How Trump’s New Tariffs Are Shaking The World Order

7 min read

How Trump’s New Tariffs Are Shaking The World Order

Those who thought U.S. President Trump was bluffing about tariffs must have swallowed their tongues after tariffs were announced on April 2, 2025. Let me be clear: U.S. tariffs are here, and they are a loaded gun aimed at your wallet, your freedom, and your future. Trump is not bluffing. He has promised tariffs on China, BRICS, Canada, Europe, and everyone else. This is not economic policy but economic warfare. Global trade, the reliability of the dollar, and your ability to protect your wealth in this "brave new world" are in danger. 

According to his team, Trump's new tariffs were designed using a "patriotic competitiveness formula." They used a strange formula to set the tariff rate by calculating the trade deficit with a country, dividing it by total imports, and then cutting that percentage in half. As a result, we have tariff rates that appear completely random: 25% on German cars, 54% on China, 46% on Vietnam, and 32% on Taiwan. Oh yes, a 10% tariff on imported goods from Bouvet Island, an uninhabited speck of rock in the South Atlantic. The island's sole population consists of penguins and seals. Sure, they'll pay their due. 

When questioned, Trump called the formula "strategic genius," saying it "confuses the globalists and keeps America unpredictable." Markets, however, didn't see it that way. The Dow Jones dropped 4%, the S&P 500 fell 4.8% in its worst single-day decline since the 2020 crash, and the Nasdaq plunged 6% as tech stocks took a significant hit. China fired back with immediate retaliatory tariffs. And European leaders called an emergency trade summit.

Tariffs are taxes you pay whenever you fill your tank, stock your fridge, or try to build something of value. Economic nationalism weaponizes uncertainty, breaks supply chains, and spikes inflation. And worst of all, it empowers the same centralized bureaucracies you've spent your life trying to escape.

You're playing a dangerous game if you don't have an offshore Plan-B fortified with tangible assets. What's coming isn't just a financial squeeze but a systemic shift. This article describes how it's all unfolding and my strategy for getting ahead of it.

 

Cargo Ship on Docking Area

Trump's tariff policies may aim to boost domestic industry, but in reality, they disrupt global supply chains, raise costs for businesses, and create uncertainty

THE RETURN OF TARIFF POLITICS  

Even though the new tariffs are strange in many ways, Trump's tariff playbook isn't new. It's just louder, angrier, and, this time, aimed at everyone. In 2016, he ran on economic nationalism. In 2025, he's roaring back with a vengeance. However, Trump isn't just using tariffs as leverage; he's trying to reshape how the U.S. government funds itself.

He keeps repeating a romanticized idea: America was strongest when it had no income tax and ran the whole show on tariffs. That sounds bold and patriotic but dead wrong. Yes, it's true that the U.S. once ran on tariffs. From its founding until 1913, customs duties were the federal government's primary revenue source. However, America was a different country back then. The population was tiny. The government did almost nothing. There was no social security, military-industrial complex, or interstate highway system. 

You can't run a 21st-century empire on 19th-century math. Trump wants you to believe that tariffs can replace income tax while the government won’t make any radical budget cuts. That's like thinking you can pay your mortgage with Monopoly money, but it hasn't stopped Trump from declaring war on global trade again. His latest round of tariff threats is quite high: 25% on steel and 10% blanket tariffs "on all foreign junk."

And it gets better. He's going after BRICS with "disincentives" that would make any supply chain manager curl into a fetal position. This is not just a trade dispute but a geopolitical Molotov cocktail. The message from Washington? Get in line or get hit.

 

THE REAL COSTS: INFLATION AND GLOBAL INSTABILITY

Let's clear something up right now: tariffs aren't some clever way to "punish foreign countries." They're taxes on you. Anyone building, eating, driving, or buying imported goods or their local substitutes will pay higher prices.

What happens when a tariff hits Chinese electronics or Brazilian beef? The importer raises prices. The distributor raises prices. The retailer raises prices. Then you—the consumer—pay for it all, with interest.

