Former President Donald Trump recently stated that there are “200 deals” between various countries and companies that are expected to be announced in the coming weeks. He said this immediately after walking back to resume his hard-line messaging on tariffs and trade deals. His area of expertise is specifically on China and Japan. The announcements follow a dinner meeting between Trump and Chinese President Xi Jinping, where both leaders engaged with officials from their respective nations.
As his presidency winds down, Trump has been mired in an ongoing and troublesome trade war status quo with China. He had already slapped punishing 145 percent import tariffs on Chinese products. In response, Beijing struck back with retaliatory tariffs of 125 percent on U.S. goods. Despite these tensions, Trump sounded hopeful on the potential for negotiations, especially noting that he was very close to finalizing a deal with Japan.
Beijing has strongly disputed claims that talks are still happening. Trump asserted that Xi Jinping called him personally to discuss negotiations on the tariffs. China flatly denied this within hours, claiming that no talks were taking place.
Ongoing Trade Dynamics
The economic factors driving trade dynamics between the United States and China have been contentious at best. Administration officials said that Trump hopes to conclude 200 such tariff deals in the coming three- to four-week period. Many remain unconvinced that these agreements will materialize. In his search for investment, he referred to the U.S. as a “giant, beautiful store.” This short phrase underscored what his administration intends to do with tariffs and trade prices.
“And on behalf of the American people, I own the store, and I set prices, and I’ll say, if you want to shop here, this is what you have to pay.” – Donald Trump
Trump’s strong stance on tariffs aligns with his broader economic strategy aimed at recalibrating trade imbalances that he argues have historically favored other nations at the expense of American interests. He pointed out that many countries have profited significantly from trade with the U.S., asserting that “some of them have made hundreds of billions of dollars.”
In addition to China, Trump has been actively engaging with officials from Japan, India, South Korea, the European Union, Canada, and Mexico. This is the right approach as his administration continues to look for ways to support positive trade agreements, which is a key element of his overall economic agenda.
Japan’s Role in Trade Negotiations
During a recent meeting with Japan’s Economic Revitalization Minister Ryosei Akazawa, Trump expressed confidence in reaching a favorable agreement shortly. He highlighted the importance of Japan as a trading partner. In turn, he emphasized big deal opportunities that could shore up the bilateral economic relationship between the two countries.
Despite ongoing negotiations, Trump has given little indication that he plans to reduce the baseline 10 percent tariff imposed on various imports. His current approach is a continuation of his earlier rhetoric towards using tariffs as negotiating leverage.
“So I will set a price, and when I set the price, and I will set it fairly according to the statistics, and according to everything else.” – Donald Trump
The U.S.-Japan dialogue engages in this grassroots work and more, stabilizing relations between the two countries. It addresses the growing trade deficits that Trump railed about often himself. Mr. Trump intends to use these discussions with other major economic players to recalibrate the global economy to serve America’s interests first and foremost.
China’s Response to Tariff Policies
In retaliation to Trump’s tariffs, China retaliated by secretly exempting some U.S. goods from its high import tariffs. This action further demonstrates China’s attempt to reduce tensions amid a growingly complex and non-transparent trade landscape. As for those Chinese tariffs, Chinese officials insist that they are not talking about them actively right now with the U.S.
In fact, the anti-diplomacy flap created by Trump’s claim to an imminent “liberation day” was particularly notable in escalating tensions even further between him and Xi Jinping. Critics counter that these types of statements would make important diplomatic efforts more difficult and highlight the tenuous state of U.S.-China relations.
“Very few of them have made nothing because the United States was being ripped off by every, almost every country in the world.” – Donald Trump
As both nations proceed through this convoluted maze of tariffs and agreements, it’s anyone’s guess what the final outcome will be. Even so, Trump’s promise to complete a number of international agreements reaffirms his willingness to change the course of economic relations, both here and abroad.
