What Trump’s Tariffs Really Signal About the Economy

Angelos Kaskanis
Credit: Gage Skidmore/Flickr

Greece (Brussels Morning Newspaper) The world watched with apprehension as President Trump unveiled his plans to impose sweeping trade tariffs. In the United States, reactions were far from unanimous. While some voiced concern, others welcomed the move, arguing that products labeled “Made in the USA” should be more than just “Designed in the USA.” There is a growing desire to reclaim what was once promised as a robust American industrial base—not merely a service-driven or politically steered economy, but one anchored in modern manufacturing and dependable output.

The shockwaves rippling through the U.S. stock and investment markets were profound. For many investors, confidence in the American economy began to waver, with some questioning its appeal and performance under the new trade regime. Yet, amid the turmoil, others saw opportunity. Some nations viewed the shift as a chance to forge new alliances or to reengage with Washington—seeking to negotiate fresh economic partnerships. After all, if one side feels compelled to impose tariffs as steep as 30 percent, perhaps what it truly seeks is not protectionism, but billions in direct foreign investment.

The Changing Role of Foreign Capital

In the first 100 days of President Donald Trump’s second term, U.S. financial markets have experienced significant volatility, prompting investors to reassess the attractiveness of American assets. The S&P 500 has declined approximately 8%, and the U.S. dollar index has fallen by 9% since his inauguration. While some investors remain optimistic due to progress in trade negotiations, concerns about economic stability and unpredictable policy shifts have led to asset diversification and reduced U.S. exposure.

Foreign investors have reportedly sold $60 billion in U.S. stocks recently, indicating cautious repositioning. Analysts suggest a potential structural shift toward alternative reserve currencies, although the U.S. dollar still holds the dominant share of global reserves at 57.8%, down from 66% a decade ago. Despite these challenges, some experts argue that the U.S.’s economic size, liquidity, and policy direction could maintain its global financial leadership.

The U.S. is experiencing contrasting economic strategies under Presidents Trump and Biden, particularly regarding investment in manufacturing. Trump’s approach focuses on attracting large private-sector investments, exemplified by Taiwan Semiconductor Manufacturing Company’s $40 billion commitment to U.S. chip production. In contrast, Biden’s policies, such as the CHIPS and Science Act, incentivize investments in green energy and technology through federal legislation. While Biden’s strategy has spurred significant growth in manufacturing spending, challenges like labor shortages and project delays remain. These differing approaches highlight ongoing debates about the best path for U.S. economic growth and technological leadership.

As the United States pivots toward a more assertive investment strategy under President Trump’s Investment Accelerator initiative—seeking to streamline domestic capital inflows while tightening national security safeguards—foreign investors find themselves needing to recalibrate their approaches. Switzerland’s recent diplomatic effort in Washington exemplifies this shift. Facing the threat of new U.S. tariffs, Swiss Finance Minister Karin Keller-Sutter and Economy Minister Guy Parmelin have actively emphasized Switzerland’s deep-rooted economic contributions to the American economy, including multi-billion dollar investments by Roche and Novartis.

Their strategy highlights a growing reality: the U.S. is treating foreign investment less as a purely economic exchange and more as a lever of strategic value and national interest. In this evolving environment, even traditionally trusted economic partners must frame their investments not only in terms of capital flows but also in terms of strategic alignment with U.S. economic and security priorities. Switzerland’s proactive engagement signals a broader international adjustment to an American investment landscape that now demands greater political and economic synchronization alongside financial commitments.

The United States Investment Accelerator

In a high-stakes bid to reassert America’s investment appeal, President Donald J. Trump has launched the United States Investment Accelerator, a new office within the Department of Commerce designed to fast-track capital flows into the U.S. economy. Targeting investments over $1 billion, the Accelerator promises to cut bureaucratic deadweight, expedite permitting, and better coordinate federal agency responses. Crucially, it will also oversee the CHIPS Program Office, sharpening the government’s negotiating edge on semiconductor investments — a sector increasingly tied to national resilience in a shifting global order.

Trump’s diagnosis is blunt: regulatory inertia has become a strategic liability. In an era where economic dominance equates to national security, delays and red tape represent more than just inefficiency — they create openings for rival powers to attract capital and technology. By streamlining approval processes and partnering closely with states and national labs, the Accelerator seeks to de-risk U.S. investment ecosystems, shore up critical supply chains, and reestablish the United States as the default destination for high-value capital.

Yet the Trump administration’s approach is not simply about opening the floodgates to foreign investment. Alongside this push, a newly signed memorandum places guardrails around sensitive sectors, reinforcing scrutiny over deals that could compromise national interests. The result is a more muscular investment policy: one that invites capital, but on America’s terms. In today’s competitive global economy, Trump is betting that faster, smarter, and more secure investment pathways are key to locking in long-term economic and strategic advantage.

About Us

Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
Share This Article
Dr. Angelos Kaskanis is Brussels Morning Political Advisor/Editor. His field of research is Security Studies and the impact of International Terrorism in Southeastern Europe and the Caucasus. He has participated in/co-organized several workshops in more than 20 countries that focus on Religious Extremism, Radicalization, Safety, and Security in Southeastern Europe, European Identity, and Greco-Turkish Relations.In the past he has worked on several projects with the Hellenic Parliament, MPSOTC Kilkis, NATO's Public Diplomacy Division, Harvard T.H. Chan School of Public Health, and the Norwegian Ministry of Foreign Affairs. Awards of academic excellence include scholarship from the Hellenic Foundation for Research and Innovation. He speaks Greek, English, Russian, German, and Turkish.
The Brussels Morning Newspaper Logo

Subscribe for Latest Updates