US import TARIFFS will not lead to inflation
No, I don’t believe the Trump tariffs will lead to inflation in the US… but obviously I am not nearly as smart as all the economists who have spread fear in the past few days and weeks.
Will his policies disrupt business as usual in the US, or will it all blow over as skeptics predict?
My take… We’re on the brink of a seismic shift, and for those ready to adapt, immense opportunities lie ahead.
Globalization as we know it is a flawed ideal. The promise of “free trade” has been riddled with carve-outs and restrictions that render it anything but free. From energy markets to agriculture, protectionism has long been a quiet force shaping policy, and it’s time to recognize that “free trade” often benefits a few while leaving many disillusioned.
Trump’s approach signals a decisive pivot: tariffs on imports, deregulation to encourage entrepreneurship, and a robust push to tap domestic energy resources. Critics warn of inflation, but I believe this fear is overblown. A carefully orchestrated combination of tariffs and local production can incentivize foreign companies to establish a presence in the US.
Contrary to popular belief, protectionism doesn’t mean shutting the world out; it’s about reciprocity. If foreign companies want access to the world’s largest consumer market, they must contribute to it—invest locally, employ locally, and build locally. This is not a new philosophy. Leaders across the political spectrum, including Biden and Harris, have leaned into this approach.
The idea of a “make economy” is central to Trump’s agenda. By lowering energy costs through domestic drilling and deregulating markets to spur entrepreneurship, the US can fuel consumer spending while reducing its reliance on foreign imports. It’s not about rejecting global partnerships; it’s about making them work for and with America.
For European businesses, the stakes are high. Losing access to the US market would be far more devastating for them than any inflationary impact in the US. Companies dependent on exports to America must rethink their strategies. The message is clear: if you want to sell in the U.S., you must produce in the US… or at least have a meaningful presence beyond selling from Copenhagen, Paris or Madrid.
Critics often assume that tariffs will drive up costs for consumers. But the reality is more nuanced. Local alternatives exist for most products, and policies can ensure offshore vendors don’t pass on higher costs unfairly. By fostering competition within US borders, tariffs could accelerate innovation and strengthen the domestic economy.
The MAGA economic framework offers three pillars of growth: tariffs to encourage local production, deregulation to empower small businesses, and leveraging domestic resources to fund a greener future. Yes, oil and gas revenues can coexist with investments in clean energy—just as Saudi Arabia is using oil wealth to fund its Vision 2030.
For entrepreneurs and companies—both domestic and foreign—the message is clear: adapt or fall behind. The US economy remains a powerhouse of innovation and opportunity, but the rules of engagement are shifting. Those who pivot now, committing fully to the US market, will thrive in this new landscape.
