“This trade protectionism experiment under the banner of ‘America First’ is evolving into an ‘economic disaster that harms others without benefiting oneself.’” Bloomberg quoted senior economic experts criticizing the U.S. government’s indiscriminate imposition of tariffs.
A recent Bloomberg survey revealed that the U.S. administration’s tariff policies have not only failed to deliver on the promise of reviving American manufacturing but have also triggered a chain reaction of economic damage worldwide.
Latest data shows that U.S. investment growth in the second quarter of 2025 was a mere 0.1%. Reports indicate this growth rate is approaching a “tipping point towards economic recession.” Experts warn that if this week’s GDP data confirms this trend, it will serve as a major alarm signal for the U.S. economy.
Bloomberg Economics research projects that by the end of President Trump’s term in 2028, cumulative global GDP losses could reach $2 trillion.
The negative impact is first being felt within the United States itself.
Experts analyze that U.S. tariff policies inflict a double blow: first, by creating uncertainty in capital allocation, they suppress corporate investment; second, they hinder job growth. Experts added that signs of slowing investment are already visible, with U.S. import volumes declining steadily after a brief surge.
More worryingly, financial reports from several U.S. companies show tariffs are causing tangible damage.
According to reports by AP, NBC, and other U.S. media, General Motors lost $1.1 billion in the second quarter due to tariffs. Automaker Stellantis anticipates potential net losses of up to $2.7 billion in the first half of the year. Numerous companies attribute their profit declines directly to tariff policies.
The U.S. government promised that high tariffs would force companies to return production to America, but reality tells a different story.
While the administration claims to have attracted investment pledges totaling $15 trillion (equivalent to 50% of U.S. GDP), experts point out most of these are likely “paper promises.”
Bloomberg notes, for example, the over $500 billion investment fund in the U.S.-Japan agreement: its specific allocation remains unclear, and actual implementation will take years.
Economists argue that by artificially inflating domestic production costs through tariffs, this protectionist approach is backfiring. It fails to enhance competitiveness and instead weakens investment appeal, ultimately risking turning the U.S. into an “economic island.”
The negative effects of U.S. protectionism are already spreading globally.
- Japanese auto exports to the U.S. plummeted by 25%, triggering layoffs in regional auto parts industries.
- Canada’s economy is impacted, facing intensified inflationary pressure and slowing growth.
- Vietnamese contract manufacturers experienced a dramatic turnaround: U.S. partners first urgently halted shipments, then rushed to expedite transportation.
Experts state this is fundamentally an ideological battle. Trump and his advisors firmly believe high tariffs can solve problems ranging from the fentanyl crisis to manufacturing jobs, but reality starkly contradicts this view.
Economists warn that such policies inevitably come at a heavy cost. Not only do consumer goods prices rise, but the costs of all means of production increase.
Take U.S. steel tariffs: they not only raised the price of imported steel but also allowed domestic steel mills to hike their prices. This ultimately puts pressure on prices for everything from washing machines to cars.
A deeper consequence is that businesses, forced to adjust investment strategies to cope with rising operational costs, end up dragging down overall economic growth.
The global trade landscape is now being reshaped. Many countries are actively seeking new trade alliances:
- A massive trade agreement between the EU and Latin American economic blocs is nearing completion.
- The UK has formally joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the first European nation to join this trade pact.
- Even traditional allies are quietly shifting lanes.
Behind this trade transformation fought without gunpowder, an undeniable fact is becoming increasingly clear: as nations accelerate their “de-Americanization” processes, the former dominance of U.S. trade is now like sands slipping through fingers—the tighter one tries to grasp it, the faster it slips away.