Will looming tariffs shift the course of global trade talks?
As the August 1 deadline for new US tariffs looms, Treasury secretary Scott Bessent indicated on Monday that the Trump administration is prioritizing the “quality” of trade agreements over simply rushing to meet the impending date. This stance comes amidst ongoing, often fraught, negotiations with several key trading partners, including a looming discussion with China that is expected to delve into broader geopolitical issues beyond traditional trade.
Bessent, speaking from Washington, DC, articulated the administration’s position. “We’re not going to rush for the sake of doing deals,” he told CNBC. This sentiment suggests a willingness to allow tariffs to take effect on August 1 if satisfactory agreements are not reached.
Bessent further posited that “a higher tariff level will put more pressure on those countries to come with better agreements,” framing the potential tariffs as a negotiating tool rather than a final punitive measure. The decision to extend or implement these tariffs ultimately rests with US president Donald Trump, who has already postponed the country-specific tariff deadline multiple times since his initial April “Liberation Day” announcement.
Shifting focus in US-China talks
While trade relations with various nations remain complex, Bessent confirmed that talks with China are anticipated “in the very near future.” He described the current trade situation with Beijing as “in a good place,” suggesting a readiness to expand the scope of discussions. The Secretary also highlighted several “other things” that will be on the table.
Chief among these new points of contention is China’s continued purchase of “sanctioned Iranian oil, sanctioned Russian oil.” This indicates a potential shift in US trade policy, intertwining economic negotiations with broader national security and geopolitical concerns.
Bessent also reiterated long-standing US complaints about “this great rebalancing that the Chinese need to do,” referring to China’s alleged overcapacity in manufacturing sectors such as steel. He further suggested that Europe should consider implementing similar “secondary tariffs” on Russia if the US proceeds with such measures.
Impact on global trade
The US approach is clearly sending ripples across the globe. European Union diplomats are reportedly exploring a broader range of “counter-measures” against the US, including potential “anti-coercion” actions that could affect US services or public tenders. German chancellor Friedrich Merz noted the intensity of tariff negotiations, stating, “The Americans are quite clearly not willing to agree to a symmetrical tariff arrangement.”
Meanwhile, trade discussions with other nations continue, albeit with varying degrees of success, a report from Reuters noted. Japanese chief tariff negotiator Ryosei Akazawa returned to Washington for his eighth visit in three months, underscoring the urgency of talks. Conversely, Indian trade negotiators returned to New Delhi with diminishing hope of securing an interim trade deal before the August 1 deadline.
How do you think the looming US tariffs will reshape global economic relations? Share your insights in the comments below.
