My travel across North America from Arizona to Washington D.C. and Saskatchewan has allowed me to observe the disruptions caused by President Donald Trump’s tariff policies. The President declared his “reciprocal tariffs” in the White House Rose Garden which led to worldwide economic uncertainty. Finance ministers from G7 and G20 nations met at the International Monetary Fund headquarters in just nine minutes to deal with the repercussions while showing their disappointment about U.S. actions that could lead to a crisis during an already challenging time of pandemic and war and energy shocks.
The East Asian allies who Trump called “looters and pillagers” because of their trade surpluses showed the most intense worry. Finance Minister Katsunobu Kato of Japan described the tariffs as “highly disappointing” while emphasizing their impact on growth and market stability. The new U.S. tariffs reached 145% on Chinese imports led to a rush of U.S. bond sales because Japan felt betrayed by the situation. The IMF meetings replicated the situation of 2022 during Britain’s budget crisis when the United States emerged as the main cause of market instability.
The bond market showed strong signs of U.S. withdrawal through its intense reaction. Through his takeover of the tariff agenda Treasury Secretary Scott Bessent extended diplomatic gestures to China by commending their economic growth and proposing a “beautiful rebalancing” of trade relations even though Trump had previously made different claims. The expected meeting between China’s counterpart and the U.S. did not materialize. Other nations reported Bessent signaled a reduction in U.S. aggressive moves which many saw as an overreach through a 90-day tariff pause.
The retail giants Walmart and Target expressed their concern to Trump through private meetings that empty shelves would appear by May thus reducing the need for worldwide retaliatory actions. The economic damage from China to Los Angeles container traffic became evident through IMF satellite tracking which showed a significant reduction in shipment volumes. According to reports Bessent successfully outsmarted Navarro to present Trump with a tariff moderation plan during a decoy meeting.
The IMF meetings concluded with market stabilization as Bessent worked to restore worldwide confidence. The U.S. government admits to avoiding full disclosure about trade war effects but shows recognition of unintended tariff impacts through its retreat while international observers continue to monitor possible de-escalation.
