Donald Trump’s return to the global stage is once again marked by a familiar mantra: tariffs, not treaties
Author: Natali Husić Sarkozy
In early April 2025, his administration introduced sweeping new levies — a flat 10% on all imports, with even steeper rates for China and the European Union. Dubbed “reciprocal tariffs,” the move is less about economic orthodoxy and more about redefining the rules of global commerce under the guise of fairness.
This policy has sparked an international reckoning. China retaliated swiftly with 34% tariffs on U.S. goods and export controls on rare earth minerals, while European leaders warn of a new era of protectionism reminiscent of the 1930s. Markets reacted with panic, shedding trillions in value within days. But beyond the economic tumult lies a deeper diplomatic challenge: can alliances survive a transactional doctrine that prioritizes short-term wins over multilateral cooperation?
The Trump administration argues that these tariffs are not merely punitive — they are a strategic correction. “We’ve been taken advantage of,” said economic adviser Kevin Hassett in a recent ABC News interview, echoing the administration’s long-standing belief that free trade has eroded America’s industrial backbone. But critics, including some within the Republican Party, argue that these tariffs risk isolating the U.S. from its allies and emboldening adversaries like China, who thrive in fragmented global systems.
In Washington, protests erupted against what many see as economic nationalism disguised as patriotism. Meanwhile, on NPR’s weekend political chat, GOP insiders admitted to being caught off guard by the policy’s sweeping scope and potential to inflame inflation. One veteran strategist warned: “You don’t win global leadership by closing the door — you win it by setting the table.”
This diplomatic fallout extends far beyond U.S. borders. For smaller economies — including those in the Balkans — the ripple effects are real. Higher import costs, disrupted supply chains, and shifting trade alliances will test the region’s resilience and agility. In Serbia and its neighbors, where economic ties to both the EU and China are strategically balanced, the need to diversify trade partners and strengthen intra-regional cooperation has never been more urgent.
Diplomacy in the Trump era has always operated under a different logic: unpredictability is power. But as history has often shown, erratic economic policies can erode trust faster than they build leverage. The post-WWII global order was founded not just on economic cooperation, but on a belief in shared rules. Trump’s tariff blitz challenges that foundation.
Whether these policies achieve their intended goals — reindustrializing America and rebalancing trade — remains uncertain. But one thing is clear: diplomacy and commerce are no longer separate domains. They are two sides of the same coin, and in 2025, the coin is spinning in mid-air.