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announced a digital services tax on US goods; when Trump broke trade talks and threatened more tariffs, the country rescinded the tax and resumed talks.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.

Insider Analysis Locked