How protectionism impacts sustainable growth

April 2, recently proclaimed by President Donald Trump as "Liberation Day," arrived with significant fanfare. Yet, the irony in labeling a day marked by protectionist rhetoric and economic nationalism as "liberation" is difficult to swallow. At Honeytree Investment Management, we recognize symbolism when we see it—but we also know that genuine liberation is something entirely different.

In a Rose Garden address marked by pageantry, Trump declared a broad set of tariffs as America's path to economic freedom. The audience cheered as the administration framed tariffs not as barriers, but as gateways to renewed American independence. However, setting aside the spectacle, one must ask: liberation from what? From the global trade system that underpinned decades of American growth? From international cooperation?

Trump's symbolic terminology contrasts sharply with the post WWII reality in Europe where true liberation meant freedom not only from oppressive forces, but from hatred, persecution, and genocide, profoundly exemplified by the Holocaust. That liberation was a moment that celebrated collective victory over evil and ushered in an era of unprecedented global cooperation and rebuilding. The US initiated the Marshall Plan aimed at stabilizing economies, fostering cooperative trade relationships, and integrating them into a peaceful, prosperous global system. 

Today, Trump’s tariffs are framed as a path to restoring American sovereignty, but in reality, they risk undermining the foundations of a vibrant global economy. As we reflect on the symbolism of "Liberation Day," we remind our clients of a fundamental economic truth: prosperity flourishes when trade barriers fall. Protectionist policies historically have led to stagnation, and will drive higher consumer costs, disrupt supply chains, while also eroding trust between nations. In contrast, open markets foster shared innovation, stable partnerships, and resilient global networks—the true building blocks of long-term prosperity.

Symbolism has its place, but substance - particularly economic liberalization and a disciplined, long-term approach rooted in sustainable growth - drives enduring prosperity.