Trump’s Unpredictable Leadership Creates Global Uncertainty
One day, President Donald Trump imposed strict tariffs on Canada and Mexico. The next, he temporarily froze auto duties after realizing—just as many had warned—that they could cripple a cornerstone of American industry.
Last week, Ukrainian President Volodymyr Zelensky visited the Oval Office to sign a rare-earth minerals agreement, which Trump touted as a major win for the US. However, tensions flared when Vice President JD Vance provoked Zelensky, leading to his abrupt removal from the White House—a diplomatic blunder that European leaders have been scrambling to address.
Meanwhile, Elon Musk has been aggressively slashing government bureaucracy, firing workers indiscriminately, and throwing agencies into chaos. As the economy shows signs of slowing, businesses and individuals who rely on government programs are facing deep uncertainty.
At first, Trump’s fast-paced decision-making was seen as a jolt of energy, cutting through bureaucratic inertia left by President Joe Biden’s final months in office.
Now, just six weeks into his term, his unpredictable actions—ripping apart post-Cold War security alliances, dismantling free trade systems, and weakening federal institutions—are sparking a new realization:
There doesn’t seem to be a plan.
Trump’s impulsive approach to diplomacy, economic policy, and governance appears as erratic as his unfiltered campaign speeches. The world is once again left at the mercy of a president who prioritizes instinct and spectacle over strategy.
“There’s too much unpredictability and chaos coming out of the White House right now,” said Canadian Foreign Minister Mélanie Joly on Wednesday, describing US trade policy as a “psychodrama” that Canada cannot afford to relive every 30 days.
A Leadership Style That Often Backfires
Trump’s leadership style leaves allies struggling to decipher his true intentions.
For instance, he recently accused Canada of not doing enough to stop the flow of fentanyl across the border—despite the fact that only a negligible amount comes from Canada. Similarly, his administration has complained about undocumented migrants crossing from Canada, even though the numbers remain low. Trump has also suggested that manufacturing jobs should move from Canada to the US, leading some in Ottawa to suspect he aims to weaken Canada’s economy for strategic leverage.
That said, Trump’s hardline tactics have yielded some results. His outrage over a Hong Kong-based company’s ownership of two strategic ports near the Panama Canal prompted BlackRock, a US investment firm, to step in and purchase them—improving America's strategic foothold. Even as he strains US-European relations, his pressure on NATO allies has spurred a long-overdue military rearmament effort.
Still, many believe Trump is more interested in wielding personal power than executing a well-thought-out strategy.
Michael Froman, former US trade representative and chairman of the Council on Foreign Relations, noted that while tariffs can be a useful negotiating tool, their effectiveness depends on having a clear objective. “You have to know what it is you want them to do for that leverage to be useful,” he told CNN.
The Essence of Trump’s Chaos-Driven Politics
For Trump, disruption is often the goal itself. His theatrical approach to politics—designed to frustrate Democrats, the media, and foreign leaders—is a key part of his appeal to his base.
For the nationalist right, dismantling Washington’s bureaucratic institutions isn’t just policy—it’s a strategy to deconstruct the so-called “administrative state.”
Trump honed this approach in the real estate world, where erratic demands, confrontational tactics, and sudden reversals kept opponents off balance. However, while unpredictability might be an asset in business negotiations, it becomes a liability when governing a country that depends on stability and consistency.
“It’s just constant, and it’s exhausting,” said Julian Vikan Karaguesian, a former Canadian Ministry of Finance official, regarding Trump’s trade policies. “Maybe the modus operandi here isn’t about tariffs or trade—it’s about creating chaos and uncertainty.”
Trump’s Sudden Reversal on Auto Tariffs
Trump’s decision to pause auto tariffs—just a day after imposing a 25% duty on Canadian and Mexican vehicles—illustrates how he sometimes backtracks on his own aggressive policies.
The stock market may have influenced his decision. After two days of sharp declines, Trump’s reversal helped the Dow Jones Industrial Average recover nearly 500 points.
CNN reported that Trump changed course after discussions with the CEOs of major automakers. His press secretary, Karoline Leavitt, later stated that the administration was open to “additional exemptions.”
However, this approach raises concerns about fairness. The ability of corporate executives to negotiate tariff exemptions—while ordinary businesses and consumers bear the brunt of economic uncertainty—undermines the principles of a rules-based economy. Trump’s reliance on personal deals and favoritism echoes the patronage systems seen in autocratic regimes.
While Trump may prefer using tariff threats over enforcing them, the constant uncertainty he creates damages business confidence. Companies struggle to plan for costs and supply chains, while consumers, fearing price hikes, may cut spending—further weakening the economy.
“There’s so much uncertainty about what the administration is doing that even the mere prospect of tariffs is dragging down the economy,” said Bharat Ramamurti, former deputy director of Biden’s National Economic Council.
The Long-Term Risks of Trump’s Strategy
Trump’s erratic leadership and hostility toward traditional allies may ultimately weaken America’s global influence.
Financial markets are already showing signs of concern. “The dollar has taken a sharp hit this week,” said Ruchir Sharma, founder of Breakout Capital. “The rest of the world is adjusting, and investors are starting to look at other countries as safer bets amid US policy volatility.”
If Trump’s trade wars continue, key allies like Mexico, Canada, and the European Union may seek stronger economic ties with China, undermining US dominance in global trade.
While America’s allies remain committed to their historic partnerships with Washington, they also have national interests to protect. Canada, for example, cannot win a trade war against the US, but its leaders are growing weary of Trump’s brinkmanship.
Doug Ford, the Premier of Ontario—Canada’s economic powerhouse—argues that Trump should eliminate all tariffs rather than selectively lifting them for industries like autos.
