Chongqing - U.S. President Donald Trump's new tariffs are being implemented globally, driving up costs for importers and manufacturers. How has this tariff policy affected international politics, and what should major economies, such as the EU and China, do in response? Bridging News recently spoke with Rafael Martín Rodríguez, Professor of International Relations at the University of Granada in Spain, for his insights.

Rodríguez explained that Trump's initial plan is not working as expected, with the U.S. dollar weakening and the euro strengthening. "We need stability to have a strong market," he remarked.

He also noted that in the past, people invested in the United States because it was considered a safe place for money. However, the general perception has now shifted, and the U.S. is no longer seen as the secure investment destination it once was. "Everything is changing, and global markets are looking for more stability," he added.

One of the driving forces behind Trump's tariff policy, according to Rodríguez, is his attempt to bring industry back to the United States. "Something very important is not only money but human resources," he said.

When Trump initiated the trade war, he promised to bring jobs back, but data tells a different story, according to Xinhua. In the steel industry, where Trump imposed a 25 percent tariff in his first term, U.S. employment dropped to 80,200 in 2021, the lowest since the 1980s. Though the number climbed back to 83,600 in 2023, it was still below the 84,100 recorded in 2018.

The tariffs led to higher steel prices, increasing costs for U.S. consumers and reducing demand, which, in turn, caused job losses in the U.S. auto industry, as noted in a recent Council on Foreign Relations report.

Rodríguez also noticed that many of the workers in U.S. high-tech companies are from abroad, including China and Europe. Now, thousands of tech experts and company employees are leaving the United States. "I think the U.S. is losing a big opportunity, and other countries around the world will seize this chance," Rodríguez observed.

Rafael Martín Rodríguez is a Professor of International Relations at the University of Granada in Spain. (Photo/Rafael Martín Rodríguez)

When discussing the impact of tariffs on China, one of the world's largest economies, Rodríguez noted that Trump is attempting to pressure the Chinese government, but China will not yield.

Recent reports indicate that Trump raised U.S. tariffs on certain Chinese goods by up to 245% following multiple rounds of retaliation. In response, China imposed additional duties on U.S. imports, reaching 125% last week.

"Both economies have been working together for decades, and now that is coming to an end," Rodríguez said. "China is going to look for new markets and new places to make investments."

Rodríguez also highlighted that China is the second-largest holder of U.S. debt. "If China starts selling off these bonds, it could create a very dangerous situation for the dollar," he warned.

He also believed that we are moving very quickly toward a global economic crisis. "The issue is, no one is going to win in this kind of tariff war," he concluded that China is going to maintain its leading position after the conflict. 

(Huan Ran, as an intern, also contributed to the report.)