The Power of Trade: Why the U.S. Uses Tariffs as a Negotiation Tool

February 10, 2025 — As trade wars and tariffs dominate the early days of President Trump’s second term, a closer look at the broader landscape reveals why the United States remains positioned to pursue this strategy. The United States commands a unique position in global trade. Despite running a large trade deficit, it holds immense influence as the world’s largest importer. By exploring trade openness and balances among major economies, we can better understand the growing reliance on tariffs as a negotiation tool and why they are likely to remain central to global trade policy.