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Economics
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Trust
5 min read

Tariffs destroy trust so where do we go next?

Blunt weapons cause a mess in markets and lives.

Paul Valler is an executive coach and mentor. He is a former chair of the London Institute for Contemporary Christianity.

A gold coin with the DOGE dog on it, lies over the face on a $50 bill.
So doge-y.
Kanchanara on Unsplash

‘When America sneezes the rest of the world catches a cold’ quipped economists almost a century ago after the Wall Street crash.  A comment that might equally apply to the more than 10 per cent drop in stock markets caused by President Trump’s sudden raised tariffs on imports to the USA.  The impact of the American economy on the world is inescapable.  It represents almost a quarter of global GDP and the dollar is the leading reserve currency, accounting for around 60 per cent of international foreign exchange reserves.  Size is what enables America to bully the rest of the world. 

For decades the American trade deficit has been an elephant in the room and Trump is to be applauded for recognising it and addressing the problem. Unfortunately, the way he has gone about it has caused another, bigger problem. Changing the direction of the global economy is like turning a tanker, it cannot be done easily or quickly, but Trump’s style is to attack, like hammering at a nail.  Every issue in geopolitics looks like another nail, waiting for him to hammer out a negotiated deal.  Full marks for courage, but not for wisdom. The blunt weapon of trade tariffs is designed to bring wealth and power back towards the USA, but blunt weapons often cause a mess, and sure enough a global mess is what we now have.  A US/China trade war with higher prices that could end up stoking inflation and a government own goal.   

Panic selling of government bonds signalling a loss of confidence following Trump’s dramatic tariff boost is reminiscent of the impact of Liz Truss’ sudden and radical UK tax cuts, which were also driven by an ideology, but ended up as a wrecking ball.  Even some of Trump’s backers have warned of an economic nuclear winter.  In the long run, Trump has done the world a favour by highlighting a structural issue that needed correction, but his economically violent methods of addressing it look increasingly unwise.  If a global depression does happen on the back of all this, then coupled with the rise of autocratic and belligerent leadership, we would face a worrying parallel to what happened in the 1930s when the world eventually slid into war.   

Tariffs are like walls, barriers to cooperation and the epitome of economic selfishness.  Make America Great Again is selfishness writ large - a society pursuing wealth and power without the cohesive framework of values that are so essential to cooperation and community wellbeing.  A psychology of self-centredness that damages relationships at the national level.  This is what I find most concerning about Trump’s approach; not just the economics but the long-term legacy of relational damage that could last well beyond his Presidential term. 

Our fears reveal just how much we trust in wealth above everything else, and how much the fear of scarcity affects our mental health.

Michael Schluter in his book The Relational Lens defines five principles, or measures, of relational health.  They are directness, parity, common purpose, continuity and breadth.  Applying those five measures helps us see why Trump’s tariffs are the polar opposite of relational.  He introduced these escalating penalties remotely and not in face-to-face negotiations.  Exploiting the power of America instead of showing respect for the status and needs of other nations.  Tariffs have no common purpose with other countries, only a selfish agenda.  There is no continuity with previous trading protocols.  And it is all purely financial, with no reference to the broader holistic impact.  All in all, a relational disaster.   

Despite living in the ‘first world’ we remain gripped with fear of loss.  Our fears reveal just how much we trust in wealth above everything else, and how much the fear of scarcity affects our mental health. Markets are not entirely rational; they are driven by algorithms that stem from this psychology of greed and fear.  Emotions and trading swing wildly with a herd instinct that often drives behaviour.  As Rabbi Jonathan Sachs said:  

‘Markets have no moral compass; we have outsourced morality to legislation by the State.’   

But the worry now is that the current US administration shows signs of ignoring morality and even riding roughshod over the courts.  No wonder people feel afraid. 

Where can we find hope in all this turmoil?  Is there a better response than gritted teeth and the mantra: ‘this too shall pass’?  I think so.  There is life beyond the market.  Jesus said: ‘life does not consist in an abundance of possessions.’  We can choose to step back and look at all this with the true perspective that money isn’t everything.  We can cultivate gratitude for what we do have.  We can learn contentment.  Yet I feel for those who have experienced financial loss, and don’t want to minimise the reality of hardship.  In fact, something important and practical all of us who are privileged can and should do is to be vigilant in watching out for those who are poor and disadvantaged.  To look after those with a real need for the basics of life and help them through this tough time when economic disruption could make life even harder.  For those with a faith this is part of working out how our faith makes a positive difference where we are. 

Perhaps the supreme irony of this crisis is President Trump’s insistence that Americans must trust him.  Ironic, because the one thing that his tariff actions seem to have undermined more than anything else is trust.  The trust that is essential to the functioning of both markets and civilisation as a whole.  Face to face discussions must be the way forward now, to rebuild trust and find more nuanced, mutual approaches to solving America’s trade deficit.   

There is one person we can always trust though, and his name is written clearly on the American One Dollar bill. In God we trust. Let’s pray that Trump and his America returns to that imperative and turns back to a more Christ centred philosophy of loving our neighbour as ourselves, reflected in a more bilateral approach to diplomacy and agreement.

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Article
Belief
Creed
Identity
Truth and Trust
5 min read

Calls to revive the Enlightenment ignore its own illusions

Returning to the Age of Reason won’t save us from post-Truth

Alister McGrath retired as Andreas Idreos Professor of Science and Religion at Oxford University in 2022.

