Article
Comment
Economics
Politics
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
Creed
Politics
5 min read

In praise of nuance

Life is complicated. The early Christians had a much better way than a dramatic headline

Graham is the Director of the Centre for Cultural Witness and a former Bishop of Kensington.

A typewriter holds a piece or paper reading 'truth'
Markus Winkler on Unsplash.

Seventeen hundred years ago this year, the early Christians inched their way towards a landmark statement. The Nicene Creed was the result of 300 years of wrestling with a question at the heart of this new movement: if the Jesus they worshipped was in some sense the ‘Son of God’, what did that mean? Was he a human prophet, better than most, but fundamentally just like the rest of us? Was he God in human disguise? Or a kind of half-breed, like a centaur - half human and half divine? Bishops and theologians spilt blood, sweat and tears (literally) over these questions. Simplistic answers were put forward and found wanting. Treatises were written, synods met, opponents were castigated and excommunicated. Even riots broke out as the debates waxed fiercely across the Roman world. 

Eventually, in 325 AD, the Council of Nicaea issued a carefully worded and hard-won statement. It said that Jesus was ‘God from God, light from light, true God from true God, begotten not made, of one being with the Father.' Every word was carefully chosen and the fruit of long debate, deep prayer and thought. It didn’t solve all the problems, but it has stood the test of time, and is still recited in churches across the world today.  

I have been pondering all this during the summer as our political debates have raged.  

Take the issue of immigration. On one side, there are the ‘refugees welcome’ banners, the suspicion that fixing a flag of St George on a lamp post is a sign of incipient fascism, and that claiming we have a problem with immigration is inherently racist.  

On the other side, it is ‘stop the boats’, calls for mass deportations, protests outside hostels for frightened immigrants, the implication that all immigrants are scroungers, destroying the soul of Britain (or the USA) and the need to rapidly close our borders.  

But it’s complicated. There are significant differences between the claims of legal migrants, asylum seekers and illegal immigrants. Most would probably agree that offering welcome to people escaping warfare, persecution and famine in their homelands is right, proper, and in line with a long tradition of wealthy countries offering a refuge for others in need. People will always be on the move, and to close all borders is unrealistic and unjust. The moderate, fertile British climate, our historic economic and political stability, our well-regulated legal system, the Christian faith which shaped our culture, even the relative tidiness of our streets and countryside, are gifts we inherit from the past and should be generous with them.  

Yet these are blessings that can’t be taken for granted. They need protecting, not just for our sakes but for those with a legitimate claim to make a home here.

So, most would also agree that illegal immigration is a scourge, with the ruthless villains enticing desperate migrants to climb on their flimsy boats across the channel deserving little else but criminal sentences. Yet even mass ‘legal’ migration will change the character of the nation. In 1990, net migration was around 20,000 a year. In 2024 it was 430,000. When 40% of primary age children have at least one foreign-born parent, and for one in five, English is not their first language, that can't fail to have an impact on the character of the nation, especially in areas where housing is cheaper and newcomers to the country find it easier to find accommodation. 

But this complexity gets lost in the need for a punchy headline. Neither ‘send them home’ or ‘all migrants welcome’ capture the dilemma. It needs nuance. It needs careful, patient working towards the right balance between differing claims – compassion towards the stranger and the preservation of the very things that draw the refugees and the restless here. 

The same is true of Israel and Gaza. For the pro-Israel lobby, just to draw attention to the suffering in Gaza is to be anti-Semitic. To urge restraint on Israel’s determination to destroy Hamas, even if it means destroying Gaza and much of its population in the meantime is to echo the death camps and to bring down Zionist wrath. Yet for Palestine Action and its supporters, Israel’s legitimate need to live in peace without a neighbouring state dedicated to its destruction seems to count for nothing. How can it be expected to live alongside a regime that brutally murdered 1,400 of its citizens in one day?  

Even assisted dying – on which I and others on Seen & Unseen take the strong view that it is a bad idea – is not simple. The cries of those facing a long and painful death need hearing and people like me, who argue against assisted dying, need to promote solutions that will alleviate such suffering without crossing the red line of encouraging a culture of death.  

The truth and the resolution of our dilemmas – on immigration, or Gaza, or even assisted dying, are seldom simple. They require nuance. They need forbearance.

It’s complicated. Most important things are. Anyone who has tried to lead a large organisation will know that it’s often a delicate matter of trying to chart a path forward while keeping competing interests and perspectives on board. You lose some people along the way, but you can’t afford to lose everyone, especially if both sides of the argument have some legitimacy.  

The early church’s long struggle to define orthodoxy took time, patience, careful thought and restraint – even though at times it wasn’t very good at doing it. The result was a nuanced statement that steered between one pole – that Jesus was simply a very good human being – and the other – that he was God dressed up in human clothes. The truth eventually glimpsed and embraced was not at one extreme or the other, nor even a limp compromise, but the carefully crafted, unlikely and counter-intuitive idea that held together the best insights of both sides - that he was not ‘only human’ or ‘only divine’, or 50% of each, like semi-skimmed milk, but 100% human and 100% divine, and that this (for reasons too involved to go into here) was not a contradiction in terms.  

The truth and the resolution of our dilemmas – on immigration, or Gaza, or even assisted dying, are seldom simple. They require nuance. They need forbearance. They need careful attention and listening to the people you instinctively disagree with to arrive at the truth. Yet our longing for a dramatic headline, our hunger for simple solutions, our algorithms that promote the most extreme opinions, all militate against this kind of patient, watchful political and social culture that would help us arrive at better solutions.  

Life is complicated. People are complicated. Solutions to vexed questions are rarely simple. We need nuance.

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If you enjoy Seen & Unseen, would you consider making a gift towards our work?
 
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