US President Donald Trump's reliance on tariffs as a foreign policy tool has raised questions about their effectiveness compared to traditional sanctions. While tariffs are taxes on imports, sanctions are penalties designed to punish or influence foreign governments. Since his return to office in January, Trump's unpredictable use of tariffs, including a 145% tariff on China in April 2025 (later reduced), has created uncertainty in global markets. His approach is driven by a desire to address what he views as unfair trade practices, influenced by past disputes such as the competition faced by the American car industry from Japan in the 1980s, according to Stanford University's Jennifer Burns. Trump's use of tariffs aims to address the large US trade deficit, particularly with China ($295 billion in 2024), and aligns with his "America First" agenda.

The White House defends tariffs as a flexible tool, easily deployed and withdrawn, unlike sanctions which completely shut foreign markets to US firms. While criticized for potentially fueling inflation, tariffs generate revenue for the US Treasury, unlike sanctions; tariff revenues increased by 110% to $97.3 billion in the first half of 2025, projected to reach $360 billion for the full year. Tariffs offer Trump unilateral control via executive orders, unlike sanctions which often require Congressional approval and international cooperation. However, this approach has drawn concern about its destabilizing effects on global trade and peace.

Trump’s use of tariffs extends beyond trade, pressuring countries like Canada, Mexico, and China on issues such as immigration and drug trafficking, leading to retaliatory measures and heightened global trade tensions. Examples include threatened tariffs on Colombia (following rejection of US deportation flights), the European Union (in response to EU regulations), and Brazil (in response to the prosecution of Jair Bolsonaro). While past administrations preferred sanctions, Trump's recent consideration of sanctions against Russia, potentially including "secondary tariffs" on countries importing Russian energy, shows a shift. This approach resembles the use of “secondary tariffs” against buyers of Venezuelan oil, which took effect in March 2025, pressuring energy importers to align with US foreign policy.

Impact Statement: Trump's unconventional use of tariffs as a foreign policy tool raises concerns about global trade stability and the potential for escalating economic conflicts.