Trump's Tariffs: Crony Capitalism and the New Economy of Obedience

Donald Trump's latest barrage of tariffs—levied against imports from China, the EU, Mexico, Canada, and the UK—has triggered a global wave of panic. Stock markets are tumbling, trade relationships are unraveling, and the threat of recession is once again stalking the global economy. JPMorgan recently raised its probability of a U.S. recession to 60%, while the BBC notes that U.S. consumers are already facing higher prices on cars, electronics, and everyday goods.

UK business groups have warned that the tariffs will cause "untold damage" to exports and jobs. Market observers describe the mood as “carnage,” with Wall Street plunging and currencies in freefall. Economists, bewildered by the self-inflicted harm, are questioning the logic. As The Guardian succinctly put it: “In economic terms, Trump’s tariffs make no sense at all.”

But perhaps the key is to stop viewing them as economic policy at all.

Behind the official rhetoric lies a more disturbing pattern: the weaponization of the global economy to reshape alliances, weaken opposition, and consolidate elite control.

Instead, what we are witnessing is a shift in how political and economic power is wielded. Trump's tariffs are less about economic advantage than they are about “power.” They are the instruments of a broader authoritarian project—one that uses economic coercion not as a last resort, but as a first principle.

The Trump administration has framed this crisis as a defense of “national sovereignty,” declaring a state of emergency in order to impose sweeping new trade restrictions. But behind the official rhetoric lies a more disturbing pattern: the weaponization of the global economy to reshape alliances, weaken opposition, and consolidate elite control.

Crony Capitalism Disguised as Protectionism

Trump’s tariffs are not random acts of economic aggression. They are carefully placed tools of political leverage—intended to punish dissent and reward obedience. Want your country's exports to avoid a crushing levy? Then align your foreign policy with Trump's vision. Need your factory spared from punishing steel tariffs? Show loyalty, cut a deal, make a donation.

This is not free market capitalism. It is feudalism with a corporate gloss—where tariff exemptions and trade deals are handed out not on merit, but on allegiance. Indeed even before the announcement, corporations with the right connections in Washington have already begun receiving favorable treatment. The message is clear: if you want to survive in this economy, loyalty to the throne is not optional—it’s the business model.

This isn’t just Trump’s strategy. It is the strategy of an emerging capitalist class that thrives in the dark.

This marks a dangerous transformation. Trump is not merely using tariffs to "bring jobs home"; he is building a new global order in which power is centralized around his persona, and economic access becomes a form of tribute. Allies are not negotiated with, they are enlisted. Enemies are not competed against, they are sanctioned into submission.

Countries like Mexico and Canada are being strong-armed into renegotiating deals that favor Trump’s domestic base. China, meanwhile, has responded with its own retaliatory tariffs and accusations of “economic bullying.” The global trade system is no longer rules-based—it’s relationship-based, and Trump is the gatekeeper.

This dynamic has a name – what I refer to as the rise of the “authoritarian-financial complex”: a hybrid of autocracy and capital, in which markets are no longer neutral platforms of exchange but battlegrounds of loyalty and domination. State power is weaponized not to serve the public good but to enrich a loyal elite through coercive economic tools and manufactured crises. It marks a shift from an imperialist market-driven global capitalist system to a new era where authoritarianism itself becomes profitable —an industry of control that turns state repression, economic chaos, and political loyalty into revenue streams for the ruling elite.

Manufacturing Crisis as an Investment Opportunity

If the tariffs seem irrational through the lens of traditional economics, they make perfect sense when viewed through the lens of crisis capitalism. This is the playbook: manufacture a disruption, create volatility, and let the well-positioned profit from the fallout.

This is not new. Neoliberal elites have long used crises—whether natural, financial, or geopolitical—as opportunities to restructure economies in their favor. The goal is not to prevent crises but to own them, to turn social and economic catastrophe into a series of privatized gains.

During the COVID-19 pandemic, this model was on full display. Private equity and hedge funds disproportionately bought up distressed housing, healthcare companies, and struggling small businesses, consolidating enormous power under the guise of “recovery.”

Trump’s tariff war extends this logic to the international stage. The goal is not to fix the global economy—it’s to turn it into a distressed asset. As markets crash and trade routes collapse, investors tied to the Trump network can scoop up undervalued assets, exploit government stimulus, and re-sell them at massive profits. It's asset stripping on a global scale.

This moment demands clarity. Tariffs that punish enemies and reward friends are not about economic justice—they are tools of elite extraction.

This is why financial markets are not merely reacting to trade uncertainty—they’re anticipating a redistribution of power. The market’s negative response reflects not just fear of economic pain, but recognition that policy now depends on political favor, not stability or reason.

And who pays the price? Ordinary people—through inflation, layoffs, decimated pensions, and rising costs of living. These tariffs may be framed as populist, but they function as pipelines of wealth transfer from the working and middle classes to the ultra-rich.

The New Economy of Obedience

So what are we really looking at? A trade war? A nationalist economic pivot? No. We are witnessing the consolidation of a new form of capitalism—one that fuses state violence, elite finance, and populist spectacle into a coherent, brutal system of control.

Trump’s tariff policies are the scaffolding of a much larger project: to reshape the world economy in a way that rewards loyalty, crushes opposition, and turns crisis into capital. They are not the exception. They are the future—unless they are stopped.

This moment demands clarity. Tariffs that punish enemies and reward friends are not about economic justice—they are tools of elite extraction. The markets are not crashing because Trump miscalculated. They are crashing because the system is being reset. And when the smoke clears, the question is not who will pay the price, but who will own the wreckage.

What is needed is more than hand-wringing about GDP or interest rates. It requires a reckoning with the fact that our economic future is being deliberately reshaped by those who view democracy itself as a distressed asset. The true cost of Trump’s tariffs isn't measured in trade deficits or consumer prices. It’s measured in the dismantling of a rules-based global order in favor of a patronage-driven, authoritarian regime of elite extraction.

This isn’t just Trump’s strategy. It is the strategy of an emerging capitalist class that thrives in the dark. And unless we confront it directly, they won’t just own the crisis—they’ll own us too.