What is behind Trump's hasty economic policies, tariff war?

TEHRAN, Apr. 12 (MNA) – Many experts believe that Trump's hasty and unconventional actions, supported by Republicans and American capitalists, are to maintain the dollar's power in the international economy and compete with China.

News ID: ۲۰۰۱۰۵۳

13 April 2025

EghtesadOnline: The following is a summary of an article written by Mohsen Rezaei, a member of Iran’s Expediency Council about Trump's  unconventional actions and economic policies at the international arena.

Many analysts, especially inside Iran, attribute Trump's rhetoric and plans solely to his business spirit.

Although Trump and Elon Musk are also pursuing personal interests, the reality behind the scenes will become more apparent in the coming months.

The fact is that Trump's hasty and unconventional actions, supported by Republicans and American capitalists, are to maintain the power of the dollar in the international economy and compete with China.

According to predictions, the fall of the dollar as the primary currency of international trade will cause the US economy to fall to third to fourth place in the world within the next 10 years.

The series of political and economic threats from the Trump administration, including encroachment on the natural resources and financial assets of countries friendly to the United States, and the support of Republicans in Congress and the US House of Representatives for Trump's actions go beyond his business nature and personal interests.

Under the Trump administration, a broad tariff war has been launched to reduce imports and increase domestic production and exports in order to strengthen the balance of payments and reduce pressure on the issuance of more dollars abroad and financial bonds.

The Senate and Congress' support for Trump's actions despite the reputational risk, distancing from the economy and free trade, and the uncertainty of its results, shows the height of American politicians' concern about the economic future of the United States.

The Trump administration's unusual measures, including efforts to acquire the natural resources of Ukraine, Canada, and Greenland and pressure for capital inflows from West Asian oil countries, including Saudi Arabia, are rarely seen in the history of the US economy.

The attack on Yemen, the pressure on Lebanon, the deployment of more troops and military equipment in Syria, and the attempt to displace the people of Gaza, along with unconventional economic measures, are the same "dollars next to bullets" doctrine of the American economy that has been repeated over and over again.

Now, the question is, "Will the US succeed in these policies"? It is clear that distancing an economic and political system from its 200-year-old history, values, and economic systems is not an easy task.

On the other hand, the interconnectedness and interdependence of the US economy with the global economy will have negative feedback effects on the US economy./mehr