President Donald Trump is reshaping U.S. foreign policy by blending economic strategies with geopolitical goals. His approach includes revitalizing the Monroe Doctrine in the Americas, shifting military focus to the Indo-Pacific region, and seeking better relations with Russia in Europe. Economically, Trump has implemented tariffs, encouraged foreign investment in the U.S., boosted domestic energy production, and cut government programs.
This shift echoes the ideas of Edward Luttwak, who suggested in 1990 that the world was moving from traditional geopolitics to a focus on geoeconomics. Both Trump and China recognize the power of economics in influencing global politics. China’s Belt and Road Initiative is a prime example, as it expands China’s economic reach across Europe, Africa, and the Americas, using financial power to serve its geopolitical aims. Similarly, Trump’s America First policies aim to strengthen the U.S. economy and its global standing.
The British geopolitical thinker Sir Halford Mackinder emphasized the role of economic strength in a nation’s success. He argued that a country’s wealth is tied to its social organization and productive capacity. Mackinder believed that discipline and order among citizens are crucial for maintaining this productive power. Without these qualities, a nation risks economic stagnation and social chaos.
Mackinder also noted Germany’s rise in the late 19th century, attributing it partly to tariffs that boosted domestic production. Germany’s economic policies, along with its growing population and industrial strength, made it a dominant force in Europe. However, he warned that Germany’s aggressive foreign policy after Bismarck’s era ultimately led to its downfall.
Trump’s strategy aims to protect American interests in the Western Hemisphere while maintaining global stability. His policies on energy and tariffs are designed to revive U.S. manufacturing, create jobs, and reduce trade deficits, restoring the country’s industrial power.
Economic strength is key to geopolitical influence. The U.S. needs to enhance its naval capabilities to effectively counter China, which currently leads in shipbuilding. Mackinder’s views on the importance of sea power in global affairs support this need. Trump’s attempt to improve relations with Russia may also weaken the alliance between Russia and China over time.
Historian Paul Kennedy highlighted that a strong economy is essential for a nation to be considered a great power. The ongoing rivalry between the U.S. and China is as much about economic competition as it is about strategic positioning. The outcome of this economic contest will likely determine the future balance of power on the global stage.