Monday, February 03, 2025

Trump's Tariff Strategy

Trump's strategy is to threaten, not impose, tariffs. They are a negotiating tool toward another goal, not an end themselves. As he did with Colombia. The tariffs on Canada, Mexico, and China were to go into effect at midnight. But today, he reached an agreement with the North Americans to pause the tariffs for 30 days.

Leadership of other countries, like those in Europe, should take note of this playbook. He's a bully. Call his bluff. Or preempt him: impose your own tariffs first. Europe is strategizing: America is not a reliable trade partner under Trump. So European countries are discussing making their own EU trade policy and cutting the U.S. out.