President Donald Trump’s ambitious plan has begun to develop plans to mediate dozens of trade contracts with some of the closest US trading partners.
Some cracks are self-harm, like the recent threat of tariffs on the European Union and the higher obligation to steel imports, but the new court ruling questioning the president’s authority to acquire tariffs now rests on his push to reset US trade ties.
On Friday, Trump announced plans to double steel and aluminum tariffs to 50%. It follows new accusations against China that the two countries had violated a handshake agreement they attacked in early May during talks in Geneva.
Over the weekend, the EU responded to steel and aluminum tariffs by warning that it was preparing to take measures against US goods. Meanwhile, China announced its own accusations against the US over the weekend, claiming it had undermined the Geneva agreement by imposing new export controls on computer chips.
Despite Trump’s ambitious timeline and optimistic rhetoric from White House officials, increasing discrepancies with trade are not unexpected, former trade negotiators said. It usually takes months, if not years, for the United States to resolve trade agreements with other countries. Many of the remaining trade barriers for US goods are for reasons such as protecting major local industries within the country, or by addressing other barriers the US has placed to protect its own products.
“It’s going to be a long, drawn out negotiation,” said Warren Mulyama, who worked on the trade agreement as an adviser to the US Trade Representative during the George W. Bush administration. “I hope your trading partner is stupid and agrees to a bad deal. But most foreign trade negotiators are very good, and are usually rather cruel head-to-head negotiations between two sophisticated countries that have been trading for decades.”
The rising tensions Trump has injected in recent weeks may add to the complexity our officials face when they are across from their foreign counterparts.
“The National Economic Council” was a part of the Biden administration, and said:
“You’re just negotiating with a climate where your counterpart doesn’t know what you want at the end of the day, or you’re trying to do tentatively,” Jack said. “And if you’re just being slammed to do so, there’s not much incentive to come to the table.”
Still, US officials say they are approaching further transactions next month. Reuters said the Trump administration reported by Wednesday that it hoped countries would submit their best trade proposals, including offers to buy US industrial and agricultural supplies, to speed up along the negotiations, Reuters reviewed.
“Productive negotiations with many key trading partners continue at a rapid pace. In the interests of all parties, we may grasp progress and assess the next steps,” an official at the office of the trade representative said in the report.
Still, 60 days later, we reached a temporary trade agreement with the UK, but it is not official yet. And last month, Trump proposed that after a 90-day suspension, he could send letters to most countries informing them of tariff rates.
This is the situation right now.
China
Last month, Trump said he had suspended the massive tariffs imposed on China since April for 90 days.
The victim’s crack began to appear just a week after the tariffs suspend. Chinese officials accused the US of undermining the trade ceasefire they reached after the US Commerce Department warned companies about the use of Chinese chips, including Chinese chips by chipmaker Huawei Technologies. Chinese officials said the guidance was “discriminatory” and “market distortion.”
Last week, Trump posted on social media, accusing China of not having an end to the armistice. “Everyone was happy! That was good news! The good news is that for those who probably aren’t surprised, it’s a complete violation of our agreement.
US trade representative Jamieson Greer said in an interview with CNBC last week that the Chinese had “slowly rolled” contracts to rewind measures to retaliate against incriminating measures introduced by Chinese people, such as restrictions on rare earth metal shipments.
Treasury Secretary Scott Bescent said Sunday on CBS’s “Face the Nation.”
european union
The US and the EU are under tariffs shortly after Trump’s second term began. At one point, it threatens that Europe is threatening 50% tariffs on American whiskey and Trump, and threatens 200% tariffs on European wine. Trump has treated the United States “very badly” for years and has accused the EU of being created to “use” the United States.
Both sides began negotiations on a trade deal in April after Trump suspended so-called mutual tariffs by 20%. However, on May 23, the day US and European trade officials were scheduled to meet in Washington, Trump threatened social media on social media to collect 50% tariffs on European goods. He declared, “It’s time to play the game the way you play it.”
A few days later, Trump betrayed the threat and delayed tariffs until July 9th after a call with the EU response. Greer characterized the move as having “fire lighting” under the EU, saying he knows “just what we want.”
But when things seemed to be back on track, Trump threw another wrench into the lecture. At an event at the steel factory on Friday, he said tariffs on steel and aluminum from Europe would increase.
The EU said higher tariffs on steel “undermine continued efforts to reach a negotiated solution,” and the authorities are preparing to impose their own measures.
“The decision adds additional uncertainty to the global economy and increases the costs of consumers and businesses on both sides of the Atlantic,” an EU spokesman told NBC News.
Japan
The US and Japan have experienced at least four rounds of trade talks in recent months without settling any agreement. At the most recent meeting, Bescent and Secretary of Commerce Howard Lutnick met with Japanese Economic Minister Rhosie Akazawa for just over two hours last week.
Akazawa then said it would be difficult for the two parties to reach an agreement, with the US willing to remove Trump’s tariffs.
“If that’s not possible, it would be difficult for us to agree to the deal,” Akazawa told reporters after the meeting.
A US official said, “The importance of Minister Akisawa working on tariffs and non-tariff measures, working together to address issues of increased investment, economic security and other mutual concerns.”
Both sides said they will meet again before the group of seven summits starting June 15th.