbing shocks and are less likely to stay abreast of the day-to-day shifts of tariff policy. Many will be unable to game the system.

Uncertainty may also be paralyzing the labor markets. As my colleague Rogé Karma reported last month, job switching is at its lowest level in nearly a decade, even though the unemployment rate remains low. Part of what’s going on is that lack of confidence in the future breeds risk aversion: Employers are too rattled to make a bet on a new hire, and employees are too worried to leave a safe position.

[Read: A great way to get Americans to eat worse]

Some people—such as those who are worried that a backlash may invigorate American support for free markets—would like the public to believe that the country is in the throes of an “economic masterplan” and that the chaos of this moment will cohere into a reasonable strategy. Color me skeptical. For one, the president and his team have yet to articulate a consistent set of arguments for supporting his vision. Instead, the justifications for the tariff policies change as fast as the policies themselves.

If the tariffs are about rebalancing America’s trade and restoring its manufacturing greatness, then why are they being removed? If they’re about improving America’s negotiating position vis-à-vis bordering nations on issues such as fentanyl and immigration, then why are we putting them on Canada?

Is Trump doing this to make Americans richer? Is he doing this to balance the budget? To hit back at other countries for their unfair policies? For national-security reasons? To solve the child-care-cost crisis?

As the Yale Law professor Jerry Mashaw wrote for Fordham Law Review, “The authority of all law relies on a set of complex reasons for believing that it should be authoritative. Unjustifiable law demands reform, unjustifiable legal systems demand revolution.” That our elected officials are required to explain themselves, to give reasons for the actions they take, is a cornerstone of democratic accountability. Without clear reasons, it’s not just businesses that are at stake. It’s democratic governance.

But if sifting through Trump’s roiling sea of rationalizations is important for democratic purposes, it’s also personally significant. Every business, worker, and consumer in the country has a stake in figuring out the why and what of tariffs.

[Read: Don’t invite a recession in]

Ideologues across the political spectrum resent the American voter’s materialism. Environmentalists moan that the public refuses to bear higher energy costs in order to help mitigate the effects of climate change; animal-rights advocates worry that people won’t pay to ensure better treatment of livestock; farm advocates who already benefit from distortionary subsidies have even advocated for price floors. Now it’s the economic populists insisting that the public should be willing to pay higher prices on the path to restoring American greatness. On Truth Social, Trump posted an article with the headline “Shut Up About Egg Prices,” and Republicans are insisting that it’s worth it to “pay a little bit more” to support the president. But “America First” has always been a better slogan than organizing principle. When people have the option to pay for domestic goods at higher prices, they opt out, time and again.

The speed with which Republicans have gone from hammering Democrats about high grocery prices to justifying the inflationary effects of tariffs is remarkable. Yet Republicans are likely to learn the lesson that Democrats did last November: Before they are Republicans, Democrats, or even Americans, my countrymen are consumers first.

Group of 65 migrants reach Panama City after release from the Darien, a dangerous jungle region near Colombia border.

The initiative aims to eradicate 25,000 hectares of coca bushes within 140 days while maintaining military operations against rebel groups in the northeast that profit from the drug trade.

In Catatumbo, fighting has forced over 55,000 people from their homes. What does it mean for Colombia’s peace process?

The best way to dismantle the federal government, then repurpose it as a tool of personal power and ideological warfare, is to start with the soft targets. Entitlements and defense, which comprise more than half of federal spending and a large share of its fraud and waste, enjoy too much support for Elon Musk to roll them up easily. But nothing is less popular than sending taxpayers’ money to unknown people in poor, faraway countries that might be rife with corruption. Americans dislike foreign aid so much that they wrongly believe it consumes at least a quarter of the budget (in the previous fiscal year, aid constituted barely 1 percent). President John F. Kennedy understood the problem, and after creating the United States Agency for International Development, in 1961, he told his advisers: “We hope we can tie this whole concept of aid to the safety of the United States. That is the reason we give aid. The test is whether it will serve the United States. Aid is not a good word. Perhaps we can describe it better as ‘Mutual Assistance.’ ” At another meeting, Kennedy suggested “International Security.”

