What Trump Can Do

Drawing from Trump’s New Year’s Eve statement that “they better let the hostages come back soon” and his December Truth Social post warning of “ALL HELL TO PAY” after January 20, 2025, here’s an analysis of the economic tools available to a US president:
Presidential sanctions authority represents one of the most powerful tools in pressuring third-party nations. The president can unilaterally cut off access to the US banking system, effectively isolating target countries from global financial markets. This can extend to freezing assets of specific individuals, organizations, and even entire sectors of a foreign economy.
Trade restrictions offer another significant lever of influence. Through executive action, the president can impose punitive tariffs, block imports, and restrict exports of sensitive technology and goods. These measures can be particularly effective when targeting countries dependent on US markets or technology.
The president’s control over international financial mechanisms provides additional pressure points. By influencing IMF and World Bank decisions, directing foreign aid, and potentially restricting access to dollar-based transactions through SWIFT, the administration can create significant economic hardship for target nations and their allies.
Diplomatic economic pressure allows for multiplying these effects through coordination with allies. The president can orchestrate joint sanctions regimes, use American voting power in international organizations, and leverage existing trade relationships to create broader economic isolation of target nations.
Secondary sanctions represent perhaps the most potent tool, as they can force other countries to choose between doing business with the United States or the targeted nation. Given the size of the US economy and its central role in global finance, most nations and companies typically align with US demands rather than risk losing access to American markets.
These tools become particularly powerful when deployed in combination, creating overlapping pressures on both the target nation and its economic partners. The effectiveness ultimately depends on maintaining international cooperation and the target nation’s ability to find alternative economic partnerships.