So, why are the wicked people among the goyim, who constantly scheme to harm Yisrael and perpetrate malice, not afraid of retribution and punishment? It is because they believe erroneously that since Yisrael transgressed and were exiled from their land, HKB”H is angry with them, and they are being subjected to midas hadin. In that case, they can do whatever evil things to Yisrael that their hearts desire without suffering any consequences.
If they realized, however, midas hadin is actually also midas hachesed, they would be overwhelmed with fear and hesitate before causing Yisrael any harm. For, they would understand beyond a shadow of a doubt that they are going to pay severely. Even when Yisrael were exiled from their land, it was for their own good; it allowed them to refine themselves and make amends for all of their wrongdoings.
For example, we are taught in the Gemara (Gittin 56a) that when Nero Caesar the Emperor of Rome came to destroy Yerushalayim, he shot arrows in all four directions, and they all fell on Yerushalayim. Thus, he understood that HKB”H wanted him to destroy Yerushalayim. When he found a young boy returning from his Rav’s house, he said to him, “Recite for me a passuk that you learned in the Beis Midrash.” The boy repeated the following passuk (Yechezkel 25, 14): ונתתי את נקמתי באדום ביד עמי ישראל—"and I will wreak My vengeance upon Edom by the hand of My people Yisrael."
Nero wisely understood that HKB”H intended to punish Yisrael on account of their sins; however, after purifying themselves of their sins in the iron crucible of galus, He would take out His vengeance from Edom. He remarked, “HKB”H wishes to destroy His house, and (afterwards) to wipe His hands clean with me.” This caused Nero to flee and convert; the renowned Tanna, Rabbi Meir, descended from him. Clearly, if the goyim understood how much HKB”H loves Yisrael, and that even when He punishes them, He does so for their own benefit solely with midas hachesed, they would not dare harm Yisrael. That is precisely what happened with Nero Caesar.
In this light, let us interpret the passuk: וראו כל עמי הארץ כי שם ה' נקרא עליך ויראו ממך. Upon seeing that the name Havaya manages what happens to Yisrael, and everything HKB”H does for Yisrael, even what appears superficially to be midas hadin from the name Elokim, is really midas harachamim from the name Havaya, they will be overcome with fear and hesitate to harm Yisrael. Rabbi Eliezer the Great explains how the nations of the world are able to recognize כי שם ה' נקרא עליך—that everything done on behalf of Yisrael is midas harachamim. He explains: אלו תפילין שבראש—it is by means of the tefillin shel rosh. For, there, the two straps, the right and the left, unite to form a knot. Thus, they will finally realize that at the end of days, it will be revealed to everyone that for Yisrael even midas hadin is midas harachamim.