America Must Leverage Its Tariff Advantage Carefully  

We are in the midst of one of the most significant moments in modern American history. Donald Trump’s administration is currently deciding policy that will become the norm for foreign affairs for years to come. One of the most influential of all these policies is the administration’s expansion of tariffs. This expansion is based on a protectionist philosophical heritage, reaching all the way back to Alexander Hamilton. While these blanket tariffs hold notable benefits for American society, the Trump administration must be careful to implement them more strategically to maximize their effectiveness. 

The benefit is clear to see in America’s burgeoning trade war with China. A little more than a decade ago, the two countries were in a state of mutual partnership that powered the engine of the world economy. However, Beijing and Washington became more and more adversarial over time. As China fashioned itself to rival the United States as a superpower, the United States became more and more dependent on Chinese firms for goods and capital. 

For America to maintain its hegemony over global politics, its stance on China needed a decisive change. Enter Donald Trump. Starting in 2016, his policies drastically reordered America’s relationship with China. Instead of working together, the two states became more adversarial, and their economies began to delink. This is a good thing.

This should be heavily contrasted with the President’s new focus on Canada. According to the Trump administration’s website, the reason behind these new, 25% tariffs on most Canadian imports is mainly in response to fentanyl trafficking through the U.S. northern border. They are working in tandem with 25% ‘fentanyl tariffs’ on Mexico. However, federal data shows that from the 21,889 pounds of fentanyl seized during 2024, just 0.2% was from Canada. Mexico, on the other hand, was the origin for 96.6% of the synthetic opioids.  

In the face of this data, Trump has stood firm on his Canadian tariffs and rhetoric. This is a poor calculation for many reasons. First and foremost, Canada is undergoing a political shift of its own that surprise tariffs have disrupted. Justin Trudeau resigned extremely recently in response to an extremely low Canadian approval rating of his government. Canada, it seemed, was shifting conservative, an ideological change that would be advantageous for a Trump administration’s relationship with Canada, particularly in energy cooperation. However, his new tariffs are galvanizing Canadian support behind their new liberal prime minister, Mark Carney, pushing an artificial obstacle in the way of a conservative Canada. Additionally, our economic relationship with Canada prior to these tariffs was intensely beneficial to both parties, outweighing the 0.2% of fentanyl moving across the U.S. northern border. 

The goal of tariffs should be negotiation. America wields the greatest economic power in the world and can use it as leverage to form beneficial agreements with foreign nations. However, with this power comes the responsibility of using it strategically. Instead of punishing our allies, we must focus all our attention on our adversaries while leaning on and rallying our allies during these trade wars. With this calculus, the United States can usher in the next American century. Without it, we risk leaving our country vulnerable to an explosive decline in an increasingly interconnected world. 

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About Luca Desanto

Luca DeSanto is a writer for the economics section. He is an undergraduate at the University of Michigan, an analyst at Ascent Consulting Group, and the Business Officer of Michigan Men's Rugby.