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The Price of Power: Are Tariffs America’s Modern Military Blunder?

“Never interrupt your enemy when he is making a mistake.” – Napoleon Bonaparte

Throughout history, pivotal moments have reshaped the global balance of power—not only through military conflict but also through strategic missteps in policy, diplomacy, and economics. A recent History Hit article highlights some of the greatest military mistakes in history, such as Crassus’ catastrophic defeat at Carrhae, where overconfidence, misjudgment of the enemy, and environmental ignorance led to one of Rome’s most humiliating losses. These cautionary tales echo eerily in today’s geopolitical landscape, especially in the realm of economic warfare.

As the United States doubles down on protectionist policies and tariffs—particularly under the current administration—there’s a growing concern that this approach may not just harm short-term trade balances but fundamentally alter the global power hierarchy.

The Tariff Trap: Echoes of Strategic Overreach

Crassus believed a swift strike against the Parthians would cement his legacy and expand Roman power. But what followed was a lesson in hubris: his troops, ill-prepared for desert warfare and blindsided by superior Parthian tactics, were decimated. The battle didn’t just cost Rome a legion; it shifted the balance of power in the East and emboldened one of its greatest rivals.

Fast-forward to today’s economic theater, and we see the U.S. taking a similarly aggressive stance—this time not with legions, but with tariffs. Aimed largely at China, but also impacting allies and neutral states, these tariffs are designed to correct trade imbalances and protect domestic industries. Yet, critics argue they may have the opposite effect: damaging global supply chains, triggering retaliatory measures, and accelerating the rise of alternative trade blocs that exclude the U.S.

A Self-Inflicted Isolation?

Just as Crassus underestimated the adaptability and strength of the Parthians, the U.S. may be underestimating how quickly other nations can pivot. Countries like China, India, Brazil, and members of the European Union are increasingly forging their own trade alliances, investing in regional self-sufficiency, and moving away from reliance on U.S.-dominated systems like the dollar-based financial architecture.

The unintended result? The U.S. risks isolating itself in a multipolar world. Much like the Roman Empire found itself checked by Parthian resistance, the U.S. could face a world where its economic leverage is no longer unquestioned. Tariffs might win temporary concessions but lose the longer war of global influence.

When Economic Warfare Backfires

Military historians often point to a failure to adapt as the root cause of strategic disasters. In economic terms, adaptation means recognizing the limits of unilateral action in a globalized world. While the administration’s tariffs may play well to domestic audiences—just as Crassus’ ambition did among the Roman elite—the global repercussions could be severe.

Already, we’re seeing fractures: foreign investment pulling away, key allies distancing themselves, and strategic rivals forming new coalitions. As with the Roman-Parthian conflict, a misstep now may not seem fatal—but it could catalyze a power shift that becomes irreversible.

The Rise of Alternative Power Centers

Historically, economic pressure campaigns have often led to innovation and resistance rather than submission. When the British Empire imposed tariffs and restrictive trade policies on the American colonies, the result was not compliance, but revolution. Likewise, today’s U.S. tariffs may incentivize the very independence and resilience among rival economies that they seek to suppress.

China, for example, has responded to tariffs not just with reciprocal measures but with strategic investments in Africa, Southeast Asia, and Latin America. Its Belt and Road Initiative is quietly redrawing global trade routes, offering infrastructure and financing in exchange for long-term influence. By contrast, the U.S.’s transactional and punitive approach to trade may be reducing its appeal as a partner.

Moreover, countries targeted by U.S. tariffs are increasingly engaging in “de-dollarization,” shifting reserves to euros, yuan, or gold, and conducting trade in non-dollar currencies. This weakens the U.S. dollar’s global hegemony, long a cornerstone of American power. If that pillar falls, the repercussions could be enormous—raising borrowing costs, undermining fiscal flexibility, and eroding confidence in U.S. leadership.

Lessons from Napoleon and the Continental System

The perils of economic overreach are not unique to the U.S. or Rome. Napoleon Bonaparte’s Continental System, aimed at crippling Britain by banning European trade with it, is another stark example. Rather than bringing Britain to its knees, it backfired spectacularly, harming France and its allies while boosting British trade with other global partners. It also provoked resistance from within Napoleon’s empire, contributing to its eventual unraveling.

