The Trump administration is seeking bilateral deals with numerous countries to avoid imposing large-scale tariffs. These deals are expected to include demands for increased purchases of American natural gas, reduced tariffs on US exports, lower taxes on tech companies, and measures to prevent China from using other nations to circumvent US tariffs.
There's considerable uncertainty surrounding the specifics of these deals, even amongst Trump's advisors. While Trump emphasizes reducing the US trade deficit, economists criticize this approach, and the administration's objectives remain unclear. Inconsistencies exist, such as the criticism of a BMW investment in a South Carolina factory, which seemingly contradicts Trump's stated goals of promoting American manufacturing.
The lack of clarity hinders negotiations. Foreign diplomats struggle to identify appropriate interlocutors within the administration, leading to delays and confusion. The initial responses from the White House have been slow, adding to the challenges.
Trade experts question whether industry-specific deals will significantly improve American manufacturing. Financial market volatility and the potential for foreign countermeasures, including the dumping of US Treasury holdings, could weaken the US negotiating position. The ultimate success of these negotiations will depend on whether the deals focus on meaningful trade rebalancing or simply benefit specific US companies.