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Trump’s Demand to Trading Partners: Pledge Money or Get Higher Tariffs

President Trump has added an extra wrinkle into trade deals by suggesting countries invest in the United States or face higher tariffs. (Credit...Tierney L. Cross/The New York Times)
President Trump’s tariff threats have turned into a play for cold, hard cash as he tries to leverage U.S. economic power to cajole other nations to make multibillion-dollar investments in order to maintain access to America’s market.

The president’s second-term trade agenda has clear echoes of his “Art of the Deal” approach, essentially demanding that trading partners show him the money in the form of investment pledges or else face astronomically high tariffs.

The financial promises give Mr. Trump the opportunity to flex his negotiating prowess in relatable terms and show off the splashy sums he is pulling into America, adding to the reality show intrigue of his trade agenda. As the Trump administration races to reach trade deals with dozens of countries ahead of a Thursday deadline, he has embraced a strategy that goes beyond opening international markets and reducing the U.S. trade deficit.

The tactic was on display last week as Mr. Trump and his team rolled out a blitz of new trade agreements before a self-imposed Aug. 1 deadline.

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