Washington

How Trump Uses Tariffs for Global Leverage

The administration is using economic warfare to transform American foreign policy.

Jul 1, 2025

How Trump Uses Tariffs for Global Leverage

_WHAT’S HAPPENING_

President Donald Trump is using trade negotiations to push a comprehensive foreign policy agenda, tying tariff relief to demands that extend far beyond economics.

From defense spending to tech regulation, countries around the world are being told that access to the American market now comes with strings attached.

_THE FACTS_

By announcing a 90-day pause on his Liberation Day reciprocal tariffs — ending July 8 — President Trump created a powerful bargaining chip for American interests.
Trump has already landed a deal with one country, the United Kingdom, which keeps the blanket 10 percent tariff on British goods entering the US.
Canada announced a digital services tax on US goods; when Trump broke trade talks and threatened more tariffs, the country rescinded the tax and resumed talks.
Trump has tied investment in the "Golden Dome" missile defense system to Canadian trade negotiations.
At the NATO summit, Trump threatened Spain with tariffs for refusing to increase defense spending to the target of five percent of GDP.
The administration is also pushing for Japan and South Korea to commit to the five percent target as part of trade negotiations.
Trump has threatened tariffs to pressure Japan into buying more American rice.
The US is pressuring South Korea to abandon antitrust legislation targeted at and opposed by American tech giants like Google, Meta, and Apple.
Trump asked China to buy more American oil as a thank you for the Israel-Iran ceasefire, as China gets significant quantities of oil from Iran.

_INSIGHTS_

With Trump, tariffs are no longer just about protecting American industries; they’re being used to compel foreign governments to align with US strategic priorities.

In doing so, President Trump has fundamentally shifted global understandings of trade, from the free trade approach of the past three decades to a more mercantilist and protectionist stance.

However, much of this shift is hypothetical — it remains to be seen whether Trump can secure trade deals based on these threats. His self-imposed July 8 deadline is fast approaching. If even a few major economies cave to his demands, it will mark a shift in how the US wields economic power.

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David Hooten1 year ago

I believe Trump is using tariffs correctly and in balance. The US has been shortchanged for years by both friendly and less friendly countries while we give them access to the greatest market in the world. It is about time we leveled the playing field financially, and demand good policies in return.

Brandon Goldman, Managing Editor1 year ago

It's interesting to see how Trump's tariff policy is about more than just protecting American workers and industry, but is also focused outwardly on achieving US foreign policy goals

SGT USMC1 year ago

President Trump is bringing back a warfighting mindset—using tariffs as strategic firepower to rebuild American exceptionalism at levels we haven’t seen since Teddy Roosevelt stormed San Juan Hill. This isn’t soft diplomacy—it’s economic shock and awe. Tariffs once powered our whole nation, and now they’re being used to bring industries home, crush globalist parasites, and force our enemies to the table. As he drains the swamp, the rats are scurrying into the open. This is war, political and economic. You either lead, follow, or get the hell out of the way—because Trump’s marching, and America’s coming with him.

sharon smith1 year ago

Hey, it's working, so let's hold our collective breath and not question it. Other countries might get the idea that we disagree with our president and renege on the deal! Shhhhhh

Brandon Goldman, Managing Editor1 year ago

There's definitely power in unity!

SGT USMC1 year ago

It is working. But we have to remember one thing. We are the largest consumer in the world. We don’t need them because we can make everything right here. Once Trump is done we will be making a great deal more here in America. They need us, we don’t need them.

V. Zorrilla1 year ago

We need them if we want cheap and abundant goods. Let’s not be naive—if we made everything domestically, we’d have fewer options and pay more for them.

Paula Miller1 year ago

It’s far better than wars. America should have access to markets in foreign lands on equal footing. We’ve been too willing to sell out American interests and our citizens for too long. Thank you Pres. Trump for putting American interests and needs as priority #1.

Lee Shultz1 year ago

Yes Trade is important but without correctly managing the budget, which we are not doing. Plus NOT starting any new wars (let's try to actually end a few) this ship is not going to be corrected. When the right loses it what ever high ground to fix the budget, does anyone believe the left will? Who will even believe the right when they say this time we will fix it. Ticking time bomb for the US.

Brandon Goldman, Managing Editor1 year ago

Good point - wars are very, very expensive!

Robert Baublitz 1 year ago

The national debt is way more expensive than war. And not just money...

