A while ago, I wrote that Donald Trump embodies both mercantilism abroad and libertarianism at home. My views have evolved. After nearly two months of Trump 47, I'd add another layer to the mix: fascism.
Now, before you hurl your phone across the room, let me clarify I'm not parroting the looney left who slap "fascist" on anything they don't like. I'm talking old-school, Il Duce fascism, which isn't the same thing. And sure, Trump’s evident disdain for military misadventure separates him from Mussolini, Hitler, and Franco, thankfully. But at this point, we can no longer deny the clear link between the state and the corporation.
This “Trump Trinity” of libertarianism, mercantilism, and fascism is hard to reconcile because each target market sees what they want to see.
For the average voter, Trump's libertarian streak means more freedom, fewer regulations, and less government meddling. They're grateful for it. They don't care if he's a mercantilist when it comes to China or a fascist in the eyes of AOC and The Squad.
For the left, there's no debate. Trump is a fascist. Throw in Elon Musk's unfortunate salutes and his fortunate position as Chief DOGE, and their case writes itself.
Finally, foreign adversaries abroad are concerned about Trump's next move. Trump uses tariffs as a weapon to extract concessions from non-Americans. Meanwhile, ordinary Americans interpret tariffs as a weapon with which The Donald protects them. Whatever the aim, he's a mercantilist abroad.
Each camp has its own perspective, so let's break down each of these facets in more detail.
While Trump tightens his grip on the political realm, his second-term economic policies reveal a distinct libertarian streak albeit one that is applied selectively. The overarching goal is to reduce government oversight and regulation, but only for those who support his vision of America.
One of the biggest moves so far is his gutting of diversity, equity, and inclusion (DEI) programs across federal agencies and private corporations that do business with the government. Hiring is now freer than before... no more quotas, no more mandates. Critics, of course, argue that this is a violation of rights. But in Trump's world, freedom from DEI is just as important as freedom of speech.
And then there's the Department of Government Efficiency (DOGE), Trump's new pet project, launched in partnership with Elon Musk. The goal is to cut waste, free up capital, streamline government. And, in theory, put more money back into the pockets of ordinary Americans.
DOGE aims to reach these goals using AI-driven solutions to replace thousands of traditional bureaucratic positions, cutting out inefficiencies like a corporate shredder on steroids. Trump sees this as a necessary purge of government bloat. But political pundits warn that slashing bureaucracy this fast could gut essential services and that outsourcing government functions to the private sector could easily turn into a favor factory for Trump's allies.
Financial deregulation has also been a major focus. Consumer protections rolled back. Environmental regulation slashed. Somewhere, Elizabeth Warren is having a full-on meltdown. Wall Street, on the other hand, is back in business. Free, but riskier than ever.
Will this all help or hurt the average American? That's the billion-dollar question. And like everything else in the Trump economy, the answer depends on where you stand... and who you know.
On the international front, Trump's economic policy has returned to the principles of mercantilism, an approach that prioritizes national self-sufficiency and economic dominance through protectionist policies.
His administration wasted no time reasserting American power, rolling out tariffs to level the playing field with key trading partners. A 25% tariff on all imports from Mexico and Canada sent a message... the days of the U.S. being taken advantage of in trade deals are over. These measures were designed to reduce trade deficits and boost domestic manufacturing, though they did rattle financial markets and create tensions with longtime allies.
And of course, China is once again in Trump's crosshairs. Tariffs are back, and Chinese tech companies are facing tighter restrictions on operating in the U.S. The administration frames this as defending American industry against unfair competition a stance that many see as long overdue. Naturally, critics argue that these moves are accelerating global economic fragmentation, but Trump's base sees it as holding China accountable and bringing supply chains back home.
Beyond tariffs, Trump's second-term economic strategy has included withdrawing from international agreements that he perceives as unfavorable to American interests. The U.S. has formally exited the Paris Climate Agreement, cut funding to the World Health Organization, and significantly reduced its contributions to NATO. The rationale behind these moves is clear: Trump's administration focuses solely on domestic prosperity while dropping wasteful global commitments.
And why should America bankroll global initiatives when there's work to be done at home?
Of course, not everyone is thrilled. Canada, the EU, and even the UK have responded with their own retaliatory tariffs, leading to a more competitive global economy rather than the cooperative one of previous decades. But in Trump's view, this isn't a bad thing it's a necessary correction to decades of one-sided trade deals that left America at a disadvantage.
Like it or not, the era of globalist economic policies is fading. Once anchored by cooperative agreements, the global economic system is entering a more fractured and competitive phase, with Trump at the helm of America's financial ship.
I'm not using "fascism" in the way modern leftists do. I'm looking at Mussolini's original intent.
