US President Donald Trump has escalated tensions with other countries through a series of tariffs, leaving many wondering if he will ever relent in his trade war efforts. The liberalized global trade order is being dismantled, and new deals are being negotiated at an alarming rate.
Trump has shown a willingness to renegotiate even previously agreed-upon trade accords, including the US-Mexico-Canada Agreement. This move has sent shockwaves through the business community, with many Fortune 500 companies in Nebraska losing business in Canada due to higher tariffs.
Despite initial hopes that the agreement would fortify the bargaining position of its signatories, Trump’s tariffs on steel and aluminum have lumped Mexico and Canada into the conflict. Similar tensions are brewing between the US and Japan, South Korea, and the European Union, particularly over a $600 billion investment fund.
While many foreign governments have chosen not to retaliate with their own tariffs, some countries like China have imposed retaliatory measures. The situation remains uncertain, with a legal challenge to Trump’s unilateral authority on tariffs casting doubt on the long-term impact of his trade policies.
Trade expert Brad Setser notes that “most trading partners recognize that any deal is temporary and can be renegotiated by Trump.” However, this uncertainty has left many wondering if Trump will ever pull back from his aggressive trade stance, or if a ‘forever war’ in trade will become the new normal.
Source: https://qz.com/trump-forever-war-trade-tariffs