The U.S. may now be embarking on its own version of a Continental System. Efforts to economically isolate China—through sanctions, tech bans, and tariff walls—risk creating a bifurcated global economy. But in doing so, the U.S. could be sealing itself off from markets, innovations, and influence that are shifting eastward.

Domestic Politics and Short-Term Thinking

One key reason economic strategies go awry is the short-termism driven by domestic politics. Leaders prioritize popular moves that yield immediate gains, even if they incur long-term costs. Crassus sought glory; Napoleon pursued dominance; today, leaders may be seeking electoral wins or media headlines.

Tariffs appeal to a certain political base, often associated with nationalist or populist movements. They create the image of a strong, assertive leader defending national interests against foreign exploitation. But while they may boost approval ratings temporarily, they often mask deeper economic vulnerabilities. Industries protected by tariffs may become less competitive, consumers face higher prices, and the innovation that comes from global competition may stall.

The Ripple Effects: Allies, Rivals, and the Global Commons

Perhaps the most underappreciated aspect of the current tariff strategy is how it affects U.S. allies. The assumption that friendly nations will remain loyal regardless of economic strain may be dangerously optimistic. Tariffs have been levied not just against rivals but also against longstanding partners like Canada, the EU, and South Korea. These actions chip away at diplomatic goodwill and create space for competitors like China to step in with more cooperative offers.

Furthermore, the weaponization of trade sets a precedent. If the U.S. can impose tariffs and sanctions for strategic reasons, so can others. This leads to a world where economic interdependence—once a force for peace and prosperity—becomes a source of suspicion and volatility. The global commons of trade, finance, and communication, painstakingly built over decades, could fracture into warring economic blocs.

The implications extend beyond commerce. Shared challenges like climate change, pandemics, and cybersecurity require collective action. An increasingly divided economic world undermines the possibility of unified responses. If each country retreats into its own economic fortress, the global community may find itself ill-equipped to face the transnational threats of the 21st century.

Strategic Patience vs. Tactical Aggression

The choice facing the United States is not between tariffs or surrender. It is between tactical aggression and strategic patience. Tactical aggression offers immediate gratification: the image of toughness, the appearance of winning. Strategic patience demands investment in long-term capability, trust-building with allies, and tolerance for short-term discomfort in exchange for future security.

Countries that have succeeded in shaping global systems have historically chosen the latter path. The post-World War II U.S. helped build institutions like the IMF, World Bank, and WTO not just out of altruism but to ensure a stable environment for its own prosperity. That model worked—arguably too well, as it enabled the rise of competitors. But tearing down the system that sustained U.S. leadership may be more self-defeating than adjusting it to new realities.

Strategic patience also means crafting trade policies that align with national values—protecting labor rights, environmental standards, and technological sovereignty—without resorting to blunt instruments. Tariffs can be part of that toolkit, but they must be wielded with precision, transparency, and foresight.

Innovation, Not Isolation

In a knowledge-based global economy, innovation is the ultimate currency of power. Tariffs may protect legacy industries, but they do little to foster the next generation of breakthroughs. In fact, they often hinder innovation by increasing input costs, disrupting supply chains, and discouraging collaboration.

To maintain global leadership, the U.S. must invest in education, research, and infrastructure. It must attract talent from around the world and create ecosystems where ideas can flourish. Isolationist policies undercut these goals. The more the U.S. turns inward, the less attractive it becomes as a destination for investment, talent, and creativity.

Tech ecosystems are already becoming more fragmented. China is building its own chips, cloud services, and social platforms. The EU is developing digital sovereignty strategies. The risk is not just economic decoupling, but intellectual and technological divergence that reduces shared standards and mutual benefit.

