Tariffs, Titans, and the Fragility of the Global Economy

In 2018, President Donald Trump imposed tariffs targeting Chinese goods and global commodities such as steel and aluminium. Framed as a measure to protect American industry and correct trade imbalances, the move swiftly sent shockwaves through the global economy—stock markets tumbled, supply chains were disrupted, and economic uncertainty soared. Now, in a striking return to that same economic doctrine.

Trump yet again has proposed a sweeping 10% universal tariff on all imported goods, with significantly higher rates for China. This renewed trade war rhetoric has reignited fears among global investors and trading partners alike, once again highlighting a key weakness of the modern capitalist system: its dependency on powerful individuals and the disproportionate global impact of their unilateral decisions.

The Power of One

Trump’s tariffs—past and proposed—are a stark reminder of how singular figures can rattle the global economic order. This is not an isolated phenomenon. Consider George Soros, who famously shorted the British pound in 1992, forcing the UK out of the European Exchange Rate Mechanism and triggering a financial crisis. Though one acted through statecraft and the other through speculative markets, both episodes underscore a broader systemic flaw: the world economy is disturbingly susceptible to the whims of individuals who wield extraordinary influence.

These are not anomalies but structural risks embedded in the current global financial framework. A tweet, a policy speech, or a market manoeuvre by the elite few can send ripples—or shockwaves—across the globe.

Capitalism: A System for the Few

Over the centuries, many have assumed that the global economic system exists to serve the well–being of its citizens—to provide opportunity, security, and prosperity for the majority. In reality, capitalism, from its very inception, has largely been a system designed to protect and enrich the few at the expense of the many. From the early days of European colonialism, when private trading companies like the British East India Company extracted vast wealth from colonised peoples to the rise of industrial capitalism that saw factory owners amass fortunes while workers toiled in dangerous conditions for meagre wages, the pattern is clear. Even in modern times, the 2008 financial crisis laid bare the true nature of the system: reckless banking practices were rewarded with government bailouts, while millions of ordinary people lost their homes, jobs, and pensions. Whether through the monopolistic practices of Big Tech, the exploitation of cheap labour in the Global South, or the unchecked rise of billionaire wealth during global crises, capitalism has consistently prioritised the accumulation of capital by the elite few—leaving the many to shoulder the consequences.

Far from being unfortunate accidents, these crises are the inevitable by-product of an economic model that incentivises profit at any cost, tolerates rampant speculation, and repeatedly socialises risk while privatising reward.

A Viable Alternative:

In contrast, the Islamic economic system offers a comprehensive alternative—one that is fundamentally resistant to the kind of manipulation and volatility seen in modern capitalist markets. Rooted in principles of justice, asset-backed finance, and ethical investment, it prohibits interest (riba), speculative trading (gharar), and other mechanisms that contribute to instability. Islamic finance operates on shared risk and real economic activity. Profit and loss are distributed among partners, and all financial transactions must be tied to tangible assets. There is no space for derivatives, complex debt instruments, or synthetic financial products. This eliminates much of the artificial value and speculative bubbles that frequently plague capitalist markets.

“The Islamic approach to economics is unique in that it strives to integrate moral values into the practice of finance, emphasizing the welfare of society as a whole, which stands in contrast to the purely profit-driven motives of Western capitalism.” Thomas W. Lippman (American journalist and author)

Historically, this model underpinned some of the most advanced and prosperous economies of the Muslim world. During the Umayyad and Abbasid Caliphates, Islamic economic principles governed vast trade networks stretching from Al-Andalus in the West to China in the East. Commerce was regulated through enforceable contracts, shared accountability, and a consistent currency system using the gold dinar and silver dirham—ensuring stability and trust across borders.Beyond trade, Islamic governance actively promoted the equitable distribution of wealth. Institutions such as zakat (compulsory almsgiving) and waqf (charitable endowments) funded public infrastructure, education, and healthcare. Hoarding wealth was discouraged, while social responsibility was institutionalised through legal and moral frameworks.

Time for a Rethink

The re-emergence of tariff threats and protectionist rhetoric in today’s political discourse is not simply a reflection of bad policy—it is symptomatic of a deeper systemic fragility. When markets can be destabilised by a single politician’s announcement or a financier’s bet, the system is not robust; it is precarious by design.

The Islamic economic model offers a compelling vision of a different path—one built on transparency, ethical constraints, and long-term societal benefit rather than elite profiteering and speculative risk. It does not rely on billionaires, hedge funds, or populist presidents to dictate economic fate. It is grounded in timeless principles that prioritise justice, equity, and real value creation. This is not to romanticise the past. But as the world stands on the brink of another potential trade war, and as ordinary people brace themselves—yet again—for the fallout of elite manoeuvring, it is time to explore genuine alternatives.

Now is the time for Muslims to rise with clarity and conviction, to proclaim from the rooftops the merits of the Islamic economic system—a system rooted not in profit for the powerful, but in justice, equity, and the wellbeing of society. As the world stands at a crossroads, teetering between widespread poverty and ever-deepening profits for the elite, the Islamic model offers a lifeline. 

It is not theory—it is a time-tested framework that once lifted entire civilisations out of hardship and into prosperity, not by exploiting the weak but by empowering them. While capitalism continues to unravel under the weight of its own greed, Muslims must seize this historic moment to reintroduce the Islamic economic vision—one that rejects exploitation, prioritises human dignity and rebuilds economies on the foundation of ethics, real value, and social responsibility. The world is searching for alternatives; it’s time Muslims stop whispering and start leading.

We face a choice: remain passive players in a game rigged for the few, or begin to construct an economic order that truly serves Humanity.