* a pragmatic approach to politics that prioritises power dynamics and national interests over ideological or moral considerations.1
There are practical examples, such as Ronald Reagan’s Cold War diplomacy. Reagan combined firm ideological positions, such as his “evil empire” rhetoric2 (referring to Russia; Trump ‘channels’ this when he talks about China), with practical negotiations like the Intermediate-Range Nuclear Forces Treaty, in which both sides reduced their nuclear arsenals, demonstrating a calculated balance between ideological goals and geopolitical realities.
New Zealand has been affected by ‘realpolitik’. For example: France’s actions following the 1985 Rainbow Warrior bombing in New Zealand. After New Zealand convicted two French agents for their involvement in the attack, France threatened economic sanctions targeting New Zealand’s key exports, including dairy products like butter, cheese and meat exports, particularly lamb, to the European Economic Community (EEC). These sanctions posed a significant threat to our economy. Under this pressure, we agreed to a UN-mediated settlement, allowing the agents to serve their sentences on a French-controlled atoll – an agreement that was soon broken.3
In 2025, we have more ‘realpolitik’ in action. Trump is implementing an unpopular and broad-based tariff scheme with the ideological theme of “Make America Great Again”.4 The objectives are twofold:
In 2025, we have more ‘realpolitik’ in action. Trump is implementing an unpopular and broad-based tariff scheme with the ideological theme of “Make America Great Again”.4 The objectives are twofold:
1. To bolster the US reputation
2. To shore-up the US economy
Over the past two decades, the United States’ international reputation has suffered. Key factors include controversial foreign policy decisions, such as the 2003 invasion of Iraq, the US’s handling of the 2008 financial crisis and its withdrawal from international agreements like the Paris Climate Accord. More recently, the US’s response to the Covid-19 pandemic has faced criticism and the BLM riots of 2020, which caused billions of dollars in damages and cost many lives, were met with scepticism as mainstream media described them as ‘mostly peaceful’ while footage showed cars and buildings ablaze in the background. Geopolitically, the Biden Government proved itself weak and ineffectual. Other global powers, particularly China, have gained influence in regions where the US once held sway. Some countries, such as Russia and Iran, have taken the opportunity to seize territory and/or act aggressively.5,6
Economic challenges have plagued the US for decades. The American industrial base has been eroded due to outsourcing coupled with unfavourable trade agreements, leading to job losses and stagnation in key manufacturing sectors. Additionally, the US economy has faced persistent trade deficits, weakening its global economic position.7,8 “Bidenomics” resulted in rising inflation and wage stagnation that further strained household budgets, and a reliance on imports has left domestic industries vulnerable to external shocks.
Trump’s proposed ‘realpolitik’ tariff strategy has alarmed many countries, as it aims to preferentially protect American industries, reduce the trade deficit and restore US economic self-reliance. Further, it seeks to restore the US reputation as the political and economic super-power.9
Trump has merged ‘realpolitik’ with economics into ‘realeconomik’, by using the economic power (25.6 per cent of global GDP) of the US – and the economic levers of tariffs – into a pragmatic approach to reassert US dominance and address long-standing structural and strategic issues, e.g., the US reliance on foreign-made goods such as computer chips, medicines and rare earth minerals.
* The US absolutely needs to do this, as the US economy faces potential bankruptcy and multiple insecurities.10
A major contributor to this is the dysfunctional WTO system that discriminates against some with rules that are selectively enforced – and an unfair burden of global security is shouldered by the US. As an example, the costly and dangerous US maritime responsibility for protecting international trade routes through the Red Sea.
Only about three per cent of US trade transits through the Suez Canal.11
* And what would happen if the US defaulted on its support and responsibilities?
