Rethinking Trade Tariffs: Why a Global Trade Reset is Good for Growth
By Jeffrey Sweeney, Chairman and CEO, US Capital Global
Trade has always been a hot-button issue, and never more so than today with the ongoing debate over tariffs. With the Trump administration’s opening up of critical discussions on global trade tariffs, we’ve entered a period of intense negotiation, adjustment, and transformation. For some, this shift may feel unsettling, but for others—including myself—it represents a necessary reset for international trade and a catalyst for global growth.
Why Trade Needs a Reset
All systems, bureaucracies, companies, and governments evolve into complexity without necessarily becoming more functional. Procedures and practices often linger long after the conditions that gave rise to them have changed. Trade policy is no exception. Agreements made years ago may no longer align with today’s economic realities or the interests they were meant to serve.
What we’re witnessing now is a serious reevaluation of global trade mechanisms, led by the U.S. Rather than maintaining a status quo that no longer serves U.S. national interests, the Trump administration is questioning whether the existing rules still make sense—and this is a crucial step in any dynamic restructuring process.
Benevolent Race to the Bottom
The imposition of tariffs has understandably created political and economic tension. In my view, the purpose of this initiative is to simplify the complexities that have accumulated in global trade and, ultimately, drive global tariffs down to near zero. The goal is to establish a more balanced, transparent, and equitable system—one that meets the current needs of the United States and its trading partners. While this reset may seem abrupt, it is likely to set the stage for stronger global growth.
It’s also important to recognize that the U.S. is not alone in using trade tariffs. Many countries implement their own forms of trade protection—sometimes overtly, but often more subtly, such as through value-added taxes on goods. Over time, an imbalance has emerged between U.S. trade rules and those of other nations. A tariff reset seeks to level the playing field, not just for the U.S., but for all its trading partners.
Beneficial Self-Interest
The emergence of a more “America First” agenda should be understood as a call for every nation to prioritize its own interests. Strong neighbors make good neighbors—and good trading partners. Policies that foster global growth by building a more robust and sustainable foundation will ultimately benefit all countries.
We also need to recognize the structural changes taking place in the global economy. The days when countries could gain a competitive advantage purely through cheap labor are ending. With the rapid advancement of artificial intelligence and automation, labor arbitrage is becoming a diminishing factor. Instead, the primary drivers of cost and competitiveness are capital, energy, and logistics. As energy costs and capital markets converge globally, the real differentiator will increasingly be the friction involved in moving goods.
This is why reshoring—bringing manufacturing back to the U.S. and, more broadly, encouraging foreign companies to invest in local plant and equipment—makes so much sense. As automation lowers labor costs, being closer to end markets becomes more valuable than sourcing from low-wage countries.
Reshoring for Economic and Social Wellbeing
Reshoring isn’t just an economic imperative—it’s a social one as well. We need to restore productive employment, not only for the sake of GDP, but for the psychological wellbeing of our workforce and the workforces of our trading partners. People need careers. They need to feel that they are contributing meaningfully to society. Gainful employment provides more than just a paycheck—it delivers purpose, dignity, and social cohesion.
Learning from Global Models
Interestingly, some of the most innovative ideas shaping U.S. policy today are inspired by models pioneered abroad. For example, the concept of a sovereign investment fund—something President Trump has shown interest in—has been highly successful in the Middle East, particularly in countries like the UAE. Similarly, “golden visa” programs, which offer residency or citizenship in exchange for investment, draw on forward-thinking strategies from that region. While these ideas may not always be explicitly credited, their influence is clear, and adopting such global best practices could bring significant benefits.
Weathering Volatility with Steadiness
Naturally, this period of recalibration has brought market volatility. Tariff negotiations have shaken investor confidence and created short-term uncertainty. Yet over the medium and long term, the fundamental drivers of global growth remain strong. Like real estate, stock markets tend to rise over time; short-term corrections are inevitable, but history shows that markets adapt and recover.
The real challenge during periods of transformation isn’t the policy changes themselves—it’s the often negative human reaction to change. Today, what is most lacking isn’t capital, innovation, or opportunity, but vision and determination. By staying focused on long-term goals—greater fairness, higher global growth, stronger employment, and resilient multinational economies—we can all emerge stronger.
A Reset for the Future
This reset in global trade is not a regression, but an innovation. If we embrace the goal and stay steady and purposeful in our approach, we won’t just navigate the transition—we’ll thrive, paving the way for stronger global economies for future generations.
Jeffrey Sweeney is a lifelong entrepreneur and successful fund manager with decades of experience in corporate finance and asset management. He is Chairman and CEO of US Capital Global (www.uscapital.com), a full-service global private financial group headquartered in San Francisco with primary offices in Los Angeles, Philadelphia, New York, Miami, London, Milan, Zurich, and Dubai.
Download a PDF of this Press Release