President Trump has appeared mostly unmoved as the knock-on effects of his administration’s moves take shape. Photo / Eric Lee, The New York Times
The global trading system is only one example of the administration tearing something apart, only to reveal that it has no plan for how to replace it.
As the breadth of the Trump revolution has spread across Washington in recent weeks, its most defining feature is a burn-it-down-first, figure-out-the-consequences-later recklessness. The costs of that approach are now becoming clear.
Administration officials knew the markets would dive and other nations would retaliate when President Donald Trump announced his long-promised “reciprocal” tariffs. But when pressed, several senior officials conceded that they had spent only a few days considering how the economic earthquake might have second-order effects.
And officials have yet to describe the strategy for managing a global system of astounding complexity after the initial shock wears off, other than endless threats and negotiations between the leader of the world’s largest economy and everyone else.
Take the seemingly unmanaged escalation with China, the world’s second largest economy and the only superpower capable of challenging the United States economically, technologically and militarily. By American and Chinese accounts, there was no substantive conversation between Trump and China’s top leader, Xi Jinping, or engagement among their senior aides before the countries plunged toward a trade war.
Last Wednesday, Trump’s hastily devised formula for figuring out country-by-country tariffs came up with a 34% tax on all Chinese goods – everything from car parts to iPhones to much of what is on the shelves at Walmart and on Amazon’s app.
When Xi, predictably, matched that figure, Trump issued an ultimatum for him to reverse the decision in 24 hours – waving a red flag in front of a leader who would never want to appear to be backing down to Washington. On Wednesday morning, the tariff went to 104%, with no visible strategy for de-escalation.
If Trump does get into a trade war with China, he shouldn’t look for much help from America’s traditional allies – Japan, South Korea or the European Union – who together with the United States account for nearly half of the world economy. All of them were equally shocked, and while each is negotiating with Trump, they seem in no mood to help him manage China.
“Donald Trump has launched a global economic war without any allies,” economist Josh Lipsky of the Atlantic Council wrote Tuesday. “That is why – unlike previous economic crises in this century – there is no one coming to save the global economy if the situation starts to unravel.”
The global trading system is only one example of the Trump administration tearing something apart, only to reveal it has no plan for how to replace it.
State Department officials knew that eliminating the US Agency for International Development, the nation’s premier aid agency, would inevitably cost lives. But when a devastating earthquake struck central Myanmar late last month and took down buildings as far away as Bangkok, officials scrambled to provide even a modicum of help – only to discover that the network of positioned aid, and the people and aircraft to distribute it, had been dismantled.
Having dismantled a system that had responded to major calamities before, they settled on sending a survey team of three employees to examine the wreckage and make recommendations. All three were terminated from their jobs even while they stood amid the ruins in the ancient city of Mandalay, Myanmar, trying to revive a US capability that the Department of Government Efficiency – really no department at all – had crippled.
Secretary of State Marco Rubio was unapologetic about the paltry American response when he talked to reporters Friday: “There are a lot of other rich countries; they should also pitch in and help,” he said. “We’re going to continue to do our part, but it’s going to be balanced with all of the other interests we have as a country.”
Similarly, there was no plan for retrieving a Maryland man who was wrongfully deported to a notoriously dangerous Salvadoran prison, a move a judge called “wholly lawless” and an issue the Supreme Court is expected to take up in the next few days. A Justice Department lawyer in the case was placed on administrative leave, apparently for conceding that the man never should have been sent to the prison.
Trump has appeared mostly unmoved as the knock-on effects of his policies take shape. He has shrugged off the loss of $5 trillion in the value of the US markets in recent days. Aboard Air Force One on Sunday night, he said, “Sometimes you have to take medicine to fix something.”
In their public appearances, Trump’s aides have often contradicted one another, even on the rationale for imposing the tariffs. Peter Navarro, the most enthusiastic defender of the tariffs, has repeatedly described them as a new, permanent feature of America’s economic defences.
