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lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
3 times Trump’s tariffs worked
Analysis by David Goldman, CNN
Updated:
5:30 AM EDT, Tue July 1, 2025
Source: CNN
President Donald Trump’s tariffs are designed to boost US
manufacturing, restore the balance of trade and fill America’s
coffers with tax dollars. The White House’s record on those three
goals has been a decidedly mixed bag.
But Trump has a fourth way that he likes to use tariffs. Trump has
repeatedly threatened tariffs as a kind of anvil dangling over the
heads of countries, companies or industries.
The subjects of Trump’s tariff threats have, at times, immediately
come to the negotiating table. Sometimes, threats just work.
Canada
The most recent example was over the weekend, when Canada backed off
its digital services tax that was set to go into effect Monday. Trump
had railed against the tax on online companies, including US
corporations that do business in Canada. On Friday, he threatened to
end trade talks with America’s northern neighbor. Trump also said he
would set a new tariff for Canada by the end of this week.
On Sunday, , saying it would drop the tax to help bring the countries
back to the table.
“To support those negotiations, the Minister of Finance and National
Revenue, the Honourable François-Philippe Champagne, announced today
that Canada would rescind the (DST) in anticipation of a mutually
beneficial comprehensive trade arrangement with the United States,”
the Canadian government said in a statement.
On Monday, United States and Canada restarted trade discussions.
“It’s part of a bigger negotiation,” said Prime Minister Mark
Carney in a press conference Monday. “It’s something that we
expected, in the broader sense, that would be part of a final deal.
We’re making progress toward a final deal.”
Colombia
Trump’s first tariff action of his second term came against Colombia
after President Gustavo Petro in late January blocked US military
flights carrying undocumented migrants from landing as part of
Trump’s mass deportation effort.
In turn, Trump threatened 25% tariffs on Colombian exports that would
grow to 50% if the country didn’t accept deportees from the United
States.
Colombia its refusal and reached an agreement to accept deported
migrants.
“You can’t go out there and publicly defy us in that way,” a in
January. “We’re going to make sure the world knows they can’t get
away with being nonserious and deceptive.”
Trump ultimately dropped the tariff threat.
The European Union
Citing a lack of progress in trade negotiations, Trump in late May said
he was calling off talks with the European Union and would instead just
impose a 50% tariff on .
“Our discussions with them are going nowhere!” Trump on May 23.
Later that day in the Oval Office, Trump said he was no longer looking
for a deal with the EU.
But three days later, European Commission President Ursula von der
Leyen spoke with Trump and said the EU would fast-track a deal with the
United States. Trump then delayed the 50% tariff deadline until July
9.
Although a deal hasn’t yet come through, Trump’s threat got Europe
to get serious, in the White House’s view, on trade, when it had been
slow-walking negotiations, trying to get a consensus from its dozens of
members.
It doesn’t always work
The Trump administration attributes a large number of corporate
investments in the United State to its tariffs and tariff threats,
although it’s often hard to draw a clear line from Trump’s trade
policy to a particular company announcing it will build an American
factory. Those decisions often take years of planning and are costly
processes.
For example, shortly after Trump doubled down on steel and aluminum
tariffs and included finished products like in the 50% tariff, GE
Appliances said it would . The company said it had planned the move
before Trump announced the derivative product tariffs – but Trump’s
trade war accelerated its plans.
In some other cases, Trump’s threats have largely gone nowhere.
Furious with Apple CEO Tim Cook for announcing the company would export
iPhones to the United States from India – rather than building an
iPhone factory in the United States – Trump announced a 25% tariff
on all Apple products imported to the United States. He threatened the
same against Samsung.
But Trump never followed through with his threat, and Apple and Samsung
haven’t budged on their insistence that complex smartphone
manufacturing just isn’t practical or possible in the United States.
Skilled manufacturing labor for that kind of complex work isn’t
readily available in the United States – and those who do have those
capabilities charge much more to work here than their peers charge in
other countries. Complying with Trump’s demands could add thousands
of dollars to the cost of a single smartphone – more than Trump’s
threatened tariff.
Trump similarly in May with a 100% tariff on movies made outside the
United States. That left many media executives scratching their heads,
trying to figure out what the threat entailed – a threat that
ultimately never materialized. The administration later acknowledged
Trump’s statement about the tariff was merely a proposal, and it was
eager to hear from the industry about how to bring lost production back
to Hollywood.
Nevertheless, Trump’s threats against the movie industry raised
awareness about the bipartisan issue, and California’s Democratic
Gov. Gavin Newsom subsequently posted support for a partnership with
the Trump administration to incentivize movie and television makers to
film in the state again.
Trump’s threats don’t always work, and sometimes his tariffs have
kicked off a trade war, raising prices in a tit-for-tat tariff
escalation. But a handful of times, including this weekend, his tariff
threats have gotten America’s trading partners to agree to major
concessions.
CNN’s Luciana Lopez and Michael Rios contributed to this report.
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