USAID continued for the next six decades because leaders of both parties believed that ending polio, preventing famine, stabilizing poor countries, strengthening democracies, and opening new markets served the United States. But on January 20, within hours of his inauguration, President Donald Trump signed an executive order that froze foreign aid. USAID was instructed to stop nearly all work. Its Washington headquarters was occupied and sensitive data were seized by whiz kids from Musk’s Department of Government Efficiency, or DOGE. One of their elder members, a 25-year-old software engineer and Matt Gaetz fan named Gavin Kliger, acquired an official email address to instruct the staff of USAID to stay home.

Contractors were fired and employees were placed on indefinite leave; those on overseas missions were given 30 days to return to the States with their families. Under orders to remain silent, they used pseudo­nyms on encrypted chats to inform the outside world of what was going on. When I spoke on Signal with government employees, they sounded as if they were in Moscow or Tehran. “It felt like it went very authoritarian very quickly,” one civil servant told me. “You have to watch everything you say and do in a way that is gross.”

The website usaid.gov vanished, then reappeared with a bare-bones announcement of the organization’s dismemberment, followed by the message “Thank you for your service.” A veteran USAID official called it “brutal—­from some 20-year-old idiot who doesn’t know anything. What the fuck do you know about my service?” A curtain fell over the public information that could have served to challenge the outpouring of lies and distortions from the White House and from Musk, who called USAID “a criminal organization” and “evil.” If you looked into the charges, nearly all turned out to be outright falsehoods, highly misleading, or isolated examples of the kind of stupid, wasteful programs that exist in any organization.

A grant for hundreds of ethnic-minority students from Myanmar to attend universities throughout Southeast Asia became a propaganda tool in the hands of the wrecking crew because it went under the name “Diversity and Inclusion Scholar­ship Program”—as if the money were going to a “woke” bureaucracy, not to Rohingya refugees from the military regime’s genocide. The orthodoxy of a previous administration required the terminology; the orthodoxy of the new one has ended the students’ education and forced them to return to the country that oppressed them. One of Trump’s executive orders is called “Defending Women Against Gender Ideology Extremism and Restoring Biological Truth to the Federal Government”; meanwhile, the administration suspended the online education of nearly 1,000 women in Afghanistan who had been studying undetected by the Taliban with funding from the State Department.

But hardly anyone in this country knows these things. Contesting Musk’s algorithmically boosted lies on X with the tools of a reporter is like fighting a wildfire with a garden hose.

With no workforce or funding, USAID’s efforts around the world—vaccine campaigns in Nepal, HIV-drug distribution in Nigeria, nutrition for starving children in Sudanese refugee camps—were forced to end. Secretary of State Marco Rubio (who championed USAID as a senator and now, as the agency’s acting head, is its executioner) issued a waiver for lifesaving programs. But it proved almost meaningless, because the people needed to run the programs were locked out of their computers, had no way to communicate, and feared punishment if they kept working.

The heedlessness of the aid wreckers recalls Nick Carraway’s description in The Great Gatsby of Tom and Daisy Buchanan: “They were careless people, Tom and Daisy—they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together, and let other people clean up the mess they had made.” An agency of 10,000 employees is shrinking to about 300 and, despite its statutory independence, being dissolved into the State Department. The veteran USAID official I spoke with foresaw a skeletal operation reduced to health and food assistance, with everything else—education, the environment, governance, economic development—gone. But even basic humanitarian programs will be nearly impossible to sustain with the numbers that the administration envisions—for example, 12 staff members for all of Africa.

“This is the infrastructure and architecture that has given us a doubling of the human lifespan,” Atul Gawande, the writer and surgeon who was the most recent, and perhaps last, head of the agency’s Bureau for Global Health, told me. “Taking it down kills people.”

Trump and Musk’s destruction of USAID was a trial blitzkrieg: Send tanks and bombers into defenseless Poland to see what works before turning on the Western powers. The assault provided a model for eviscerating the rest of the federal bureaucracy. It also demonstrated the radicalism of Trump’s view of America’s role in the world.

