The president’s threats of tariffs have brought countries like Japan, South Korea and India rushing to negotiate, but they have sown chaos with bigger trading partners like China.According to The New York Times, President Trump’s threats of tariffs have prompted countries like Japan, South Korea, and India to rush to the negotiating table, but have also caused chaos with larger trading partners like China. As the self-proclaimed ultimate deal maker, the next 11 weeks will be a crucial test for the president and his team as they attempt to achieve something no other administration has done before: reach numerous individual trade deals with other governments.
President Trump has promised significant gains for American trade, and officials from Japan, South Korea, India, and other countries have been eager to strike deals in order to avoid facing harsh tariffs. However, experts in trade say that the administration has set an almost impossible task for itself, as traditional trade deals typically take months or even years to negotiate.
In an attempt to use tariffs as leverage, Mr. Trump’s trade adviser, Peter Navarro, has promised “90 deals in 90 days.” However, the implementation of these tariffs has caused chaos and financial hardship for many businesses, and has not been successful in bringing some of America’s largest trading partners, such as China, to the negotiating table.
The trade war between the US and China has resulted in a standstill in trade between the two countries, with both imposing high tariffs on each other’s products. This has led to concerns about a potential wave of bankruptcies, particularly among small US businesses that rely on Chinese imports, if the trade barriers remain in place.
Some officials in the Trump administration have acknowledged that the current situation with China is not sustainable and have been discussing ways to reduce the tariffs between the two countries, according to sources familiar with the discussions. Additionally, there are concerns about the impact on the stock market, which has experienced significant volatility and some of its worst trading days in years. Since President Trump’s inauguration on January 20th, the S&P 500 has dropped by 10%.
On Tuesday, President Trump hinted that the 145% tariff on Chinese imports could be lowered. “It won’t be anywhere near that high,” he said. “It’ll come down substantially. But it won’t be zero.”
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