Trump's Tariff Tactic: Art of the Trade Deal

President Donald Trump is leveraging high-stakes trade negotiations by utilizing a strategic tactic involving tariff rate letters, according to U.S. Treasury Secretary Scott Bessent. In an interview with Bloomberg Television, Bessent highlighted Trump's approach of sending letters with elevated tariff rates as a means to push for negotiations.

The president's method is straightforward: either accept the high rates as outlined in his letters or be willing to come to the table to discuss more favorable terms. This tactic provides Trump with significant bargaining power in his trade dealings, forcing other nations to reconsider their stance.

By utilizing this pressure strategy, Trump aims to bring countries into negotiations that could lead to more advantageous trade deals for the United States, ensuring that discussions are carried out on his terms.

(With inputs from agencies.)