“This is not a negotiation,” he wrote in The Financial Times. “For the US, it is a national emergency triggered by trade deficits caused by a rigged system.”
Like Trump, Navarro has made the case that tariffs will become a major source of government revenue, as they were in the 1890s, before the creation of the income tax. (Among the sceptics of Navarro’s analysis is Elon Musk, who is leading the Department of Government Efficiency and is the world’s richest man. He called Navarro “truly a moron” and “dumber than a sack of bricks” on social media.)
But if you listen to Scott Bessent, the Treasury secretary, who has looked pained as he has had to defend the tariff strategy, the taxes on imports are a negotiation tool. He said Monday that he is overseeing such talks with Japan, which is the world’s No. 3 economy and the US’ most critical ally in containing Chinese power. But it is unclear whether that negotiation is about tariffs, nontariff barriers or geopolitics.
Clearly, there are exemptions to the tariffs for gaining geopolitical advantage. Kevin Hassett, one of Trump’s top economic advisers, said on ABC on Sunday: “There’s obviously an ongoing negotiation with Russia and Ukraine, and I think the president made the decision not to conflate the two issues.” Under the President’s system that briefly went into effect Wednesday, Russia faces no tariffs under the President’s current system; Ukraine, the victim of Moscow’s 2022 invasion, faces 10%.
Trump, never one to be pinned down on strategy, declared that all explanations for the purposes of his tariffs work for him: “They can both be true. There can be permanent tariffs, and there can also be negotiations, because there are things we need beyond tariffs.”
What is missing, at least so far, is a vision of the future.
Trump’s aides insist the speed at which they are working is a feature, not a bug, of the system. Move too slowly, Musk has insisted, and the bureaucracy would dig in, never to be dislodged. “Nobody’s going to bat a thousand,” he said at the White House in February. “We will make mistakes. But we’ll act quickly to correct any mistakes.” He cited the restoration of some aid to contain Ebola, and the rehiring of workers at the National Nuclear Safety Administration who oversee nuclear weapons.
But it is impossible to move through the empty corridors of the Ronald Reagan Building – where USAID, the Environmental Protection Agency and the Woodrow Wilson International Center for Scholars all have been subject to DOGE mandates to fire many workers – without it becoming clear that there is little plan for dealing with the work left behind. USAID’s doors are locked; the EPA has stopped collecting some critical data; and no one knows what is happening to the Wilson Center’s Cold War archive, but its scholars are largely gone. Over at the Cybersecurity and Infrastructure Security Agency, monitoring Russian and Chinese malware has taken a back seat to avoiding coming job cuts.
When the question of whether departments are looking beyond the budget line and thinking ahead to what happens when capabilities and expertise disappear gets asked, the answer is a tinge defensive. The Department of Health and Human Services has pulled back billions of dollars for monitoring Covid-19 and improving responses to future viral outbreaks. When asked, the department said, “The COVID-19 pandemic is over, and HHS will no longer waste billions of taxpayer dollars responding to a nonexistent pandemic that Americans moved on from years ago.”
All this suggests a failure to look around corners – which is hardly new in the American presidency. Herbert Hoover signed the Smoot-Hawley tariffs in June 1930, thinking they would help create jobs, then went fishing. They instead accelerated the Great Depression.
The White House insists this time, the result will be the opposite. It is a huge bet, one on which not only Trump’s presidency but also the fate of the global economy rests. And no one can predict where the bottom is for the markets or where the top is for the escalation with China.
“The speed and chaos surrounding President Trump’s policy rollout have created extraordinary global economic disruption; nobody alive has ever witnessed self-induced volatility on this scale,” Ian Bremmer, the founder of the Eurasia Group, a consulting firm, wrote this week.
At the beginning of the year, the United States had the strongest economic position of any of the Group of 7 nations, he noted.
Now, he concluded, “President Trump has become the principal disrupter.”
This article originally appeared in The New York Times.
Written by: David E. Sanger
Photographs by: Eric Lee and Qilai Shen,
©2025 THE NEW YORK TIMES
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