Every president from Franklin D. Roosevelt to Barack Obama understood that American power was enhanced, not threatened, by attaching it to alliances, institutions, and values that the American people support, such as freedom, pluralism, and humanitarianism. This was the common idea behind Harry Truman’s Marshall Plan for postwar Europe, Kennedy’s establishment of USAID, Jimmy Carter’s creation of the U.S. refugee program, and George W. Bush’s Emergency Plan for AIDS Relief. These weren’t simple acts of generosity. They were designed to prevent chaos and misery from overwhelming other countries and, eventually, harming our own. They expanded American influence by attraction rather than coercion, showing people around the world that the Leviathan could benefit them, too. Political scientists call this “soft power.”

Every president betrayed these ideas in one way or another, making U.S. foreign policy a fat target for criticism at home and abroad, by the left and the right. Kennedy used foreign aid to wage a bloody counterinsurgency in South Vietnam; Carter put human rights at the center of his policy and then toasted the repressive shah of Iran; Bush, claiming to be spreading democracy to the Middle East, seriously damaged America’s global legitimacy. USAID antagonized host governments and local populations with its arrogance and bloat. “We had a hand in our own destruction,” one longtime official told me. “We threw money in areas we didn’t need to.”

But the alternative to the hypocrisies of soft power and the postwar liberal order was never going to be a chastened, humbler American foreign policy—­neither the left’s fantasy of a plus-size Norway nor the right’s of a return to the isolationist 1920s. The U.S. is far too big, strong, and messianic for voluntary diminish­ment. The choice for this superpower is between enlightened self-­interest, with all its blind spots and failures, and raw coercion.

Trump is showing what raw coercion looks like. Rather than negotiate with Canada and Mexico, impose U.S. demands with tariffs; rather than strengthen NATO, undermine it and threaten a conflict with one of its smallest, most benign member countries; rather than review aid programs for their efficacy, shut them down, slander the people who make them work, and shrug at the humanitarian catastrophe that follows. The deeper reason for the extinction event at USAID is Trump’s contempt for anything that looks like cooperation between the strong and the weak. “America First” is more imperialist than isolationist, which is why William McKinley, not George Washington or John Quincy Adams, is Donald Trump’s new presidential hero. He’s using a techno-futurist billionaire to return America to the late 19th century, when the civil service was a patronage network and great-power doctrine held that “might makes right.” He’s ridding himself and the country of restraining codes—the rule of law at home, the rules-based order abroad—and replacing them with a simple test: “What’s in it for me?” He’s unilaterally disarming America of its soft power, making the United States no different from China, Russia, or Iran. This is why the gutting of USAID has received propaganda assistance and glowing reviews from Beijing, Moscow, and Tehran.

Transactional logic has an obvious appeal. Dispensing with the annoying niceties of multilateral partnerships and foreign aid brings a kind of clarity to international relations, showing where the real muscle is, like a strip-down before a wrestling match. Set loose, the U.S. might be strong enough to work its will on weaker friends and neighbors, or at least claim to do so. Trump’s threat of tariffs to intimidate Colombia into allowing deportation flights to land there was like the assault on USAID—an easy demonstration project. His domination of the propaganda sphere allows him to convince the public of victories even where, as with Canada, there was never much of a dispute to begin with. If NATO dissolved while the U.S. grabbed Greenland, many Americans would regard it as a net win: We’d save money and gain a strategic chunk of the North Atlantic while freeing ourselves of an obligation whose benefit to us wasn’t entirely clear.

It isn’t obvious why funding the education of oppressed Burmese students serves our national interest. It’s easier to see the advantages of strong-­arming weak countries into giving in to our demands. If this creates resentment, well, who said gratitude mattered between nations? Strength has its own attractive force. A sizable cohort of Americans have made their peace with Trump, not because he tempered his cruelty and checked his abuses but because he is at the height of his power and is using it without restraint. This is called power worship. The Russian invasion of Ukraine won Vladimir Putin a certain admiration in countries of the global South, as well as among MAGA Americans, while Joe Biden’s appeals to democratic values seemed pallid and hypocritical. The law of “might makes right” is the political norm in most countries. Trump needs no explaining in Nigeria or India.

