When the U.S. announced draconian tariffs set for August 1, markets braced for impact. But the deadline slipped to August 7, and global indices barely blinked.
In recent months, the on-and-off saga of planned duties led a Financial Times columnist to dub it TACO – Trump Always Chickens Out. Meanwhile, stock indices have climbed, unconvinced that the deadlines will hold.
Deal or No Deal? EU, Japan & UK
The EU, Japan and the UK all struck side agreements or secured exemptions before the original deadline. Canada and Mexico rely on their existing USMCA, and a negotiation with the Chinese mainland continues, giving markets little reason to panic.
Yet for smaller and vulnerable economies – from Syria to Laos and Myanmar – the threat of high levies remains real, promising economic pain where resilience is low.
Potemkin Politics at Play
Like an 18th-century facade hiding hardship, these tariffs seem designed more for show than substance. Major announcements with Japan and the EU lacked detailed binding terms, resembling photo ops rather than comprehensive trade pacts.
After a steep stock market dive in early April, the Trump administration halted the initial wave of duties. Each postponement underlines the tension between political theatre and economic reality.
For global citizens, entrepreneurs and travellers, the lesson is clear: focus on data-backed agreements and watch beyond the headlines. In the world of Trump’s Potemkin tariffs, substance often takes a back seat to spectacle.
Reference(s):
cgtn.com
