President-elect Donald Trump is signaling a broader approach to tariffs as part of his foreign policy strategy. Rather than focusing solely on economic considerations, Trump is proposing the use of targeted tariffs to address challenges such as border security and international governance issues.
A key example of this approach is Trump’s suggestion to impose tariffs on Canada and Mexico to encourage cooperation on border security. Following these proposals, Canada pledged $1.3 billion toward securing its borders, and Mexican officials reached out to address U.S. concerns. These rapid responses highlight the potential for tariffs to influence diplomatic outcomes beyond trade.
Howard Lutnick, Trump’s longtime friend and nominee for Secretary of Commerce, has emphasized that tariffs are primarily a negotiating tool to pressure trade partners on broader issues—many of which warrant action regardless. For Canada and Mexico, key areas of focus include addressing illegal drug flows, immigration concerns, and, in Canada’s case, insufficient defense spending and challenges with military procurement. While some issues may be overstated from the U.S. perspective, it remains beneficial to engage constructively, addressing legitimate concerns where they exist. Additionally, improving defense spending and procurement aligns with Canada’s own interests, irrespective of external pressures.
Trump’s plans include employing Section 301, 201, and 232 tariffs, which allow for executive action without congressional approval. This enables swift measures to address specific concerns, ranging from immigration to adherence to shared values with U.S. allies. For instance, discussions are ongoing about using tariffs to address policies in countries like Ireland and the UK that conflict with American principles, such as free speech protections.
Section 301 tariffs are used to address unfair trade practices by foreign countries, such as intellectual property theft or discriminatory policies, allowing the U.S. to impose retaliatory measures. Section 201 tariffs are safeguard measures designed to protect domestic industries from a sudden surge of imports that cause serious injury, regardless of whether the trade practices are unfair. Section 232 tariffs focus on national security, enabling the U.S. to restrict imports of goods that threaten the country’s security, such as steel or aluminum critical to defense. These tools allow the president to act unilaterally in specific situations to address economic or security concerns.
The president-elect’s use of tariffs reflects a shift in U.S. trade policy, emphasizing their role as tools for advancing diplomatic objectives. This approach aligns with Trump’s broader “America First” agenda, prioritizing national interests while reaffirming U.S. leadership on the global stage.