Coercion also depends on the American people’s shortsightedness and incuriosity. Trump’s flood of executive orders and Musk’s assault on the federal government are intended to create such chaos that not even the insiders most affected understand what’s happening. An inattentive public might simply see a Washington melee—the disrupters against the bureaucrats. Short of going to war, if the U.S. starts behaving like the great powers of earlier centuries and the rival powers of our own, how many Americans will notice a difference in their own lives?

According to Rubio, the purpose of the aid pause is to weed out programs that don’t advance “core national interests.” Gawande compared the process to stopping a plane in midair and firing the crew in order to conduct a review of the airline industry. But the light of the bonfire burning in Washington makes it easier to see how soft power actually works—how most aid programs do serve the national interest. Shutting down African health programs makes monitoring the recent outbreak of Ebola in Uganda, and preventing its spread from that region to the rest of the world, nearly impossible. In many countries, the end of aid opens the door wider to predatory Chinese loans and propaganda. As one USAID official explained: “My job literally was countering China, providing develop­ment assistance in a much nicer, kinder, partnership way to local people who were being pressured and had their arms twisted.” When 70 Afghan students in central Asia, mostly women, had their scholarships to American universities suddenly suspended and in some cases their plane tickets canceled, the values of freedom and open inquiry lost a bit of their attractiveness. The American college administrator responsible for the students told me, “Young people who are sympathetic to the United States and share our best values are not only not being welcomed; they’re having the door slammed in their faces.”

Most Americans don’t want to believe that their government is taking life­saving medicine away from sick people in Africa, or betraying Afghans who sacrificed for this country. They might disapprove of foreign aid, but they want starving children to be fed. This native generosity explains why Trump and Musk have gone to such lengths to clog the internet with falsehoods and hide the consequences of their cruelty. The only obstacle to ending American soft power isn’t Congress, the bureaucracy, or the courts, but public opinion.

One of the country’s most popular programs is the resettlement of refugees. For decades, ordinary American citizens have welcomed the world’s most persecuted and desperate people—European Jews after World War II, Vietnamese after the fall of Saigon, Afghans after the fall of Kabul. Refugees are in a separate category from most immigrants: After years of waiting and vetting by U.S. and international agencies, they come here legally, with local sponsors. But Trump and his adviser Stephen Miller see them as no different from migrants crossing the southern border. The flurry of executive orders and memos has halted the processing of all refugees and ended funding for resettlement. The story has received little attention.

Here’s what the program’s shutdown means: I spoke with an Afghan special-forces captain who served alongside Americans—­when Kabul was about to fall in 2021, he prevented armed Taliban at the airport from seizing U.S. weaponry, but he was left behind during the evacuation. Arrested by the new regime, the captain was imprisoned for seven months and suffered regular and severe torture, including the amputation of a testicle. He managed to escape with his family to Pakistan in 2023 and was near the end of being processed as a refugee when Trump took office. He had heard Trump criticize the Biden administration for leaving military equipment behind in Afghanistan. Because he had worked to prevent that from happening, he told me, “that gave me a hope that the new administration would value my work and look at me as a valuable person, a person who is aligned with all the administration is hoping to achieve, and that would give a chance for my kids and family to be moved out safely.” Biden’s ineptitude stranded the captain once; Trump’s coldheartedness is doing it again.

A sense of loyalty and compassion isn’t extraneous to American identity; it is at the core of national pride, and its betrayal exacts a cost that can’t be easily measured. The Biden administration created a program called Welcome Corps that allows ordinary Americans to act as resettlement agencies. (My wife and I participated in it.) In Pennsylvania, a retiree named Chuck Pugh formed a sponsor group to bring an Afghan family here, and the final medical exam was completed just before Inauguration Day. When resettlement was abruptly ended, Pugh found himself wondering, Who are we? I know what I want to think, but I’m just not sure. The sponsor group includes Pugh’s sister, Virginia Mirra. She and her husband are devout Christians and ardent Trump supporters. When I asked her early this month how she felt about the suspension of the refugee program, she sounded surprised, and disappointed—she hadn’t heard the news. “I feel sad about that,” she said. “It does bother me. It’s starting to sink in. With these people in danger, I would wonder if there would be an exception made for them. How would we go about that?” Her husband frequently sends American-flag lapel pins to Trump, and I suggested that he write the president about the Afghan family. “I will talk to my husband tonight,” Mirra said. “And I will continue to pray that the Lord will protect them and bring them to this country by some means. I do believe in miracles.”

