Article
Comment
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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Review
Books
Culture
War & peace
5 min read

Nuclear War A Scenario: the book that imagines the inconceivable

It's the most depressing book that you really need to read

Simon is Bishop of Tonbridge in the Diocese of Rochester. He writes regularly round social, cultural and political issues.

A nuclear explosion glows red and orange against the night sky.
A test explosion, 1956.

Nuclear War A Scenario (Torva, 2024) by Annie Jacobsen is about the most depressing book you could ever read and, perversely, all the more reason to read it.  Collectively, the human race has buried its head in the sand over the existence, power and proliferation of nuclear weapons. We are understandably focussed on the lasting impacts of climate change; however, nuclear war promises planetary destruction and the risks surrounding it have grown, rather than lessened, since the end of the Cold War. 

To help us focus on what we would rather not, Annie Jacobsen gives her book a plausible but hypothetical scenario. It starts with North Korea, for there we have an unbalanced, remote individual; an empathy free despot with unfettered power and unimaginable weapons at his disposal that now have the capacity to reach the east coast of the United States. 

We do not learn his reasons for launching missiles against the US in the scenario and never would, were it to happen, because Armageddon takes only minutes to unfold. Jacobsen is deeply informed round nuclear war, having talked to many highly placed American officials. One recurring anxiety she meets is that the decision to launch nuclear missiles is in the hands of the President alone and the US still operates on the so-called Launch on Warning doctrine. 

Launch on Warning means America will fire its nuclear weapons once its early warning sensor systems merely warn of an impending nuclear attack. These systems are sophisticated, but they can also be wrong, as the US discovered in 1979 when it briefly believed it was under attack from the Soviet Union. In Jacobsen’s scenario, the President has six minutes to decide what measures to take and has something approximating a menu to assist with this. Ronald Reagan observed: 

Six minutes to decide how to respond to a blip on a radar scope and decide whether to release Armageddon! How could anyone apply reason at a time like that? 

The menu, a little like ordering pizza with preferred toppings, is supposed to help with that moment. 

In Jacobsen’s scenario, US nuclear weapons are unleashed against North Korea but have to travel over Russia to get there. Russia’s early warning systems are less sophisticated and in the scenario these US missiles are believed to be an attack on Russia, not North Korea. This leads to Russia’s own uncompromising, near instantaneous response which leads to … well, you get the picture. 

A one megaton thermonuclear weapon detonates at one hundred and eighty million degrees Fahrenheit, which is four or five times hotter than the temperature at the centre of the sun and creates a fireball that expands at millions of miles an hour. This alone is unimaginable; replicating it hundreds of times over is impossible. The injuries sustained among those left; the loss of food, water, sanitation; the breakdown of law and order; the arrival of nuclear winter where temperatures plummet for decades without any infrastructure led Nikita Khrushchev to say: ‘the survivors will envy the dead’. 

Mark Lynas, a writer who for years has been helping the world to understand the science of climate change has recently turned his focus on the nuclear threat in his book ‘Six Minutes to Winter’. He observes: 

‘There’s no adaptation options for nuclear war. Nuclear winter will kill virtually the entire human population. And there’s nothing you can do to prepare, and there’s nothing you can do to adapt when it happens, because it happens over the space of hours.  It is a vastly more catastrophic, existential risk than climate change.’ 

Reaching the end of human capacity is an unsettling experience.  Solutionism is the Valley’s mantra: technology can solve every human problem, but binary thinking neglects the social, political and moral complexity of many issues and, in any case, catastrophic nuclear explosions are as likely to happen by accident as design - and could do at any time.  It’s not that we need more time for AI to resolve this existential threat; it’s that it never will. 

This is where the moral strength of faith traditions come into play as people embrace the strange hope of the powerless. Christian faith in particular cannot succumb to fatalism or the hacking of the book of Revelation to interpret the end of all things as code for nuclear war. God is creator and we are co-creators with him; we are not called to destruction when he has promised to renew the face of the earth through the resurrection of Christ.   

There is something specific about our generation. For eighty years, since the bombing of Hiroshima and Nagasaki, we have been the first generation with the capacity to destroy the whole world. Understandably, we do not want to think about this, but the fallout from this nuclear denial is that risks continue to multiply. More nations are thinking about developing nuclear weapons in an unstable world. In June 2025, the global nuclear watchdog, the IAEA said Iran was failing to meet its non-proliferation obligations for the first time in two decades and within days, Israel had launched missile strikes on Iranian nuclear sites – and many other targets – to set its nuclear programme back, followed in a significant escalation by US strikes. Nuclear weapons are a very present cause of insecurity, as the recent missile exchanges between India and Pakistan show so gravely.  

Despots watched what happened to Muammar Gaddafi after he relinquished his designs on weapons of mass destruction following pressure from western powers and are unlikely to make the same mistake. No-one can be sure the current US administration will offer a nuclear umbrella to Europe, especially when the President’s instincts are not internationalist and his preoccupation is with a golden dome shielding continental America instead.    

Almost no-one has agency in this, except for one vital piece of the puzzle: intercessory prayer, rooted in the promises of God. The ancient psalm writer prophesies: 

He makes wars cease to the end of the earth; 

He breaks the bow and shatters the spear; 

He burns the shields with fire. 

Be still, and know that I am God! 

I am exalted among the nations, 

I am exalted in the earth. 

And something greater than the spear is among us today.     

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