Not everyone in the U.S. is wealthy, but collectively we represent the biggest import market for other countries’ raw materials, manufactured goods, and services on the planet. We’re their biggest customer.
President Trump figured out something that we should have known for decades, but obviously failed to recognize. Namely, the enormous leverage the huge, lucrative U.S. market’s demand for goods with overseas roots gives us.
Trump decided we should demand the respect the biggest customer should always expect to get, by reminding countries of how much they depend on our custom. Plus how he can price their offerings out of our giant market with his targeted tariffs.
He recognized that - if we decided to buy less from them - they’d rather please their biggest customer than continue with whatever policy we found offensive. That is precisely what his tariff threats represent, pricing their goods out of our market.
So far Panama has decided to not renew it’s deal with China, Mexico has decided to help us with a drug crackdown, and several have decided to allow us to repatriate their citizens now illegally in the U.S. Who knows what other nations will offer up in return for unfettered access to our market?
So far, only Canada seems not to recognize the “biggest customer” reality. It may take a political shift there before it does.
