US President Donald Trump
U.S. President Donald Trump's strong stance on tariffs stems from a broader economic and political philosophy rooted in economic nationalism, protectionism, and the idea of ‘America First’.
His tariff policies are designed to reshape global trade relationships in a way he believes is more favourable to the U.S.
Here's an in-depth look at why Trump is so adamant about imposing tariffs on other countries:
Trump frequently cites large U.S. trade deficits with countries like China, India, and Germany as evidence that the U.S. is being ‘ripped off’. He views exports as good and imports as bad, contrary to most economists who argue that trade deficits are not inherently harmful. Tariffs, in his view, reduce imports and encourage domestic manufacturing.
Trump argues that past free trade deals led to the hollowing out of U.S. industries and job losses in sectors like steel, auto, and textiles. Tariffs are a tool to protect domestic industries from foreign competition. He believes this will create jobs in the U.S., particularly in swing states dependent on manufacturing.
Trump has long criticized international institutions like the World Trade Organization (WTO), which he claims favour developing countries at America’s expense. By imposing tariffs, he pressures countries to renegotiate trade deals more favourable to U.S. interests. For him, tariffs are used as leverage to extract better terms in bilateral trade agreements.
Trump frequently uses the idea of ‘reciprocal tariffs’ which means that if another country imposes high tariffs on U.S. goods, the U.S. should do the same. He believes tariffs bring parity in trade relationships.
Tariffs are not only economic tools but also geopolitical weapons. Countries maintaining defense ties or energy purchases with rivals like Russia or China often face tariff threats. In India’s case, Trump cited its military and energy relations with Russia as part of his rationale.
Tariff announcements often resonate with his political base, especially among blue-collar workers and economic nationalists. It helps Trump frame himself as a defender of American workers against unfair foreign competition. Seems like Trump would use these tariffs to project strength and decisiveness, especially, during election cycles.
For Trump, tariffs are not just an economic measure, but they’re a multifaceted strategic tool used for:
Negotiating better deals
Signaling American strength
Reshaping trade rules
Appealing to domestic voters
Whether or not they work as intended is widely debated among economists, but Trump has made them central to his vision of global trade.