This article appears in the April 2025 print edition with the headline “The Era of Might Makes Right.” When you buy a book using a link on this page, we receive a commission. Thank you for supporting The Atlantic.

American global leadership is ending. Not because of “American decline,” or the emergence of a multipolar world, or the actions of U.S. adversaries. It’s ending because President Donald Trump wants to end it.

Just about all of Trump’s policies, both at home and abroad, are rapidly destroying the foundation of American power. The main beneficiary will be the Chinese leader Xi Jinping, who has been planning for the moment when Washington stumbles and allows China to replace the United States as the world’s superpower. That Trump is willing to hand the world over to Xi—or doesn’t even realize that’s what he’s doing—shows that his myopic worldview, admiration for autocrats, and self-obsession are combining to threaten international security and, with it, America’s future.

Trump is choosing to retreat even though the U.S. has its adversaries on the back foot. President Joe Biden’s foreign policy was working. By supporting Ukraine’s defense against Russia’s invasion, Biden weakened Moscow so severely that President Vladimir Putin had to turn to North Korea for help. His backing of Israel in its war with Hamas in Gaza undercut Iran’s influence in the Middle East. And Biden’s strengthening of the U.S. global-alliance system pressured and unnerved China as the world’s advanced democracies banded together against Xi and his plans to upset the world order.

[David Frum: How Trump lost his trade war]

Now Trump is voluntarily throwing away this hard-won leverage. The supposed master negotiator is signaling his willingness to sacrifice Ukraine to Russia before formal negotiations even start. Last week, U.S. Defense Secretary Pete Hegseth called a restoration of Ukraine to its borders before Russia snatched Crimea in 2014 an “unrealistic objective,” indicating that the administration would accept a peace deal that allows Putin to keep part of the independent nation he invaded. Hegseth also rejected NATO membership for Ukraine—the possibility of which was Putin’s pretext for invading in the first place. That wouldn’t be a bad outcome for Putin after starting a brutal war and effectively losing it.

But the big winner from such a settlement will be China. Because China is Russia’s most important partner, any gains that Putin can salvage from his disastrous war forwards the two dictators’ global agenda. That’s why Xi is egging Trump on. Beijing has reportedly proposed holding a summit between Trump and Putin to resolve the Ukraine war. Then Chinese construction companies would try to swoop in and earn a fortune rebuilding a shattered Ukraine, which Xi helped Putin destroy by supporting Russia’s sanctions-plagued economy.

More than that, Xi certainly realizes that Trump’s pandering to Putin offers Xi a chance to break up the Atlantic alliance and entrench Chinese influence in Europe. Vice President J. D. Vance blasted European allies at last week’s Munich Security Conference for marginalizing extremist right-wing political parties, and Chinese Foreign Minister Wang Yi took the opportunity to present Xi as the anti-Trump. “China will surely be a factor of certainty in this multipolar system and strive to be a steadfast constructive force in a changing world,” he told the attendees.

European leaders are not likely to have forgotten that Xi enabled Putin’s war in Ukraine. But if Trump won’t guarantee European security, Xi may well seize the opportunity to expand Chinese power by offering to step into the breach. Xi could make the case that he is able to rein in Putin, protect Ukraine, and preserve stability in Europe. That promise could well be an empty one; Xi may not be willing or even able to restrain an emboldened Putin. Still, abandoned by Washington, European leaders may hold their collective noses and look to Xi to keep the peace.

China “would start replacing the U.S. in the role of keeping Russia out of the Eastern Flank,” Gabrielius Landsbergis, the former Lithuanian foreign minister, recently posted on X. European Union members “in the East would be dependent on China’s protection and the racketeering would spread West.”

