The Trump administration is currently engaged in trade negotiations with select allies while leaving many nations affected by tariffs in uncertainty. The administration is on a very ambitious 90-day discussion schedule with more than 70 countries, so sign the administration up for a daunting task. At first, they’ll turn their attention to Asian countries linked to China to address issues with high-volume illegal exports.
On Thursday, Vietnam opened formal discussions to remove the tariffs on either side. This agreement is a big step toward improving trade relations. At the same time, Japan has shown a willingness to address non-tariff barriers, showing a willingness to negotiate on all fronts. There’s still a great deal of uncertainty among countries as to just what the administration expects or hopes for.
As one unhappy diplomat from an Asian country put it, “We have no idea what the Trump administration is looking for. That too is the sentiment of other key officials who believe communication from Washington has been sorely absent.
Despite the administration’s incredible outreach and good intentions, their approach raised enough alarm that some folks questioned their capacity to close deals. The self-imposed deadline for the reciprocal tariffs is rushing toward us. Earlier this week, Republicans’ worst nightmare, Trump, got the jump on us all and temporarily. The worst thing is that the 10 percent levy on all countries hasn’t been removed since April 2. South Korea’s trade envoy Cheong In-kyo met with U.S. Trade Representative Jamieson Greer to discuss the impact of the 25 percent tariff on imports from Seoul.
As negotiations continue, the administration is laying down a marker. Specifically, they’re looking to reduce the barriers restricting U.S. agricultural exports, particularly to our allies such as Australia, Israel and the European Union. Furthermore, Israel just unilaterally agreed to remove all its tariffs on U.S. goods. Yet, the U.S. sent strong signals that this concession would not lead to an early deal.
A Latin American diplomat commented on the overall situation, saying, “We’re out from the worst of it,” suggesting a glimmer of hope amid the uncertainty. Yet, the challenges remain formidable.
William Reinsch, a former senior U.S. trade official, raised the dangers of conceding too much. Allied nations should be especially cautious as they enter these negotiations. As one North American diplomat observed, “It does not appear that the baseline 10 percent is very flexible. This short comment illustrates the concerns about ambiguity and the need for flexibility in tariffs.
We haven’t heard very much from the White House on these ongoing negotiations. It has not committed to extending the pause on tariffs in the absence of deals. As countries await clarity on their roles in the negotiations, the situation continues to evolve, underscoring the complexities involved in Trump’s trade strategy.
Leave a Reply