Trump’s Foreign Economic Policy in Disarray: Self-Inflicted Wounds in South America and Asia
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Published November 12, 2025
The Trump governance is facing mounting challenges in its foreign economic policy, largely stemming from decisions made within the administration itself. A precarious situation in Argentina and a protracted trade war with china are emerging as key indicators of a pattern of creating economic difficulties where previously none existed, according to analysis by economist Barry Eichengreen.
These issues aren’t simply external pressures; they are,fundamentally,self-inflicted. The administration’s approach has exposed the US to significant risk in South America with a questionable attempt to stabilize Argentina’s peso, while concurrently engaging in a trade dispute with China where beijing appears to hold the advantage. This dual predicament raises concerns about the long-term stability of the US economic standing on the global stage and the impact on American businesses and consumers.
Argentina’s Peso and US Exposure
In South america, the US finds itself heavily invested in a fragile effort to prop up argentina’s peso. The details of this intervention remain somewhat opaque, but the inherent risk is clear. A failure to stabilize the Argentine economy could lead to significant financial losses for the US, especially if American institutions are heavily exposed to Argentine debt.
The On-Again, Off-Again Trade War with China
Meanwhile, in Asia, the ongoing trade war with China continues to be a source of instability. Characterized by fluctuating tariffs and unpredictable negotiations,the conflict has consistently favored china. Eichengreen’s assessment suggests that the US has consistently been on the defensive, lacking a clear strategy to effectively counter China’s economic leverage.
A Pattern of problem Creation
The common thread linking these two seemingly disparate issues is the Trump administration’s tendency to actively create economic problems. Rather than addressing existing challenges with carefully considered policies, the administration has often opted for confrontational tactics that have ultimately backfired, leaving the US in a weaker position.
