Trump pulls up the drawbridge on ‘Fortress America’

Alameen Templeton
Donald Trump seems to believe “making America great again” can be achieved by simply slapping tariffs (“the world’s greatest invention”) on cheap imports from China, but economists fear he’s going to increase costs for Americans while undermining their competitiveness by forcing them to buy inferior American products instead.
And American producers are likely to fall further behind in the technology race if they are able to rely on tariffs rather than improved products and production procedures to stay abreast of global developments.
Trump has also seized on a new enemy – Canada – for more tariff action, threatening tariff action against his neighbours both sides of the borders; Mexico has long been in his sights.
A fairy tale cure-all
He seems to believe tariffs are also somehow going to cut down illegal immigration over the Canada and Mexico borders, mixing up the two issues in a social media post Monday night in which he promised to impose a 25% tax on all products entering the US from Canada and Mexico and an additional 10% tariff on Chinese goods as one of his first executive orders when he takes office on January 20.
“On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders,” Trump complained, whining that “thousands of people are pouring through Mexico and Canada, bringing Crime and Drugs at levels never seen before,” even though violent crime is down from pandemic highs.
“The tariffs, if implemented, could dramatically raise prices for American consumers on everything from gas to automobiles to agricultural products. The US is the largest importer of goods in the world, with Mexico, China and Canada its top three suppliers, according to the most recent US Census data,” Associated Press reports.
Trump threatened the new tariffs would remain “until such time as Drugs, in particular Fentanyl, and all illegal Aliens stop this invasion of our country!”
He says he will keep the tariffs in place until Mexico and Canada take unspecified steps to curb the flow of migrants across the northern and southern borders.
A very blunt instrument
“Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power,” he went on, “and until such time that they do, it is time for them to pay a very big price!”
Trump may find his tariffs are a very blunt instrument, but he’s unlikely to pay the price as the realisation blow is likely only to fall in the closing days of his presidency. It will take many months, probably years, before his two neighbours could instal systems to stem the migration flow.
Like the apocryphal King Canute anecdote, he may find his tariffs are as effective as trying to reverse an incoming sea tide with a wave of his hand.
Certainly, tariffs have a horrible history of cutting both ways.
Smartphone maker Huawei is a case in point, emerging stronger today than it ever was before Trump targeted it for sanctions during his first presidency (and which continued under Joe Biden despite Biden blasting Trump for “racism” when he first implemented them). Huawei unveiled its latest “wonder” to the markets Tuesday, introducing its new, flagship Mate 70 model, that boasts entirely China-made software, giving consumers an effective alternative to Google’s Android or Apple’s iOS operating platforms, CNN reports.
It’s a far cry from 2019, when Trump introduced a ban of American microchips to China. That triggered a global panic to buy up and hoard microchips, sparking artificial shortages that bunged up production processes for all kinds of products all around the world.
Tuesday, Huawei introduced its most advanced domestically produced phone chip in its Mate 70 model, signaling a significant achievement in semiconductor innovation despite continuing US sanctions.
Al-Mayadeen reports Huawei’s semiconductor development achievement poses a security concern for the US and a competitive challenge for Apple. Industry researcher IDC says Huawei’s market share in China has grown significantly, climbing from 8.6% in the first quarter of last year to 15.3% in the third quarter of 2024.
A bite out of Apple
The resurgence is driven by a wave of nationalistic consumer support in China and standout features such as advanced cameras and artificial intelligence capabilities. Apple has yet to introduce Apple Intelligence features in the Chinese market.
The Wall Street Journal says competition is particularly intense in the high-end smartphone segment. It is worth noting that Huawei’s flagship Mate 60 series sells at $690 in China, while Apple’s iPhone 16 series retails at approximately $830.
But America is still keeping its nose in front, thanks to its security and trade ties to Taiwan that is home to the Taiwan Semiconductor Manufacturing Company (TSMC) that currently offers commercially available chips in the more advanced 3-nanometer category. Huawei lags, with chips in the 7-nanometer range, but the difference from a consumer point of view are minimal.
Huawei has in four, short years since Trump’s last term, almost completely closed the microchip gap with the US-Taiwan and is accelerating, thanks to its partnership with Chinese chipmaker Semiconductor Manufacturing International Corporation.
Boxer Rebellion
How effective Trumps import tariffs will be in cutting down Fentanyl addiction remains to be seen. The Chinese can only be smiling inscrutably. A thousand times more powerful and addictive than heroin, Fentanyl has cut a devastating swathe across American cities, with tens of thousands addicted. Imports still mainly come from China, but Mexican drug cartels are increasingly producing their own.
It’s a far cry since the “Boxer rebellion” of 1900, when US and British warships shelled Beijing’s “Forbidden Palace” in support of their “right” to continue controlling the opium trade, despite the protests of the emperor.