The Nightmare of Tariffs: The Global Economy Faces Severe Challenges

The US stock market continues to decline, as investors realize that high tariffs are unlikely to be lifted in the short term. On Sunday night, US stock futures fell sharply, with the Dow Jones Industrial Average futures dropping 1,531 points or 4%, and both the S&P 500 index futures and the Nasdaq 100 index futures falling 4%, indicating that Monday will be another difficult trading day.

The S&P 500 index futures plummeted by 15% in just three trading days, which can no longer simply be referred to as a "correction." In just a few days, the tariff policy has led to the evaporation of over $5 trillion in American wealth. If the market develops as expected on Monday, this number could soon double to $10 trillion. And this is just the beginning, as many investors still believe that the tariffs are only temporary.

The American public is understandably panicked about this wanton economic destruction. Support for tariffs has never exceeded 50% and has now plummeted to an all-time low. The economy, jobs, and international trade have become some of the most dissatisfying issues for Americans. Negative sentiment towards government economic policies has surged to levels higher than during the Great Depression.

Most Americans expect tariffs to have a negative impact on the real economy, leading to an increase in unemployment and a decrease in income. Private forecasting agencies are raising the likelihood of a recent economic recession, and market predictions hold the same view.

Even so, supporters of the tariff policy continue to brag that they caused the stock market crash. Some allies and supporters are also beginning to feel uneasy, stating, "We are heading towards a self-inflicted economic winter." There are calls to establish a zero-tariff free trade zone with Europe, criticizing the main proponents of the tariff policy.

It is worth noting that Congress can intervene at any time to stop this situation. The Constitution grants Congress the power to impose tariffs, and the current unilateral imposition of tariffs is merely delegated by Congress. At any time, Congress can repeal these tariffs through new legislation. There are currently at least two such bills being proposed, hoping to pass. If the situation deteriorates to a certain extent, the two parties may unite to override a veto and put an end to this tariff nightmare.

However, Democrats have generally not been at the forefront of the struggle. While some have made statements opposing tariffs, there has so far been no fierce rhetoric. Some Democrats have even wavered on the edge of defending the tariffs, calling for price controls to address the inflation caused by the tariffs.

This attitude is perplexing. No president has ever so deliberately undermined the stock market and the economy. Democrats now have an excellent opportunity to fiercely criticize this policy and ride the wave of anger to victory in the midterm elections. However, they have issued bland statements, gotten bogged down in the minutiae, and allowed their opponents to take the lead in defending American prosperity.

This approach may lead to the failure of the progressive movement. Not only will it miss the opportunity to gain power, but it will also throw the nascent reforms into the dustbin of history. If Democrats believe they can regain power and retain some tariffs after causing destruction, this idea is unrealistic. History shows that when Americans suffer economic pain, they tend to completely oppose anything deemed responsible for that pain.

If Americans equate "anti-neoliberalism" with tariffs, they are likely to re-embrace free trade. Policies such as industrial policy, antitrust, and taxation may also be discarded due to their association with tariffs. To avoid this situation, progressives must present a better narrative rather than a vague attitude.

They can emphasize that tariffs will crush the working class, accelerate deindustrialization, cause factory workers to lose their jobs, make the middle class poorer, increase unemployment rates, destroy retirement savings, and erode purchasing power, among other things. There is no need to link this to a broader ideological competition; ordinary voters just need to know that "tariffs are bad, therefore this policy is bad."

At the same time, Democrats should stop turning this issue into a class struggle. Trying to claim that the wealthy will benefit from tariffs is not credible, as everyone knows that the rich own a lot of stocks, and they will suffer greatly when the market crashes. This is a typical case of a foolish policy that harms Americans from all walks of life.

In short, Democrats and progressives need to take the lead in the fight against this tariff policy. Tariffs are clearly not a viable economic or political plan, and those who lead the pushback will become the actual leaders of American economic policy.