From Carrhae to Currency Wars

The parallels between Crassus’ doomed campaign and today’s trade tensions are not perfect, but they are instructive. Both reflect moments where ambition overtook prudence, and where the assumption of superiority led to vulnerability. Just as Carrhae signaled a shift in Roman fortunes, today’s tariff wars could mark the beginning of a new global order—one in which American dominance is no longer assured.

But unlike Crassus, today’s leaders have the benefit of hindsight. They can study history, learn from its missteps, and course-correct before irreversible damage is done. The question is not whether the U.S. has the power to lead, but whether it has the wisdom to wield that power wisely.

The world is watching. The path chosen now may determine not just the next trade cycle, but the very contours of global power in the decades to come. If history has shown anything, it is that the price of overreach is often paid not in battles lost, but in influence squandered. The challenge before the United States is not merely to defend its markets, but to secure its legacy.

African America’s March 2025 Jobs Report – 6.2%

OVERALL UNEMPLOYMENT: 4.2%

AFRICAN AMERICA: 6.2%

LATINO AMERICA: 5.1%

EUROPEAN AMERICA: 3.7%

ASIAN AMERICA: 3.5%

Analysis: European Americans unemployment rate slips lower to 3.7 percent. Asian Americans increased 30 basis points and Latino Americans decreased 10 basis points from February, respectively. African Americans unemployment rate increased 20 basis points from February.

AFRICAN AMERICAN UNEMPLOYMENT RATE BY GENDER & AGE

AFRICAN AMERICAN MEN: 6.1%

AFRICAN AMERICAN WOMEN: 5.1% 

AFRICAN AMERICAN TEENAGERS: 20.8%

AFRICAN AMERICAN PARTICIPATION BY GENDER & AGE

AFRICAN AMERICAN MEN: 69.3%

AFRICAN AMERICAN WOMEN: 60.9%

AFRICAN AMERICAN TEENAGERS: 30.9%

Analysis: African American Men saw a increase in their unemployment rate by 60 basis points and African American Women after three months of unchanged unemployment rate saw a increase by 30 basis points in March, respectively. African American Men increased their participation rate in March by 100 basis points, their five month high. African American Women decreased their participation rate in March by 180 basis points, their lowest participation rate in the past five months. African American Teenagers unemployment rate increased by 160 basis points. African American Teenagers saw their participation rate increase by 30 basis points in March, their highest participation rate in the past five months for the second straight month.

African American Men-Women Job Gap: African American Women currently have 430,000 more jobs than African American Men in March. This is a decrease from 793,000 in February. This is the lowest ever reported gap by HBCU Money since we began tracking the data.

CONCLUSION: The overall economy added 228,000 jobs in March while African America lost 176,000 jobs. This was led by African American Women losing 266,000 jobs in March dropping their employed to the lowest number in the past five months. From Reuters, “The U.S. economy added far more jobs than expected in March, but President Donald Trump’s sweeping import tariffs could undermine the labor market’s resilience in the months ahead amid sagging business confidence and a stock market selloff.”

Source: Bureau of Labor Statistics

HBCU Money’s 2024 African American Owned Bank Directory

All banks are listed by state. In order to be listed in our directory the bank must have at least 51 percent African American ownership. You can click on the bank name to go directly to their website.

KEY FINDINGS:

  • 14 of the 18 African American Owned Banks saw increases in assets from 2023.
  • African American Owned Banks (AAOBs) are in 16 states and territories. Key states absent are Maryland, Missouri, New York, and Virginia.
  • Adelphi Bank (OH) is the most recent African American Owned Bank started in 2023. Prior to that no African American owned bank had been started in 23 years.
  • Alabama and Georgia each have two AAOBs.
  • African American Owned Banks have approximately $6.4 billion of America’s $23.6 trillion bank assets (see below) or 0.027 percent. The apex of African American owned bank assets was in 1926 when AAOBs held 0.2 percent of America’s bank assets or 10 times the percentage they hold today.
  • African American Owned Banks comprise 12 percent of Minority-Owned Banks (151), but only control 1.75 percent of FDIC designated Minority-Owned Bank Assets.
  • 2024 Median AAOBs Assets: $191,590,000 ($168,701,000)
  • 2024 Average AAOBs Assets: $355,448,000 ($326,097,000)
  • TOTAL AFRICAN AMERICAN OWNED BANK ASSETS 2024: $6,398,070,000 ($5,867,738,000)

