It's not entirely clear it was meant to mock. That sword has something along the lines of "eat these tarrifs mother fucker" written on it
The guy who made it noted that Trump was waging war using words and economics rather than missiles
Well, here in Italy we have the tradition of setting up allegorical floats made to make fun of political personalities for Carnevale (a public festivity that's kinda like Mardi Gras) to roam around the city. Also the sword has written on it "Dazi Vostri", a portmanteau of the figure of speech "Cazzi Vostri" (that means "Shit's on you"), with "Dazi" meaning "Border Fees", so you're not entirely wrong.