Tags: trump | tariffs | fair | trade | economy | jobs
OPINION

Trump's Temporary Tariffs & 5D Diplomacy Will Work

Trump's Temporary Tariffs & 5D Diplomacy Will Work
U.S. President Donald Trump, left, shakes hands with Chinese President Xi Jinping at the G-20 summit in Osaka, western Japan. (Susan Walsh/AP/2019 file)

George Mentz By Friday, 30 May 2025 11:59 AM EDT Current | Bio | Archive

As an international lawyer who has worked and visited over 40 countries where I have had informal tax and trade policy discussions with business leaders and government leaders for over 20 years, I feel that there is a time and a season for everything.

In the beginning of January 2025, around 100+ countries had imposed decades of tariffs, taxes, and trade barriers on U.S. citizens and goods. This created a landscape where American business faced higher taxes and fees abroad, while the U.S. maintained open markets for most other nations & trading partners. [i] [ii] The facts and math of these tariffs on USA goods should probably embarrass all former Presidents, Secretaries of State, and former Senate & House leaders. [iii]

Before President Trump’s administration imposed new fair-trade rules, other countries (at least 100+) imposed significantly higher tariffs on U.S. exports across various sectors, such as: agricultural products; automobiles and parts ; consumer electronics; textiles and garments; and alcohol and tobacco. [iv]

Historically, the United States only applied small tariffs on select partners such as China and on steel and aluminum from the European Union, Canada, and Mexico. [v]. However, this “one-way” system, in which foreign nations levied taxes and tariffs on U.S. products without facing similar barriers, was supported by globalists but the inequity was criticized by populists and “fair trade” policymakers and businesses as detrimental to American businesses and citizens. [vi] [vii]

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What most non-lawyers and non-diplomats don’t know is that every nation and their envoys absolutely loves to negotiate new tariff and trades deals. This allows the envoys from other nations to negotiate favorable treatment for their nation’s top companies. Therefore, while tariffs sound disruptive to the uneducated, the reality is that everybody is empowered when they come to the table to engage and create new terms and new deals to benefit their constituents and local companies which boosts the ability to sell globally

Trump Fights Discrimination Tariffs With Reciprocal Tariff Strategy

This dynamic changed dramatically following the landslide reelection of President Donald Trump. On January 20, 2025, Trump signed an executive order instructing cabinet secretaries to review global trade practices and recommend new tariffs designed to counteract foreign barriers and discriminatory taxes against U.S. exports. By April 2025, the administration had enacted sweeping “fair trade” tariff equalizations, marking the most significant innovation in U.S. trade policy in decades.

Key Measures Included

President Trump signed an executive order imposing a 10% universal tariff on all imports, effective April 5, 2025. Countries with large trade surpluses with the U.S. face higher reciprocal tariffs, with China seeing a 145% rate on various imports. Additionally, 25% tariffs were applied to steel, aluminum, and automobiles, along with product-specific tariffs on semiconductors, pharmaceuticals, and agricultural goods.

For Canada and Mexico, the Fair Trade Tariffs initially set at 25% were later adjusted to exempt USMCA-compliant goods. [viii]

The Trump administration justified these actions as necessary to protect workers, restore fairness, protect domestic industries, address longstanding trade deficits, and to shield workers, women and minorities from further injury.

After 40 years of past presidents doing nothing to protect US jobs and manufacturing, Trump’s team realized that reciprocal tariffs would force other nations to the negotiating table, incentivizing them to lower their own tariffs and barriers on U.S. products. Keep in mind, President Trump has been reasonable and paused the tariffs on nations who did not retaliate. [ix]

International Response and Economic Impact

The move to impose fair trade tariffs sparked immediate confusion from major trading partners. The European Union, Canada, and China all announced minor tariffs on U.S. products, escalating the possibility of companies negotiation lower rates for US workers and companies. [x]

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China, for example, imposed new tariffs on U.S. goods and restricted exports of critical rare earth minerals while President Trump secured new rare earth tentative agreements with Ukraine and Russia. Further, Canada and Mexico prepared their own negotiations, targeting American exports. Again, with all of these nations inclined to get a new and better trade deal, Trump has incentivized the first tariff and trade innovation in decades.

