Da-Nien Liu, Director of The Regional Development Study Center at the Chung-Hua Institution for Economic Research (CIER), stated that following his return to the White House, President Trump has launched a comprehensive high-tariff policy centered on rebuilding manufacturing and promoting “fair trade” in an attempt to reshape global supply chains. However, implementation of these policies has thus far failed to drive a significant return in manufacturing. Instead, it has subjected the United States to the pressures of high prices, weak investment, and slowing growth momentum.
Although the U.S. economy has not fallen into recession, with a growth rate of approximately 2% for 2025, it relies primarily on short-term consumption and government spending for support. Corporate investment and the recovery of the manufacturing sector remain insufficient, and labor-market improvements are limited. Compounded by heightened uncertainty in trade policy and a decline in the willingness to invest abroad, the U.S. economy is presenting structural challenges characterized by high costs and low growth.
Director Da-Nien Liu further pointed out that against this backdrop of lackluster economic performance, Trump’s public approval ratings have fallen further to 40%, indicating a weakening of public confidence in his economic stewardship. Public skepticism regarding the efficacy of high-tariff policies is growing rapidly, as industrial reshoring has fallen short of expectations amid rising prices and cost-of-living pressures.
Despite this, Trump continues to view tariffs as a critical tool for reshaping the global economic and trade order. He uses them to enhance his bargaining power, respond to domestic populist pressures, and as part of a broader geopolitical strategy. However, outside observers generally believe that related agreements are still largely in the negotiation phase, lacking essential implementation measures, while the costs associated with these policies continue to surface. Director Da-Nien Liu believes that Trump’s tariff strategy has shifted from an economic measure to a political symbol, and its long-term impact on global supply chains and the U.S. internal economic structure requires continued monitoring.
Author: CIER Editorial Team
Date: November 21, 2025