ALABAMA

ALAMERICA BANK

Location: Birmingham, Alabama

Founded: January 28, 2000

FDIC Region: Atlanta

Assets: $17,741,000

Asset Change (2023): UP 2.7%

COMMONWEALTH NATIONAL BANK

Location: Mobile, Alabama

Founded: February 19, 1976

FDIC Region: Atlanta

Assets: $66,375,000

Asset Change (2023): DOWN 0.8%

DISTRICT OF COLUMBIA

INDUSTRIAL BANK

Location: Washington, DC

Founded: August 18, 1934

FDIC Region: New York

Assets: $755,175,000

Asset Change (2023): UP 2.2%

GEORGIA

CARVER STATE BANK

Location: Savannah, Georgia

Founded: January 1, 1927

FDIC Region: Atlanta

Assets: $106,700,000

Asset Change (2023): UP 30.3%

CITIZENS TRUST BANK

Location: Atlanta, Georgia

Founded: June 18, 1921

FDIC Region: Atlanta

Assets: $793,469,000

Asset Change (2023): UP 7.0%

ILLINOIS

GN BANK

Location: Chicago, Illinois

Founded: January 01, 1934

FDIC Region: Chicago

Assets: $64,685,000

Asset Change (2023): UP 1.2%

LOUISIANA

LIBERTY BANK & TRUST COMPANY

Location: New Orleans, Louisiana

Founded: November 16, 1972

FDIC Region: Dallas

Assets: $1,076,349,000

Asset Change (2023): UP 2.6%

MASSACHUSETTS

ONEUNITED BANK

Location: Boston, Massachusetts

Founded: August 02, 1982

FDIC Region: New York

Assets: $756,367,000

Asset Change (2023): UP 0.1%

MICHIGAN

FIRST INDEPENDENCE BANK

Location: Detroit, Michigan

Founded: May 14, 1970

FDIC Region: Chicago

Assets: $644,122,000

Asset Change (2023): UP 6.1%

MISSISSIPPI

GRAND BANK FOR SAVINGS, FSB

Location: Hattiesburg, Mississippi

Founded: January 1, 1968

FDIC Region: Dallas

Assets: $252,934,000

Asset Change (2023): UP 57.0%

NORTH CAROLINA

MECHANICS & FARMERS BANK

Location: Durham, North Carolina

Founded: March 01, 1908

FDIC Region: Atlanta

Assets: $498,118,000

Asset Change (2023): UP 15.9% 

OHIO

ADELPHI BANK

Location: Columbus, Ohio

Founded: January 18, 2023

FDIC Region: Chicago

Assets: $68,154,000

Asset Change (2023): UP 55.1%

OKLAHOMA

FIRST SECURITY BANK & TRUST

Location: Oklahoma City, Oklahoma

Founded: April 06, 1951

FDIC Region: Dallas

Assets: $174,740,000

Asset Change (2023): UP 46.4%

PENNSYLVANIA

UNITED BANK OF PHILADELPHIA

Location: Philadelphia, Pennsylvania

Founded: March 23, 1992

FDIC Region: New York

Assets: $53,275,000

Asset Change (2023): DOWN 4.4%

SOUTH CAROLINA

OPTUS BANK

Location: Columbia, South Carolina

Founded: March 26, 1999

FDIC Region: Atlanta

Assets: $662,589,000

Asset Change (2023): UP 26.2%

TENNESSEE

CITIZENS SAVINGS B&T COMPANY

Location: Nashville, Tennessee

Founded: January 4, 1904

FDIC Region: Dallas

Assets: $181,740,000

Asset Change (2023): UP 3.1%

TEXAS

UNITY NB OF HOUSTON

Location: Houston, Texas

Founded: August 01, 1985

FDIC Region: Dallas

Assets: $201,440,000

Asset Change (2023): DOWN 3.6%

WISCONSIN

COLUMBIA SAVINGS & LOAN ASSOCIATION 

Location: Milwaukee, Wisconsin

Founded: January 1, 1924

FDIC Region: Chicago

Assets: $24,097,000

Asset Change (2023): DOWN 12.0%

SOURCE: FDIC

Would The Ivy League Athletic Model Work For HBCUs?

