US Tariff War Spurs Global Economic Crisis and Legal Challenges

The resurgence of U.S. protectionism under President Donald Trump's 2025 tariff strategy marks a significant shift reminiscent of historic trade conflicts like the Smoot-Hawley Tariff Act of 1930, which exacerbated the Great Depression. Trump's imposition of broad reciprocal tariffs, including hefty duties on China, the EU, and Switzerland, triggered market instability and retaliatory measures, disrupting the post-World War II free trade framework established by GATT. Legal and historical analyses suggest that these presidential tariffs may exceed constitutional authority, undermining long-standing principles of tariff governance that emphasize congressional control and reciprocity. The tariffs benefit certain domestic industries, such as steel and automotive, by shielding them from foreign competition, but they risk entrenching large firms as "too big to fail," potentially increasing economic vulnerability and taxpayer exposure during downturns. Meanwhile, Canada and Mexico are strengthening their strategic partnership to navigate the challenging trade environment with the U.S., seeking to mitigate the impact of tariffs linked to concerns over illicit trade and national security. Overall, this protectionist wave reflects a complex balancing act between domestic economic interests, constitutional limits, and international trade relations amid evolving global economic power dynamics.