Ethical Dimensions of Unilateral Trade Protectionism: A Maqasid al-Syar’ah Perspective on Trump’s Reciprocal Tariffs and Global Economic Welfare

Abstract

This study examines Donald J. Trump’s reciprocal tariffs and their implications for fairness in international trade through the lens of maqasid al-syari’ah. The research responds to the rise of protectionism under the Trump administration, which imposed retaliatory tariffs of 10–50 percent on over 180 countries, including Indonesia targeting major partners such as China and the European Union and triggering widespread trade tensions. This faith-based normative perspective is critical because existing scholarship largely overlooks Islamic ethical frameworks, leaving a gap in understanding how retaliatory measures align with justice, equity, and mutual welfare. While such policies aim to protect domestic industries, their consequences raise vital questions concerning ‘adl (justice), mizan (equity), and the prohibition of zulm (exploitation). This research uses a multidisciplinary approach combining qualitative legal analysis and empirical data to examine how tariff policies align with Islamic principles of fairness. It analyzes primary Islamic legal sources and contemporary scholarship, reviews Trump’s reciprocal tariff policies, and collects trade data from the WTO and international economic databases. Normative Islamic teachings are then compared against real-world tariff impacts to identify areas of agreement and conflict. Findings show these tariffs, though strategically rationalized, reinforce global power imbalances and disproportionately harm weaker economies, creating trade disadvantages, currency depreciation pressures, and restricted market access that hinder development, contradicting Islamic principles of ta’awun (cooperation) and fair exchange. Ethical concerns over garar (uncertainty /monopolistic advantage) and ikrah (coercion) also conflict with Islamic commercial ethics. While protective tariffs may serve public interest (maslahah) under syari’ah-compliant policy, their unilateral, retaliatory design deepens inequity and volatility, undermining Maqāṣid objectives of justice and balance. The study concludes with recommendations urging Muslim-majority nations to advance multilateral trade reforms rooted in Islamic values and calls for scholars and economists to develop policies countering systemic exploitation and advancing a fairer global trading system.