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American Investor: Trump succeeds in imposing his terms on Canada and Mexico using tariffs

American Investor: Trump succeeds in imposing his terms on Canada and Mexico using tariffs

By م.زهير الشاعر

Published: February 9, 2025

The American investor Cody Sanchez highlighted the strategy used by President Donald Trump to force Canada and Mexico to make concessions in trade negotiations and border security, noting that his success was the result of mastering the art of negotiation.

In a post on her account on the X platform (formerly Twitter), Sanchez explained that Canada and Mexico were lured into negotiations over the tariffs imposed by Trump, exploiting the trade deficit as leverage to gain the upper hand, as trade with the United States constitutes 67% of Canada’s GDP, 73% of Mexico's GDP, and 37% for China, while it does not exceed 24% of the U.S. GDP.

According to Sanchez, the escalation began on February 1, 2025, when Trump signed a decision to impose a 25% tariff on Canadian and Mexican imports and 10% on Chinese imports, to take effect on February 4. In response, Canada announced on February 2 retaliatory tariffs worth $155 billion, which led Canada and Mexico the following day to agree to agreements to enhance border security. On February 3, Trump announced the suspension of tariffs on Canada and Mexico for 30 days, while the tariffs imposed on China continued.

However, the escalation did not stop there. On February 4, China imposed retaliatory tariffs on U.S. imports, while Mexico announced on February 6 its intention to renegotiate trilateral trade agreements due to U.S. tariff threats.

Sanchez outlined the tactics used by Trump to achieve this feat according to the art of negotiation, highlighting four key steps:

1. Creating a negotiating advantage without actually using it, as he did by threatening to impose tariffs, which confused markets and leaders of targeted countries.

2. Prompting opponents to react quickly by setting clear deadlines and sticking to the decision to force the other parties to come to the negotiating table.

3. Providing an exit for negotiations, which was achieved by suspending tariffs for 30 days after gaining concessions related to border security.

4. Achieving the ultimate victory by signing new agreements that grant the United States additional privileges.

Sanchez concluded her analysis by stating that this strategy reflects the principles laid out by the Chinese military thinker Sun Tzu, who always recommended providing the opponent with a “golden bridge to retreat,” noting that Trump cleverly applied this to ensure political and economic gains.

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