Trump won't discuss the inflationary impacts of the tariffs. Instead, he talks about "bringing jobs home" and "restoring American greatness." Meanwhile, grocery bills skyrocket, and energy prices explode. Tariffs fuel inflation. Add trade friction, reduce supply, and demand stays the same or spikes in panic. Then, you have higher prices across the board.

Food, fuel, and metals are especially vulnerable. With a single tariff on fertilizer, corn suddenly becomes expensive. Everything made from corn—feed, plastics, ethanol, you name it—gets a price tag rewrite. That's how fast it moves.

This is why I tell my clients that they need to own tangible assets, like productive farmland, real estate, and, above all, precious metals like gold and silver. Tangible assets are financial firewalls that protect them from inflation and let them benefit from the scarcity that comes with economic turmoil.

Remember the chaos after COVID hysteria? Empty shelves. Sky-high shipping costs. Ports backed up for weeks. Now, imagine what the economy looks like with the addition of tariffs, retaliation, and global uncertainty.

We're already seeing warning signs. Freight costs out of Asia are rising. Manufacturers are hoarding raw materials. Small businesses are scaling down imports. Big companies have already stopped investing. The system is preparing for impact.

Markets hate surprises, and sudden tariff announcements send shockwaves out fast. The drop in the stock market showed how quickly retirement funds can take a hit. If your savings aren't protected, you're exposed.

 

Trump pledges to use tariffs as a strategic tool to bring manufacturing back to the U.S. and to maintain the U.S. dollar’s dominance as the world’s reserve currency

Trump pledges to use tariffs as a strategic tool to bring manufacturing back to the U.S. and to maintain the U.S. dollar’s dominance as the world’s reserve currency

GEOPOLITICAL SHAKE-UP

Trump promises that weaponizing tariffs will return the manufacturing industry to the U.S. and keep the U.S. dollar as the reserve currency. He assumes that the U.S. has nothing to gain from the comparative advantage of free trade and that other countries, such as the BRICS nations, will not retaliate against the U.S. with currency wars. 

To me, this is just wishful thinking. China is actively moving forward, growing the BRICS alliance and accelerating de-dollarization efforts. What good is it for other countries to accept the U.S. dollar as a reserve currency if the U.S. changes the rules of the global economy whenever they think that international trade is not beneficial to the U.S.? Beijing sees the tariff war as a green light to tighten alliances with India, Brazil, Saudi Arabia, and anyone tired of dollar dominance. The BRICS nations are signing trade deals in local currencies, stockpiling gold, and quietly building a separate financial system while the U.S. escalates tariffs.

Do you think tariffs will bring manufacturing back to Ohio? Are Americans prepared to pay twice as much for the goods they’re used to and to work for less than their regular wages? Trade wars can start currency wars, leading to full-scale economic nationalism. Economic nationalism can destroy the global trade order and give rise to economic blocs hostile to each other. 

The European Union is also not taking Trump’s new tariffs lightly. France and Germany are exploring trade partnerships beyond the U.S. and preparing countermeasures to protect their industries. Economic independence is the name of the game in Europe now. 

We must see that Trump’s tariffs are forcing a realignment of global influence. The world is fragmenting into economic blocs. On one side, the U.S. is trying to wall itself off with tariffs and nostalgia. On the other, rising powers are building networks, not walls.

 

The erosion of the Canadian dollar’s purchasing power

With inflation surging and the loonie losing value, Canadians now count change at the checkout. Decades of mismanagement have made everyday shopping a quiet act of economic despair

THE CANADA EFFECT: WHAT WE’VE ALREADY SEEN

To understand what tariff chaos does to a country, just look north. The moment Trump floated the idea of new tariffs on Canadian steel and automobiles, the Canadian dollar nosedived. Just one announcement, without any policy or action, sent the loonie crashing to five-year lows.

Canada is supposed to be a developed country with a robust market economy. However, that story is a lie. Canada is a debt-fueled housing bubble. Canadians have record-level personal debt. The middle class is over-taxed. The government is hooked on spending. And now, the Canadian dollar is exposed to the whims of foreign trade wars.

