US President Donald Trump has hinted at a “major trade deal” that he plans to announce in an upcoming news conference scheduled for 10:00 AM in Washington D.C. This announcement comes as the administration is reportedly deep in negotiations with a handful of countries. In particular, they’re looking to Japan, South Korea, and Vietnam to set up new bilateral trade pacts.
Taking office, President Trump has unilaterally imposed tariffs on at least 30 of America’s trading partners. His intent, he says, is to shield American industries from predatory practices. The tariffs have turned traditional trade dynamics upside down. The United Kingdom is being slammed as well, with a 25% US import tax on steel, aluminum, and cars. This punitive measure was announced on April 2nd and has led to increased tensions between the US and its trading allies.
On July 31, the President announced a 90-day pause on the existing tariffs. This recess will provide more opportunity to negotiate. He also stayed true to his 10% global tariff (now including the UK) — a sign that the alarm bells about trade imbalances are still ringing. The administration wants to negotiate new agreements that would, in theory, replace some or all of these tariffs with better trading conditions.
According to US media sources, the expected trade deal would exclude the UK. This country is making a concerted effort to improve its trade partnership with the United States in the wake of Brexit. Signing a deal with such a large and highly influential nation would have the potential to transform global trade relations. Such a move would likely result in lower tariffs.
And the continuing negotiations with Japan, South Korea, and Vietnam are a sure signal that this administration is serious about opening new doors for US trade. In different ways, each of these countries offers immense challenges and opportunities for American exporters and industries alike. By seeking out new agreements through the Trade Promotion Authority, the administration hopes to spur economic growth and create jobs at home.
As the expected news conference draws near, excitement grows about the precise outline of the proposed 11-nation trade pact. Observers are eager to know how the agreement will influence future US relations with its trading partners.