A Self-Inflicted Trade Wound: Why is Trump Turning America’s Closest Allies Into Enemies?
President Donald Trump and Secretary of State Marco Rubio at a cabinet meeting at the White House in Washington DC. on February 26th, 2025. Source: Jim Watson / AFP
Alliances are built on trust, but trust is not built through economic warfare. And yet, President Donald Trump’s recent threats of a 25% tariff on European Union imports, justified by his claims that the EU was “formed to screw the United States,” once again undermines America’s closest allies in the name of economic nationalism. Trump’s statement on the fundamental purpose of the EU is not only factually inaccurate, but it is dangerously misleading. The European Union was established to deepen political and economic ties between European nations, fostering stability after the devastation of World War II. Over decades, this alliance has expanded beyond Europe, creating the world’s largest bilateral trade and investment relationship with the U.S. A partnership that has driven global economic growth and strengthened Western influence. So, at a time when strategic alliances matter more than ever, these tariffs do not project strength– they signal economic hostility toward a key partner. Instead of reinforcing America’s position in an increasingly unstable global order, Trump’s approach raises a far more pressing question: Why is he turning America’s closest allies into enemies?
Trump’s tariff strategy isn’t just economically reckless. It is fundamentally divisive. Trade partnerships, like personal relationships, thrive on mutual benefit rather than unilateral punishment. The Trump administration’s decision to impose a 25% tariff on European Union imports appears to be an attempt to address the disparity in auto tariffs between the U.S. and the EU. Currently, the EU levies a 10% tariff on U.S. vehicle imports, while the U.S. imposes only a 2.5% tariff on passenger cars and a 25% tariff on imported pickup trucks. However, this approach fails to consider the economic consequences such a drastic increase would create both sides of the Atlantic. Raising import duties to this extent would be too steep for most European manufacturers to pass on to consumers. With already tight profit margins, automakers cannot simply absorb the extra cost without cutting into revenue. This would leave manufacturers with two options: shift production to the U.S., increasing operational costs, or risk losing significant market share. Either way, the result is a disrupted supply chain, higher consumer prices, and a further strain on U.S.-EU trade relations.
Many wonder who truly pays for these tariffs? It’s not the government. It’s consumers (in particular, Americans), European manufacturers, and the businesses caught in between. These tariffs function as hidden taxes on imports, with their burden falling not on foreign governments but on domestic consumers and businesses. As importers pay more for goods, they pass those costs down the supply chain, ultimately raising prices for American households. And while European manufacturers may bear some of the cost, make no mistake, Americans will feel it the most. In an economy already struggling with inflation, forcing consumers to pay even more for European goods will only deepen financial strain in particular for the working and middle class Americans. A recent poll found that 63% of Americans say inflation is a “very big problem” for the country. Instead of easing that burden, these tariffs will push prices higher which would make it harder for families to afford essentials.
If this sounds familiar, that's because it is. And it failed. In 2018, the Trump administration waged a trade war, promising that tariffs would revitalize American industries and punish foreign exporters. But that's not what happened. Economic evidence told a different story. The hardest-hit weren’t foreign governments. It was American firms, American workers, and American families. Prices soared. Retaliatory tariffs crippled industries, while markets trembled under the weight of uncertainty. For instance, research from the Federal Reserve estimates that trade policy uncertainty alone was responsible for a decline in private nonresidential investment of about 1-2 percent during the height of the trade tensions. And in the end, the only thing Trump's tariffs did was cause more pain than gain manufacturing economic instability.
What is truly being gained by turning allies into adversaries? The European Union has already made it clear that they will retaliate if these tariffs are imposed, and history tells us that economic retaliation is never an isolated event. The damage will not be limited to trade; it will bleed into diplomacy, weakening relationships that have served as pillars of global stability for decades. Alliances are not only trade agreements, but also strategic partnerships built on trust, cooperation, and shared interests. The danger of Trump’s tariff expansion is not just the immediate economic repercussions, but the long-term diplomatic consequences that will ripple far beyond his administration. It is no secret that nations with strong trade ties tend to have more stable foreign relations. Economic interdependence fosters cooperation, reduces tensions, and strengthens political alliances. Disrupting these ties is a political unraveling. When trade becomes a weapon rather than a bridge, relationships deteriorate. At a time when global threats demand unity, the U.S. is choosing fragmentation.
But this shift is not accidental. It is the natural consequence of a rising nationalism sentiment that prioritizes self-isolation over cooperation. Trump’s tariffs are not just a trade policy; they are a reflection of an ideology that sees alliances as burdens rather than strengths and champions economic and political detachment in the name of sovereignty. The belief that the U.S. no longer needs its allies, that it can retreat behind tariffs and protectionist policies while expecting the world to remain at its feet, is dangerous. This is not diplomacy. This is a reckless gamble that threatens far more than trade deficits or GDP reports.
If this continues, the EU will not hesitate to seek stronger ties elsewhere. Already, Europe has been engaging in deeper trade talks with India and increasing economic cooperation with other global players. The U.S. is not irreplaceable. When one nation imposes economic penalties, another is always waiting to fill the gap. The more the U.S. isolates itself with policies like these, the more it forces allies to look for alternatives. For decades, the U.S. has taken its position at the center of global trade and diplomacy for granted. It has operated under the assumption that allies will always come back, that American leadership is too indispensable to abandon. But loyalty is not unconditional, and influence is not permanent. Nations act in their own self-interest, and when economic and diplomatic relationships become more of a liability than an asset, they evolve. The more the U.S. isolates itself with policies like these, the more it accelerates its own decline.
History has shown that no great power stays at the top by standing alone. Empires do not collapse overnight; they erode gradually, through arrogance and miscalculation. The British Empire once controlled vast trade networks, believing its dominance was untouchable until economic missteps and shifting alliances reduced its influence. The same pattern played out with other global superpowers, each one falling victim to the belief that their place in the world was permanent.
If America continues pushing its allies away, it will not be feared or respected. It will be ignored. This is more than just a trade dispute. It is a deliberate unraveling of alliances that have upheld America’s influence for generations. Trump’s tariff policies are not strengthening America, but isolating it.
If this is the path forward, then we are left with the same question we began with: Why is Trump turning America’s closest allies into enemies?