Table of Contents
Toggle
Trump Confident in Completing China-U.S. Negotiations
President Trump recently stated that he no longer wishes to increase tariffs on Chinese goods and claimed that China is eager to negotiate with the United States. He expressed confidence in reaching a “very good” trade agreement with China, indicating a potential atmosphere for both sides to conclude the trade war. However, China has yet to respond clearly to this assertion, and experts generally believe that China may hold more leverage in these negotiations and can withstand economic pressure for a longer period.
Since “Liberation Day,” Trump has gradually raised tariffs on Chinese goods, which could reach a maximum of 245% by 2025. In response, China has imposed tariffs of up to 125% on American goods and restricted rare earth exports, posing challenges to the U.S. high-tech industry.
Initial U.S.-Japan Trade Talks Underway
In trade negotiations with Japan, President Trump held his first face-to-face meeting with Japan’s Minister of Economic Revitalization, Ryu Matsumoto. During a press interview, Matsumoto did not disclose many details but stated that both sides have agreed to hold a second meeting later this month, while Trump remarked that reaching an agreement with Japan is a “top priority.” Although Japan initially hoped to confine the negotiations to trade and investment, Trump appears intent on expanding the discussions to include the sharing of defense costs for U.S. troops stationed in Japan.
Currently, the U.S. imposes a 10% basic tariff on Japanese goods and a 25% tariff on products such as automobiles. Japan hopes to exchange increased investment in the U.S., such as participation in Alaska’s gas project, for tariff reductions. However, significant differences remain between the two sides on sensitive issues like agriculture and automobiles, and negotiations are expected to continue.
Significant Trade Uncertainty
Trump’s tariff policies have impacted global markets, particularly in the technology sector. For example, new restrictions imposed by the U.S. on chip manufacturer Nvidia led to a significant drop in its stock price, contributing to an overall decline in the tech stock market.
Although the Trump administration has expressed a desire to reach trade agreements with various countries within 90 days, experts believe that such a timeframe may lead to agreements lacking sufficient detail and unable to address fundamental trade issues.
Overall, the Trump administration has shown a proactive attitude in trade negotiations with both China and Japan, attempting to achieve agreements favorable to the U.S. However, significant differences remain in several key areas, and future negotiation progress will require close attention.