ECONOMISTS LIED ABOUT TRUMP’S TARIFFS

Donald Trump’s return to the White House has triggered a hard reset of the United States’ trade policy. His administration has reintroduced direct bilateral agreements, strategic tariffs, and a renewed emphasis on foreign investment that prioritizes American industrial competitiveness. 

Within the first six months of 2025, the federal government collected $150 billion in tariff revenue—funds deposited directly into the United States Treasury rather than foreign governments.

In May 2025, the United States recorded its smallest trade deficit with China in more than a decade. That outcome followed Trump’s implementation of tariffs of up to 25% on Chinese exports in sectors such as steel, consumer electronics, and aluminum industries in which China previously maintained global dominance. 

As a direct consequence, many American firms relocated production to domestic facilities. The trade deficit with China in May 2025 declined by 40% compared to the same period in 2024.

Through a newly ratified agreement with the European Union, the EU has committed to purchasing $750 billion in American energy products, more than doubling the 2024 benchmark.

The deal includes an additional $600 billion in direct EU investments into strategic U.S. sectors, including semiconductors, advanced manufacturing, and renewable energy infrastructure. 

To preserve domestic competitiveness, tariffs of 15% remain in place on sensitive imports such as pharmaceuticals, automobiles, and microchips, while industrial metals face duties of up to 50%.

In the Indo-Pacific region, Japan signed a $550 billion bilateral agreement ensuring that 90% of profits generated from Japan-backed projects within the United States remain under American ownership. 

The sectors covered by the agreement include electric vehicle production, aerospace development, and semiconductor fabrication—fields essential to long-term economic leadership.

To level the field, Japan also accepted a 15% tariff on its exports to the United States.

Indonesia, one of Southeast Asia’s fastest-growing economies, committed $2 billion toward the construction of a blue ammonia facility in Louisiana, a project projected to create thousands of U.S.-based jobs.

In parallel, Indonesia has agreed to purchase $15 billion worth of American energy products, including propane, crude oil, and gasoline.

Negotiations are ongoing with both Vietnam and the Philippines. While specific figures have not yet been finalized, preliminary discussions suggest that both nations will fund substantial U.S.-led projects in agriculture, green energy, and consumer electronics manufacturing.

In the Middle East, the scale of investment is unprecedented. Qatar has pledged a $1.2 trillion strategic partnership with the United States, with $250 billion in signed contracts spanning aerospace, defense systems, and civil aviation.

Saudi Arabia committed $600 billion in direct American investments, and the United Arab Emirates added $200 billion in targeted capital focused on artificial intelligence, logistics, and advanced manufacturing.

British aviation company AviaCorp finalized a $10 billion deal to purchase Boeing aircraft—a transaction that will support thousands of jobs in Missouri, Washington, and South Carolina.

Simultaneously, the United States lifted tariffs on British-made Rolls-Royce engines, essential components in Boeing’s domestic assembly lines, ensuring continued supply chain stability and job security for American workers.

U.S. chemical and pharmaceutical exporters, particularly in Texas and Louisiana, also stand to benefit. The new agreement eliminates prior regulatory barriers on the export of industrial chemicals and advanced medical products, opening new global markets for American producers.

Foreign direct investment, which declined from $403 billion in 2021 to $270 billion in 2023, is now experiencing a sharp rebound.

Trump’s 2025 trade framework, supported by agreements with Japan, Qatar, Saudi Arabia, and the European Union, is projected to deliver more than $2.5 trillion in long-term capital to the U.S. economy. These investments are strategically targeted at sectors critical to growth, resilience, and national security.

This entire approach contrasts sharply with trade policy under President Joe Biden. During his tenure, federal spending included allocations such as $25,000 for legal support to LGBTQ asylum seekers in the United Kingdom and $40,000 for identity-themed literary festivals.

While such programs may offer symbolic or cultural value, they did little to stimulate American exports, job creation, or manufacturing output.

Trump’s trade policy rests on a singular guiding principle: secure measurable value for the American worker. Whether in ethanol production, semiconductor fabrication, or aerospace engineering, these industries are not merely contributors to GDP—they are strategic national assets. 

Under Trump, they are finally being treated as such.

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