The United States is one of the few countries in the world that is not limited by natural resources and the ability to produce goods and services. Most countries must trade with other countries to obtain what their citizens require and demand. Trade between nations is not always a friendly process.
One of the methods nations use against trading partners they disagree with is to impose tariffs. A tariff is a tax levied by one country on goods and services purchased from another country. The purpose of the tax is to protect competitive advantages, persuade citizens to favor their nations’ products, raise government revenues, and level the trading playing field for the American worker.
President Donald Trump has imposed more tariffs on nations throughout the world, than any president in American history. He views tariffs as a multipurpose tool to use as leverage in trade negotiations. It is a method of changing the harmful and abusive policies of other nations, protect the jobs of American workers, and raise revenue for the U.S. government.
Within the first 100 days of his administration, President Trump has implemented tariffs to leverage Mexico and Canada to stop the smuggling of fentanyl and illegal immigrants across the American borders. Both countries have begun to make progress in stopping the fentanyl smuggling and the migrant crossings have been virtually curtailed.
America’s history of rebuilding other nations was significant after the end of World War II. Europe was devasted after WWII, facing economic collapse and widespread destruction. The U.S. initiated the Marshall Plan, providing over $12 billion to help rebuild European economies. The U.S. maintained a long-term commitment to European nations to restore industrial and agricultural production, stabilize currencies, and promote trade. U.S. support contributed to the formation of the European Union and economic cooperation among member nations.
When World War II ended in the pacific, the U.S. occupied Japan overseeing the reconstruction of the nation. The Marshall Plan provided aid programs and financial support to rebuild Japan’s infrastructure and economy. By the 1960s, Japan experienced rabid economic growth creating the slogan “Japanese Economic Miracle.”
The rebuilding efforts by the United States provided the foundation for Japan to become a major global economic power.
Since the end of World War II, the United States’ role has been the creator and guarantor of an international system of free trade. Many countries in the world that were lifted from devastating economic conditions by U.S. aid, have been taking unfair advantage of the free trade environment to implement and sustain abusive tariffs levied against American produced products.
President Trump contends that the United States has been “ripped off” by other nations, friend and foe alike, seeking to take advantage of American generosity by imposing tariffs on American products. He wants to reduce the gap between the value of goods the U.S. buys from other countries and those it sells to them. He also contends that tariffs will encourage U.S. consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of domestic and foreign investment in America.
Establishing counter tariffs against other nations provides the Trump administration with powerful negotiating tools:
- Tariffs against Chinese goods to stop China from exporting fentanyl precursors to Mexico and other Central American countries.
- Tariffs to stop Chinese theft of American Intellectual Property (IP) – inventions; literary and artistic works; designs; and symbols names and images used in commerce.
- Tariffs to encourage China not to make military strikes against Taiwan.
- Tariffs to stop Chinese-based efforts interfering with American political elections.
- Tariffs against Iran to stop their funding of terrorist groups that have been attacking Israel and other nations.
- Tariffs against Iran to stop their leaders’ threats – “Death to America and Death to Israel.”
- Tariffs against Iran to eliminate their development of nuclear weapons.
- Tariffs against nations receiving oil shipments from Iran.
- Tariffs against Russia to end the war in Ukraine.
- Tariffs against Russia to stop efforts to interfere with American elections.
- Tariffs against the European Union to level the playing field – protecting American jobs.
- Tariffs against foreign goods to incentivize and encourage domestic and foreign corporations to invest in and manufacture their products in the United States.
The goal of the Trump Administration is to achieve a global trade environment where all nations conduct free and fair trade – by doing away with harmful tariffs.
As of May 1, 2025, more than 75 countries have reached out to the White House to negotiate trade deals. After the Trump Administration imposed new tariffs on all countries, China responded with counter-tariffs of 125% on U.S. imports. According to Treasury Secretary Scott Bessent the administration is aware that “We saw some very poor gross domestic product numbers out of China. We’re now seeing very large estimates of job growth losses from 5 to 10 million jobs. So, the Chinese economy is slowing down substantially. What we will first want to see is a de-escalation. They are the most unbalanced, imbalanced economy in the history of the world – they need rebalance.”
Bessent further commented, “Everything is on the table for the economic relationship. I’m confident that the Chinese will want to reach a deal. The Chinese business model is built on selling cheap goods to the U.S. They sell us about five times more than we sell them. Their factories are closing down as we speak. We’re going into the holiday season. Orders are placed for that now, so if those orders aren’t placed, it could be devastating for the Chinese.”
Bessent’s comments are highlighted by reports of unrest in many of the largest cities in China due to demonstrations, slumping orders and closing factories. Some have observed cargo ships bound for the U.S. from China, turning around, and returning home – because the products they are carrying are no longer marketable. China’s troubles have recently hit a breaking point, when they offered to reduce or eliminate tariffs on certain products shipped to the United States.
America’s other major trading partners, India, Japan, Vietnam, South Korea, England, European Union, Argentina, Israel, Australia, Mexico, Canada and Indonesia have been having very productive meetings with the Trump administration, and they have been offering concessions in exchange for lowering or doing away with tariffs.
In both of President Trump’s two terms he has followed President Ronald Reagan’s foreign policy of “peace through strength,” emphasizing a strong military presence to deter aggression and maintain peace. President Trump has extended this policy to include foreign trade – and all of America’s global trading partners.
Like Reagan – Trump is winning – and so are the American people!
James Peifer