As the second largest economy in the world, China would achieve ascendency.12 While the international community facilitated China’s entry into the WTO (2001) in the belief that its aggressive mercantile behaviour would improve, this has not proven to be the case. China also mixes ‘realpolitik’ with economics, as contemporary examples:
1. Australia: In 2020, after Australia called for an independent investigation into the origins of COVID-19, China imposed tariffs and restrictions on Australian exports, including wine, barley, beef, and coal.13
2. South Korea: In 2017, China restricted imports of South Korean goods and services, including tourism and entertainment, in response to South Korea’s deployment of the US THAAD missile defence system.14
3. Norway: After the Nobel Peace Prize was awarded to Chinese dissident Liu Xiaobo in 2010, China imposed restrictions on Norwegian salmon imports, significantly impacting Norway’s seafood industry.15
4. Lithuania: In 2021, Lithuania faced trade restrictions from China after allowing Taiwan to open a representative office in its capital under the name “Taiwan”, which China viewed as a violation of its “One China” policy.16
5. Canada: Following the arrest of Huawei executive Meng Wanzhou in 2018, China imposed restrictions on Canadian canola exports, citing quality concerns, which many viewed as politically motivated.17
6. Japan: In 2010, during a territorial dispute over the Senkaku/Diaoyu Islands, China restricted exports to Japan of rare earth minerals which are critical for various industries.18
China shows no hesitation in asserting its realpolitik through ‘realeconomik’.
China is a fiercely mercantile and politically aggressive nation and plays by its own rules, e.g., it seized the Spratly Islands in 1988 during a clash with Vietnam at Johnson South Reef and, when the world objected, it thumbed its nose at the global community.19
* China will have no hesitation in extending its economic and political hegemony, globally, if the US economy, and hence power, fails.
We might be feeling sorry for ourselves, trade-wise, because we are justifiably being forced to the US negotiation table, but we NEED to participate, as a worse fate could befall us.
* We are all in this together when it comes to the US economy.
* It’s been demonstrated that we cannot rely on the WTO regarding ‘free trade’.
It is time for us all to support the ‘realeconomik’ of global trade or we will face the ‘realpolitik’ of a predatory, nationalist, mercantile China...
References
1. https://www.britannica.com/topic/realpolitik
2. https://www.jstor.org/stable/10.14321/rhetpublaffa.19.3.0427
3. https://www.jstor.org/stable/40395792
4. https://www.aljazeera.com/opinions/2025/3/13/trumps-tariffs-may-end-up-blowing-up-the-us-dollar-hegemony
5. https://link.springer.com/referenceworkentry/10.1007/978-981-99-8001-7_10-1
6. https://www.tandfonline.com/doi/pdf/10.1080/23311983.2022.2111829
7. https://www.jec.senate.gov/public/_cache/files/94bf8985-1e87-438b-9a3a-e3334489dd30/background-on-issues-in-us-manufacturing-and-supply-chains-final.pdf
8. https://www.forbes.com/sites/jackkelly/2024/10/15/the-globalization-and-offshoring-of-us-jobs-have-hit-americans-hard/
9. https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/
10. https://blogs.cfainstitute.org/investor/2024/12/02/navigating-troubled-waters-what-the-surge-in-bankruptcy-filings-means-for-the-economy/
11. A lifeline under threat: Why the Suez Canal’s security matters for the world - Atlantic Council
12. https://www.statista.com/topics/5819/key-economic-indicators-of-china/
13. https://www.ussc.edu.au/chinas-trade-restrictions-on-australian-exports
14. https://thediplomat.com/2017/10/china-south-korea-relations-and-the-thaad-decision/
15. https://www.cmi.no/publications/5805-too-big-to-fault
16. https://www.csis.org/analysis/chinas-economic-coercion-lessons-lithuania
17. https://www.ualberta.ca/en/china-institute/media-library/media-gallery/research/occasional-papers/canola2.pdf
18. https://cepr.org/voxeu/columns/revisiting-china-japan-rare-earths-dispute-2010
19. https://www.dw.com/en/vietnamese-activists-remember-1988-spratly-islands-clash-with-china/a-19114754
Dr Michael John Schmidt left NZ after completing postgraduate studies at Otago University (BSc, MSc) in molecular biology, virology, and immunology to work in research on human genetics in Australia. Returning to NZ has worked in business development for biotech and pharmacy retail companies and became a member of the NZ Institute of Directors. This article was first published HERE
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