Trump’s Tariffs Are Already Working
From Brussels to Buenos Aires, the world races to cut tariffs and strike free trade deals with Washington.
Make sure you read our vital new Deep Dive: The Illusion of Chinese Strength. This is one of the most important things we’ve ever published. You won’t want to miss it.
by Rod D. Martin
April 7, 2025
Last week, Donald Trump didn’t just impose tariffs. He imposed reality.
And the world is reacting exactly as he said it would: by lining up to offer trade concessions, slash their own tariffs, and — increasingly — negotiate free trade on reasonable terms. As of Sunday morning, at least 28 countries have contacted the White House to begin trade negotiations.
Not trade wars. Trade negotiations.
For decades, Washington allowed the U.S. to be the world’s economic doormat. And that made sense…during the Cold War. Allies and adversaries alike imposed massive tariff and non-tariff barriers, ran up obscene trade surpluses, and called it “free trade”, all while lecturing us on “global cooperation.”
Trump changed the conversation. Now he’s changing behavior.
I have argued for free trade for decades. I still am. But it’s that behavior change that’s been needed all along. If you actually care about free trade, you have to make others care about free trade with you.
America has the power to do that. It’s the world’s biggest consumer market in a world of exporters. They need us more than we need them.
Let’s be clear: Trump’s new reciprocal tariffs — with rates rising as high as 50% for chronic abusers — isn’t punishment. It’s leverage. Trump isn’t even charging our trading “partners” the full amount they’re charging us: he’s leaving room to add more should they be intransigent, while making them feel a portion of the pain they’ve made us used to.
And after just six days, it’s already producing results.
How’s That Working Out For You?
In “The Free Trader’s Case For Trump’s Reciprocal Tariffs” — a Deep Dive you absolutely need to read — I argued at some length that the ultimate purpose of Trump’s approach to tariffs is to force our “partners” into actual free trade.
And that’s exactly what’s happening.
Argentina. President Javier Milei didn’t wait for the hammer to fall. A self-professed libertarian who shares Trump’s nationalism, he made clear early on that he wants a U.S.–Argentina free trade deal. Milei announced last week that negotiations for a “zero-zero” tariff deal are already underway.
Israel. Prime Minister Benjamin Netanyahu announced Tuesday that Israel is cancelling all tariffs on U.S. products, and will enter negotiations for a comprehensive free trade agreement.