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WASHINGTON, DC - APRIL 02: U.S. President Donald Trump holds up a chart while speaking during a ... More “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. Touting the event as “Liberation Day”, Trump is expected to announce additional tariffs targeting goods imported to the U.S. (Photo by Chip Somodevilla/Getty Images)
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Last week, the start of Trump’s tariffs sent many politicians, economists, and businesspeople into worry. Many markets took a beating.
But that is the least of concerns. Even after the worst of tumbles, markets tend to spring back within a year or two. Even now, at noon on Monday, April 7, 2025, the major indexes, although still down compared to Friday’s closing figures, are up from the greater depths at which they opened. (That is probably because market professionals typically buy at dips when less disciplined investors sell shares in a panic and then they hold for later accumulated profit.)
The larger worry now is what will happen with underlying economies in the U.S. and around the world.
How Countries Use Tariffs Historically
Every country has an economy. So does the world through the interconnection of all these separate companies, international investments, currency exchanges, and global trade, to mention a few aspects.
It all comes together like a giant machine by Rube Goldberg, whose fanciful comic inventions inspired the old children’s board game Mousetrap. It may seem clunky and could be improved, but at least it has worked and could have been a lot worse.
Tariffs are designed for a combination of reasons, including protecting domestic markets; inviting foreign investment; and becoming more effective using capabilities, inclinations, and talents in other parts of the world.
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