Trade turbulence within Trump's chaotic trade diplomacy
In the world of global trade, August 2025 is shaping up to be a pivotal month. President Trump has been at the helm, steering a course that has left many trading partners in a state of flux.
Scott Bessent, the US Treasury secretary, has been put in charge of talks with China, but the fate of the truce in their trade war remains uncertain beyond August 12. Meanwhile, the White House's trade representative, Greer, and Trump's advisor Lutnick, have been approaching the negotiations with different strategies. Greer, as a seasoned trade negotiator, has been focusing on the technical aspects, while Lutnick brings some of Trump's transactional dealmaking energy to the table.
Brazil, a former ally of Trump, has found itself in a difficult position. The country was hit with an extra 40% levy due to its treatment of former right-wing president Jair Bolsonaro. On the other hand, Japan's negotiator, Ryosei Akazawa, was able to strike a deal after securing a 70-minute meeting with Trump in the Oval Office.
Many foreign capitals are now locked into higher tariff rates through their agreements with Washington, while others, such as Canada, are redoubling efforts to reduce the extra tariffs announced on Thursday. However, Canadian Prime Minister Mark Carney's attempts to reach Trump personally to seal a deal were unsuccessful, with his calls going unanswered and unreturned.
The approach of Trump's trade policies since April 2 has been a case study in volatility. Various tariffs have been imposed, paused, and escalated, causing uncertainty for many trading partners. Some countries stumbled at the last hurdle for reasons beyond their control. For instance, Taiwan had come close to clinching a deal with the US a month ago, but the White House delayed the process.
President Trump's comments seem designed to taunt US trading partners such as Canada, Taiwan, and India, who have been lobbying to avoid more Trump tariffs. Each time Lutnick presented Trump with a new Indian proposal, the president sent him back to negotiate harder. In an attempt to influence the president, India hired Jason Miller, a central Trump campaign adviser. However, convincing Trump that India is doing enough to open its markets to US exporters has proven to be a challenge.
In a bid to shift the global trading system to be more beneficial for American workers and their families, Trump's trade policies aim to reshape the global economic landscape. However, the lack of formal documentation and confirmation for some trade deals has caused confusion and concern among trading partners. For instance, the trade agreement with Vietnam, announced by Trump, has not been confirmed by Vietnam, and no supporting documents have been released by either side.
As the August 1 tariff deadline passed, higher tariffs were imposed on many countries that had not finalized deal terms with the U.S. Only a few countries, such as the UK and Vietnam, had trade agreements tied to exemptions or lower tariffs. The rest faced increases, often as high as 15-20% or more, starting August 1. Some tariffs, such as those imposed on semi-finished copper products and China-related tariffs, were announced but the final detailed trade arrangements were either absent or still in process.
In a surprising turn of events, European Commission president Ursula von der Leyen sealed a deal with the US by visiting Trump at his golf course in Scotland.
As the global trading landscape continues to evolve, one thing is clear: the Trump administration's trade policies are causing ripples far beyond US borders. The impact on the global economy remains to be seen, but one thing is certain - the world of trade is watching with bated breath.
- The fate of the truce in the US-China trade war remains uncertain beyond August 12, with Scott Bessent, the US Treasury secretary, leading the negotiations.
- Greer, the White House's trade representative, is focusing on the technical aspects of trade negotiations, while Trump's advisor Lutnick brings transactional dealmaking energy to the table.
- Various tariffs have been imposed, paused, and escalated under Trump's trade policies, causing uncertainty for trading partners and reshaping the global economic landscape.
- The European Commission president Ursula von der Leyen sealed a deal with the US by visiting Trump at his golf course in Scotland, demonstrating the global reach of the Trump administration's trade policies.
