The destruction wreaked by Trump's tariff imposition warfare can be labelled like acts of senseless destruction and self-harm.

This wave of destruction is led by billionaire Elon Musk's Department for Government Efficiency (DOGE); institutions with a proud history of serving domestic and foreign policy goals are wiped out, gutted or transformed into instruments of suppression.

Axing, USAID, an organisation overtly fighting hunger, disease and poverty in developing countries. It covertly projects the unravelling of US influence that in the past aided foreign policy aims like Ukraine's Orange Revolution. A storm of new tariffs can significantly influence consumer prices in open markets through several mechanisms. When tariffs are imposed across many goods, they can contribute to overall inflation in the economy. As prices rise due to tariffs, consumers on fixed income may experience a decrease in purchasing power.

The inflationary effect can extend beyond the directly affected goods, as higher prices can lead to increased costs in other sectors of the economy. Higher prices due to tariffs may lead consumers to change their purchasing behaviour, opting for cheaper alternatives or delaying purchases. This can affect demand and sales for certain products. Consumers may switch to domestic products or brands that are not subject to tariffs, which can influence market dynamics and pricing strategies. In plain terms, tariffs are essentially taxes imposed on imported goods.

When tariffs are applied, the cost of importing those goods rises, and importers often pass these increased costs onto consumers in the form of higher retail prices. For instance, if a tariff is placed on electronics imported from China, retailers may raise prices on those products to maintain their profit margins.

Many US manufacturers rely on imported raw materials and components from Asia. If tariffs are imposed on all these imports, manufacturers face higher production costs, which can lead to increased prices for finished goods. Even domestically produced goods can see price increases if manufacturers rely on imported components that are subject to tariffs.

Tariffs can reduce competition from foreign producers, allowing domestic producers to raise prices without the pressure of competing with lower-priced imports. This can also equally lead to higher prices for consumers. Tariffs can limit the variety of products available in the market, which may reduce consumer choice and lead to higher prices for the available options. Over time, businesses may adjust their supply chains to mitigate the impact of tariffs, which could invariably lead to changes in pricing structures. For example, companies might seek alternative suppliers or invest in domestic production to avoid paying tariffs on imports.

Tariffs can lead to retaliatory measures from other countries, which can further escalate trade tensions and result in additional price increases on a broader range of goods. In summary, tariffs influence consumer prices in the US market primarily by increasing the costs of imported goods, raising production costs for domestic manufacturers, reducing competition and contributing to inflationary pressures.

The extent of these price increases can vary depending on the specific goods affected, the level of tariffs imposed and the overall economic context. Consumers may ultimately bear the burden of these costs through higher prices, reduced choices and shifts in purchasing behaviour. The recent imposition of tariffs by the US under President Donald Trump has significantly impacted European Union countries, particularly those with strong export ties to the US. These tariffs have led to economic challenges across various sectors and prompted discussions on shifting trade dynamics.

The US has implemented tariffs targeting key industries such as Germany's automotive industry, including companies like Volkswagen, BMW and Mercedes-Benz. Invariably, the country faces significant challenges due to its €86 billion trade surplus with the US in 2023. Moving on to comment on Spain's agri-food sector, notably olive oil and wine exports, this is also at risk. The country could suffer losses up to €4.3 billion, prompting the government to announce a €14.1 billion industry rescue package. Hard hit is the European steel production. Here most anticipate losing up to 3.7 million tons of exports to the US, which accounts for 16% of their total exports.

In response to escalating trade tensions and tariffs imposed by the United States in 2025, the EU has swiftly implemented a series of trade diversification strategies to mitigate economic disruptions and reduce dependency on US markets. These tariffs have led to job losses, decreased demand and economic uncertainty across the EU. In retaliation, the EU has announced €26 billion in countermeasures against US goods, including tariffs on products like bourbon whiskey, jeans and Harley-Davidson motorcycles.

Simultaneously, the EU is exploring trade diversification strategies. Ursula von der Leyen, President of the European Commission, described the 25% US tariffs on global metal imports as "unjustified trade restrictions". "We deeply regret this measure" von der Leyen said in a statement, where she announced "strong, but proportionate" countermeasures would soon come into force. "Tariffs are taxes, they are bad for business and worse for consumers. They are disrupting supply chains. They bring uncertainty for the economy," she said. With the US imposing massive tariffs on Chinese goods, Chinese firms are seeking alternative markets, including Europe.

This influx of cheaper Chinese products presents both opportunities and challenges for EU industries. The EU is considering aligning its trade policies with the US to protect its industries from market distortions caused by Chinese state-subsidised exports. However, this shift raises concerns about increased dependency on China, especially as the EU aims to "de-risk" its economic reliance on Beijing.

Locally, observers suggest that this imbalance may be corrected once Malta Enterprise and Indis embark on a stronger stance to attract multi-national business players. A popular demand exists for fintech companies and services, including cryptocurrency and blockchain technologies - but this is certainly a tall order.

Naturally, our own educational facilities need a root and branch overhaul. A top priority is to upgrade thousands of TCNs arriving from unbridled applications regularly submitted by temping agencies. Another concerning demographic trend is the projection that the population will hit 700,000 by 2050 - yet just 120,000 will be natives, largely due to consistently low birth rates.

To balance the low ratio of natives, one expects the university council to attract a higher cohort of international students. More emphasis is to be placed in this demographic solution by promoting Malta as a centre for higher education, research and advanced development.

George M. Mangion is a senior partner at PKF Malta