Introduction

Recent trade policies implemented by President Trump have significant implications for both America and its global relationships. These policies include tariffs on Canada, China, and Mexico, as well as stopping military aid to Ukraine. This article examines how these decisions are affecting powerful American business interests and reshaping global dynamics in what appears to be an internal power struggle within America’s elite circles.

New Tariff Policies

Trump has imposed:

  • 25% tariffs on goods from Canada and Mexico
  • 10% tariffs on goods from China
  • Halted military assistance to Ukraine

In response, countries have implemented their own retaliatory tariffs:

  • Canada placed 10-15% tariffs on American steel, aluminum, timber, building materials, dairy products, grains (wheat, corn, soybeans), juice, and alcohol
  • China has imposed 15% tariffs on agricultural products and fisheries

These retaliatory tariffs were strategically targeted at industries concentrated in regions that have traditionally supported Trump, putting political pressure on his administration.

Impact on American Industries and Supply Chains

Defense Industry ($85-105 billion estimated losses)

  • Lockheed Martin: $8 billion in disrupted sales
  • Raytheon Technologies: Millions in potential losses
  • Northrop Grumman: $3 billion in losses
  • Boeing Defense: $1 billion in losses
  • Stock values have already fallen: Lockheed Martin (5.2%), Raytheon (4.8%), Northrop Grumman (6.1%)

The defense industry has been particularly hard hit by the decision to end support for Ukraine. Since the conflict began, the U.S. had provided over $44.2 billion in military assistance to Ukraine, creating significant revenue for American defense contractors.

Agricultural Sector ($20-25 billion estimated losses)

  • Soybeans: 21% decline expected
  • Corn: 17% decline expected
  • Dairy products: 12% decline expected
  • Orange juice and wine: 18% decline expected
  • Major impact on Bill Gates (owns 269,000 acres of farmland) and Warren Buffett (major agricultural investor)

The agricultural impacts extend beyond just exports. With restricted international markets, domestic supply is expected to increase, potentially driving down prices further within the U.S. market. This affects major agribusinesses like Cargill, Archer Daniels Midland, and Tyson Foods.

Automobile Industry ($10-12 billion estimated losses)

  • General Motors: 6.4% sales decline ($3.2 billion loss)
  • Ford: 5.7% sales decline ($2.8 billion loss)
  • Auto parts tariffs affecting Detroit manufacturers

The automobile industry is particularly vulnerable due to its integrated North American supply chain. A typical vehicle might cross borders between the U.S., Canada, and Mexico up to 15-25 times during production, with some components crossing hundreds of times before final assembly.

Steel and Aluminum Industry ($5.5-6 billion estimated losses)

  • Nucor Corporation: 8.2% stock decline ($1.9 billion loss)
  • US Steel: 11% sales decline ($2.3 billion loss)
  • Alcoa Corporation: 9.5% value decline ($1.6 billion loss)

The steel and aluminum tariffs also impact downstream industries, including Tesla, SpaceX, and other manufacturers that depend on these materials for their products.

Textile and Consumer Goods ($2-2.5 billion estimated losses)

  • Nike: 9.3% sales decline in Canadian market ($70 million)
  • Levi’s: 7.1% sales decline ($45 million)
  • La-Z-Boy Furniture: 10.5% decline ($30 million)

Machine Manufacturing Industry ($2.5-3 billion estimated losses)

  • Caterpillar and John Deere facing significant impact
  • 8-9% decline expected in the sector
  • Major investor David McLain (Caterpillar) seeing substantial losses

Rare Earth Elements and Technology

An often overlooked aspect is the impact on technology supply chains. Trump’s deteriorating relationship with China affects rare earth element supplies critical for microprocessor manufacturing. Meanwhile, a potential deal to secure rare earth elements from Ukraine fell through following a meeting at the Oval House, further threatening America’s technology sector dominated by figures like Bill Gates.

Wine and Alcohol Industry

The wine and alcohol industry faces significant disruption, with California wineries and Florida orange juice producers particularly affected. Major companies like Constellation Brands and E&J Gallo Winery are expecting reduced exports to Canada due to retaliatory tariffs.

Impact on America’s Elite Families

Individual wealthy Americans and their business empires are projected to suffer:

  • Bill Gates: $1.5-2 billion in asset losses, with his farmland holdings potentially losing 75% of their value
  • Warren Buffett: $3-4 billion in losses through his Berkshire Hathaway investments
  • Elon Musk: $2.5-3 billion in losses
  • Rothschild and Morgan groups: $4.5-5 billion in asset losses

The Bigger Picture: Power Shift

The article suggests these policies represent a significant power shift in America:

  • The “old elite” (Rothschilds, Morgans, Rockefellers, Warren Buffett, Gates) is being challenged
  • A “new world order” led by Peter Thiel and including figures like Trump, Zuckerberg, Jeff Bezos, and Elon Musk is emerging
  • These policies appear designed to weaken the traditional American elite’s global control mechanisms

There are historical parallels to this power shift. The article notes that the Ford Foundation has previously been accused of influencing Indian politics, including alleged involvement in the Anna Hazare movement that contributed to weakening former Prime Minister Manmohan Singh’s government.

Ukraine Military Aid Implications

Stopping weapons supply to Ukraine:

  • Benefits European defense companies (German Metall, France’s Dassault and Thales)
  • Chinese companies like Norinco (artillery and missile systems)
  • Hurts American defense contractors who were profiting from the conflict

The decision also impacts Ukraine’s mineral resources. There had been American interest in securing Ukraine’s rare earth elements, critical for technology manufacturing, but these deals now appear endangered.

Global Political Implications

Trump’s policies are reshaping America’s global relationships:

  • Deteriorating relations with traditional European allies
  • Reduced American influence in Europe
  • Political cartoons depicting Trump as “Russia’s dog”
  • Comparison to Gorbachev’s role in the Soviet Union’s collapse
  • Reduced American ability to extract resources and wealth from other nations

To Sum it Up

The total estimated damage to American industries from these policies ranges from $46-56 billion. Whether intentional or not, these decisions appear to be reshaping both internal American power dynamics and America’s position on the global stage.

Donald Trump is constantly trying to imitate Mikhail Gorbachev who presided over the Soviet Union’s collapse.

By Anindya Nandi

Anindya Nandi is a Veteran of the Indian Navy. An IT graduate from Mumbai University, Served the Navy for 15 years from 1996 to 2011. Took part in Operation Talwar (Kargil War) and was in a support team during Operation Parakram. Visited 12 foreign nations while serving as a part of Indian goodwill visit to Foreign Countries. Trained in Nuclear Biological and Chemical Defence and Damage Control activities Including Fire Safety. Keen to observe geopolitical developments and analyze them with his own opinion.

One thought on “Trump’s Trade Policies: Impact on America’s Elite and Global Relations”
  1. Trump is genuinely trying to reduce mammoth debt of USA accumulated over the years.Trump knows that after emergence of BRICS, dollar’s hegemony is slowly but surely coming to an end.Dedollarisation has resulted in stopping of unlimited printing of dollars.If Trump is not taking action now, after 3-4 years America would have witnessed bankruptcy.

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