Donald Trump recently indicated that changes to his tariff policy by the US Supreme Court could necessitate a reevaluation of trade agreements established since his declaration of “liberation day” in April. This statement underscores the shifting nature of Trump’s economic policies and raises questions about the extent of his influence over them.
The tariffs first announced in April form part of a broader strategy aimed at dismantling the remnants of the “Washington consensus.” Trump’s recent actions have included acquiring a 10% stake in Intel, requesting 15% of Nvidia’s revenue from chip sales to China, and suggesting leadership changes at Goldman Sachs. Furthermore, he has criticized Federal Reserve Chair Jerome Powell and attempted to remove Lisa Cook from the board of the Federal Reserve.
Trump also dismissed the head of the Bureau of Labor Statistics following disappointing job reports and removed the chief of the National Labor Relations Board. His interventions appear to reflect a dual objective: to reshape corporate America while also undermining established environmental and labor standards.
Amid these shifts, some political figures express support for his direction; for example, Senator Bernie Sanders endorsed Trump’s stake in Intel, focusing on government grants for the tech sector. However, there is dissent from some Republicans who characterize these actions as a form of “socialism.” Market reactions to these changes have, so far, been moderate, even amidst a surge in tech stocks.
While Trump’s administration is reshaping norms, it is crucial to note that the foundations of the US economic model were already being questioned long before his tenure. The 2008 financial crisis exposed vulnerabilities in neoliberal capitalism, leading to growing skepticism about the model’s viability.
As the Biden administration also emphasizes active government involvement, it indicates a shift away from unchallenged free-market capitalism. The uncertainty surrounding Trump’s economic direction, coupled with recent labor data suggesting cautious corporate responses, raises concerns about potential volatility as investors remain hopeful amidst broader shifts.
Source: https://www.theguardian.com/business/2025/sep/07/donald-trump-maelstrom-likely-to-leave-us-economic-model-unrecognisable