White House playing a mug's game with its pompous 'strategic uncertainty'

The past three months have been a sobering lesson in the folly of hubris. The actions of the White House, whose occupant claims he runs the country and the world, have created devastating uncertainty for people and businesses around the world.

In a recent defense of the administration's now-you-see-them, now-you-don't punitive tariffs on the United States' trade partners, US Treasury Secretary Scott Bessent characterized them as part of White House's deliberate "strategic uncertainty" aimed at gaining leverage in negotiations by not making it clear what its end game is. While such game theory may find favor in the boardroom, the application of engineered uncertainty in the realm of international trade is proving to be a perilous gamble.

The repercussions of this uncertainty are already reverberating throughout the US economy. Businesses and consumers are grappling with heightened costs, prompting frantic inventory purchases. The US Federal Reserve's latest Beige Book report paints a bleak picture of the US' economic landscape.

At the International Monetary Fund/World Bank Spring Meetings, the IMF revised downward its global growth projections — including that of the US, from 2.7 percent to 1.8 percent — citing trade policy shifts as a primary driver. That underscores the urgent need to dispel the clouds of uncertainty looming over the global economy.

Economists, both within and outside the Spring Meetings, have echoed the IMF's concerns, with their revised growth forecasts reflecting a somber outlook for the future.

In stark contrast to the White House's embrace of strategic uncertainty, which risks undermining not only US economic interests but also global economic stability, China's commitment to pursuing high-quality development in the face of external uncertainties highlights an approach aimed at fostering stability and certainty in economic endeavors.

At a top-level meeting on economic work, held in Beijing on Friday, the country's leadership vowed to counter "the uncertainty of drastic changes in the external environment with the certainty of the country's high-quality development".

In dire sickness, one seeks any doctor. But the folly of leveraging uncertainty as a strategic tool is becoming increasingly apparent. As the world navigates these unpredictable waters, it is imperative for policymakers to prioritize cooperation, openness and the resolution of trade tensions.

The White House would do well to heed the warnings of the consequences of the escalating uncertainty and demonstrate clarity and foresight in its economic decision-making, rather than trying to squeeze an extra dollar from its trade partners.

There is no use crying on seeing the coffin. Only by confronting reality with clear-eyed resolve can the looming economic perils be averted and a more secure and prosperous future ushered in.