In its original form, fascism was a nationalist, authoritarian, and corporatist ideology that sought to create a totalitarian state in which the government would have absolute control over the political, economic, and social life of its citizens. It rejected democracy, individualism, Marxism, and liberalism in favor of a unified, militarized, hierarchical society led by a strong leader.
The key components of early fascism included:
Totalitarianism - The state is absolute and demands complete loyalty.Nationalism - The nation is paramount, and all aspects of life must serve it.Militarism - Military strength is equated with national greatness.Corporatism - The economy is controlled through partnerships between the state and primary industries.Authoritarian Leadership - A single leader embodies the will of the nation.Suppression of Opposition - Political dissent is eliminated through censorship, secret police, and violent repression.Mass Mobilization - Citizens are expected to participate actively in state-driven movements.Trump fails on totalitarianism, militarism, and suppression of opposition. But on the rest, he's pretty much in lockstep.
Mussolini envisioned fascism as a third way between capitalism and communism, aiming to maintain class cooperation while ensuring state control over primary economic and political functions. The purpose was to create a self-sufficient and expansionist nation, where all individuals served the greater good of the state.
These days, fascism has become a catch-all insult for anything the left doesn't like. But according to scholars like Umberto Eco and Robert Paxton, its modern characteristics include:
Hyper-Nationalism and Populism - The nation is presented as a victim under attack by outsiders or internal enemies.Anti-Democracy and Political Violence - The rejection of pluralism, elections, and dissent in favor of a singular, dictatorial rule.Militarization of Politics - The glorification of war, police, and paramilitary forces to enforce order.Control of Media and Propaganda - The manipulation of information and the persecution of journalists or intellectuals.Anti-Leftism and Anti-Globalism - The rejection of communism, socialism, and global cooperation.Scapegoating of Minorities - Blaming internal or external groups (immigrants, political opponents, or religious minorities) for society's problems.Economic Statism and Cronyism - While opposing socialism, fascist economies often rely on state intervention and favoritism toward large corporations aligned with the regime.At its core, fascism is defined by its nationalist, authoritarian tendencies, where power is centralized and opposition is quashed.
One of Trump's first big moves in his second term was mass firings and reclassifications within the federal bureaucracy. By reclassifying thousands of civil service employees as at-will, his administration has purged career bureaucrats who were never loyal to him in the first place and replaced them with officials who actually align with his policies.
Let the record show: I'm all for this.
There's no reason unelected bureaucrats should be able to undermine the elected president's agenda. The administrative state has been running rogue for years... Trump is just bringing it to heel.
Parallel to these bureaucratic maneuvers, Trump has granted sweeping pardons to January 6ers, including those who had been convicted of violent offenses. Trump's supporters see these as justice, correcting politically motivated prosecutions. On the other hand, some argue that he's emboldening extremist factions by signaling that their actions won't have consequences. But the biggest takeaway is that Trump is reinforcing loyalty among his base and showing that political resistance comes with a cost.
Meanwhile, his Justice Department is turning its attention to left-leaning organizations and high-profile Democratic figures. Investigations into progressive activist groups have become a defining feature of his second term, which is a welcome contrast to the one-sided scrutiny conservatives faced under past administrations.
And of course, there's the media crackdown. Trump has introduced new legal measures to combat what he calls "disinformation" a move his critics say is an attack on press freedom. But let's be real here, the press was never free from bias. It's been an arm of the opposition for years. Trump's approach may be aggressive, but he's simply fighting fire with fire.
Trump may not be a fascist in the totalitarian sense, but he isn't playing by the old political rules either.
He's centralizing power, reshaping institutions, and punishing disloyalty... and his supporters love him for it.
Some might call it dangerous, but let's face it: this is politics in its rawest form.
The early days of Trump's second term leave no doubt... his governance strategy is a blend of power moves that keep him ahead of the game.
Through fascist-style executive control, he's consolidating power and removing obstacles. Whether that's career bureaucrats, political adversaries, or media critics. At the same time, he's deploying libertarian principles but only where they serve his vision.
Deregulation? Absolutely. More personal freedoms? Sure, for those who align with his agenda.
On the global stage, mercantilism is back in full force. Trade partners are put on notice play fair or pay up.
Tariffs, economic nationalism, and strategic withdrawals from international agreements reinforce America-first policies at the expense of traditional alliances.
Whether this strategy will lead to sustained economic and political dominance or precipitate a collapse of institutional norms remains to be seen.
But one thing's for sure...
Trump's second term isn't just business as usual. It's a full-scale reshaping of U.S. politics, economics, and global influence. And I expect that we'll feel the repercussions for years to come.
The Daily Reckoning