[ Editorial ] Death to The Rentiers !
There appears to be a widespread reluctance to grasp the rationale behind Trump’s tariffs. The era of neoliberalism and rent-seeking has come to an end.
This is the English translation of this article, originally published in French.
Across Europe, a choir has launched into a strident rendition of the “Unjustified” lament over the tariffs introduced by the Trump administration. This echoes its persistent refrain of “Non-Provocation” over the past three years concerning Russia’s incursion into Ukraine.
These tariffs are a sovereign exercise of U.S. trade policy, and the POTUS is under no obligation to account for them to European counterparts. Rather than attempting to obstruct the Trump administration’s initiatives to address conflicts in Ukraine and the Middle East, we Europeans would be wiser to reconsider our approach.
Donald Trump is delivering on the promises he made during his campaign. What stands out is the hubris and naivity of European leaders who cling to the belief that events will mirror his first term—that the so-called “deep state” will once again stymie his agenda, leaving the status quo largely intact. This miscalculation likely stems from the fact that a significant portion of that “deep state” has already begun repositioning in Europe, poised to orchestrate its opposition to the U.S. president from across the Atlantic. It would be reckless for the Europeans to allow this to proceed unchecked.
Victor Davis Hanson, a historian, astutely observes that Trump is spearheading a counter-revolution—a stark re-engagement with reality that unsettles those who, for half a century, have accrued fortunes without making substantive contributions to economic vitality. This movement seeks to reaffirm the bedrock principles of American society. Progressives, finding themselves at a loss for compelling arguments against the grassroots support Trump commands, dismiss it as a regressive, reactionary agenda.
Financial markets have for decades drifted far from reflecting the real economy, operating instead as speculative casinos that have abandoned their core purpose of channeling capital effeciently. Likewise, banks have shifted away from financing tangible economic activity, reaping profits predominantly through market operations.
To foster industries ill-suited to the myopic demands of stock markets, nations must shield them from competitive distortions—stemming from lower wages, state subsidies, or the absence of social and environmental regulations—that undermine domestic competitiveness.