Global Alliances Shift Amidst Trump’s Tariff Turmoil

The diplomatic axis has tilted away from America ever since President Donald J. Trump came to power, and the world is resetting itself. 

New alliances are being rekindled, and old ones are being cemented further, such as Mexico-Japan. In March 2025, the two countries revisited their decades-old Trade Partnership. Their discussions rallied around the framework of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), especially as over 1,300 Japanese Companies have a presence in Mexico. 

The kicking in of Tariffs has also upset many time tested allies of the US, some prominent examples being Australia, where PM Albanese was one of the first to express his unhappiness with the ‘unfair reciprocal tariff’ where, US shall charge them 10% while Australians charge them 0%. Trump’s justification regarding the same came in with the refusal of the Aussies in buying Fresh Beef from USA to protect their domestic Market.

The Tariffs are going to have a direct impact on the American people, as they’ll feel the pinch of the same in the form of increased product cost. This has led to a market wide panic in the USA.

This panic was substantiated when NASDAQ 100 Futures fell around 4%, S&P 500 Futures experienced a 3% decline, and Dow Jones Futures experienced a 2% decline. This scenario almost repeated itself the next day as well. 

The growing uncertainties also led to prices of Gold hitting a new All-time high of $3,167 per ounce. The scenario doesn’t seem to perturb President of the United States.

By calling for ‘freezing’ investment in the USA, Emmanuel Macron made a bold statement official: “It is important that future investments, the investments announced over the last few weeks, should be put on hold for some time until we have clarified things with the United States of America,” Macron said on Thursday as he hosted a meeting with representatives of the sectors impacted and the government at the Elysée palace.

“What message would we send by having major European players investing billions of euros in the American economy at a time when [the U.S.] are hitting us?” Macron continued, calling for “collective solidarity.” The tiff between the EU and the USA has reached new heights, and the US Dollar has continued to slip against the Euro ever since the announcement. 

President Trump, while touting his horn, proudly spoke about the Golden Visa, which features his own Photo and costs $5 Million USD. The visa is however granted after a thorough scrutiny of the applicant, it according to him will sell like hot cakes bringing in billions of dollars.

When asked about the dire state of the economy, he was quick to repatriate it to the awful management by the Biden Administration, and used a simile stating that marketing is responding such is akin to a very sick patient being operated and yet to adapt to the changes which will inject the economy with money and a fervour. 

Also Read: 5 Benefits to India from Trump Tariff Shake-Up

Epil Bodra
Epil Bodra

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