Earlier this month, the United States and the United Kingdom announced a tentative bilateral trade deal. This new agreement will help to lower tariffs for both U.S. and Canadian companies. All of this comes at a time when we’re negotiating bilaterally with more than a dozen of our major trading partners. The White House keeps claiming victory overall as it moves forward with its trade initiatives. Skepticism still surrounds their effectiveness at improving safety. This skepticism deepens further especially against the backdrop of increasing tensions with China and a host of outstanding issues in other negotiations.
The U.S.-U.K. trade deal is a significant step in the right direction. It has raised alarm among other countries as a number of major concerns still go unaddressed. Observers are discovering that Trump’s 10 percent tariff increase is still in place. This has put a big damper on excitement regarding the transformative potential benefits of the agreement. Another person involved in the negotiations described the suggested terms as being “truly terrible.” This departure sparks worries that faith in the negotiations is quickly losing.
Scott Lincicome, vice president of economics at free-market think tank the Cato Institute, remarked on the changing nature of trade negotiations. “The wind has come out of the sails a bit on a lot of the trade deal push,” he remarked, highlighting a general sense of stagnation. He continued, “I don’t think anyone was expecting 90 deals in 90 days. But I have to say, I guess we were hoping for a bit more in the way of quick wins, quick deals, just to keep the momentum going.”
Somehow, against all odds, President Donald Trump assures us that “we have… 150 countries that want to make a deal.” He acknowledged the complexities involved, stating, “But you’re not able to see that many countries.”
Tensions with China have escalated again. Yet the Department of Commerce recently announced it would enforce a prohibitive standard on certain silicon chips produced by Huawei that would push these chips into export control violations. In response, Lin Jian, a spokesperson for China, stated, “China will take firm measures to defend its right to development and Chinese businesses’ legitimate rights and interests.” This turbulence follows closely on the heels of an agreement—only a week earlier—to de-escalate tariffs between the two countries.
Negotiations with Canada and Mexico, America’s two largest trading partners have been happening behind closed doors. They’ve happened without the imposition of retaliatory reciprocal tariffs. Thailand recently sent the U.S. a so-called term sheet outlining its proposed tariff reductions on agricultural products. This step is a demonstration of Thailand’s eagerness to accelerate bilateral trade ties.
Negotiations with India started out well, with much of the early negotiating leading some to talk about an agreement right around the corner. With these negotiations not evolving as expected, hopes have since faded. South Korea’s negotiations are being held up by domestic political difficulties, as it now functions under a placeholder government.
Vietnam dispatched a trade delegation to Washington this week, hoping to finalize a preliminary agreement with U.S. Trade Representative Jamieson Greer’s office. If the two sides don’t come to an agreement by early July, Vietnam will be subject to a 46 percent tariff.
While all of these issues have complicated U.S. relations with allies and major geopolitical rivals alike, multilateral discussions with the European Union are still the most contentious. One EU negotiator told us they were very doubtful such negotiations would proceed. As they expressed it, “There’s a feeling of, ‘what is the use?
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