SGT USMC1 year ago

You talk about war like it’s a choice, all the time. When people are suffering, they need our help, and it should be our obligation to help with accountability….. The world we’re handing to our children was built by the military-industrial complex and the corrupt elite who profit while we pay the price. They’ve created endless wars, pushed division, and sold out the American people for their own gain. While they collect trillions, we’re left with debt, loss, and broken systems. It’s time to drain the swamp—expose these traitors, cut off their funding, and follow the money. They must be removed from power and replaced with good, principled patriots who serve the people—not parties. No more blind loyalty to red or blue. Let’s vote as Americans, together, and take our country back.

Bob Hrebec1 year ago

I believe we should use every tool available to better serve our country. That is what everyone else does......being altruistic has been a one way street for the most part.

P Scott1 year ago

Open or Free Trade has meant our markets are open to foreign countries at no cost to them but we don't have access to their markets without a steep tariff. Trump is leveraging Tarriffs for "Fair" trade. Where tariffs are equal, or you protect your favorite industries by charging tariffs and we protect ours with tariffs. We just want a fair playing field. We haven't had that for 50 years. It's about time we get treated fairly. Go Trump.

Allan Wight1 year ago

Yes. All other countries have had significant tariffs on American products for decades which have put our manufacturers' products at a distinct disadvantage. Those countries have used the significant profits that came to them to give their businesses an unequal advantage and their citizens a much better standard of living which was in fact subsidized by those tariffs. The American citizens were actually supporting those foreign citizens way of life for decades. President Trump is the only president who is standing up for the American citizens. None of the previous presidents nor any of our elected representatives in Washington has ever lifted a finger to put America first by demanding an equal playing field economically.

P Matherne1 year ago

America cant stand if we keep getting duped on. We have gotten so far in debt by paying for everyone else's problems. We need fairness! So yes i think its a good idea to try.

Chris Carbott1 year ago

Yes, it's a very good idea and it seems to be working. If they don't make deals, they will pay tariffs.

Robert Baublitz 1 year ago

We need a change for the better from these WWII trade prices that were agreed upon, to rebuild those nations after the war ended. 80 years later we are still over paying for foreign goods imported here (tariffs). Not just "change", but change for the better. The sooner, the better.

Bernie Peer1 year ago

Yes, there is not much coverage in the news about how much revenue the tariffs have brought in. News agencies need to report what is going on with that money and hold politicians accountable. Our debt is dangerous we are beholden to the lender. The Middle East is very wealthy and they are very oppressive. I would want to be under them.

SGT USMC1 year ago

First the media needs to abide by the Constitution of these United States. Then they need to start telling the truth and getting back to their roots. Go out and do some real investigative journalism. Find the truth where it is. They are supposed to be serving the people not themselves or foreign governments.

Charles Williams1 year ago

Without shutting them down completely or being bought out by reasonable people the current Oligarchy owners of the networks will never let the truth be told. It's not in their own interests.

Larry Hemmert1 year ago

I support what the Trump administration is doing.

M W1 year ago

If that's what it takes to force equitable trade agreements

Jim Powers 1 year ago

Absolutely! All’s fair in love and war.

V. Zorrilla1 year ago

As long as we understand that tariffs are a tax on U.S. consumers, fine. I generally like this newspaper, but I'm sometimes amazed at the lack of economic acumen shown by its writers and many of its readers. This ignorance is evident here in the fact that nothing is said about what tariffs actually are, what effects they have, and who ends up paying for them. Hint: it’s neither other countries nor their citizens.

Charles Williams1 year ago

That gate swings both ways. Sure we may pay a bit more but, the tariffed country ends up selling less of there products. I believe in the end the country being dealt with looses more than Americans may have to pay. If it didn't work they'd all be thumbing their noses at us rather than getting in line to make a better deal. It may be a tax but, unlike most taxes which get pissed away by a Congress that is full of lawyers rather than businessmen, tariffs are buying political capital.

V. Zorrilla1 year ago

Such a line barely exists. Over the past four months, hardly more than five deals have been made—among them a lackluster agreement with Japan that likely leaves things worse than before. As for political capital, it’s true that tariffs were originally intended as a negotiation tactic, just as you implied. However, the so-called “big beautiful bill” now relies on tariff revenue, effectively eliminating their use as a bargaining tool.

Steve Williams1 year ago

Yes. If other countries want something from us they need to do something for us.

Steve Baker1 year ago

No, it should be to protect American workers and industries, not meddling in other peoples business.