The 90-day period for negotiating trade deals has elapsed, yet President Trump has only managed to finalize two interim agreements: one with Vietnam and another with the United Kingdom. The specifics of these deals have not been fully established or negotiated. A supposed third agreement with China is more of a temporary pause in the ongoing disputes over tariffs, export controls, and sanctions, reverting to the situation present in early April.
As the end of July approaches, countries like the EU, Canada, Japan, and Mexico are still pushing to secure trade agreements, following indications of their impending tariff levels that could take effect by August. Even if a few agreements are achieved by the deadline, they are expected to lack substantial details.
While President Trump touts himself as a master dealmaker, he primarily operates as a “tariff man.” Despite previous deadlines being extended, he has raised tariffs on imports to levels not seen in nearly a century. Trump perceives tariffs as a means to generate revenue, which is reflected in his firm stance on a 10 percent “reciprocal tariff” across all trading partners.
Moreover, he believes that international competitors are undermining American jobs and manufacturing. His sector-specific tariffs on various goods, including automobiles and steel, aim to bolster U.S. production capabilities and are likely to remain in effect. Trump also views tariffs as a strategy to address and potentially eliminate bilateral trade deficits, which he sees as detrimental. This perspective reflects his belief that trade surpluses are victories, reinforcing his self-image as a successful negotiator.
The complexity of global trade dynamics requires nuanced negotiation, but Trump’s approach underscores a significant shift in U.S. trade policy, focusing on tariffs as primary tools rather than traditional negotiated agreements. This raises questions about the long-term economic implications for the U.S. and its trading partners, revealing a new landscape in international commerce that demands adaptation from all involved.