President Donald Trump’s bold initiative to forge multiple trade deals with some of the United States’ closest trading partners is starting to show signs of trouble as the 90-day pause on numerous country-specific tariffs approaches its end.
While some of these issues are self-inflicted, stemming from recent tariff threats against the European Union and increased duties on steel imports, new court rulings questioning the president’s authority to impose tariffs cast a shadow over the entire endeavor of reshaping U.S. trade relations.
Recently, Trump announced an intention to double steel and aluminum tariffs to 50%, following fresh accusations against China for breaches of a trade agreement reached in early May during discussions in Geneva.
In response to the new tariffs, the European Union signaled it was ready to implement countermeasures against U.S. goods, while China recently accused the U.S. of undermining the Geneva agreement by imposing export controls on computer chips.
The escalating trade tensions, although not unforeseen, are complicating negotiations. Former trade negotiators point out that achieving trade agreements typically takes months or even years, as many existing trade barriers serve specific purposes, such as protecting local industries or responding to previous U.S. tariffs.
“It’s going to be a long, drawn-out negotiation,” said Warren Maruyama, who previously worked on trade deals during the George W. Bush administration. “Realistically, foreign trade negotiators are seasoned professionals, leading to rigorous negotiations between countries with established trade practices.”
Recent spikes in tensions as Trump intensifies tariff threats may further complicate negotiations, making it challenging for U.S. officials to convey clear intentions or objectives to their counterparts.
“I think it’s going to be a challenge for many of our trading partners, who feel as if they are negotiating under pressure from an administration that lacks reliability,” stated Alex Jacquez, a former National Economic Council staffer.
Negotiating without a clear understanding of the U.S. offers or demands weakens incentives to reach agreements, Jacquez added.
Nevertheless, U.S. officials maintain that they are close to reaching additional trade agreements in the coming month. Reports indicate that the Trump administration is eager for countries to submit their best trade proposals, including offers to buy U.S. industrial and agricultural products, to expedite negotiations.
“Productive negotiations with many key trading partners continue at a rapid pace. It is in all parties’ interest to take stock of progress and assess any next steps,” an official from the trade representative’s office commented.
However, despite more than 60 days of negotiations, only one tentative agreement has surfaced— with the United Kingdom, and formalization remains pending. Additionally, Trump hinted that he might inform countries about new tariff rates after the 90-day pause instead of negotiating individually due to bandwidth limitations.
Here’s an overview of the current situation regarding key trading partners.
**China**
Last month, Trump announced a 90-day pause on the significant tariffs imposed on China, stemming from an agreement made during high-level U.S.-Chinese meetings to discuss and alleviate trade tensions.
However, the fragile truce began to unravel soon after, with Chinese officials accusing the U.S. of undermining their agreement by warning companies against using Chinese chips, specifically from Huawei Technologies. Chinese representatives labeled the guidance as “discriminatory” and “market distorting.”
Last week, Trump expressed frustration over China’s adherence to the deal, posting, “Everybody was happy! That is the good news!!! The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
U.S. Trade Representative Jamieson Greer indicated that Chinese negotiators were “slow rolling” the commitments made in Switzerland, particularly concerning the easing of non-tariff retaliatory measures, which include restrictions on shipments of rare earth metals.
Treasury Secretary Scott Bessent stated on Sunday that “What China is doing is holding back products essential for industrial supply chains in India and Europe. That is not what a reliable partner does.”
**European Union**
The ongoing tariff dispute between the U.S. and the E.U. has been escalating since Trump took office. The tension reached a head when Europe threatened to impose a hefty 50% tariff on American whiskey, while Trump retaliated with a potential 200% tariff on European wines.
Trump has consistently voiced that the E.U. has treated the United States unfairly, going as far as to suggest that the bloc was established to exploit the U.S.
Negotiations for a trade agreement commenced in April after Trump paused reciprocal tariffs of 20%. However, on May 23, the day officials from both sides were set to meet in Washington, Trump took to social media to threaten European goods with a 50% tariff, arguing that discussions were progressing too slowly.
Following a phone call with his E.U. counterpart, Trump postponed the tariffs until July 9, claiming a renewed sense of urgency on the part of the E.U. Greer praised the development, indicating that the E.U. clearly understands U.S. demands now.
Despite the apparent thawing of relations, Trump ultimately complicated talks again by declaring a hike in tariffs on steel and aluminum to 50%, which includes European imports.
The E.U. expressed concerns that this increase undermines ongoing efforts toward a negotiated settlement and that officials are readying countermeasures in response.
“This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic,” an E.U. spokesperson remarked.
**Japan**
Trade discussions between the United States and Japan have also seen obstacles, with at least four rounds of talks occurring recently without a formal agreement.
After the latest meeting, in which U.S. officials Bessent and Commerce Secretary Howard Lutnick engaged Japan’s economy minister, Ryosei Akazawa, discussions led Akazawa to posit that an agreement would be difficult to reach unless the U.S. was willing to reduce its significant tariffs, including a 10% tariff on all products and 25% tariffs on automobiles, steel, and aluminum.
“If that is not possible, then it will be difficult for us to agree to a deal,” Akazawa warned reporters following the meeting.
U.S. officials communicated the importance of addressing tariffs and non-tariff measures with Akazawa, emphasizing the need for increased investment and cooperation on issues of mutual concern.
Looking ahead, the two nations are scheduled to meet again before the Group of Seven summit set for June 15, an event both Trump and Japanese Prime Minister Shigeru Ishiba will attend.
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