Trump threatens countries who don’t negotiate ‘fair trade’ deals with tariffs

The United States negotiated a wide ranging trade deal with eleven Pacific rim countries in the Trans-Pacific Partnership Agreement.

Donald Trump withdrew the US as son as he became president. The eleven remaining countries went on to ratify the agreement without the US. Since then Trump has reconsidered – Trump Proposes Rejoining Trans-Pacific Partnership – but hasn’t done anything more than pontificate.

Trump has also attacked other trade agreements and trading arrangements, including with:

With all this chaos going on Trump has just issued another  threat:

Trump may succeed in bullying some countries into better deals for the US, but this ultimatum approach is not good for getting mutually beneficial and long lasting trade agreements.

And it is not good for international relations generally.

Playing the tough guy (except with Russia) may keep pleasing Trump’s dedicated base supporters,

And this is also having an impact on the US, with farm subsidies, already a major factor in trade issues, set to increase.

WSJ: Trump Administration to Offer About $12 Billion in Farm Aid to Ease Concerns Over Trade Disputes

The Trump administration on Tuesday is expected announce a plan to extend some $12 billion in emergency aid to farmers amid growing concerns that the U.S. agricultural sector could suffer from President Donald Trump’s escalating trade dispute with allies…

US agriculture has long been bolstered by subsidies and tariff protection – and still needs more aid to survive. Nuts.

WSJ: The Many Ways Trump’s Trade Disputes Are Affecting the Auto Industry

Auto-industry representatives are expected to argue during a U.S. Commerce Department hearing Thursday that President Donald Trump’s proposed tariffs on auto imports would cost jobs and increase car prices.

The White House in May asked the Commerce Department to investigate whether it could use a national-security law to impose tariffs of up to 25% on imported vehicles and car parts. Mr. Trump has argued trade barriers are needed to pressure manufacturers to build more goods in the U.S. and expand factory jobs.

WSJ editorial: Trump Rides a Harley—to Europe

Donald Trump’s trade war has been an abstraction for most Americans so far, but the retaliation has now begun in earnest and the casualties are starting to mount. The President’s beloved stock market took another header Monday on news of more restrictions on investment into the U.S., and the Dow Jones Industrial Average is now down for 2018.

The rest of the world can’t avoid being affected by Trump’s trade interventions and tariffs, but at least they can trade amongst each other. In the meantime Trump is isolating the US, and burning a lot of diplomatic and good faith bridges.

Trump’s trade chaos could get very messy, and not just with trade wars.

9 Comments

  1. David

     /  July 25, 2018

    If only we had the power to force the EU to actually trade fairly for once in its existence, it was set up as a protectionist block and they take forever to negotiate anything just look at the tortuous Canada deal.
    You could argue a case that the EU/Japan deal just signed and the start with a deal with us and others and the EU is a direct reaction to Trump tariffs and Brexit, either way we should come out winners after 2 decades of getting nowhere. Every cloud eh !

    • Gezza

       /  July 25, 2018

      Theresa – remember the colonies !

      • David

         /  July 25, 2018

        Mate she has no interest in us, she is a remainer and the worlds worst negotiator who after capitulating everything to Brussels without getting anything in return she has now appointed herself chief negotiator, her previous guy found out by text when he was in the middle of a select committee grilling.
        Most uninspiring leader the Poms have had since John Major.

  2. Patzcuaro

     /  July 25, 2018

    I want “fair trade” with tariffs if i dont get them YOU WILL SUFFER CONSEQUENCES THE LIKES OF WHICH FEW THROUGHOUT HISTORY HAVE EVER SUFFERED BEFORE. WE ARE NO LONGER A COUNTRY THAT WILL STAND FOR YOUR DEMENTED trade . BE CAUTIOUS!

  3. Patzcuaro

     /  July 25, 2018
  4. NOEL

     /  July 25, 2018

    Gotta chuckle over this one. Especially the feet dragging by pollies on threats to our steel industry.
    https://www.straitstimes.com/asia/east-asia/china-launches-probe-into-stainless-steel-imports-from-eu-japan-south-korea-indonesia

  5. Zedd

     /  July 25, 2018

    More ‘FAKE news’ from the #1 FAKE politician ! :/

  6. Trump keeps swinging all over the place on trade.

    • Gezza

       /  July 26, 2018

      Interesting though. That’s what Sir Alan reckons Trumpy’s Grand Master Plan has always been.