Leading figures from American industry have issued a collective gasp of horror following former President Donald Trump's proposal to implement a blanket 10% tariff on all imports into the United States.
The radical plan, floated as a cornerstone of a potential second term, is being described by business chiefs as a recipe for economic calamity that would ignite inflation, stifle growth, and provoke retaliatory measures from trading partners worldwide.
A Chorus of Corporate Dismay
The backlash was swift and severe. Joshua Bolten, the head of the powerful Business Roundtable, did not mince words, labelling the policy a significant "tax increase on American consumers" that would "harm American businesses, farmers, and workers." His sentiment echoes a deep-seated fear within corporate America that the relative stability of recent years could be shattered.
Further criticism came from the National Retail Federation, with Vice President David French warning that such tariffs would "undermine the US economy" by directly increasing the cost of living for everyday Americans. The message is clear: the very consumers that politicians claim to protect would bear the brunt of this policy at the checkout.
The Ghost of Trade Wars Past
Many executives are having unpleasant flashbacks to Trump's first term, which was defined by aggressive trade disputes with China and allies in Europe. While the former president points to those policies as tough negotiating tactics, business leaders remember the chaos of tit-for-tat tariffs that disrupted supply chains and cost companies billions.
This new proposal, however, is seen as even more extreme. A universal tariff avoids the complex targeting of the previous administration in favour of a blunt instrument that would impact everything from Chinese electronics to British whisky and German automobiles.
The Global Domino Effect
The implications stretch far beyond US borders. For the UK and other allied nations, the threat of a 10% tax on all exports to the States poses a direct challenge to post-Brexit trade ambitions. Retaliation is almost a certainty, potentially unravelling years of delicate diplomatic and trade negotiations and plunging the Western world into a period of economic friction not seen in decades.
As the 2024 election looms, the business community is drawing a line in the sand. This policy is no longer seen as a mere bargaining chip but as a genuine threat to global economic stability, setting the stage for a fierce battle between Trump's populist trade agenda and the warnings of the nation's top corporate leaders.
