The Weekly Telescope

Tag: tariffs

  • Tariffs Rolled Back: China Sees an Opening, America Risks More Than It Thinks

    Tariffs Rolled Back: China Sees an Opening, America Risks More Than It Thinks

    After months of aggressive tariffs targeting Chinese goods, the U.S. has reversed course—partially rolling back some of the very tariffs it once defended as “necessary pain.” The reason? Mounting economic pressure, international backlash, and rising consumer costs at home.

    Yet this isn’t just about tariffs. It’s about how nations perceive strength, foresight, and credibility.

    China’s Calculated Calm

    Beijing, unsurprisingly, has not celebrated loudly. Instead, it’s using this rollback to present itself—especially to Asia-Pacific nations—as a reliable, stable, and forward-looking economic partner.

    China’s quiet confidence suggests it’s playing a long game: 

    • Let America appear reactive and short-sighted 
    • Fill the vacuum left by U.S. instability 
    • Build loyalty among countries hurt by U.S. tariffs 

    Allies Are Watching—and Worrying

    To many U.S. allies, this isn’t just a course correction—it’s another example of incoherent policy-making. First came the shock tariffs. Now comes the quiet reversal. The message? 

    “America acts first, thinks later.”

    As alliances strain, countries like Japan, South Korea, Vietnam, and even the EU are increasingly looking to China—not the U.S.—for consistency.

    What the Bible Says About Leadership and Judgment

    Isaiah 3:4 is strikingly relevant here:  “I will make mere youths their officials; children will rule over them.”

    God sometimes allows national leaders to act impulsively and without wisdom as a wake-up call for His people. It’s a warning to turn back to God’s principles of justice, truth, and humility.

    Where This Is Headed

    If America continues down this path of erratic policymaking, it risks more than economic losses. It risks becoming a symbol of declining global leadership, fractured alliances, and moral confusion. Meanwhile, China continues to craft its narrative as the stabilizer in a chaotic world order.

  • A World Unraveling – The High Price of Tariffs and a Coming Global Reckoning

    A World Unraveling – The High Price of Tariffs and a Coming Global Reckoning

    When President Donald Trump announced sweeping tariffs against nearly all countries in April 2025—infamously dubbed “Liberation Day”—the move was framed as an act of economic sovereignty. Aimed at defending American workers, correcting trade imbalances, and punishing foreign nations accused of unfair practices, the 10% baseline tariff (and far higher rates for select nations) was meant to be a declaration of independence from a trade system that many believed disadvantaged the United States.

    But what began as an assertion of American self-interest is now reverberating across the globe, triggering economic tremors that few anticipated and many fear may permanently reshape the global order.

    The Intentions: Economic Nationalism Reborn

    Trump’s rationale was not new. Tariffs have historically been used to protect domestic industries, reduce reliance on foreign imports, and pressure trade partners to change their behavior. This round of tariffs was more sweeping than any the U.S. had imposed in over a century. The administration targeted over 180 countries, including allies, emerging economies, and even remote territories that barely trade with the U.S.—a precaution against tariff evasion through transshipment.

    The administration’s messaging was simple but aggressive: it’s time for America to stop being the world’s economic doormat and to rebuild its industrial might from within.

    The Reality: Economic Strain and Fragmentation

    However, history and current evidence tell a more sobering story. Tariffs are blunt instruments. While they may temporarily protect local industries, they often result in higher consumer prices, supply chain disruptions, and retaliatory measures. We’ve seen this before—during the Great Depression with the Smoot-Hawley Tariff Act and more recently during Trump’s first term trade war with China. In both cases, the long-term consequences were damaging.

    In 2025, it’s happening again—on a broader scale:

    • Stock markets have plunged, wiping out trillions in value.
    • Consumer prices are rising as import costs spike.
    • Supply chains are unraveling as companies scramble to redirect sourcing.
    • Global trade flows are shifting away from the U.S., as countries retaliate and seek new partners.

    The U.S. hoped to isolate abusive trading behaviors, but it is increasingly isolating itself.

