The Trump administration has extended its deadline for trade deals with other countries to August 1, after initially promising to finalize “90 deals in 90 days”. The move comes amid criticism that the administration’s tariff policies are hurting the US economy and sparking trade tensions with other nations.
Key Points
– Trade Deal Progress Slow: Despite promises of swift action, few trade deals have been finalized, with some predicting fewer than nine deals will be done by the original deadline of July 9.
– Tariff Policies Criticized: The administration’s tariff policies have been met with resistance from other countries, including Japan and South Korea, which have been singled out for trade deal blowouts.
– Global Trade Impact: The value of the US dollar has declined 10% this year against other currencies, and trade numbers are shifting, with Chinese exports to the US falling 9.7% while shipments to other countries increase.
– Tariff Revenues Rise: Revenues from tariffs are pouring into the US Treasury, with record receipts in May, as the US builds a “tariff wall” around itself.
– Global Trade Shifts: Other countries are adapting to the new trade landscape, with the UK and India, and the EU and Canada, recently signing economic deals.
International Reaction
Other nations are pushing back against the US’s trade policies, with Japan’s finance minister hinting at using its ownership of US government debt as leverage. The Trump administration’s inability to strike deals has been highlighted, with many seeing the extension as a sign of weakness.
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