Donald Trump Is Systematically Collapsing the American Economy—And the World Is Walking Away

Image Credit, Juno1412

It takes a special kind of leadership to alienate nearly every global trading partner, ignite trade wars with no strategic end, bankrupt entire domestic industries, and turn the world’s most powerful currency into a cautionary tale. Yet here we are—2025—and U.S. President Donald Trump is not only embracing that legacy but accelerating it at full speed. If America looks economically isolated, diplomatically deserted, and financially fragile, it’s not a coincidence. It’s policy.

The Tariff Time Bomb – Trump’s obsession with tariffs has proven to be economic sabotage dressed in red, white, and blue. What began as a trade war with China has metastasized into a global economic cold shoulder. Steel, aluminum, and even agricultural goods have been slapped with duties, prompting retaliatory tariffs from countries that once called the U.S. a reliable trading partner. Instead of creating American jobs or restoring industry, the tariffs have led to mass layoffs, higher consumer prices, and mounting international frustration.

Canada, once America’s closest ally and trading partner, has shifted focus toward deeper trade relationships with the EU. Mexico has pivoted toward Latin American integration. Even long-time defense and economic allies like Japan, South Korea, and Germany have begun forging parallel agreements that intentionally exclude Washington. Trump didn’t just break trade ties—he burned the bridges.

The Death of American Farming – The U.S. farming industry is in freefall. Trump’s tariffs on Chinese goods provoked an immediate and predictable backlash: Beijing stopped buying American soybeans, corn, and pork. The result? U.S. farmers, already battling climate disasters and inflation, have been forced to destroy unsold harvests and file for bankruptcy at alarming rates. The USDA reports that farm bankruptcies have tripled since Trump reimposed tariffs in 2024. Federal bailouts—quietly signed under the radar—aren’t enough. What was once the world’s breadbasket is now a graveyard of family farms.

Auto Industry in Reverse – It’s not just agriculture. Trump’s America-First tantrums have wrecked the U.S. auto industry. Tariffs on imported parts have made manufacturing more expensive, while retaliatory tariffs from Europe and Asia have made it nearly impossible to export American-made vehicles. Meanwhile, international buyers are increasingly turning to competitors—particularly China, whose EV sector is booming, and Europe, where innovation is outpacing Detroit. Even legacy automakers like Ford and GM have warned shareholders of “structural headwinds caused by trade policy.” Translation: Trump’s policies are killing our competitiveness.

Airlines Grounded by Foreign Policy – Trump’s aggression on the world stage has hit aviation hard. Following the unilateral attack on Iran, many foreign governments issued formal travel advisories urging their citizens not to visit the U.S. This isn’t politics. This is fear. Fear of retaliation. Fear of instability. And fear of being caught in a country whose policies make it a target.

Major airlines—Air Canada, Lufthansa, Emirates, and even budget carriers like Ryanair—have cut U.S. routes citing low demand and security concerns. At the same time, major contracts for fleet purchases are being diverted from Boeing to Airbus and COMAC, China’s growing aviation giant. American airports are emptier, airline stocks are plunging, and thousands of aviation workers are being laid off. The skies over America have never been more turbulent.

Tourism – The American Dream No One Wants – Let’s be honest—America’s global image has become a liability. Foreign tourists, once enamored by the Statue of Liberty and Hollywood Boulevard, are now actively avoiding U.S. soil. Travel forums, international news outlets, and embassy bulletins all echo the same sentiment: Don’t go to America right now.

From visa delays to rampant gun violence, from racial profiling at customs to soaring domestic travel costs, the barriers to entry aren’t just bureaucratic—they’re cultural and political. The U.S. tourism sector, once worth nearly $2 trillion annually, is now shedding billions in lost revenue. Airlines are running half-empty. Hotels are cutting staff. Even Disney is suffering. And yet, Trump keeps waving the flag as if patriotism will fix a dying industry.

The Dollar Is Dropping – The American dollar—once the world’s economic bedrock—is starting to buckle. While still relatively strong compared to weaker currencies, its dominance is no longer unchallenged. Central banks around the globe are diversifying away from the U.S. dollar. Nations are conducting trade in yuan, euros, and gold. The BRICS coalition has moved forward with a new currency framework designed to bypass U.S. financial systems altogether. Even Saudi Arabia has begun selling oil in non-dollar denominations.

Why? Because trust in American leadership is evaporating. A currency is only as strong as the faith in the system that backs it. And right now, that system is being run like a reality show.

Strait of Hormuz – A Global Chokehold, America First in Line – And then there’s today’s geopolitical bombshell: Iran has officially closed the Strait of Hormuz. One-fifth of the world’s oil passes through that narrow waterway. With Iran pulling the plug in response to the U.S. airstrike that killed senior officials in Tehran, global energy markets are in panic mode.

For Americans, this means more than just higher gas prices. It means inflation will spike, trucking costs will soar, food will become more expensive, and economic recovery will stall. Oil prices surged 18% overnight. Meanwhile, Trump, who once bragged he could get “great oil deals,” is now looking down the barrel of an energy crisis. No deal. No leverage. No plan.

America the Grifter – While the nation crumbles, Trump’s personal wealth continues to balloon. Forbes, despite its traditionally conservative bias, has noted that Trump and his allies have made billions in government contracts, stock holdings, and insider dealings during his presidency. His children sit on boards, his properties are raking in foreign cash, and campaign donations are being funneled into legal defense funds and “media platforms” with zero transparency.

This isn’t economic policy. It’s economic plunder.

The Collapse Is Intentional – This isn’t incompetence. It’s design. Trump’s policies are not just misguided—they are predatory. He has pitted America against the world, and increasingly, against itself. The economy is not “rebalancing.” It is unraveling.

In the end, history won’t look back at Trump as a misunderstood genius or even a flawed disruptor. It will remember him as the man who gutted America’s industries, alienated its allies, poisoned its brand, and cashed out while the nation burned.

The collapse is no longer theoretical—it’s visible, measurable, and global. And if America doesn’t wake up soon, there may be nothing left to salvage.