Source: Responsible Statecraft
by Karthik Sankaran
“The White House has the following goals — shrink America’s trade deficits; use economic pressure to force countries to align with U.S. goals; recalibrate America’s strategic interests and the balance of U.S. and allied defense spending; maintain the central global role of the dollar; and keep interest rates low by encouraging inflows of foreign capital into U.S. government debt. It is less clear that all these goals can be achieved simultaneously, as American actions provoke reactions from other governments and financial markets.” (07/22/25)