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Geopolitical Leverage

Trading Term

Geopolitical leverage refers to the strategic advantage a country or group of countries holds in international relations, often used to influence other nations’ policies or actions. Tariffs, as a tool of economic policy, can serve as a form of geopolitical leverage. By imposing tariffs, a country can exert pressure on trading partners to achieve political or economic objectives. For instance, a nation might increase tariffs on imports from another country to compel changes in trade practices or to address broader geopolitical concerns. This use of tariffs can impact global trade dynamics, affecting economic relationships and power balances on the international stage.

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