Dear Mr. Diaz,

I'm not an economist, but what seems to me risky in this policy is the contemporaneity of the moves it attempts:

- spending cuts in the federal budget and harvest of money from everybody outside US;

- huge tax cuts for US internal investors.

What about if cuts are damaging US economy or are somewhat ineffective and US receive a hard reaction from abroad ?

Federal Government will not have the money for balancing tax cuts that wiil be already effective, and the Federal deficit will have a strong worsening .

Perhaps a more cautious policy would be preferable, namely first achieving Federal Government savings and only after using the available money to cut taxes. But Trump is in a hurry, November 2026 is not so far.

Instead what I would above all highlight is another aspect of Trump moves: he is simply extorting money from adversaries and friends contemporarily, using the power of US might.

Perhaps it will partially work in the short run, but in the long run all those people will remember the way in which they have been treated and the trust they had toward America will vanish. US will be alone against its adversaries.

I suggest you read a recent article about this issue, namely :

"The End of the Long American Century"

https://www.foreignaffairs.com/united-states/end-long-american-century-trump-keohane-nye

Personally, I'm italian, I wiped all my extremely modest investments in the US economy, relying now only on Europen ones, because I don't want to be blackmailed and at the same time having my savings supporting that Trump bullish policy. It is a drop in the sea, I know, but people have also their pride.

And world investors are not ready to risk money on a market they don't trust any more, if not simply for some rapid speculation.

I hope this will be only a temporary accident in the political history of US, I do not want to imagine a world without the "old democratic America".

Stefano Cariolato

Dr. Cariolato,

Thank you for your thoughtful reply and for sharing that excellent Foreign Affairs article. I’ll admit that my exposure to U.S. foreign policy debates has been limited, but your recommendation has already given me a clearer sense of the issues. I’ll need to carve out some time to trace our diplomatic history from its origins through to the present.

I also appreciate the opportunity to clarify my own stance: I’m neither for nor against President Trump per se. I aim to evaluate policies and actions on their merits—objectively and from multiple perspectives. I find it invaluable to both critique and acknowledge strengths where they exist.

On that note, since we're discussing foreign affairs, I’d like to highlight Section 112029 (Enforcement of Remedies Against Unfair Foreign Taxes), included in the so-called “One Big Beautiful Bill.” Congress should consider carving out this provision as standalone legislation. I believe it would garner strong bipartisan support. Americans overseas are often taxed more harshly than local residents, particularly in Europe, where discriminatory tax practices disproportionately target U.S. citizens and businesses.

I look forward to diving deeper into these topics and continuing our conversation.

Dear Jairo Diaz,

as for your citation of "Enforcement of Remedies Against Unfair Foreign Taxes", I remember that Trump said that one of that pretended unfair tax was the European VAT, that in Europe hits indifferently all sold goods , no matter where they are produced or by whom, european or not. It's a sort of your local taxes that you have in any State. Why can't we have the same ?

Moreover he demanded that all american producer had not to pay taxes abroad but only to the USA, no matter who abroad worked to produce it or by whom was paid for.

The fact is that there is a fundamental difference between USA fiscal rules and what are common in the rest of the world.

US demand taxes to american subjects, persons or companies, everywhere

they are working on the planet, instead the rest of the world hit with taxes only subjects in their respective territory.

So for instance an american actor, working in France, should pay taxes to US and France contemporarily. This is not fair and produce problems.

But when a foreigner works in the US, the Federal Government strangely applies the same rule that is adopted abroad, namely he has to pay taxes in US. You chose the best of all worlds, and want others to bend.

I had an investement in the US and disinvesting it I had to pay 15 % in US and 26% in Italy because of that rule.

It is something like the fact that we drive on the right but UK and Australia do the contrary; you act like you were English and wanted to drive on the left also abroad.

All that matter does not have any importance anyway, Trump simply wants money and is using his power to have it from whoever will be too weak to resist him. Someone will be forced to have a deal, but will contemporarily start to prepare a vengeance in the future.

You, your sons and your nephews will have to live on this planet also when Trump will not anymore be there. Think about it, and above all don't lose your democracy.

My best regards to you.

Stefano Cariolato

Dear Jairo Diaz,

When you have time read this Foreign Affairs article:

https://www.foreignaffairs.com/europe/beware-europe-you-wish-wallander

and please note that this magazine is Published by The Council on Foreign Relations, an American think tank focused on U.S. foreign policy and international relations. The source is not European.

Best regards