The ABCD strategy of President Trump

OPINION:

President Trump is expected to attend the APEC Economic Leaders’ Meeting in South Korea, on October 31–November 1, 2025, offering key opportunities to advance U.S. interests. 

First, he can strengthen U.S.-South Korea ties by leveraging the Korean Peninsula’s geopolitical importance and economic potential in sectors such as shipbuilding. Notably, Mr. Trump can resolve visa issues for South Korean workers in Georgia, who fill critical expertise gaps and train Americans, rather than displacing them. His swift action would reinforce U.S. commitment to an essential ally while protecting domestic interests. 

Second, by meeting leaders from South Korea, China, Japan, and possibly North Korea, Mr. Trump can foster regional cooperation. Despite U.S.-China tensions, he can promote economic collaboration with Beijing and other Far East nations through friendly gestures. The APEC 2025 summit can provide a platform for Mr. Trump to showcase himself as a proactive leader in global economic cooperation, promoting stability and prosperity.

Donald Trump is often regarded as an unpredictable figure in the global economy. However, a thorough analysis of his economic policies uncovers a consistent and effective approach, providing valuable guidance for policymakers and businesses worldwide. By evaluating his decision-making through the “ABCD strategy”—Agility, Benchmarking, Convergence, and Dedication—stakeholders can more adeptly navigate the opportunities and challenges his policies present.

Agility: Speedy Policymaking vs. Traditional Industrial Policy

Donald Trump’s economic strategy prioritizes rapid, tangible results over the gradual, long-term focus of conventional industrial policy. A defining feature of this approach is his bold use of tariffs on imports, presented as a straightforward yet potent tool to influence corporate behavior. Though often controversial, the logic is clear: Tariffs incentivize multinational corporations (MNCs) to shift from exports to direct investment in the U.S. market. To access the American market, companies face pressure to localize production and reduce their reliance on overseas supply chains.

This emphasis on speed is bolstered by significant corporate tax cuts, slashing the rate from 35% to 21% during Mr. Trump’s first term, with proposals to further reduce it to 15%. Far from merely sparking trade conflicts, tariffs should be seen as part of a broader “investment promotion” strategy. By combining tax reductions with higher tariffs, Mr. Trump aims to attract business operations to the U.S., driving domestic investment and job creation. What some label a “trade war” is, in essence, a strategic repositioning of the U.S. as a global hub for economic activity.

Benchmarking: Targeting MNCs vs. Relying on Macroeconomic Policy

While agility ensures speed and precision, Mr. Trump also relies on a second pillar: Benchmarking. His economic policies directly target MNCs rather than leaning on traditional macroeconomic tools such as interest rate adjustments. In today’s globalized economy, conventional macroeconomic tools often yield slow and uncertain results. By contrast, Mr. Trump’s firm-centered approach delivers immediate impact, shaping corporate investment decisions in the U.S. This strategy blends punitive measures—such as tariffs on firms that outsource production—with incentives for companies that reshore or expand domestic operations. This “carrot-and-stick” approach creates a clear pathway to achieving economic objectives, such as job creation and increased domestic production.

On inflation control, Mr. Trump diverges from macro-financial orthodoxy. While higher tariffs and lower domestic taxes could elevate inflationary pressures, potentially prompting the Federal Reserve to raise interest rates, Mr. Trump consistently advocates for low interest rates. He contends that productivity gains driven by increased investment will counteract inflation. This dual focus on microeconomic strategies targeting MNCs and productivity-driven inflation control highlights the unique and pragmatic nature of his economic approach.

Convergence: Ecosystem Creation vs. High-Tech Only

A third element of Mr. Trump’s strategy is convergence. Instead of narrowly targeting high-tech industries, he emphasizes building a broad business ecosystem. He prioritizes strengthening foundational sectors such as energy, finance, and core infrastructure, rolling back regulations and lowering corporate taxes to enhance their competitiveness. By doing so, he aims to establish a robust foundation that can support both traditional and emerging industries.

At the same time, his policies encourage convergence across manufacturing sectors, integrating industries such as automobiles and advanced technologies into a more cohesive industrial system. This contrasts with strategies that focus solely on high-tech industries. The core of Mr. Trump’s industrial policy is a dual path: Reinforcing foundational industries while fostering an ecosystem that encompasses both high-tech and low-tech sectors, enabled by a deregulated, business-friendly environment.

Dedication: National Interest First vs. International Cooperation

The final component of Mr. Trump’s ABCD strategy is dedication, rooted in American nationalism. His iconic slogan, “Make America Great Again” (MAGA), reflects his commitment to revitalizing U.S. industry and prioritizing domestic prosperity. This vision is evident in initiatives like “Buy American, Hire American,” which aim to protect and create jobs, particularly in regions such as the Rust Belt, where industrial competitiveness has declined.

In his second-term campaign, Mr. Trump introduced a new slogan: “Are you better off than you were four years ago?” This message ties his leadership to tangible economic outcomes for ordinary Americans, positioning their well-being as the ultimate measure of success. On the global stage, this philosophy reshapes priorities, placing economic interests above traditional diplomatic concerns such as collective security, climate change mitigation, or human rights advocacy. Critics often brand Trump an extreme nationalist, fixated on an “America First” approach. However, prioritizing national interests is a fundamental duty of any national leader.

President Trump’s current agenda centers on his “MAGA” priorities, focusing on national imperatives such as border security, energy independence, and domestic economic growth, rather than multilateralism. By prioritizing these objectives and addressing urgent domestic challenges—such as crime, drug issues, and homelessness—Trump aims to strengthen the nation’s foundation. Once these goals are achieved, he may shift focus to contribute to the global economy and foster international cooperation, positioning himself toward a broader leadership role on the world stage. 

The upcoming APEC event could accelerate President Trump’s engagement in global cooperation. The world needs America to be strong, healthy, and capable of providing a new dimension of global leadership – for all the right reasons.

• The ABCD strategy was first introduced in the author’s book, The Strategy for Korea’s Economic Success by Hwy-Chang Moon, published by Oxford University Press in 2016. Certain strategic insights in this article are drawn from the author’s other book, The Art of Strategy: Sun Tzu, Michael Porter, and Beyond, published by Cambridge University Press in 2018.