Neocolonialism reloaded with a Trumpian twist by John Kato

The United States has long been accused of practicing neocolonialism, exerting economic, political, and military dominance over other nations under the guise of free trade, diplomacy, and democracy promotion. However, in recent years, particularly under Donald Trump and his enduring influence on the Republican Party, this approach has taken on a more aggressive, less diplomatic character. The new American foreign policy is not just about controlling resources and shaping global markets, it has added a new layer of outright bullying, economic coercion, and trade wars.

Historically, U.S. foreign policy has maintained a balancing act between interventionism and diplomacy. The Obama era, for instance, saw strategic use of soft power, sanctions, development aid, and multilateral trade agreements. But Trump came in with a wrecking ball. His “America First” policy was a jarring shift toward economic warfare and transactional diplomacy, where allies were treated like adversaries, and adversaries were tested with brinkmanship. This shift was not just a four-year experiment, it reshaped the Republican Party’s foreign policy playbook and continues to influence U.S. strategy today.

Trump’s trade wars with China, Europe, and even Canada were an explicit departure from the traditional neoliberal consensus. Tariffs became weapons, and the White House became a battlefield of economic intimidation. Instead of promoting free trade as a tool for influence, Trump weaponized trade as a cudgel, forcing countries to comply with U.S. demands or face economic retaliation. This approach, deeply rooted in his personal brand of deal-making, left long-term damage that persists in current foreign policy thinking.

The essence of neocolonialism has always been economic control rather than outright territorial conquest. The modern U.S. playbook continues this trend but has evolved into a more blatant form of economic coercion. Trade agreements have been rewritten to favor American corporations, debt traps have been set for weaker economies, and the IMF and World Bank still serve as financial enforcers ensuring that countries remain tied to U.S.-led economic frameworks.

What Trump pioneered was a shift from subtle coercion to open confrontation. Rather than using institutions like the WTO to pressure weaker nations, his administration preferred the direct approach: slapping tariffs on allies like Germany and Japan while threatening withdrawal from longstanding security alliances. Countries that resisted were either strong-armed into submission (Mexico, under the threat of tariffs, tightened its immigration enforcement for the U.S.) or economically punished (China, through relentless tariffs and bans on tech giants like Huawei).

Biden, while toning down the rhetoric, has kept many of Trump’s protectionist policies intact. His administration’s economic war on China has continued through chip bans and trade restrictions. Sanctions remain the go-to weapon for punishing adversarial regimes, from Russia to Iran to Venezuela. The Biden White House may have replaced Trump’s bombastic bluster with a more traditional diplomatic veneer, but the substance of U.S. economic imperialism remains unchanged.

Modern U.S. foreign policy no longer needs boots on the ground to exert dominance. Instead, economic strangulation and political manipulation do the job just fine. Countries are strong-armed into choosing sides, join the U.S.-led economic order or face sanctions, exclusion from markets, and political destabilization.

Trade wars serve as the economic battlefield, while military aid ensures compliance from dependent nations. Billions in military support to allies like Israel and Ukraine guarantee that they remain tethered to U.S. strategic interests. Meanwhile, Latin America, long treated as the U.S.’s backyard, continues to experience pressure through financial institutions and direct intervention in political affairs. The message is clear: independence from Washington’s influence comes with consequences.

The world is no longer dealing with a United States that pretends to be a benevolent leader, it is openly playing the role of global enforcer, whether through trade wars, financial penalties, or strategic military partnerships.

For nations resisting this form of neocolonialism, the path forward is difficult but necessary. The world is watching as China, Russia, and even smaller economies attempt to break away from U.S. dominance, creating new alliances and economic frameworks that challenge American supremacy.