In the style of a Raeburn portrait, a set of young people lounge around on their phones looking diffident
Enlightened disagreement (with apologies to Henry Raeburn).
Nick Jones/Midjourney.ai.

Is truth dead? Are we living in a post-truth era where forcefully asserted opinions overshadow evidence-based public truths that once commanded widespread respect and agreement? Many people are deeply concerned about the rise of irrational beliefs, particularly those connected to identity politics, which have gained considerable influence in recent years. It seems we now inhabit a culture where emotional truths take precedence, while factual truths are relegated to a secondary status. Challenging someone’s beliefs is often portrayed as abusive, or even as a hate crime. Is it any surprise that irrationality and fantasy thrive when open debate and discussion are so easily shut down? So, what has gone wrong—and what can we do to address it? 

We live in an era marked by cultural confusion and uncertainty, where a multitude of worldviews, opinions, and prejudices vie for our attention and loyalty. Many people feel overwhelmed and unsettled by this turmoil, often seeking comfort in earlier modes of thinking—such as the clear-cut universal certainties of the eighteenth-century “Age of Reason.” In a recent op-ed in The Times, James Marriott advocates for a return to this kind of rational thought. I share his frustration with the chaos in our culture and the widespread hesitation to challenge powerful irrationalities and absurdities out of fear of being canceled or marginalized. However, I am not convinced that his proposed solution is the right one. We cannot simply revert to the eighteenth century. Allow me to explain my concerns. 

What were once considered simple, universal certainties are now viewed by scholars as contested, ethnocentric opinions. These ideas gained prominence not because of their intellectual merit, but due to the economic, political, and cultural power of dominant cultures. “Rationality” does not refer to a single, universal, and correct way of thinking that exists independently of our cultural and historical context. Instead, global culture has always been a bricolage of multiple rationalities. 

The great voyages of navigation of the early seventeenth century made it clear that African and Asian understandings of morality and rationality differed greatly from those in England. These accounts should have challenged the emerging English philosophical belief in a universal human rationality. However, rather than recognizing a diverse spectrum of human rationalities—each shaped by its own unique cultural evolution—Western observers dismissed these perspectives as “primitive” or “savage” modes of reasoning that needed to be replaced by modern Western thought. This led to forms of intellectual colonialism, founded on the questionable assumption that imposing English rational philosophies was a civilizing mission intended to improve the world. 

Although Western intellectual colonialism was often driven by benign intentions, its consequences were destructive. The increasing influence of Charles Darwin’s theory of biological and cultural evolution in the late nineteenth century led Darwin’s colleague, Alfred Russel Wallace, to conclude that intellectually and morally superior Westerners would “displace the lower and more degraded races,” such as “the Tasmanian, Australian and New Zealander”—a process he believed would ultimately benefit humanity as a whole. 

We can now acknowledge the darker aspects of the British “Age of Reason”: it presumed to possess a definitive set of universal rational principles, which it then imposed on so-called “primitive” societies, such as its colonies in the south Pacific. This reflected an ethnocentric illusion that treated distinctly Western beliefs as if they were universal truths. 

A second challenge to the idea of returning to the rational simplicities of the “Age of Reason” is that its thinkers struggled to agree on what it meant to be “rational.” This insight is often attributed to the philosopher Alasdair MacIntyre, who argued that the Enlightenment’s legacy was the establishment of an ideal of rational justification that ultimately proved unattainable. As a result, philosophy relies on commitments whose truth cannot be definitively proven and must instead be defended on the basis of assumptions that carry weight for some, but not for all. 

We have clearly moved beyond the so-called rational certainties of the “Age of Reason,” entering a landscape characterized by multiple rationalities, each reasonable in its own unique way. This shift has led to a significant reevaluation of the rationality of belief in God. Recently, Australian atheist philosopher Graham Oppy has argued that atheism, agnosticism, and theism should all be regarded as “rationally permissible” based on the evidence and the rational arguments supporting each position. Although Oppy personally favours atheism, he does not expect all “sufficiently thoughtful, intelligent, and well-informed people” to share his view. He acknowledges that the evidence available is insufficient to compel a definitive conclusion on these issues. All three can claim to be reasonable beliefs. 

The British philosopher Bertrand Russell contended that we must learn to accept a certain level of uncertainty regarding the beliefs that really matter to us, such as the meaning of life. Russell’s perspective on philosophy provides a valuable counterbalance to the excesses of Enlightenment rationalism: “To teach how to live without certainty, and yet without being paralyzed by hesitation, is perhaps the chief thing that philosophy, in our age, can still do for those who study it.” 

Certainly, we must test everything and hold fast to what is good, as St Paul advised. It seems to me that it is essential to restore the role of evidence-based critical reasoning in Western culture. However, simply returning to the Enlightenment is not a practical solution. A more effective approach might be to gently challenge the notion, widespread in some parts of our society, that disagreement equates to hatred. We clearly need to develop ways of modelling a respectful and constructive disagreement, in which ideas can be debated and examined without diminishing the value and integrity of those who hold them. This is no easy task—yet we need to find a way of doing this if we are to avoid fragmentation into cultural tribes, and lose any sense of a “public good.” 

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