AA Edit | Trump’s Tariffs: What’s Next?
The postponement of the high tariff also shows that Mr Trump, for all his defiant posturing, has shown a keen eye for political optics, especially in an election year.
United States President Donald Trump’s decision to delay the imposition of higher trade tariffs on countries with trade surpluses against his country, from July 9 to August 1, has surprised both his supporters and critics. It has also cemented the general perception that he is unpredictable. The move, ostensibly to allow “more room for negotiations”, raises several questions about the intent behind Mr Trump’s tough trade talk — and whether it’s more bark than bite.
This isn’t the first time Mr Trump has blinked. He was also famously given the epithet “TACO” or Trump Always Chickens Out, which suggests his frequent on-again and off-again policies on trade. His response to China’s rare earth minerals embargo was less resolute than many expected. When China, which controls nearly 60 per cent of the global rare earth supply, exploited a critical dependency, Mr Trump quietly adjusted course without escalating it. His capitulation to Beijing suggested that while Mr Trump’s rhetoric roared, his appetite for economic risk was considerably limited.
The delay in rolling out trade tariffs seems to contradict his hardline stance on the America First policy. However, upon closer inspection, the postponement may not be about strategy so much as necessity. By suggesting the United States is open to considering negotiations, Mr Trump appears to hope that the delay might draw concessions from trade partners.
The postponement of the high tariff also shows that Mr Trump, for all his defiant posturing, has shown a keen eye for political optics, especially in an election year. Business lobbies and industry groups in the US — many already bruised from previous tariff rounds — have grown increasingly vocal about the inflationary and supply chain disruptions such curbs cause.
While Mr Trump still claims to be a tough taskmaster, trade partners may no longer see his threats as unflinching. His successive on and offs show that Mr Trump’s trade brinkmanship has limits — especially when the geopolitical and economic costs begin to pile up at home.