Trump Broke the Economic Consensus on Trade — and Won | The American Spectator

Donald Trump’s economic policy has fundamentally altered how the United States engages in global commerce. Through tariffs, bilateral negotiations, and direct leverage, Trump has shifted the balance of international trade in favor of American workers and industries. Despite Democratic predictions of inflation, widespread trade wars, and job losses, the federal government collected $150 billion in tariff revenue in the first half of 2025 alone — revenue that directly bolsters the national budget rather than foreign economies.

Nowhere is the impact clearer than in the U.S.-China trade relationship. In May 2025, the United States recorded the lowest trade deficit with China in the last decade. Since Trump imposed tariffs of up to 25 percent on key Chinese exports — including steel, aluminum, electronics, and consumer goods — American companies have reduced their dependence on Chinese supply chains.

Many U.S. manufacturers have moved operations back home. In fact, the trade deficit with China was cut by about 40 percent compared to May 2024, under the Biden administration.

Trump’s bilateral trade agreements with other economic powers have yielded similarly unprecedented results. The European Union agreed to purchase $750 billion in American energy exports — more than double the total volume sold to the EU in 2024. This deal includes liquefied natural gas, crude oil, and refined petroleum products. In addition, the European Union committed to investing $600 billion directly into the U.S. economy by 2028, targeting sectors such as advanced manufacturing, semiconductors, and renewable energy technologies.

As part of the same agreement, the EU accepted a 15 percent baseline tariff on automobiles, pharmaceuticals, and semiconductors. Tariffs as high as 50 percent remain on industrial metals, including aluminum, steel, and copper — shielding American producers from foreign dumping, a predatory tactic in which overseas competitors sell below market value to drive domestic companies out of business. Trump’s policies have decisively ended that strategy.

In Asia, Japan agreed to a landmark $550 billion investment package. American companies will retain 90 percent of profits generated through Japanese capital projects, including ventures in the electric vehicle, aerospace, and microchip sectors — all high-margin industries critical to future economic growth. This agreement also included a 15 percent tariff on Japanese imports to ensure trade parity.

Indonesia, one of the fastest-growing economies in Southeast Asia, signed its own trade deal. Indorama, a Purwakarta-based company, will invest $2 billion in a blue ammonia facility in Louisiana — a project expected to create thousands of American jobs in construction and operations. Indonesia also committed to purchasing $15 billion in U.S. energy exports, including gasoline, propane, and crude oil.

Additional bilateral negotiations with the Philippines and Vietnam are underway. While final dollar amounts have not been disclosed, early frameworks suggest multibillion-dollar investments in American clean energy, electronics assembly, and agricultural technology exports.

In the Middle East, Trump finalized trade agreements on a scale never before seen. Qatar signed a $1.2 trillion long-term economic exchange plan, including $243.5 billion in confirmed transactions. These include the purchase of Boeing aircraft, GE Aerospace engines, and advanced U.S. defense systems. Saudi Arabia committed $600 billion in direct investment into American energy, mineral refining, and autonomous vehicle development. The United Arab Emirates added another $200 billion in commercial contracts across artificial intelligence, precision manufacturing, and logistics.

In Europe, the United Kingdom signed a trade agreement that opens $5 billion in new export opportunities for American industries. The U.K. removed its 19 percent ethanol tariff, clearing the way for 1.4 billion liters of U.S. ethanol annually — an estimated $700 million boost for producers in Iowa, Illinois, and South Dakota. Cattle producers in Texas, Nebraska, and Kansas will benefit from $250 million in new beef exports, previously blocked by EU-style regulatory barriers.

The aerospace sector also secured major wins. British aviation firm AviaCorp agreed to purchase $10 billion in Boeing aircraft, a decision that will directly benefit aerospace workers and suppliers in Washington, South Carolina, and Missouri. Additionally, tariffs were eliminated on British-made Rolls-Royce Trent engines, which are critical components in Boeing aircraft assembled in the United States. The decision protects thousands of high-paying jobs within American aerospace supply chains.

Chemical manufacturers in Texas and Louisiana gained access to the U.K. market as well. Regulatory barriers, once disguised as “safety restrictions,” had previously blocked billions in U.S. exports of industrial chemicals, pharmaceuticals, and advanced materials. Under Trump’s deal, those restrictions no longer apply.

Foreign direct investment is now on the rise after years of decline. After peaking at $403 billion in 2021 under Biden and falling to $270 billion in 2023, Trump’s 2025 trade strategy is reversing the trend. Agreements with Qatar, Saudi Arabia, Japan, and the European Union alone account for over $2.5 trillion in long-term capital flowing into the American economy — directed toward energy, manufacturing, infrastructure, and advanced technology.

The contrast with Biden’s economic priorities is stark. Under the previous administration, federal funds were allocated to projects such as a $25,000 legal support grant for LGBTQ asylum seekers in the U.K., a $40,000 identity-themed book festival, and a $20,000 pride concert.

Regardless of one’s view on these programs, they did not create jobs, expand exports, or reduce the trade deficit. Trump’s strategy has been entirely focused on increasing investment, securing revenue, growing exports, and protecting the American workforce.

Under Trump’s leadership, American farmers, manufacturers, and energy workers are treated as strategic assets. Each trade agreement contains specific protections and targeted gains for key sectors, including ethanol, beef, aerospace, semiconductors, energy, and heavy industry. These sectors form the backbone of national economic strength and job creation — and they are finally being prioritized.

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