The Use of Tariffs and Sanctions in U.S. Foreign Policy
Tariffs and sanctions are two distinct tools used by governments to influence economic and political outcomes. While tariffs are taxes on imported goods designed to protect domestic industries, sanctions are penalties imposed on other countries to punish or influence their actions. President Donald Trump has increasingly relied on tariffs rather than traditional sanctions, raising questions about the effectiveness and consequences of this approach.
Tariffs as a Tool for Economic Leverage
Trump’s use of tariffs has been described as both a bold strategy and a risky move. His approach involves imposing high tariffs on imports from various countries, often leading to what is known as “tariff tango” — a pattern of sudden increases followed by reversals. This method allows him to adjust his policy based on shifting political or economic goals. However, it creates uncertainty among businesses and trading partners, as they struggle to predict when and how tariffs might be applied next.
The tariff on China, one of the United States’ most significant economic and military rivals, reached historic highs in April, with rates soaring to 145% before being significantly reduced after trade talks. This fluctuation highlights how Trump uses tariffs as a flexible tool to address perceived unfair trade practices.
Alignment with the ‘America First’ Agenda
Tariffs align with Trump’s “America First” agenda, which aims to protect domestic industries and boost job creation. According to the U.S. Census Bureau, the trade deficit with China alone was $295 billion in 2024. By imposing tariffs, Trump seeks to reduce this deficit and create a more favorable economic environment for American businesses.
The White House has defended this approach, arguing that tariffs can be quickly deployed without requiring congressional approval. Unlike sanctions, which often involve complex legal frameworks and international cooperation, tariffs offer a direct and unilateral means of applying pressure.
Economic Impacts and Concerns
While tariffs have been criticized for potentially stoking inflation, they also generate revenue for the U.S. Treasury. In the first half of the year, U.S. tariff revenues increased by 110% to $97.3 billion compared to the same period last year. Experts predict that tariffs could raise $360 billion next year, according to the Urban-Brookings Tax Policy Center.
However, the long-term effects of tariff uncertainty remain a concern. Jennifer Burns, an associate professor of history at Stanford University, warns that years of tariff uncertainty may lead to a serious economic slowdown as businesses and investors wait for a more predictable landscape.
Blurring the Line Between Tariffs and Sanctions
Trump’s policies have blurred the line between tariffs and sanctions. While sanctions are typically used to punish countries for violating international norms, Trump has used tariffs to achieve similar objectives, such as pressuring countries like Canada, Mexico, and China on non-trade issues like immigration and drug trafficking. These actions have prompted retaliatory measures, intensifying global trade tensions.
For example, Colombia faced threats of tariffs after rejecting U.S. deportation flights, while potential levies on the European Union were partly announced in response to EU privacy and climate regulations. Similarly, Trump threatened a 50% tariff on imports from Brazil, framed as retaliation for the prosecution of former Brazilian President Jair Bolsonaro.
The Role of Secondary Sanctions
In addition to tariffs, Trump has shown openness to using sanctions, particularly against countries like Russia. Previous U.S. administrations have preferred sanctions over tariffs as a punitive tool to bring rogue countries into line. Since Russia’s invasion of Ukraine in February 2022, the U.S. has imposed over 2,500 sanctions on Russia, targeting individuals, entities, shipping, and aircraft.
The Sanctioning Russia Act of 2025 proposes secondary sanctions on third countries and foreign companies, which Trump has referred to as “secondary tariffs” of up to 500% on countries importing Russian energy. These measures aim to curb Russia’s ability to export oil and gas and pressure energy importers to align with U.S. foreign policy.
Conclusion
The use of tariffs and sanctions reflects a broader debate about the best way to achieve economic and political goals. While tariffs offer flexibility and quick deployment, they come with risks such as inflation and market instability. Sanctions, though more complex, provide a means of addressing specific violations of international norms. As the U.S. continues to navigate these tools, the balance between economic leverage and global stability remains a critical challenge.