Here we go again. US President Donald Trump has announced that trade negotiations are proceeding "too slowly" and the previously announced 90-day pause on tarrifs is not enough time to get a deal done with all countries.
"We have, at the same time, 150 countries that want to make a deal, but you’re not able to see that many countries," the US President said.
Trade agreements - even bilateral ones - usually require very complex and detailed-oriented negotiations that take severals months, even years.
However, the US government, in its wisdom, thought 90 days would be enough time to sign bilateral deals with over a 100 countries. With his new-found love for technology, maybe Trump was thinking he could deploy AI to negotiate for the US.
Even after the roll-back of earlier unprecedented tarrif announcements on various countries, not the least of which being China, the Trump administration has increased the average US tariff rate to approximately 17.8%, the highest since 1934, up from around 2.5% when he first took office.
Meanwhile, JPMorgan Chase CEO Jamie Dimon has warned that the economic harm caused by US president Donald Trump's tariff policy is yet to be felt. Adding, "There's an extraordinary amount of complacency."
America's largest brick-and-mortar retailer Walmart has cautioned the US government and its customers that Trump's tariffs have begun to take effect and price hikes are lurking just over the horizon. Other US retailers have also voiced similar concerns.
And Trump's reaction to these worries? "Eat the tarrifs".
In his posts on Truth Social: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
US stocks opened marginally lower on Monday morning this week after Moody's downgraded the US sovereign credit rating.
A global survey by Allianz Trade has shown that the wave of new US tariffs has severely dampened the mood among exporters and 42% of companies now expect their export revenues to decline markedly.
Donald Trump's future agenda and final goal is... Any guesses?
Read More: Global Supply Chains Brace for Impact as Trump Tariffs Kick In