US President Donald Trump's reliance on tariffs as a tool of foreign policy has raised concerns about economic stability and global trade relations. Trump's use of tariffs, which are taxes on imports, differs from traditional sanctions, which are penalties restricting trade or finance. Since his return to office in January, Trump's unpredictable tariff threats have created uncertainty for US businesses and international trading partners. This "tariff tango" of imposing and then removing tariffs has been used to address what Trump views as unfair trade practices, particularly with China, where tariffs reached 145% in April 2025 before being reduced.

Trump's approach, defended by the White House, prioritizes rapid, visible economic leverage. While tariffs generate revenue for the US Treasury (reaching $97.3 billion (€83.2 billion) in the first half of 2025), they have been criticized for potentially fueling inflation. Unlike sanctions, which often require international cooperation, tariffs allow Trump unilateral control through executive orders. This strategy reflects Trump's "America First" agenda, aiming to protect domestic industries and boost job creation. However, experts warn of potential negative consequences, including a "serious economic slowdown" due to ongoing uncertainty.

Trump's use of tariffs extends beyond trade disputes, influencing other areas such as immigration and drug trafficking. He has employed them to pressure countries like Canada, Mexico, and China, and even threatened tariffs against Brazil in response to the legal proceedings against former President Jair Bolsonaro. His recent openness to sanctions, particularly regarding Russia, suggests a shift, yet the potential for retaliatory measures and heightened global trade tensions remains a significant concern.

Impact Statement: Trump's inconsistent tariff policy creates significant uncertainty in global markets, potentially impacting economic growth and international relations.