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Westferry Times > Opinion > Opinion > Mad Donald, crazy tariffs: How Trump is updating an old Nixon doctrine to reshape the world order
Opinion

Mad Donald, crazy tariffs: How Trump is updating an old Nixon doctrine to reshape the world order

Anjali Yadav
By Anjali Yadav Published February 5, 2025
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Donald Trump, once again, finds himself at the centre of global attention as he continues to employ strategies reminiscent of Richard Nixon’s “madman theory,” a political manoeuvre designed to keep both allies and adversaries on edge. Nixon, during the Vietnam War, sought to project an image of unpredictability to intimidate the Communist bloc. Trump has since resurrected this tactic, albeit in a more modern context, often using tariffs, threats, and tough rhetoric to manipulate foreign relations.

Trump’s “madman” strategy, however, isn’t built on the threat of nuclear weapons but on the unpredictable nature of his actions. His foreign policy, much like Nixon’s, operates on creating doubt—making friends and foes alike unsure of how far his threats might go. But whether this unpredictability will ultimately benefit America or undermine its position in the world remains an open question. In the meantime, Trump has had some apparent victories, not least through his threats to impose tariffs on Mexico and Canada.

The latest chapter in Trump’s tariff saga began with the imposition of 25% tariffs on exports from Mexico and Canada to the US. These tariffs, if enacted, would have caused significant economic disruption to both countries. However, in a familiar display of brinkmanship, Trump extracted concessions from both governments. Mexico agreed to deploy 10,000 additional troops to its northern border to assist in the fight against drug trafficking. Canada, meanwhile, capitulated by agreeing to appoint a fentanyl tsar and take steps to curb cross-border crime.

While Trump and his administration hailed these moves as victories, the details reveal a different picture. Mexico’s additional troops and Canada’s promised efforts to curb fentanyl smuggling seem more like symbolic gestures rather than substantial changes in policy. Furthermore, fentanyl trafficking from Canada to the US represents less than 1% of the street supply, and much of the border plan funding had already been allocated. However, the appearance of victory is crucial for Trump, and for now, his demands have been met, keeping his negotiating position strong.

In the aftermath of these diplomatic manoeuvres, Trump’s rhetoric took centre stage. White House Press Secretary Karoline Leavitt triumphantly declared that Canada was “bending the knee just like Mexico.” Canadian officials, on the other hand, expressed relief but also concern. Brian Kingston, president of the Canadian Vehicle Manufacturers Association, commented on the reprieve, saying, “We had been preparing for the worst possible outcome. I hope this results in a permanent decision.” However, it is doubtful whether the deal is truly permanent, given Trump’s penchant for leaving agreements in a state of flux, as evidenced by his previous failures to deliver on promises such as the Mexico border wall.

Market reactions also provide insight into Trump’s negotiating tactics. The threat of tariffs caused the Dow Jones industrial average to dip by 1.4% at the beginning of trading, illustrating the potential impact on American consumers. This economic unease may have contributed to Trump’s decision to delay the implementation of these tariffs. Despite his braggadocio, he is not immune to the consequences of his actions on the broader economy.

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Beyond North America, Trump continues to leave the global community in suspense. The European Union, for example, remains under threat of 10% tariffs. While Britain may be spared, Trump has not made any definitive promises. His ambiguous stance keeps everyone on edge, creating uncertainty in international trade relations. In contrast, China has not yet budged, with President Xi threatening counter-tariffs on US imports, but again, it’s unclear whether these are serious threats or merely negotiating tactics.

As for Trump’s internal tactics, his administration has continued to push forward with disruptive policies, particularly under the guidance of his ally, Elon Musk. Musk, known for his cost-cutting ways, has targeted federal agencies, such as the Office of Personnel Management and USAID, with little regard for the broader consequences. Trump seems to enjoy the chaos, allowing Musk to make bold moves, such as suspending international aid, even though this has led to criticism from both domestic and international quarters.

Despite his unpredictable approach, Trump remains committed to one thing: preserving the illusion of strength. His “wins” may not always have substantial lasting effects, but the perception of victory is central to his leadership style. Whether this strategy will continue to serve him and the United States remains to be seen. For now, the world watches, unsure of the ultimate cost of Trump’s brand of diplomacy.

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