Unpredictable Protectionism: The Global and Corporate Consequences of Trump's Tariffs

Abstract

This paper shows the global and corporate results and consequences of President Donald Trump’s tariff policies, with attention to the U.S.-trade relationship. In the beginning of 2018, the Trump Administration launched a series of tariff circumventions justified by concerns over intellectual property theft and unfair trade practices with other countries, especially China. These measures rapidly increased average tariff rates on Chinese goods, peaking at an unprecedented level of 145% by 2025. Using Government data, economic forecasts, and a direct case study from a Chinese pharmaceutical biotech manufacturer, this research highlights how tariff volatility disrupted global supply chains, destabilized markets, and forced companies to adapt and develop new ways of offshore production. Moreover, this study situates Trump’s policy within the context of U.S. protectionism, from past events, the Smoot-Hawley Tariff act of 1930 to current trade wars, and considers their broad economic impact. Ultimately, the analysis demonstrates that unpredictable protectionism undermines the stability on which global trade depends.