    The Rise of Economic Blocs

    In response, the world is reorganizing into regional economic blocs. What America has stepped away from, others are now rushing to claim:

    • The European Union, increasingly united in trade and security, is moving to fill the void in global leadership.
    • China, through its Belt and Road Initiative and new trade alliances across Asia, is tightening its grip on emerging markets.
    • India, ASEAN nations, and Latin America are pursuing regional deals to shield themselves from U.S. unpredictability.
    • Africa, through the African Continental Free Trade Area (AfCFTA), is charting a course toward intra-regional trade independence.

    These blocs are forming not just out of economic logic—but out of necessity. The post–World War II era of U.S.-led globalization is ending. In its place, a fragmented, competitive, and increasingly adversarial global economy is emerging.

    The Geopolitical Risks: From Trade War to Real War

    This economic realignment carries with it grave geopolitical risks.

    As trade blocs become more inward-looking and rivalrous, the possibility of military conflict among major powers increases—especially as nuclear-armed states compete for influence, resources, and strategic positioning. The risk of conflict between the U.S. and China, or even among European powers and their neighbors, is no longer hypothetical—it is becoming increasingly likely in a world no longer bound by mutual economic interest.

    Furthermore, the economic instability triggered by tariff wars could prompt a dangerous political shift. History has shown us that during extremely difficult times, people can trade personal freedom for security. With inflation, job losses, and uncertainty mounting, charismatic strongmen often step into the void—offering order, prosperity, and national pride in exchange for civil liberties and democratic safeguards.

    A World on the Edge

    This is precisely the world that the Bible describes will exist just before the return of Jesus Christ.

    The book of Revelation speaks of a final global system—a powerful economic and military confederation—that dominates the world for a short time. This “beast” power promises security and prosperity, and the world, desperate for stability, embraces it. But this system, empowered by human pride and corrupted leadership, ultimately brings humanity to the brink of annihilation (Matthew 24:22).

    We are not there yet—but the signs are unmistakable.

    • The weakening of American influence, once a stabilizing force in the world, is accelerating.
    • The rise of rival blocs, each with its own rules and ambitions, is fracturing the global system.
    • The erosion of freedoms in favor of authoritarian efficiency is gaining traction.

    A Time to Watch and Prepare

    President Trump’s tariffs were intended to make America strong. But by pursuing economic disengagement in a globalized world, the U.S. may have instead triggered the unraveling of the very system that kept major conflicts in check.

    We do not place our hope in presidents, trade policies, or economic systems. We watch these events with a discerning eye—not in panic, but in understanding. The unraveling world system is not the end of the story. It is a prelude to Christ’s return, when the kingdoms of this world will become the kingdoms of our Lord and of His Christ (Revelation 11:15).

    While men pursue security through strength and prosperity through force, true peace will only come through the righteous rule of God’s coming Kingdom.

  • A Pause in the Storm: President Trump’s Tariff Reversal and the Wisdom of Many Counselors

    A Pause in the Storm: President Trump’s Tariff Reversal and the Wisdom of Many Counselors

    The global markets held their breath—and then exhaled—when President Donald Trump announced a sudden 90-day pause on the sweeping tariffs he had imposed on virtually all U.S. trading partners. Except for China, whose tariffs were raised sharply to 125%, most nations received a temporary reprieve from what many feared would become a full-scale global trade war.

    But this “pause” has analysts and world leaders wondering: is this merely a temporary detour, or the beginning of a quiet retreat?

    Why the Sudden Shift?

    The official narrative from the Trump administration is that this is a “strategic pause”—a window of time to negotiate bespoke trade arrangements with allies and economic partners. Treasury Secretary Scott Bessent noted that the 90-day halt gives space for talks with countries like Japan, Vietnam, and the European Union.

    Yet beneath this diplomatic language lies a more complex—and revealing—story.

    Internal Dissent

    While some cabinet members like Commerce Secretary Howard Lutnick and trade advisor Peter Navarro pushed aggressively for the tariffs, others sounded the alarm. Treasury Secretary Bessent and National Economic Council Director Kevin Hassett reportedly warned of the dangers of a unilateral tariff policy, urging a more measured and consultative approach.

    Their concerns proved prescient.

    Elon Musk’s Warning

    One of the loudest voices from the private sector was Elon Musk, who called for a zero-tariff environment between Europe and North America and warned that blanket tariffs would disrupt Tesla’s global supply chain. Musk’s businesses depend on internationally sourced components, and the tariffs would significantly raise production costs.

