economy
February 24, 2026
The Guardian view on Donald Trump’s tariffs: a nostalgia that misreads a changed world
The US president fights 1970s battles in a financialised age. America faces not a payments crisis but a slow erosion of industrial and technological power
TL;DR
- The US Supreme Court ruled against Donald Trump's tariffs, which he interpreted as betrayal by judges.
- Trump invoked a 1974 trade law to impose new tariffs, reminiscent of his 1970s-molded political style.
- His approach echoes the 1970s' economic insecurity and distrust of elites but misinterprets today's financialized and interdependent world.
- Unlike past crises, the US doesn't face a gold or payment shortage but risks losing ground in advanced manufacturing and technology to rivals like China.
- Losing industrial and technological leadership could lead to slower productivity, weaker global leverage, and domestic decay, representing a crisis of power.
- History suggests that losing industrial leadership, as Britain did, can erode a nation's economic standing and currency value, even if payments are initially met.
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