“Challenges make you discover things about yourself that you never really knew.” — Cicely Tyson

When you encounter most HBCU alumni regarding their athletic programs they all desire to be a football powerhouse. They believe that this will lead to a land of riches and honey. At the core of this delusion though is that the wealth gap between P5 athletics boosters and HBCU boosters larger than the wealth gap between is greater than the southern most tip of Florida to upstate New York. Phil Knight, University of Oregon booster and Nike owner, has a net worth of $35 billion. Oprah Winfrey is the wealthiest African American HBCU alumni with a net worth of $3 billion and the last we checked does not act as a booster to her alma mater. Meanwhile, Phil Knight in 2012 alone built the University of Oregon football team a facility to the tune of almost $70 million – and got the state legislature to amend a law to make the building legal since it ran afoul of code. But many HBCU alumni believe that if we get the “talent” to come “home” it will level the playing field. It will not. It is exhausting even explaining that the wealthy of many major athletic programs has more to do with the PWI developing and graduating entrepreneurs like Phil Knight who go on to create multibillion firms and therefore have millions to give back than whatever latest 18 year old recruit they have snagged. For greater context, Phil Knight’s building donation is almost 4X Prairie View A&M University’s athletic budget, the highest among all HBCUs.

In our last SWAC/MEAC Financial Review, the two conferences combined for a loss of over $160 million in 2019-2020 if you took away their subsidies (and even with subsidies the two conferences were in the red). These $150 million in subsidies largely coming in the form of student loan fees which for most HBCUs means students packing on student loans for the sake of athletics. Something infuriating when you consider over 90 percent of HBCU students finish with student loan debt versus less than half that amount at Top 50 endowed schools, many who play DIII football or have no football program at all. That is $150 million in subsidies that could be going to scholarships, research, investments, and so many more things that produce an actual return on investment is an understatement. The idea though that HBCUs could try an athletic model that does not aspire to be P5 (no major television contracts are coming either) seems to be lost on all HBCU athletic leadership and alumni. But what if instead of focusing on the P5 schools, we instead focused on the Ivy League’s athletic model.

The Ivy League athletic model is characterized by its emphasis on academic excellence, limited athletic scholarships, and a focus on holistic student development. As historically Black colleges and universities (HBCUs) contemplate their athletic strategies, the potential adaptation of the Ivy League model raises important questions, especially concerning financial resources, alumni support, and institutional missions. Here’s a closer look at several key factors:

Financial Context: Endowments and Alumni Giving

HBCU Endowments: HBCUs generally have lower endowments compared to their Ivy League counterparts. For example, the average endowment for an HBCU is around $100 million, while top Ivy League schools like Harvard have endowments exceeding $50 billion. This significant disparity in financial resources impacts the ability of HBCUs to fund athletic programs and support student-athlete scholarships.

Ivy League Endowments: The Ivy League’s strong financial standing allows for extensive investments in athletics, facilities, and academic resources. Schools like Yale and Princeton have endowments of over $25 billion, which provide them with a substantial financial cushion to support a holistic student-athlete experience.

Alumni Giving Rates: HBCUs face challenges with alumni giving. For instance, HBCUs have an average alumni giving rate of about 15-20%, whereas Ivy League schools boast rates often exceeding 50%. This higher giving rate in the Ivy League reflects a stronger tradition of alumni engagement and philanthropic support, which is critical for sustaining athletic and academic programs.

Research Budgets and Institutional Support

HBCU Research Budgets: Research funding at HBCUs is generally lower than that of Ivy League institutions. While some HBCUs, like Howard University, receive substantial federal research grants, many others struggle to secure consistent funding. For instance, HBCUs collectively received approximately $1.5 billion in research funding in 2019, a fraction of what Ivy League schools secure annually.