    Predictably, Navarro dismissed Musk’s position as self-serving. But the economic fallout soon made it clear that Musk and others raising red flags were not speaking out of self-interest alone—they were highlighting systemic risks to American consumers, workers, and the broader economy.

    Economic Turbulence and Market Recoil

    The markets responded with a wild swing of emotion.

    At first, optimism over the tariff pause sent the S&P 500 up 9.5% in a single day—one of the largest one-day rallies in its history. But the euphoria didn’t last. Investors quickly realized that no one knows what happens on Day 91. Will the tariffs resume in full force? Will exceptions be granted selectively? The lack of clarity caused a sharp sell-off the next day, with the Dow losing over 2,000 points.

    Businesses across the country remain in limbo. Some are delaying hiring and investments. Others are considering shifting supply chains abroad—ironically, the opposite of the tariffs’ intended effect.

    Why Call It a “Pause” Instead of a Reversal?

    Calling it a “pause” allows the President to preserve political face. It offers flexibility: he can later say he gave America’s partners a chance to negotiate—and if they didn’t, he had no choice but to proceed.

    This language also keeps pressure on foreign governments while maintaining domestic leverage. But make no mistake: if the tariffs are reinstated, the economic whiplash could be far worse the second time around. The credibility of U.S. trade policy is already in question. A re-escalation could deepen inflation, strain key industries, and damage America’s standing in global markets.

    A Lesson in Leadership: The Value of Many Counselors

    Could this turmoil have been avoided? Almost certainly yes.

    Had the administration listened early on—not only to internal critics but also to voices like Elon Musk’s—much of this volatility might have been spared. The issue wasn’t merely policy—it was isolation in decision-making, surrounded by yes-men and ideological hardliners.

    The Bible has long taught the wisdom of diverse counsel:

    “Where there is no counsel, the people fall;
    But in the multitude of counselors there is safety.”
    (Proverbs 11:14)

    “Without counsel, plans go awry,
    But in the multitude of counselors they are established.”
    (Proverbs 15:22)

    Scripture reveals that even great leaders falter when they ignore wise advice. King Rehoboam rejected the seasoned advice of elders in favor of arrogant young men, splitting the kingdom of Israel (1 Kings 12). Moses thrived by heeding Jethro’s advice to delegate (Exodus 18).

    The principle is clear: humility and wise counsel go hand in hand. National leaders who isolate themselves in echo chambers risk decisions harmful to their reputation and their people.

    Adjusting the Course

    President Trump’s tariff pause may signal rethinking—or merely a tactical maneuver. Its lessons should not be missed. Listening only to affirming voices leads to blind spots. Strong leadership isn’t about always being right, but about being wise enough to adjust course when consequences become clear.

    The Bible’s wisdom remains timeless. If only more leaders today took it to heart.

  • When Giants Clash: The Escalating US-China Trade War and Its Global Fallout

    When Giants Clash: The Escalating US-China Trade War and Its Global Fallout

    “Whoever digs a pit will fall into it, and he who rolls a stone will have it roll back on him.” — Proverbs 26:27

    In recent weeks, the global economy has found itself shaken by the reverberations of an intensifying economic conflict between the world’s two largest economies: the United States and China. This escalating trade war, marked by tit-for-tat tariffs and nationalist posturing, is doing more than just strain bilateral relations—it is sending shockwaves across global markets, undermining confidence, disrupting supply chains, and threatening to plunge the world into a deeper economic downturn.

    What began as a bold attempt by the Trump administration to force fairer trade terms has spiraled into an economic quagmire that is now hurting not just China and the United States, but Europe, Asia, and beyond. And as Scripture wisely reminds us in Proverbs 26:27, those who dig pits for others may end up falling into them themselves.

    The Tariff Avalanche

    The current phase of the trade conflict began with President Trump’s aggressive move to raise tariffs on Chinese goods to an astounding 104%. China swiftly retaliated with an 84% tariff on U.S. imports. What was once a calculated political maneuver has turned into an uncontrolled economic wildfire.

    President Trump’s justification for these tariffs—protection of American industries and the reduction of trade imbalances—may sound noble, but the fallout tells a different story. According to Mark Zandi, chief economist at Moody’s Analytics, “Tariffs are simply taxes on American businesses and consumers. They raise costs, disrupt supply chains, and reduce competitiveness—all while failing to achieve long-term economic gains.” Instead of sparking domestic revitalization, these tariffs have stoked inflation, hurt American exporters, and led to panic across the global financial system.