Trump is handing Xi other opportunities, too. By withdrawing from the World Health Organization and the United Nations Human Rights Council, the U.S. is clearing the field for China to make the UN system an instrument of its global power. Dismantling USAID makes China all the more indispensable to the developing world. Trump’s bizarre plan to deport Palestinians from Gaza will be a boon to Xi in the Middle East, a region China considers vital to its interests. Even the U.S. suspension of federal financial support for electric vehicles helps Xi by hampering American automakers in a sector Beijing seeks to dominate. China may see American retrenchment as an invitation to take more aggressive actions in pursuit of its interests—in Taiwan, but also toward other U.S. allies in Asia, including Japan, South Korea, and the Philippines.

Trump apparently assumes that he can keep Xi in check with tariffs. He imposed new duties on Chinese imports earlier this month. But Xi doesn’t seem particularly bothered. Beijing retaliated, but with little more than a face-saving gesture. The reciprocal tariffs covered a mere tenth of U.S. imports. Why fuss about a few shipments of stuffed toys when you can take over the world?

The damage to American global standing could be irreparable. The hope now is that the major democracies of Europe and Asia—France, Germany, Italy, Japan, and the United Kingdom—will stop up the power vacuum Trump is creating and keep China out of it. European leaders do not have to abide by whatever deal Trump cooks up with Putin for Ukraine. They could hold firm, continue the war, and wait for a new administration in Washington to reaffirm U.S. security commitments. But the course is risky, because erstwhile U.S. allies can’t assume that Washington will ever reestablish global leadership, or that if it does, the promises of future presidents will endure. That uncertainty may compel the allied democracies to make accommodations with China as best they can.

[Quico Toro: Trump’s Colombia spat is a gift to China]

Trump’s administration may be seeking to settle matters with Putin in order then to concentrate limited U.S. resources on confronting China. But this course may succeed only in making China more difficult to contend with, because America will be forced to do so without its traditional allies by its side.

Trust, once lost, is difficult to restore. Trump’s premise seems to be that what happens in Europe and Asia is of little consequence to the United States. Vance invoked Catholic theology (erroneously, according to Pope Francis) to justify a hierarchy of concern that places caring for U.S. citizens ahead of the rest of the world. But what, exactly, is best for Americans?

Trump may be right that other powers should do more to take care of their own affairs. But Americans know as well as anyone that what happens in the far-flung corners of the world—whether in Europe in the 1930s and ’40s or in Afghanistan at the turn of the 21st century—can and often does affect them, even dragging them into conflicts they do not want to fight. That doesn’t mean Washington must police every dispute. But by ceding global leadership to authoritarian China, Trump is creating a world that will almost certainly be hostile to the United States, its prosperity, and its people.

In the 1990s a Scottish gang attempted to smuggle cocaine from Colombia into Scotland.

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When it comes to tariffs for Canada and Mexico, America is ending the week pretty much as it started. Over the course of just a few days, Donald Trump—following up on a November promise—announced 25 percent tariffs on the country’s North American neighbors, caused a panic in the stock market, eked out minor concessions from foreign leaders, and called the whole thing off (for 30 days, at least). But the residue of this week’s blink-and-you-missed-it trade war will stick.

The consensus among economists is that the now-paused tariffs on Canada and Mexico would have caused significant, perhaps even immediate, cost hikes and inflation for Americans. Tariffs on Mexico could have raised produce prices within days, because about a third of America’s fresh fruits and vegetables are imported from Mexico, Ernie Tedeschi, the director of economics at Yale’s Budget Lab, told me in an email. But “uncertainty about tariffs poses a strong risk of fueling inflation, even if tariffs don’t end up going into effect,” he argued. Tedeschi noted that “one of the cornerstone findings of economics over the past 50 years is the importance of expectations” when it comes to inflation. Consumers, nervous about inflation, may change their behavior—shifting their spending, trying to find higher-paying jobs, or asking for more raises—which can ultimately push up prices in what Tedeschi calls a “self-fulfilling prophecy.”

