Technically, it is true that the national government can try to compel states to obey national laws using fiscal federalism, even in areas where the national government has no <span>authority over the states, since states receive a great deal of funding from the federal government. </span>
President Taft's use of "Dollar Diplomacy" in Nicaragua and China showed that American foreign policy was mainly a means of promoting the United States' commercial interest and economic power abroad. Through the "Dollar Diplomacy", policy loans were guaranteed to strategically important foreign countries such as Nicaragua and China.
There was less trade due to high tariff of 40% introduced under the Fordney McCumber act of 1922,furthermore between this period of time Americans were still isolationist so they weren’t involved in with international affairs. Extra point(not part of the answer but useful information) trade between the US and the world mainly began in 1941 cash and carry which started after Pearl harbour happen which ended isolationism