    Markets in Freefall

    The markets have not responded kindly to these developments.

    In the United States, the S&P 500 and Dow Jones Industrial Average plummeted by more than 10% in just two days, wiping out over \$6.4 trillion in market value. Treasury yields surged as bondholders fled in panic. Oil prices dropped by nearly 4% as fears of reduced global demand took hold. Major American corporations like Tesla, Walmart, and Apple have seen their valuations slashed, with some withdrawing earnings guidance entirely due to mounting uncertainty.

    Meanwhile, across the Atlantic, European markets echoed the turmoil. The Stoxx 600 fell by 4%, and investor confidence—already fragile due to geopolitical instability and energy concerns—was further shattered.

    In Asia, major indices tumbled as China’s retaliatory tariffs took effect. The selloff has been widespread, with both manufacturing hubs and emerging economies caught in the crossfire. The Australian Securities Exchange (ASX), heavily reliant on trade with China, experienced some of its sharpest losses in years. Similarly, the Philippine Stock Exchange Index (PSEi) plummeted by 4.3% on Monday, April 7, 2025, closing at 5,822.85—its lowest level since October 2022. This decline was part of a broader regional downturn fueled by escalating trade tensions between the U.S. and China, which intensified fears of a global recession.

    This is not simply a case of market jitters. It is a systemic reaction to misguided policies and reckless escalation.

    The Global Domino Effect

    Why does a trade war between just two countries—albeit powerful ones—affect the whole world?

    The answer lies in the interconnectedness of modern supply chains and global finance. For example, the U.S. semiconductor industry, which relies heavily on specialized manufacturing equipment and rare earth materials sourced from China, has seen project delays and increased costs due to retaliatory export controls. Likewise, the automotive sector has been disrupted as Chinese suppliers face heightened tariffs, making it harder for U.S. carmakers to obtain critical components affordably and on time. These disruptions highlight how deeply entwined international commerce has become—and how easily it can unravel when two economic giants lock horns.  China and the United States together account for more than 40% of global GDP. Countless countries rely on both for imports, exports, and manufacturing inputs. When these two giants fight, their economic pain reverberates through every port, every factory, and every market on the planet.

    Small and developing economies suffer disproportionately. Countries that supply raw materials to China or export agricultural goods to the U.S. face sudden demand shocks. International manufacturers are caught between rising costs and plummeting demand. Even sectors like tourism and education are affected as cross-border tensions rise.

    In this environment, economic nationalism is not strength—it is vulnerability.

    Bad Decisions, Bad Outcomes

    At the heart of this crisis lies a failure of leadership and a misunderstanding of economic principles. Instead of pursuing multilateral reforms or leveraging diplomatic channels, the Trump administration has chosen a unilateral and combative path. The decision to impose sweeping tariffs without an exit strategy or meaningful engagement has backfired spectacularly.

    The consequences are clear. Inflation is rising, markets are crashing, and international relationships are fraying. Even Elon Musk, controversially appointed to head the Department of Government Efficiency (DOGE), has been unable to stem the tide. His appointment has drawn mixed reactions both publicly and politically. Supporters cite his track record in private industry and believe his innovative mindset could bring efficiency to federal operations. However, critics point to his lack of government experience and raise concerns about conflicts of interest, especially given his leadership of companies that hold contracts with the U.S. government. Groups like Oxfam have called his role a sign of rising oligarchic influence in American democracy, while global protests have branded him an ‘unelected billionaire’ with undue influence over public institutions. His drastic cuts to the federal workforce may please some budget hawks, but they have done nothing to stabilize the broader economy.

    As Proverbs 26:27 wisely warns, when you roll a stone with harmful intent, you may find it rolling right back at you.

    Where Do We Go From Here?

    There is still time to change course—but it requires humility, wisdom, and the willingness to admit mistakes. De-escalation must become the priority. Strategic dialogue with China, reinvestment in multilateral institutions, and a clear plan to stabilize markets are essential steps.

    And perhaps more importantly, we must remember that economic policy is not just about numbers on a spreadsheet—it’s about people. Families are losing income. Businesses are closing. Investors are panicking. Behind every tariff is a worker, a farmer, or a retiree trying to survive.

