Trump’s tariffs on trade are an opportunity to build a better trading system. Instead of negotiating or retaliating, countries should work with people in the Global South, Commonwealth countries, European Union and responsible US states to build a more sustainable global economy .
This means deprioritising trade with the US and strengthening trade with the global south by developing measures such as
- full-cost pricing, incorporating environmental and social impacts;
- replacing the dollar as a reserve currency with a basket of currencies, perhaps building on the IMF’s Special Drawing Rights or starting with the euro
- boosting fair trade with the global south and ensure that countries hit hardest by Trump’s tariffs have a market and fair price for their goods
- directing investment to sustainable economic development, infrastructure, education, health and security.
This will also tackle global heating, loss of biodiversity, migratory pressures, environmental degradation, poverty and inequality.
Trump is waging a war, but all countries should stay out of it and not to fight on his terms.
Every crisis is an opportunity. We should not waste this one by letting governments fight for an unsustainable model of globalisation but work with allies and partners to transition to a fairer, better and more prosperous world.
This is a golden opportunity to create a break through just transition: Kate Raworth’s Doughnut Economics Action Lab (DEAL), Marianna Mazzucato’s ‘mission economy’ and Institute for Innovation and Public Purpose, Ellen MacArthur’s circular economy, members of the Wellbeing Economy Alliance, and many others are already working on this.
How can we raise this issue with policy-makers and the public to accelerate action?
If you agree with this, raise it on social media, write to the press, encourage organisations to debate and act: across the world politicians and businesses are dancing to Trump’s terrible tunes.
Join debate at RSA community.thersa.org/c/… or start one on this and other forums.