President Donald Trump’s plan to negotiate new trade deals with major partners is facing challenges as his 90-day tariff pause is nearing its end. Initially aimed at improving relations, recent threats of increased tariffs highlight the complexities of these negotiations.
For instance, Trump announced plans to raise tariffs on steel and aluminum to 50%. This escalation coincided with accusations against China for not adhering to a prior agreement made in May. In response, China claimed the U.S. has undermined the previous deal with new restrictions on exports of computer chips.
Experts suggest the ongoing disputes are not surprising. Former negotiators point out that trade deals often take considerable time—sometimes years—to finalize. There are various reasons for existing trade barriers, often designed to protect local industries or respond to other trade restrictions.
Warren Maruyama, who handled trade deals under President George W. Bush, expressed skepticism about quick resolutions. “It’s going to be a long, drawn-out negotiation,” he said, emphasizing that most countries involved are skilled negotiators.
The current tensions make negotiations even more complicated. Alex Jacquez, a former member of the National Economic Council, mentioned that partners may feel pressured and unsure of the U.S. position, reducing their incentive to negotiate constructively.
Despite these concerns, some U.S. officials believe they are close to reaching new agreements. Reports indicate that the administration is asking countries to submit their best trade proposals by Wednesday, aiming to expedite negotiations.
So far, only one tentative agreement has been reached with the United Kingdom. New data shows that meaningful trade agreements from the U.S. are still sparse, highlighting the challenge of balancing domestic pressures with international negotiations.
China’s Position
After a previous pause on tariffs against China, tensions resurfaced quickly. The U.S. Commerce Department’s warning against using Chinese chips triggered accusations from China, who viewed the guidance as discriminatory. Recently, Trump has reached out to criticize China for not upholding agreements, noting that the situation appears to be deteriorating.
U.S. Trade Representative Jamieson Greer has remarked on the slow progress in China, saying they have delayed actions agreed upon in previous discussions.
The European Union’s Reaction
The E.U. has warned of its own countermeasures in response to increased U.S. tariffs. Early on, tensions flared when Trump threatened high tariffs on European goods. Though some discussions have occurred, the back-and-forth has left both sides guessing about the future.
An E.U. spokesperson remarked, “This decision adds further uncertainty to the global economy and increases costs for consumers and businesses.”
Challenges with Japan
Trade talks with Japan have also faced hurdles. U.S. tariffs on various goods have complicated negotiations. Japan’s economy minister, Ryosei Akazawa, articulated that removing these tariffs would be crucial for reaching an agreement. As both nations prepare for the upcoming Group of Seven summit, the pressure for progress remains high.
In summary, the path to new trade agreements for the U.S. is fraught with challenges. As experts suggest, the real work to build lasting international relationships takes time and trust.