Ivy League Research Funding: In contrast, Ivy League institutions benefit from robust research budgets, with individual schools like Johns Hopkins receiving over $2 billion in annual research funding. This financial backing enhances their ability to integrate athletics with academic resources, providing student-athletes with more comprehensive support.

Holistic Development and Community Engagement

The Ivy League model emphasizes the development of well-rounded individuals. HBCUs share a similar mission of producing leaders who are socially conscious and community-oriented. Adopting the Ivy model’s focus on holistic development could resonate well with HBCUs’ core values. This approach can enhance student engagement and create a strong support system for athletes.

Influence of Ivy League Billionaires

The presence of wealthy alumni, often referred to as “Ivy League billionaires,” contributes significantly to the financial health of Ivy institutions. Notable alumni from Ivy League schools frequently engage in philanthropy, enhancing the schools’ resources for academics and athletics. HBCUs lack a comparable number of affluent alumni, which affects their fundraising potential and overall financial sustainability.

Potential Challenges and Considerations

Implementing the Ivy League model in HBCUs presents both opportunities and challenges:

  • Funding Limitations: The financial constraints of HBCUs compared to Ivy League schools necessitate a tailored approach. Without significant endowment and alumni support, fully adopting a no-athletic-scholarship model could limit HBCUs’ competitiveness in attracting top athletic talent.
  • Cultural Fit: The cultural and historical contexts of HBCUs differ significantly from those of Ivy League schools. Any model adopted must align with the unique missions and student populations of HBCUs.

While the Ivy League athletic model offers valuable insights into promoting academic achievement and holistic development, its application in HBCUs would require careful adaptation. Financial disparities in endowments, alumni giving, and research funding pose significant challenges. However, by focusing on the integration of academic and athletic excellence while fostering community engagement and support, HBCUs can create a unique model that reflects their values and enhances student success both on and off the field.

In the end, HBCUs have to accept the realities on the ground. We have tried chasing the golden ticket of athletics only to find out time and time again it is fool’s gold. It is not the thing that will alter the financial realities of our institutions. If anything it may be the thing that causes their failure as a looming admissions’ crisis is looming across all of American higher education and without a lot of dry powder on hand many institutions will easily go the way of the Dodo bird. It is time to think differently, think acutely, and chart a path that maybe uncomfortable or not what we originally imagined but will ensure the existence, sustainability, and success for future HBCU generations.

Disclosure: This was written with the assistance of ChatGPT.

Circulating The HBCU Business Dollar: HBCU Money Partners With Proud Product For The HBCU Money Logo Tee

HBCU Money has partnered with Proud Product to sell its HBCU Money Logo Tee through the HBCU Grad online store, creating a powerful collaboration that promotes both HBCU pride and financial empowerment. This partnership is a strategic move that brings together two brands dedicated to uplifting Historically Black Colleges and Universities (HBCUs) and fostering economic growth within the Black community.

HBCU Money is known for its commitment to financial literacy, economic development, and wealth-building strategies specifically tailored for HBCU students, graduates, and supporters. By teaming up with Proud Product, a brand that celebrates HBCU culture and academic excellence through apparel, this collaboration expands the reach of HBCU Money’s mission.

HBCU Grad’s Shopify-based platform provides an accessible and well-established marketplace for HBCU-themed merchandise, making it easier for supporters to purchase the HBCU Money Logo Tee. This partnership allows HBCU Money to leverage HBCU Grad’s e-commerce expertise and existing customer base while reinforcing a shared vision of empowering HBCU communities.

The HBCU Money Logo Tee, available in heather gray, is more than just a t-shirt—it represents a movement focused on financial awareness and economic independence. By purchasing this shirt through Proud Product, buyers are not only expressing their school spirit but also supporting two HBCU-owned brands that prioritize education, financial stability, and generational wealth.

This collaboration is an example of how HBCU-focused businesses can work together to amplify their impact. By joining forces, HBCU Money and Proud Product are strengthening the culture, supporting Black entrepreneurship, and promoting a message of financial empowerment—one t-shirt at a time.