— Donald Trump, the real estate mogul turned commander in chief, is making his diplomatic approach clear in the early weeks of his second term: It mirrors his high-stakes business dealings, with the primary objective of securing the best outcome for the United States.
His transactional style is evident in his brewing trade tensions with Canada and Mexico, his handling of Russia’s war on Ukraine, and his decision on the first foreign nation he will visit in his new term. "President Trump approaches diplomacy in a highly transactional manner, with economics as the foundation and driving force behind international affairs," said retired Lt. Gen. Keith Kellogg, the president’s special envoy to Ukraine and Russia, at an event in Washington last week.
For Trump, diplomacy is about leverage rather than alliances, financial gains over traditional values, and hard power instead of soft influence.
This approach extends beyond negotiation tactics; it fundamentally reshapes the post-World War II international order. Trump's actions have raised concerns about the future of U.S. global leadership, as he moves toward a foreign policy that prioritizes economic interests and fiscal pragmatism. He has openly dismissed traditional soft-power instruments, such as the U.S. Agency for International Development, as inefficient and wasteful. He has also questioned America's commitment to NATO allies that fail to meet the alliance's defense spending targets.
While all presidents engage in transactional politics to some extent, Trump, who built his brand as a shrewd real estate dealmaker, takes this approach to an unprecedented level in global affairs.
A Bottom-Line Approach to Foreign Policy
In his previous business ventures, Trump viewed deals as having clear winners and losers. This perspective now defines his return to the White House, where he applies a "what’s-in-it-for-me" mindset in dealings with both allies and adversaries.
Edward Frantz, a historian at the University of Indianapolis, suggests that Trump’s “ledger” approach to diplomacy may not be the most practical. "Trump, a baby boomer and football fan, appears to embrace the mindset of legendary coach Vince Lombardi, who famously said, ‘Winning isn’t everything. It’s the only thing,’” Frantz noted. "But diplomacy, especially in today’s complex world, is more like soccer—sometimes, a draw is necessary to survive and move forward."
Trump reinforced his transactional approach when announcing his first overseas visit of the term—Saudi Arabia—citing the kingdom’s agreement to invest a trillion dollars in the United States over the next four years. "They’ve gotten richer, we’ve all gotten older. So I said, ‘I’ll go if you pay $1 trillion to American companies,’” Trump remarked. Notably, he also chose Saudi Arabia as his first international stop during his first term after the kingdom promised $450 billion in U.S. investments.
Trump acknowledged that the United Kingdom, a longstanding ally, has traditionally been the first stop for U.S. presidents—but in his view, money speaks louder than tradition.
Prioritizing Leverage in U.S.-Russia-Ukraine Relations
In his interactions with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin, Trump has focused intensely on leverage. He has repeatedly asserted that Putin holds the advantage while Zelenskyy does not.
After a tense Oval Office meeting with Trump and Vice President JD Vance, Zelenskyy sought to repair relations, expressing regret over the meeting’s outcome. He later agreed to a minerals deal with the U.S. even without the security guarantees Ukraine had sought.
Trump acknowledged Zelenskyy’s efforts in his address to Congress but soon resumed criticizing him, emphasizing Ukraine’s weak bargaining position. "Ukraine doesn’t have the cards," Trump said. "In reaching a final settlement, it may actually be easier dealing with Russia, because they have all the cards."
A Shift in U.S. Policy Toward Russia
Trump’s stance on Ukraine—and his overtures to Moscow—mark a significant departure from the U.S.'s traditionally cautious approach to Russia. While past presidents, including Bill Clinton, George W. Bush, and Barack Obama, attempted diplomatic resets with Russia, none did so under such fraught circumstances.
Unlike President Joe Biden, who insisted on Ukraine’s involvement in any major decision, Trump has taken steps to realign U.S.-Russia relations. His administration has halted military aid and intelligence-sharing with Ukraine, suspended U.S. Cyber Command’s offensive operations against Russia, and disbanded a program aimed at seizing Russian oligarchs' assets.
Economic Interests Drive Trade Policy
Kellogg recalled witnessing Trump’s transactional diplomacy during his first term, noting that Trump’s first question to foreign leaders in meetings was often, “What is the trade imbalance between our two nations?”
Trade remains a focal point for Trump, who argues that the U.S. has long been exploited by both allies and adversaries. Recently, he announced 25% tariffs on key imports from Mexico and Canada, only to postpone most of them. The administration claims the tariffs aim to curb fentanyl smuggling, though Trump has also framed them as a tool to address trade imbalances.
On Friday, Trump turned his criticism toward Canada, accusing it of unfair trade practices in the dairy and lumber industries. He vowed to impose reciprocal tariffs, stating, "Canada has been ripping us off for years."
Canadian Prime Minister Justin Trudeau, whom Trump has mockingly referred to as the "governor of America’s 51st state," dismissed Trump’s trade threats. In a rare moment of agreement with the conservative Wall Street Journal editorial board, Trudeau quipped, "It’s not often I agree with the Wall Street Journal. But Donald, even they say that while you’re a smart guy, this is a very dumb move."
Tags: Associated Press, politics, diplomacy, international trade, world news