Trump's trade policy: What is behind it?

Article by Jan Mooren and Rebekka Haller

In his second term of office, Donald Trump continues to keep the global capital markets on tenterhooks with his protectionist trade policy. However, it is not always entirely clear what he is actually calculating. On the one hand, Trump uses the threat of tariffs to strengthen his negotiating position; on the other hand, he has frequently stated that he wants to completely abolish taxes for Americans in the long term and finance everything through tariffs.

How does this fit together and why does Trump want to reform the global trade system? We have therefore taken a closer look at the economic “playbook” behind Trump's policies.