Breaking down Trump's tariff strategy! How does "The Art of Trading" reveal his economic logic?

Question

As the trade war between the United States and China continues to escalate and global markets remain volatile, President Trump has once again drawn attention with a series of high tariff policies. However, to understand the logic behind these decisions, one might not need a degree in economics, but rather an old book from 1987 — "The Art of the Deal." This book, signed by Trump but actually written by journalist Tony Schwartz, not only details Trump's background and real estate dealings but also contains much of his philosophy on business and negotiation. The following seven insights extracted from the book by Business Insider may help us better comprehend Trump's tariff strategy.

"I will set very high goals and then continuously approach them."

In The Art of the Deal, Trump mentions his motto for doing business: "I set very high goals and keep pushing until I get there."

This strategy is in line with his recent tariff actions against China. Although he soon announced a 90-day suspension of tariffs on multiple countries, which led to a surge in U.S. stocks, initially he took a hardline approach against China, raising tariffs to 145%, much higher than expected. The tariffs imposed on the EU at 20% and as high as 46% on Vietnam also demonstrate his approach of "first striking hard, then seeing the results," as mentioned in his book.

"I don't trust digital experts, nor do I love market research"

Trump has always been skeptical of traditional economic advice. He said in his book: "I don't hire a bunch of number crunchers, nor do I believe in fancy market research reports. I observe for myself and draw my own conclusions."

This has been reaffirmed in the recent policy announcement. Even though multiple billionaires, including close advisors like Musk, have expressed doubts about his tariff policy, he remains steadfast in his views. Despite the market experiencing severe fluctuations at one point, he ultimately chose to postpone the additional tariffs for 90 days, claiming it was the "best judgment based on intuition." When faced with media questions, he even stated, "We are sincerely drafting these policies."

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"A good ending means everything is good"

The book "The Art of Trading" mentions his long-term lawsuit with the residents of 100 South Central Park in New York City. He originally planned to demolish the building, but in the end, the residents preserved their homes. He believes that the delay in the lawsuit actually allowed him to earn more because of the rising market prices.

This "everything will be fine" mentality also applies to his tariff negotiation strategy. Despite market fluctuations and constant criticism from public opinion, he still called on everyone on Truth Social: "Stay calm! Everything will be resolved smoothly." He even said: "The bond market is super beautiful right now!" — indicating that he believes the outcome will prove everything.

"We win by exhausting our opponent's patience."

Talking about negotiations with competitors, Trump candidly stated in his book: "In the end, we won because we persevered, and the opponents got tired and withdrew."

He now also claims to have achieved a similar victory in the tariff war. He stated that more than 75 countries have actively contacted him, hoping to start negotiations. This method of "outlasting the opponent" makes him confidently believe that he still holds the initiative.

He has a stronger sense of "tangible things"

"The Art of the Deal" extensively describes the world of architecture, hotels, and reinforced concrete. Trump has a deep affection for physical assets, which aligns with his recent emphasis on "Made in America" and revitalizing factory jobs.

When announcing the tariff policy, he said, "Jobs and factories will once again return to our country in a vigorous manner." Even when he later shifted to mentioning changes in the bond market, his insistence on "Main Street" rather than "Wall Street" had already been deeply ingrained in his economic thinking.

( US Treasury Secretary unveils Trump's new tariff policy: This is the first step to "restart American manufacturing" )

However, Trump's interest in Bitcoin and other cryptocurrencies also shows his interest beyond physical assets.

Criticize the media, but also know how to utilize the media.

In the book, Trump often criticizes the media for being unfair to him, and he has even publicly written letters to counter architectural critics. However, he also understands that media exposure is greatly beneficial for brand and reputation.

"From a business perspective, the reported benefits far outweigh the drawbacks," he wrote. This also explains why his tariff strategy, despite attracting a lot of criticism, still dominates the news headlines. His press secretary even mocked reporters: "You haven't even read 'The Art of the Deal', have you?"

An old book, seeing through the new tariff policy

Trump's tariff strategy seems crazy and full of contradictions, but if viewed through the lens of the book "The Art of the Deal," there is actually a consistent logic and style behind it. From "setting high goals and sticking to them," "making decisions based on intuition," to "making good use of the media" and "focusing on the real economy," his every move seems to have already been written in the book.

Perhaps we do not need an economics degree to understand the political maneuvers and economic strategies of this former president from this book published nearly 40 years ago.

This article breaks down Trump's tariff strategy! How does "The Art of Trading" reveal his economic logic? First appeared in Chain News ABMedia.