Since taking office, US President Donald Trump has been on a tear to set US trade relations with major partners back by using the way of steep tariffs. Nevertheless, despite these measures, not a single new trade agreement has been concluded to date. Looking at where we are today, recent dialogue with South Korea is encouraging, especially on initiatives to reduce tariff threats.
No wonder top executives from leading American companies are sounding alarm bells. They are worried about what these tariffs have done to their business and the economy as a whole. Most recently, David Weinberg, the chief operating officer of Skechers, addressed how damaging these tariffs have been to his company. In the process, Skechers pulled its outlook for the year ahead and its stock plunged. Skechers cut its full-year sales growth outlook, saying it would be weaker than previously expected.
Meanwhile, in Washington D.C., trade talks between US and South Korean officials are allegedly yielding fruitful results. At the close of these bilateral discussions, US Treasury Secretary Scott Bessent reported that the meetings had been “very successful.” South Korea’s industry minister, Ahn Duk-geun, expressed his high hopes. He announced that all parties are now engaged in negotiations aimed at a “July package” to address user fees and other tariff concerns.
Tariffs are remaking the entire trade infrastructure. Now, executives from government, nonprofit and private sectors are telling us how they’re adapting to thrive in this new world. Andre Schulten, the fiscal head of Procter & Gamble, recently underscored just how far the company will go to maintain inflated consumer prices. This decision can be viewed as a reaction to today’s adverse tariff climate. Meanwhile, Intel’s CFO, David Zinsner, cautioned that “the very fluid trade policies in the US and beyond, as well as regulatory risks, have increased the chance of an economic slowdown with the probability of a recession growing.”
According to Trump, over 70 countries have contacted his administration to start negotiations after tariffs were announced. A 90-day moratorium on the new, higher tariffs, impacting several dozen countries, is set to expire July 8. This recent expiration threatens to ratchet up tensions even more.
With more trade negotiations ongoing, it is still unclear how quickly and efficiently these issues will be addressed. Today’s continued discussion with South Korea is a sign that hope remains alive to lessen the tariff shackles. The larger repercussions for the economy overall, and for specific industries, have yet to be determined.