The United States trade landscape is a stormy sea these days. President Donald Trump’s administration is still deep in the throes of a set of tense, complicated deals with international partners. Amid a backdrop of legal battles surrounding tariffs, Trump officials assert that they are nearing agreements on several key trade deals. The President’s policies, including significant tariff increases and accusations against China, have intensified a trade war that has reverberated through financial markets.
More recently, after raising steel import tariffs to 50% Trump has forced the European Union to announce retaliation measures. This latest act of aggression coincides with the administration’s accusations that China has broken promises on a tentative trade deal reached earlier this year. As tensions heat up, so too does speculation about an inevitable call between Trump and Chinese President Xi Jinping. A senior White House official suggested last week that these conversations would take place in the near-term.
Deputy Treasury Secretary Michael Faulkender gave NBIC members some glimpse into the administration’s strategy during a background briefing last week. He admitted, though, that the original intention was to have “90 deals in 90 days.” To date, they’ve only publicized one agreement with Britain. In the midst of that grim picture, Faulkender was optimistic about the progress that is occurring in trade talks.
“We want to see that we reach at least terms of an agreement prior to the expiration of that pause, as long as [trade partners] make progress and demonstrate goodwill, we will continue to make progress towards announcing those deals.” – Michael Faulkender
The administration has at least temporarily suspended reciprocal tariffs for 90 days for most of the U.S. trade partners imposed on the U.S. That pause is set to expire in early July. Faulkender emphasized the urgency of concluding as many trade discussions as possible before this deadline, stating, “As long as we continue to make progress, I think you’re going to see a lot more deals that are announced prior to that July 9 time frame.”
We’ve seen how Trump’s tariffs have exacerbated trade tensions with China. This has further hampered stock market performance and added to fears among investors. Administration doves have impressed upon the White House hawks that they will not push back the 90-day deadline for tariffs. They’re individually and collectively working intensely to get agreements finalized quickly.
To further complicate U.S.-China relations, last month under Trump’s order, the Secretary of State announced new restrictions on Chinese student visas. These measures come amid breakdowns in other areas of bilateral cooperation, including soaring U.S.-China trade tensions, exacerbating the stress on an already fraught relationship.
Faulkender sought to assure stakeholders that the administration is committed to transparency throughout the trade process. He stated, “We look to make announcements and bring some resolution, both to the American people and to markets, as quickly as we can.”