The US president hopes tariffs will help close the huge trade gap by potentially pressuring Beijing into a new deal

Donald Trump postponed his threat to tax all imports from Mexico and Canada this week, citing action by those countries against migration and drug smuggling; but it was telling that tariffs on China went ahead.

When it comes to the US’s neighbours, Trump’s Treasury secretary, hedge fund manager Scott Bessent, made clear in a Fox News interview that tariffs are essentially a negotiating tool – partly aimed at achieving non-economic goals.