Boycott movement and fear of recession Trump's tariff policy threatens to blow up in his face

For Donald Trump, tariffs are a means of making policy. But his course not only frightens his neighbors and his own population, but also makes the markets nervous. Calls for a boycott are growing abroad.

"I find it offensive that they're trying to test my knowledge of economics and the decisions that this president has made," says the White House press secretary in the video above. "Now I regret that I let the Associated Press [AP] ask a question."

That's hefty even for Karoline Leavitt, who has already made a name for herself for her dashing style in the seven weeks since Donald Trump's inauguration. What got her so excited? The question about the new administration's tariffs, for which the 27-year-old has her very own explanation.

"Tariffs are a tax increase for foreign countries that have ripped us off. Tariffs are a tax cut for the American people. And the president is a staunch supporter of tax cuts," says Leavitt. The reporter then dares to object that these tariffs are mostly passed on from companies to consumers.

This is necessary on the way to "balanced and fair" trade, which has been withheld from the "people for decades", says the spokeswoman angrily. "As I said at the beginning: revenues will stay here, wages will rise and our country will become prosperous again."

The spectre of recession is looming

The issue of tariffs isn't just making the White House nervous - Trump's party strategists will have taken note that , according to The Hill, the president's approval ratings are falling due to concerns about the economy. Consumer confidence fell noticeably in February.

The current slump on the stock market speaks for itself: "Just 45 days into his second term, Trump is tearing the economy apart," moans the San Francisco Chronicle. "No one on Wall Street is praising Trump and his bipolar approach to tariffs and the stock market."

Gerald Cohen of the University of North Carolina explains to NPR why the tariffs are hurting: "If you're unsure what the policy is going to be, it leads you to not make big, important decisions. If we're already in an environment that doesn't look good, that uncertainty could push us into a recession."

Counter-tariffs hit Republican states

Trump is not fazed by this. "I hate predicting these things," he says, referring to the fear of recession. And: "It takes a little time." For the 78-year-old, tariffs are a diplomatic means of exerting pressure: he has just told Canada, for example, that the "tariff problems" that he himself initiated would not even exist if they just joined in.

Home-made crisisThe stock market slump explained in five points

At the same time, the US President gives the impression that he does not care about the reactions of those affected. Canada and the EU are responding to his tariffs in a targeted manner - with counter-tariffs for industries from states where the Republicans are in power. This is intended to build internal party pressure on the White House.

Brussels is imposing tariffs on US products as diverse as poultry, beef, motorcycles, bourbon, peanut butter and jeans. Canada is countering with tariffs on steel products, tools, computers, monitors, cast iron and sports equipment. "Taken together, the new tariffs will cost companies billions of dollars," writes AP.

What steel and aluminum tariffs will make more expensive

Trump's tariffs on steel and aluminum will continue to make products and services that rely on the metals more expensive in the US. The portfolio ranges from the beverage industry to the construction industry and car manufacturers.

On the other hand, Trump's measure will hit Canada in particular, which according to the AP accounts for more than half of foreign aluminum and exports the most steel to the US. Mexico, Brazil, China and Taiwan are also suffering from the steel tariffs. The whole thing is ostensibly intended to protect the domestic US industry.

In the United States itself, however, only 150,000 people work in the steel industry - compared to 1.6 million employees at Walmart. Speaking of which, the US giant is currently in trouble with Beijing for allegedly putting pressure on Chinese suppliers. They were supposed to lower their prices because of Trump's 20 percent tariff.

Boycott movement

It seems certain that Trump's trade war will have an impact on inflation, which he has promised to reduce. At 2.8 percent in February, it was even a little lower than expected - but when the suspended 25 percent tariffs on all goods from Canada and Mexico come into force on April 2 at the latest, more will have to be paid for food.

In addition, the tariffs and counter-tariffs are threatening to escalate: "Of course I will respond," Trump assures in response to the EU's threatened counter-tariffs worth almost 25 billion francs. According to Handelsblatt, 200 percent tariffs on wine and champagne are being discussed. But even if a country does not impose counter-tariffs, such as Australia, Trump's policy is damaging the American economy.

Because of the US tariffs, Prime Minister Anthony Albanese is calling on his countrymen to boycott US goods: people should buy domestic products instead of American ones. Consumers in France also want to avoid US goods, but sometimes have problems identifying them on the market, reports "Radio France Internationale".

Brussels also wants to become less dependent on Washington: If the EU frees up funds for defense investments, these should be invested in Europe if possible, demands Commission President Ursula von der Leyen. Trump's tariffs are angering trading partners as well as local customers: this US policy can be expensive not only in the short term, but also in the long term.