Economists and international observers were generally baffled about how tariffs have worked for so many nations for so many years. Further, most voters are happy if the USA implements fair trade measures as the fair trade equalization tariffs do not harm the USA, as the USA did not have any tariffs before. [xi]

Most doubt that there will be any material disruption to global supply chains, consumer prices, and economic growth because voters in other nations may not tolerate their governments and failed leaders ruining international business and success. Since the Federal Reserve and the OECD downgraded Biden’s economic GDP growth projections and the Biden recession from 2022 seems to be coming to an end, the Trump policies and U.S. economy have nowhere to go but up. The stock market has brushed off the new tariffs as everyone realizes that these renegotiations of taxes on US goods must happen quickly.

The Debate Over Fairness and Reciprocity

The majority of voters approve of the Trump administration’s approach of using “fair trade” tariffs to bring people to the table to correct decades of unbalanced trade. Where foreign nations benefited from access to the U.S. market while maintaining barriers against American goods, Trump is the only president who has stood up to this economic tyranny. Voters are happy that there will be lower taxes on U.S. goods and exports.

Critics, however, are confused that over 100 nations got away with these tariffs on the USA and have no logical response to the problem. In the end, getting better deals for US companies will create a fairer global trading system. Trump’s team emphasized the importance of negotiation and principles of economic reciprocity-rather than protectionism.

Conclusion

The shift to Trump’s FTT “Fair Trade Tariffs” in 2025 marks a pivotal moment in U.S. trade policy, ending decades of relative restraint and launching a new era of assertive economic “common sense”. Whether other nations and their leaders are over-focused on their own egos and pride remains to be seen.

What is clear is that the landscape of international trade has been fundamentally altered, with massive opportunities for all nations’ businesses and consumers in the years ahead. Keep in mind that duty-free zones have been incredibly profitable for years, and small nations with low company taxes such as the UAE have also been super successful. Thus, reasonable tax and trade barriers are fundamental to any nations success and bring new business to their respective nation. [xii]

If 100+ nations were overcharging and over-taxing U.S. products, services, citizens and companies on exports and sales; then, equalization policies should simply prompt nations to negotiate with fair trade to the USA. Further, reducing non-tariff barriers is also a strategy thereby allowing lower taxes and fees on U.S. companies and citizens doing business abroad.

In the end, the tariffs will only save consumers money if other nations come to the table, and experts say if they don’t come to the table, an extra $1 trillion in revenue could be raised for the USA balance sheet and the ability to offer tax relief for working families. [xiii] On a happy note, the international law powers of the Executive Branch and President Trump’s office allows this type of trade negotiation to move rapidly without the interference of the Senate, House or Judges.

______________

Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award-winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.Mentzenborg is just a term of art to describe the theory and process by George Mentz JD MBA ChE. CWM is for Chartered Wealth Manager ® and ChE Chartered Economist ® is a credential for economics professionals


 


[i] Trump Tariffs: The Economic Impact of the Trump Trade War

[ii] Understanding the US Tariff List: Implications for Vietnam

[iii] Trump’s ‘reciprocal’ tariffs Here’s the sad story | CNN Business

[iv] Trump Reciprocal Tariff Chart: Full List of Countries Impacted - Newsweek

[v] Tariffs in the second Trump administration - Wikipedia

[vi] Tariffs in the first Trump administration - Wikipedia

[vii] How the Stock Market Made Back All Its Losses after Trump Escalated the Trade war | Newsmax.com

[viii] Details of Trump's 'Liberation Day' Tariffs | Newsmax.com

[ix] Trump Pauses Tariffs on Nations That Did Not Retaliate, Ups Chinese Tariffs to 125 Percent | Newsmax.com

[x] China Riots Erupt as Trump Tariffs Hit Factories | Newsmax.com

[xi] Trump Pauses Tariffs on Nations That Did Not Retaliate, Ups Chinese Tariffs to 125 Percent | Newsmax.com

[xii] Fact Sheet: President Donald J. Trump Declares National Emergency to Increase our Competitive Edge, Protect our Sovereignty, and Strengthen our National and Economic Security – The White House

[xiii] Dick Morris to Newsmax: 'Long-Term' Gain on Tariffs 'Very Likely' | Newsmax.com

© 2025 Newsmax Finance. All rights reserved.


GeorgeMentz
100+ Nations were ripping off U.S. citizens and companies for 40 years-and past leaders did nothing.
trump, tariffs, fair, trade, economy, jobs
1593
2025-59-30
Friday, 30 May 2025 11:59 AM
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