Foreign leaders seek more favorable tariff arrangements as Trump welcomes customized trade agreements
Rewritten Article:
Foreign delegations from Japan, South Korea, and Italy are heading to Washington. The Prime Minister of Italy is scheduled to meet with U.S. officials next week. The White House indicates that Israel's proactive approach to trade agreements could serve as a model for others, given its focus on establishing new agreements with the U.S.
Ahead of President Donald Trump's new global tariffs, the White House made it clear Tuesday that the door for new trade negotiations was open, even though the specific formula for winning relief from the duties remained unclear.
As countries wrestle with Trump's latest tariff announcements, they're being advised by U.S. diplomats and White House sources to think beyond trade and examine creative strategies as they prepare to negotiate with the White House. Essentially, they're being encouraged to play their unique cards in the negotiation game.
Brainstorming sessions have revealed an array of potential strategies, such as securing the release of Americans wrongfully detained abroad, investing in U.S. artificial intelligence companies, purchasing more U.S. energy, or combating global drug trafficking.
After days of conflicting signals regarding Trump's willingness to negotiate tariff relief, Tuesday's message was clear: Trump is ready for opening bids.
White House Press Secretary Karoline Leavitt stated midday that the phones had been ringing non-stop, with foreign leaders eager to talk to the administration about striking deals.
Not only are foreign leaders reaching out, but the CEOs of large multinational companies have also been contacting White House staff, such as Chief of Staff Susie Wiles, Vice President J.D. Vance, and Treasury Secretary Janet Yellen, to express concerns over the tariff policy's potential harm to the global economy and the credibility of American business and government.
Trump endorsed the shift toward more deal-making following his frustration with Commerce Secretary Howard Lutnick's TV appearances, which seemed to exacerbate the financial markets' downturn. The shift also occurred after advisors warned Trump that the market damage might endanger him politically.
In its campaign for new trade agreements, the White House seems prepared to consider a broad range of issues, extending beyond tariffs and trade barriers to topics such as US military presence, foreign aid, and national security.
White House officials have stated that the contours of new trade deals are likely to be broader than expected, given the Trump administration's approach of "one-stop shopping" – using the threat of crippling tariffs as leverage on any issue arising between the United States and its partners.
In some cases, the White House is collaborating with the State Department on preparing lists of potential actions that countries could take, such as halting the production of fentanyl precursor chemicals in China, which could aid global efforts to curb the drug war, an issue that Trump has prioritized.
However, offers completely devoid of trade or tariff action are unlikely to generate movement, as Trump himself has stated that this is the "only chance" for the U.S. to "re-set the table" on trade. Nevertheless, offers that couple action on trade with other incentives could be effective in reaching agreements.
Trump's advisers hope to demonstrate the success of his tariff strategy soon, as it has raised concerns among allies and created turmoil in global markets. Trump eagerly awaits the calls from world leaders seeking to negotiate tariff relief, relishing his role as the ultimate decider on the terms of each deal.
"I call them tailored, not off the rack," Trump said of the agreements his team is now considering with several countries that have reached out to discuss trade.
The logistics of arranging dozens of new trade agreements do not seem lost on the president, who joked about potentially enlisting lawyers from large law firms he has targeted for retribution to assist him in drafting the agreements.
Given the large number of countries seeking to discuss trade with the U.S., there appears to be little hope for an eleventh-hour cancellation of the new tariffs, set to take effect at midnight. Despite Trump and his team's eagerness to secure new agreements that can be presented as evidence of the tariffs' success, advisors have expressed doubt that these agreements can be reached in such a short period of time.
China, in particular, has been a tougher case, as the world's second-largest economy seems hesitant to engage in negotiations. Despite Trump's tweet that China wants to make a deal "badly" and that they'll talk soon, no agreements had been reached as the markets closed on Tuesday.
Trump acknowledged the impact his tariffs were having on global stability in his remarks on Tuesday. "Sometimes you have to mix it up a little bit," he said, describing his tariffs as "like a wildfire." Just this week, the market has fluctuated based on the conflicting messages emerging from the administration.
On Sunday, Commerce Secretary Howard Lutnick suggested that Trump would not reverse, pause, or dilute his tariffs. This stance provoked significant losses in global markets, positioning U.S. markets to open at levels representing a 20% drop from all-time highs reached in mid-February, the fastest drop of that magnitude in history.
Markets experienced a slight rebound on Monday when National Economic Council Director Kevin Hassett side-stepped a question over whether Trump would consider a 90-day pause, leading to false interpretations that Trump was open to such a move.
By Tuesday, Treasury Secretary Janet Yellen was at the forefront, attempting to reset the White House's message that the tariffs were a means to an end in trade negotiations. However, some countries report receiving mixed messages from different corners of the administration, potentially complicating the negotiation process.
- In light of the new tariffs, foreign delegations are encouraged to brainstorm creative strategies beyond trade, such as securing the release of Americans wrongfully detained abroad, investing in US artificial intelligence companies, or combating global drug trafficking, as they prepare to negotiate with the White House.
- The White House supports a broad range of issues in its campaign for new trade agreements, extending beyond tariffs and trade barriers to topics such as US military presence, foreign aid, and national security. Offers that couple action on trade with other incentives could be effective in reaching agreements, according to White House officials.
- Trump's advisors are hopeful that the tariff strategy will demonstrate success soon, as it has raised concerns among allies and created turmoil in global markets. China, in particular, has been a tougher case, and despite Trump's optimistic tweets about an impending deal, no agreements had been reached as the markets closed on Tuesday.
