Demands, deals, and legal chaos unleashed in Trump's high-stakes trade war
INTERNATIONAL: The Trump administration is assertive in its endeavors to secure a series of global trade contracts, giving negotiating allies just days to submit their best pitches.
According to an exclusive story from Reuters, the United States Trade Representative (USTR) has scheduled Wednesday as the target date for trade partners to submit excellent proposals, indicating the government's resolve to complete discussions within five weeks, just ahead of a chosen July 8 deadline.
The letter requests comprehensive offers encompassing tariffs, quotas, digital trade, economic security commitments, and the elimination of non-tariff barriers. President Trump provisionally halted his contentious 'Liberation Day' tariffs in April after they prompted market chaos, marking the start of a tumultuous chapter in trade negotiations aimed at reshaping U.S. economic ties.
Officials from the White House, including economic consultant Kevin Hassett, have upheld that agreements are close; however, only the United Kingdom has inked an initial outline, instead of a settled treaty. A race against time and legal uncertainty
The demand to fast-track the trade conferences comes amid legal indecision over Trump's all-encompassing tariff package. Just last week, the U.S. Court of International Trade ruled that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), the legal foundation for many of his tariffs, including those on China, Canada, and Mexico. The ruling directly contests the government's defense and explanation for its economic actions; nonetheless, an appeals court has temporarily halted the pronouncement.
In response, the draft letter warns negotiating nations not to think that these tariffs will be invalidated. It claims that even if the IEEPA is knocked down, the government is willing and equipped to use 'other robust legal authorities' to sustain its tariff agenda. The message is clear—Trump's trade guidelines will remain. Mixed global reaction as U.S. seeks a 'win-win' outcome
Responses from trade specialists and industry groups have been guardedly hopeful. Tiffany Smith, Vice President of Global Trade Policy at the National Foreign Trade Council, commended the ambition for swift advancement, stating, 'We are encouraged that USTR is moving negotiations ahead as quickly as they can.' Smith further said that those deals that reject barriers and reinstate predictability could benefit both U.S. industries and global allies.
Thus far, the speeding consultations are also unfolding against an unpredictable environment for investors. U.S. stock markets have bounced back since their April slump, but Friday's unforeseen tariff increase on steel and aluminum imports, announced during a Pittsburgh event, served as a reminder to markets that Trump's trade approach remains erratic and impulsive. See also Donald Trump Jr's girlfriend coronavirus positive
As Trump doubles down on his 'America First' trade schema, the next few weeks could shape his legacy on the global market and establish the extent of U.S. influence on the international stage.
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