The Business Times
business-time-50
SUBSCRIBERS

Weaponised trade? The unfolding fallout of Trump’s policy

Whether his politicisation of economics is a temporary departure or a permanent approach will shape US prosperity and the global trading system for years to come

Summarise
google-preferred-sourceAdd BT as a preferred source
    • Framing tariffs as fair responses to other countries’ policies may create a narrative that resonates politically, but obscures the complex economic realities of trade relationships, says the writer.
    • Framing tariffs as fair responses to other countries’ policies may create a narrative that resonates politically, but obscures the complex economic realities of trade relationships, says the writer. PHOTO: REUTERS

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Leon Hadar

    Published Fri, Aug 22, 2025 · 07:00 AM

    US PRESIDENT Donald Trump’s second-term trade policy marks a fundamental departure from economic orthodoxy, explicitly subordinating trade to political objectives. 

    Rather than treating trade policy as a purely economic domain governed by efficiency and comparative advantage, his administration is wielding tariffs and trade rules as tools of statecraft. This is reshaping the relationship between economic policy and political strategy.

    Trump’s use of national emergency declarations to justify sweeping tariff measures exemplifies this politicisation. Invoking the International Emergency Economic Powers Act represents a significant expansion of executive power, transforming legislative and regulatory processes into a presidential prerogative.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Trump tariffsGeopoliticsTrade

    Copyright SPH Media. All rights reserved.

    Reuse this contentFeedback

    TRENDING NOW

    Malaysia Madani, or Civil Malaysia, is Prime Minister Anwar Ibrahim's slogan encapsulating positive values (such as humanity and strong governance) that would shape policy direction. But the "corporate mafia" claims have now cast the spotlight on governance credibility.

    From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?

    While residential property has delivered solid gains, observers say other assets such as equities often outpace it over the longer term.

    Higher costs, lower returns: Why are Singaporeans still betting on real estate?

    Malaysia ranks 23rd globally on the Milken Institute’s global opportunity index.

    South-east Asian markets account for 8.8% of global capital inflows from 2021 to 2024: report

    Eu Yan Sang group chairman Richard Eu has been with the company since 1989 and has seen plenty of change over the years, such as how employees view their jobs.

    Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More