    Self-Inflicted Crisis

    In a world groaning under the weight of wars, pandemics, and moral confusion, the last thing we need is a self-inflicted economic crisis. Yet here we are—watching as the world’s leading economies hurl stones and dig pits, forgetting that they too are standing on the edge.

  • Tariffs, Tumult, and the Tipping Point: Is America’s Economic Might Being Stripped Away?

    Tariffs, Tumult, and the Tipping Point: Is America’s Economic Might Being Stripped Away?

    In recent weeks, the global financial markets have been shaken by a new wave of tariffs imposed by the Trump administration. What was intended as a demonstration of economic strength and negotiation leverage has quickly spiraled into a global warning sign. U.S. markets plunged—Wall Street experienced one of its worst routs since the pandemic. The S&P 500 dropped nearly 6%, the Dow shed over 2,000 points, and volatility spiked across asset classes from commodities to currencies.

    But the tremors aren’t limited to trading floors. They’re being felt in American homes, retirement plans, shopping aisles, and across dinner tables.

    Americans Are Feeling the Strain

    Ordinary citizens, many still recovering from inflation and high interest rates, are again gripped by financial uncertainty. Consumer confidence is at a historic low, with people delaying retirement, rethinking home purchases, and holding off on starting families or businesses. Retirees are calling their financial advisors in panic; young professionals are watching job markets tighten and savings dwindle.

    These are not signs of an economy bouncing back—they are symptoms of a system under pressure.

    International Fallout and Global Rebalancing

    Abroad, the reaction has been swift and severe. China retaliated with its own wave of tariffs and export restrictions. European and Asian markets slumped. Commodity prices tumbled, and investors moved quickly into “safe haven” assets like gold and Bitcoin. The very structure of global trade is being rethought.

    Countries are accelerating efforts to move away from dependency on U.S. trade policies. Nations are exploring regional trade partnerships, building self-reliant supply chains, and realigning with blocs like BRICS and the EU. The assumption that America will always lead global commerce is no longer a given.

    Even if these tariffs are reversed—or paused—by the current administration or a future president, the damage is already done. Trust has been eroded. Supply chains have been rerouted. Business strategies have shifted. It could take years, possibly decades, for confidence to return, and even then, the world will not look the same.

    The Decline of a Nation That Forgot Its Calling

    From a biblical standpoint, this is more than economic miscalculation. This is correction. Scripture shows us that God raises up nations—and brings them low—according to His will and purpose (Daniel 2:21). America was once a beacon of opportunity, stability, and global leadership. But over time, its institutions, leaders, and people have increasingly turned away from God’s laws and values.

    Instead of using its blessings to uphold justice and righteousness, America has often championed greed, moral compromise, and self-interest. Its global influence is now waning not just because of bad policies, but because of a deeper spiritual crisis. As the prophet Hosea warned ancient Israel: “Because you have forgotten the law of your God, I also will forget your children” (Hosea 4:6).

    The economic decline we’re witnessing is not just cyclical—it is prophetic. God is allowing the decline of America’s global dominance because it has failed to lead in accordance with His truth. This is part of a larger pattern of correction and realignment as foretold in Scripture.

    A New World Is Coming

    But this is not the end of the story. The Bible tells us of a coming Kingdom—a government under Jesus Christ—that will rule the nations with justice, equity, and godliness (Isaiah 9:6–7). In that Kingdom, nations will no longer exploit each other. Trade will be fair and safe. There will be no need for trade wars, sanctions or tariffs, because people will live by God’s laws.

    “They shall beat their swords into plowshares, and their spears into pruning hooks; nation shall not lift up sword against nation, neither shall they learn war anymore” (Micah 4:3).

    In that era, commerce will no longer be about power or profit—it will be a means of serving one another. There will be no cheating, no exploitation, no corrupt systems. The economy of the Kingdom of God will reflect the very character of its King—faithful, generous, and just.

    For now, we are watching a fragile global economy tremble under the weight of human misrule. We may see relief rallies and policy reversals, but the long-term trajectory is clear. America is being humbled. Other powers will rise. And the stage is being set for the greatest geopolitical shift in human history—the return of Christ and the establishment of God’s Kingdom on Earth.