Trump Uses Art Of The Deal To Renegotiate Global Trade
Donald Trump, leveraging the principles outlined in his book The Art of the Deal, has approached trade negotiations with a bold strategy to counteract decades of what he perceives as unfair practices by nations that have undermined American manufacturers. One key tactic Trump employs is “anchoring,” where he starts with an extreme demand to set the stage for negotiations. In April 2025, Trump announced a sweeping 10% baseline tariff on nearly all imports, with higher rates like 54% on China and 26% on India, targeting countries he accuses of using currency manipulation, weak labor standards, and restrictive regulations to gain an unfair edge. This aggressive opening move, enacted under emergency economic powers, was designed to shock trading partners into action, forcing them to the negotiating table to address long-standing trade imbalances—such as the U.S.’s $1.2 trillion global goods trade deficit in 2024—that have hollowed out American industries like steel and manufacturing.
Another principle Trump uses is his willingness to “walk away,” giving him significant leverage in discussions. He has shown little concern for the immediate backlash, such as the global market turmoil following his tariff announcements, with the Dow Jones facing its worst week since the pandemic and warnings of a potential recession echoing from economists like Jim Cramer. Despite this, Trump has doubled down, threatening an additional 50% tariff on China unless Beijing removes its retaliatory 34% duties on U.S. goods, signaling that he’s prepared to escalate further if his demands for fairer trade terms aren’t met. This stance has rattled nations like Vietnam, which faces a 45% tariff, and the EU, hit with a 20% rate, prompting over 50 countries to reach out for negotiations within days, as reported by White House advisers. Trump’s readiness to abandon deals unless they favor American workers and manufacturers has shifted the power dynamic, pressuring nations to reconsider their own trade barriers.
Finally, Trump employs “bluffing” to create uncertainty and push his counterparts into concessions, a tactic that aligns with his broader vision of restoring U.S. manufacturing dominance. While critics argue his tariffs risk a global trade war—China has already retaliated with matching tariffs, and the EU is mulling a 25% counter-tariff on U.S. goods like soybeans—Trump’s rhetoric suggests he’s playing a high-stakes game. He has claimed that countries are “dying to make a deal,” framing the tariffs as a temporary “medicine” to fix systemic issues, even as financial markets convulse and allies like Japan and Israel scramble for exemptions. By projecting confidence and unpredictability, Trump aims to extract better trade terms, such as zero-tariff deals proposed by the EU and Taiwan, while betting that the short-term economic pain will yield long-term gains for American industries—a gamble that echoes his deal-making philosophy of pushing limits to secure the best possible outcome.
