In his second term, President Donald Trump is once again applying the hardball negotiating tactics that made his 1987 book, The Art of the Deal, a business bestseller—and this time, on the world stage. His new wave of tariffs, announced in April 2025, signal a bold effort to correct decades of trade imbalances and reposition the U.S. as the undisputed leader in global commerce. With a baseline 10% tariff on all imports and even steeper rates targeting specific countries, Trump is executing a strategy aimed at achieving what he calls “fair and reciprocal trade.”
This article explores how Trump’s tariff policy reflects the same dealmaking philosophy that underpinned his first term—and how it’s reshaping the global economic order in real time.
The Art of the Deal: From Boardroom to Global Trade
In The Art of the Deal, Trump outlined a playbook based on strategic leverage, bold demands, and controlled chaos to extract favorable outcomes. One of his core maxims: “Leverage—don’t make deals without it.” In the context of trade, this has translated into using America’s market access as a bargaining chip to force concessions from trading partners who have long benefited from U.S. openness while protecting their own industries.
His 2025 trade strategy echoes that approach. On April 2, Trump declared a new “Liberation Day,” introducing a 10% universal import tariff, with enhanced duties—54% on China, 20% on the EU, and 24% on Japan—targeting persistent trade deficits. Using powers under the International Emergency Economic Powers Act (IEEPA), he framed these moves as a response to a “national economic emergency” rooted in systemic unfairness.
Tariffs as Tactical Leverage: Forcing a Global Reset
Trump defines trade fairness not by deficit math alone, but by reciprocity. The U.S. has maintained one of the world’s most open markets, with an average tariff of 2.5% in 2024, even as partners like the EU impose much higher rates—10% on cars, for example. Trump’s answer? Impose tariffs until others play by the same rules.
The April 2 tariff rollout made that intention clear. The White House cited foreign VAT systems, currency manipulation, and regulatory barriers as justifications. China received the harshest blow, with tariffs raised to 54%—a continuation of Trump’s aggressive posture from his first term. Other nations, such as Mexico and Canada, initially faced 25% tariffs before partial rollbacks were negotiated after securing concessions on border control and fentanyl. These “non-trade” wins demonstrate a broader Trumpian tactic: use economic pressure to solve strategic problems.
Chaos as Strategy: Mixed Messages, Maximum Control
A key feature of Trump’s negotiating style is controlled unpredictability. That was on full display following his tariff announcement. While Commerce Secretary Howard Lutnick claimed the tariffs were permanent, Trump himself suggested otherwise: “The tariffs give us great power to negotiate. Always have.”
This ambiguity keeps adversaries on edge. Trump’s executive order includes provisions to adjust tariffs based on foreign response—rewarding those who come to the table and punishing those who don’t. By April 6, over 50 countries had reached out to begin talks. Vietnam proposed a zero-tariff pact. Italy’s Prime Minister Giorgia Meloni, while publicly critical, expressed a willingness to negotiate. The flexibility embedded in this approach is classic Trump: start big, create leverage, then strike a deal on his terms.
Economic Implications: Risks and Realities
Critics argue that tariffs raise consumer costs, hurt global supply chains, and risk retaliation. The Tax Foundation estimates Trump’s 2025 tariffs could raise $2.9 trillion in revenue over a decade—but also shrink GDP by 0.7%. The EU and Canada have threatened countermeasures, and fears of inflation or recession persist.
Consumers may feel the pinch. An iPhone could cost $2,300 if Apple passes on the full tariff cost. Auto plants in Mexico and Canada are scaling back. Critics say the trade deficit reflects internal consumption and savings patterns, not necessarily foreign abuse.
But Trump dismisses those concerns, calling tariffs “medicine” to reset a broken system. And he may have a point: during his first term, tariff threats helped bring China to the table for a Phase 1 trade deal and led to the replacement of NAFTA with the USMCA—outcomes many thought impossible.
Supporters’ View: Leverage in Action
To Trump’s supporters, the tariffs are not a reckless gamble but a long-overdue recalibration. Former House Speaker Newt Gingrich praised the strategy, noting that Trump understands America’s unmatched leverage. Economist Stephen Moore said countries dependent on U.S. demand will ultimately fold rather than risk economic isolation.
Public sentiment is also swinging. On social media, users hailed the new tariffs as “classic Trump”: forceful, unapologetic, and effective. Former Brexit leader Nigel Farage called them “a masterstroke—using America’s economic clout to level the field and spark renewal.”
A Global Deal in the Making
President Trump’s 2025 tariff strategy is not a departure from his past—it’s a continuation and escalation of a philosophy honed over decades. By using tariffs as both sword and shield, he’s forcing the world to reconsider its trade practices and resetting the terms of engagement. Critics may call it risky, but to Trump and his base, it’s just smart negotiating.
As the world scrambles to respond, one thing is clear: Trump is back at the table, playing the game his way. And just like in business, he’s betting the boldest hand wins.
