Trump's New Tariff Threat: A Potential Reshaping of Global Trade Order

Former President Donald Trump's recent announcement during a national address regarding the implementation of new tariffs based on 'different legal authorities' has sparked concerns about the global trade order. This signals a potential return to US-centric protectionism, extending beyond a simple trade policy shift and potentially triggering widespread repercussions for the global economy.

Trump's Tariff Threat: Background and Implications

Former President Donald Trump recently indicated his willingness to impose additional tariffs based on 'different legal authorities' during a national address on February 25, 2026 (as reported by Hankyung). This suggests a potential resurgence of the protectionist tendencies demonstrated during the Trump administration. Beyond a simple trade policy shift, this could reshape the global trade order and trigger widespread repercussions for the global economy.

What is the Legal Basis for New Tariffs?

Limitations of Existing Trade Laws

Existing trade laws allow for the imposition of tariffs in response to unfair trade practices by specific countries, but their application scope and procedures are strict. Former President Trump appears to intend to overcome these limitations of existing laws by utilizing other legal grounds such as national security and economic security. This can be interpreted as a strategy to secure the legitimacy of tariff imposition and minimize international backlash.

National and Economic Security Arguments

Former President Trump previously imposed tariffs on imported steel and aluminum citing national security. He is likely to deploy a similar logic this time, potentially imposing tariffs under the pretext of protecting specific industries and creating jobs. In particular, tariffs on advanced technology sectors such as semiconductors and batteries could be related to strategic intentions to strengthen US industrial competitiveness and curb the technological development of competing countries like China.

Impact on the Global Economy

Potential for Escalating Trade Disputes

Former President Trump's tariff threat could escalate global trade disputes. Major trading partners are likely to take retaliatory measures against US tariffs, which could escalate into a full-blown trade war. This could have negative consequences such as slowing global economic growth and exacerbating inflation.

Increased Financial Market Volatility

The tariff threat can increase financial market volatility. Investors may show risk aversion due to concerns about uncertainty, leading to declines in stock markets and increased exchange rate volatility. Emerging markets, in particular, could be exposed to capital outflow risks.

Investment Strategy

Former President Trump's tariff threat is increasing uncertainty in the investment environment. Therefore, investors need a cautious approach. It is important to increase the proportion of safe assets and manage risk through diversification. Investors should also monitor the development of global trade disputes and adjust their investment strategies accordingly. To establish a clear investment direction amid complex market conditions, we recommend comprehensively leveraging FireMarkets' in-depth analysis content and fundamental on-chain data.