$BTC The Core Objectives of Trump's Tariff War and Analysis of Global Economic Impact
The primary goal of the Trump administration's tariff war is to reduce the enormous trade deficit that the United States has with major trading partners.
Trump believes that for many years the United States has been at a disadvantage in trade with countries like China, thus emphasizing the need for 'fair reciprocity'.
His core strategy is to impose tariffs on deficit countries, forcing them to renegotiate agreements that are more favorable to the United States.
Behind the tariff policy are also significant domestic and electoral considerations in the United States.
Trump promised during his 2016 campaign to respond strongly to trade practices that 'harm America', and the tariff war is a means for him to show the Rust Belt industrial workers that he is fulfilling this promise.
For the blue-collar voters who support Trump, the tariff war illustrates the President's determination to defend American jobs and manufacturing.
Additionally, Trump has used tariffs as bargaining chips in diplomatic negotiations and as fiscal tools. For instance, he has stated that he would offer tax incentives for investments that return to American companies and for producers in the U.S., while protecting these companies with high tariffs.
His Secretary of the Treasury has also pointed out that tariffs can not only correct unfair trade but also increase revenue for the federal government, serving a similar role to sanctions in negotiations with foreign countries.
In fact, Trump's tax cuts had led to a significant reduction in government revenue, and he hoped that tariff income could partially offset the deficit.
Therefore, domestically he uses tariff revenue to subsidize impacted ethnic groups and stabilize his political base; externally, he uses tariffs as a deterrent and negotiating leverage, pressuring other countries on issues like immigration and drugs (e.g., he once threatened tariff sanctions against Colombia to force cooperation).