President Donald Trump cannot stop himself from contradicting himself with his own tariff plans.
He says he is on the path to cut back on some new trade deals in a few weeks, but suggests that it is “physically impossible” to hold all the necessary meetings.
Trump says he will simply set new tariff charges negotiated internally within the US government over the coming weeks, but he has already done it on April 2nd’s “liberation day,” which has trembled the global economy.
The Republican president says he is actively negotiating with the Chinese government on tariffs — while China and US Treasury Department’s Scott Bescent say talks have not yet begun.
What should you believe? The sure bet is that uncertainty persists in the way that employers and consumers expect to damage the economy as well, leaving foreign leaders scratching their heads in stump.
And the consequences of all this tariff confusion are enormous.
Trump has placed a total of 145% tariffs on China, leading China to retaliate with a 125% tariff in the US. Essentially, it sparked a trade war between the two largest economies of the world that could cause a recession.
President Donald Trump discussed Wednesday why he would place a 90-day suspension on country tariffs that did not retaliate against the US
Trump’s negotiation trade deals with himself
The president told Time Magazine in an interview released Friday that the next 20, 30, or 50% tariffs will be a “complete victory,” but financial market panic has led to baseline import taxes falling to 10% over 90 days while talks take place.
“This is the transaction I chose,” Trump said in an interview. “What I’m doing is to set fair prices for customs duties in various countries at some point in the not too distant future.”
If it’s confused for the country’s trading partners, it’s winging anxiety in the home as well.
The Federal Reserve Beige book is a compilation of anecdotes from US companies that prepare eight times a year, and reported on Wednesday that a huge surge in uncertainty for American companies has rebounded employment and investment in new projects. The word “uncertainty” rose 80 times, compared to 45 in early March and only 14 in January.
Beyond the idea that Trump plans to maintain some tariffs, the World Finance Minister and business executives who gathered in Washington last week for the International Monetary Fund Conference, said in private discussion that the Trump administration has not truly articulated the goals of substantive consultations.
“We are a scientist at the Geography and Economics Center,” said Josh Lipsky, senior director of the Atlantic Council’s Center for Geography and Economics. “My conversation with the ministers and governors at this week’s IMF meeting is that they don’t fully understand what the White House wants and who to negotiate with.”
Twelve states led by Arizona Attorney General Chris Mays and Oregon Attorney General Dan Rayfield have sued the Trump administration over global tariff policy.
Other countries you are trying to discuss
Switzerland President Karin Keller Sutter said in an interview with broadcaster SRF released Friday that after a meeting with Bescent, Switzerland will become one of the 15 countries where the US is planning to negotiate “privileged.” However, she said the memorandum must be reached for consultations to formally begin.
She said, “We’ve also been assigned a specific contact, which isn’t easy in the US administration,” and was pleased to know who to talk to at least.
The nation is implementing a variety of negotiation tactics.
A South Korean official who met his US counterpart this week said he specifically called for the lifting of tariffs with the goal of working towards an agreement by July. The European Union is pushing to reduce tariffs on both parties to zero, but Trump opposes European countries charging VAT.
Trump continues to radiate optimism that he negotiated a deal with other countries despite his lack of clarity about how the process will move forward.
“I’m doing very well with Japan,” Trump told reporters Friday. “We’re very close to the deal.”
As part of the contract with Japan, the Trump administration publicly called on the Japanese government to change automobile safety standards, which focuses on pedestrian safety. However, the steering wheel of cars sold in Japan is on the right side, while the US automaker places the steering wheel on the left side.
“I don’t think that left-hand drive vehicles are on sale in Japan,” Prime Minister Isba said during a parliamentary session this week.
“We want to make sure that it is not considered unfair,” Isba suggests the possibility of reviewing Japanese automobile safety standards.
Prices and shortages may be high
As Trump continues to make conflicting statements about tariffs, businesses are actively considering low prices for store sales, sales and, in some cases, bare shelves, as they are less shipping from China.
Ryan Petersen, CEO of supply chain company Flexport, said on social media site X:
Consumers are notifying retailers via email and social media that lamps, furniture and other household items include tariff-related fees.
Showerhead company Affina reported on Wednesday about testing to see if people would buy American-made products that cost more than imports. Their Chinese-made shower heads sell for $129, but to produce the same product domestically, they cost up to $239.
When a customer on the company’s website chose either a shower head made in the USA or a shower head made in Asia, there were 584 purchases of a $129 model made overseas, and there was not one sale of a shower head produced domestically.
Ramon Van Meer, founder of Affina, concluded in a written analysis: “If policymakers and critics want to rebuild the American industry, they need to tackle this truth. Idealism will not always survive contact with the price tag.”
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Washington State AP Economics Writer Christopher Al Gerber, Jamie Kiten of AP Writers Geneva and Yamaguchi of Tokyo contributed to this report.
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