It's not just a trade issue when tariffs are slapped on Canadian exports. It's a national crisis. Jobs vanish, investment dries up, and the real estate market trembles. The whole fragile machine starts to shake.

Do you know who sees this clearly? My Canadian clients. About half of them have already moved serious capital offshore, not because of Trudeau, Poilievre, or any other politician, but because they realize that the system itself is broken.

They're buying offshore gold, holding accounts in neutral jurisdictions, picking up second passports, and diversifying into productive land in locations where governments don't wake up one day and rewrite the rules. If you're still in Canada with all your wealth tied up in the loonie or local real estate, you're leaving yourself open to the next financial hit.

 

There are numerous offshore investment opportunities with a second passport. High-yield real estate investments can provide consistent long-term profits, regardless of the economic cycle phase

There are numerous offshore investment opportunities with a second passport. High-yield real estate investments can provide consistent long-term profits, regardless of the economic cycle phase

WHY YOU NEED A TANGIBLE, OFFSHORE PLAN-B

You've seen what's coming: tariffs, inflation, supply shocks, and geopolitical chaos. You can't stop the madness, but you can prevent it from owning you.

There is no need to fear or panic, but you must prepare for the coming storm. You must own hard assets outside the reach of desperate governments looking for someone to tax, freeze, or control.

Gold is no longer an optional investment. It's your inflation shield, currency hedge, and last line of defence when fiat starts to fail. It's never been easier to store it securely—offshore, in private vaults, in jurisdictions that still believe in financial privacy.

If you want protection and profit at the same time, you want to own land—real, usable, income-producing land. Properties such as timber or farmland in countries like Paraguay and Panama are great options for expats. These countries also have investment-friendly tax systems and food, energy, and water independence.

You should also consider investing in offshore real estate. A property that appreciates with time and provides you with rent is an amazing investment that can secure your wealth in the long run.

The other critical measure to take is getting a second passport. Political chaos, bank restrictions, and currency controls are no longer plausible scenarios; they're simply a matter of time. You'll want options to protect your wealth and freedom when they happen.

You also need security—not just physical, but legal. A trust or foundation in a stable offshore jurisdiction is a time-tested way to protect your assets from lawsuits, seizures, and predatory tax grabs.

You may also want to consider private vault storage. It provides peace of mind that your wealth will not be affected by financial crises or regulatory changes. 

 

Cargo Container Lot

Every time a politician imposes a new tariff, it undermines your business’s margins, disrupts global operations and threatens long-term growth

CONCLUSION

Every time a politician announces a new tariff, it attacks your purchasing power, sovereignty, and future. Tariffs don’t just hurt countries. They hurt real people—those who work hard, save, and just want to build lasting wealth in peace. People like you. Yet millions remain exposed—one passport, one currency, one country—hoping things “go back to normal” while everything beneath them slowly falls apart.

If that’s your current position, let this be your wake-up call. The global economy isn’t heading for stability. It’s heading for fragmentation, realignment, and uncertainty. And that means it’s time to stop hoping and start acting.

I’ve been helping my clients save their wealth and protect their freedom through offshore investment for years. Start building your Plan-B by downloading our free report on ‘Plan-B Residencies & Instant Citizenships.’

 

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Mikkel Thorup

Written by Mikkel Thorup

Mikkel Thorup is the world’s most sought-after expat consultant. He focuses on helping high-net-worth private clients to legally mitigate tax liabilities, obtain a second residency and citizenship, and assemble a portfolio of foreign investments including international real estate, timber plantations, agricultural land and other hard-money tangible assets. Mikkel is the Founder and CEO at Expat Money®, a private consulting firm started in 2017. He hosts the popular weekly podcast, the Expat Money Show, and wrote the definitive #1-Best Selling book Expat Secrets - How To Pay Zero Taxes, Live Overseas And Make Giant Piles Of Money, and his second book: Expats Guide On Moving To Mexico.

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