Analyzing Trump’s Tariff Strategy: How Does “The Art of the Deal” Uncover His Economic Logic?
In the context of the ongoing U.S.-China trade war and global market volatility, U.S. President Trump has once again drawn attention with a series of high tariff policies. However, to understand the logic behind these decisions, one may not need an economics degree, but rather an old book from 1987 — “The Art of the Deal”. This book, signed by Trump but actually ghostwritten by journalist Tony Schwartz, not only details Trump’s background and real estate dealings but also contains much of his business and negotiation philosophy. Business Insider has unearthed six insights from the book that may help us better understand Trump’s tariff strategy.
1. “I set very high goals and then keep pushing toward them.”
Trump mentions in “The Art of the Deal” that his business motto is: “I set very high goals and then keep pushing until I reach them.” This strategy mirrors his recent tariff actions against China. Even though he announced a 90-day suspension of tariffs on multiple countries shortly afterward, which caused a surge in U.S. stocks, he initially struck China with tariffs as high as 145%, far exceeding expectations. His proposed rates of 20% on the EU and as high as 46% on Vietnam also reflect his approach of “leading with a strong punch and then seeing the results.”
2. “I don’t trust number experts, and I don’t like market research.”
Trump has always been skeptical of traditional economic advice. He states in the book: “I don’t hire a bunch of number crunchers, and I don’t believe in fancy market research reports. I observe for myself and draw my own conclusions.” This point was reaffirmed in his recent policy announcements. Even when several billionaires and close advisors like Musk expressed concerns about his tariff policies, he remained resolute. Despite market volatility, he ultimately chose to postpone additional tariffs for 90 days, claiming it was “the best judgment based on instinct.” When questioned by the media, he even remarked, “We are putting our hearts into writing these policies.”
3. “If the outcome is good, everything is good.”
In “The Art of the Deal,” he discusses a prolonged lawsuit with residents of 100 Central Park South in New York. He initially planned to demolish the building, but ultimately the residents retained their homes. He believed that the delay in litigation actually allowed him to profit more due to rising market prices. This “everything will be fine” mentality also applies to his tariff negotiation strategy. Despite market turmoil and ongoing criticism, he called on Truth Social for everyone to “calm down! Everything will be resolved smoothly.” He even stated, “The bond market is super good right now!” — indicating his belief that the results will prove everything.
4. “We win by exhausting our opponent’s patience.”
Regarding negotiations with competitors, Trump candidly states in the book: “In the end, we win because we stick it out until the opponent gets tired and exits.” He now claims similar victories in the tariff war. He has stated that over 75 countries have proactively reached out to negotiate. This “outlast your opponent” approach gives him confidence that he still holds the upper hand.
5. He feels more connected to “tangible things.”
“The Art of the Deal” heavily describes the world of buildings, hotels, and reinforced concrete. Trump has a particular fondness for tangible assets, which aligns with his recent emphasis on “Made in America” and revitalizing factory jobs. When announcing tariff policies, he said, “Jobs and factories will come roaring back to our country.” Even when he later mentioned changes in the bond market, his focus on “Main Street” rather than “Wall Street” is deeply rooted in his economic thinking. However, his interest in cryptocurrencies like Bitcoin also shows his curiosity beyond tangible assets.
6. Criticizing the media, but knowing how to leverage it.
In the book, Trump frequently criticizes the media for being unfair to him, even publicly writing letters to rebut building critics. Yet he also understands the tremendous benefits media exposure can bring to a brand and reputation. “From a business perspective, the benefits of being reported on far outweigh the drawbacks,” he writes. This explains why his tariff strategy, despite attracting significant criticism, continues to dominate news headlines. His press secretary even mocked reporters: “You guys clearly haven’t read ‘The Art of the Deal’, have you?”
An old book reveals the new tariff policy
Trump’s tariff strategy may seem chaotic and full of contradictions, but through the lens of “The Art of the Deal,” there appears to be a consistent logic and style behind it. From “setting high goals and sticking to them,” “making decisions based on instinct,” to “effectively using the media,” and “focusing on the real economy,” his every move seems to be foreshadowed in the book. Perhaps we do not need an economics degree to understand Trump’s political maneuvering and economic strategies through this nearly 40-year-old book.
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