The drama of recent days may also make foreign companies balk at the idea of entering the American market. During Trump’s first term, domestic industrial production decreased after tariffs were imposed. Although Felix Tintelnot, an economics professor at Duke, was not as confident as Tedeschi is about the possibility of unimposed tariffs driving inflation, he suggested that the threats could have ripple effects on American business: “Uncertainty by itself is discouraging to investments that incur big onetime costs,” he told me. In sectors such as the auto industry, whose continental supply chains rely on border crossing, companies might avoid new domestic projects until all threats of a trade war are gone (which, given the persistence of Trump’s threats, may be never). That lack of investment could affect quality and availability, translating to higher costs down the line for American buyers. Some carmakers and manufacturers are already rethinking their operations, just in case.

And the 10 percent tariffs on China (although far smaller than the 60 percent Trump threatened during his campaign) are not nothing, either. These will hit an estimated $450 billion of imports—for context, last year, the United States imported about $4 trillion in foreign goods—and China has already hit back with new tariffs of its own. Yale’s Budget Lab found that the current China tariffs will raise overall average prices by 0.1 to 0.2 percent. Tariffs, Tedeschi added, are regressive, meaning they hurt lower-earning households more than high-income ones.

Even the most attentive companies and shoppers might have trouble anticipating how Trump will handle future tariffs. Last month, he threatened and then dropped a tariff on Colombia; this week, he hinted at a similar threat against the European Union. There is a case to be made that Trump was never serious about tariffs at all—they were merely a way for him to appear tough on trade and flex his power on the international stage. And although many of the concessions that Mexico and Canada offered were either symbolic or had been in the works before the tariff threats, Trump managed to appear like the winner to some of his supporters.

Still, the longest-lasting damage of the week in trade wars may be the solidification of America’s reputation as a fickle ally. As my colleague David Frum wrote on Wednesday, the whole episode leaves the world with the lesson that “countries such as Canada, Mexico, and Denmark that commit to the United States risk their security and dignity in the age of Trump.”

Related:

The tariffs were never real. How Trump lost his trade war

Here are three new stories from The Atlantic:

The government’s computing experts say they are terrified. Trump takes over the Kennedy Center. Gary Shteyngart: The man in the midnight-blue six-ply Italian-milled wool suit

Today’s News

A federal judge said he would issue a temporary restraining order that would pause parts of the Trump administration’s plan to slash the USAID workforce and withdraw employees from their overseas posts. Donald Trump met with Japanese Prime Minister Shigeru Ishiba at the White House, where they discussed reducing the U.S.’s trade deficit with Japan. A plane carrying 10 people went missing in western Alaska while en route from Unalakleet to Nome.

Dispatches

The Books Briefing: Boris Kachka examines a new, unbearably honest kind of writing. Atlantic Intelligence: For a time, it took immense wealth—not to mention energy—to train powerful new AI models, Damon Beres writes. “That may no longer be the case.”

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Evening Read

Illustration by Akshita Chandra / The Atlantic. Sources: Getty; Wikimedia Commons.

The Rise of the Selfish Plutocrats

By Brian Klaas

The role of the ultra-wealthy has morphed from one of shared social responsibility and patronage to the freewheeling celebration of selfish opulence. Rather than investing in their society—say, by giving alms to the poor, or funding Caravaggios and cathedrals—many of today’s plutocrats use their wealth to escape to private islands, private Beyoncé concerts, and, above all, extremely private superyachts. One top Miami-based “yacht consultant” has dubbed itself Medici Yachts. The namesake recalls public patronage and social responsibility, but the consultant’s motto is more fitting for an era of indulgent billionaires: “Let us manage your boat. For you is only to smile and make memories.”

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More From The Atlantic

Paranoia is winning. Americans are trapped in an algorithmic cage. A Greenland plot more cynical than fiction Civil servants are not America’s enemies. The challenges the U.S. would face in Gaza

Culture Break

Illustration by The Atlantic. Sources: Courtesy of Sundance Institute; Neon Films/Rosamont; Luka Cyprian; A24; Lars Erlend Tubaas Øymo.

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Discover. David Lynch’s work was often described as “mysterious” or “surreal”—but the emotions it provoked were just as fundamental, K. Austin Collins writes.

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Stephanie Bai contributed to this newsletter.

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