The White House is nearing agreements with Japan and India to address tariff concerns, signaling a strategic approach to managing global trade tensions. These agreements aim to provide frameworks for future negotiations, though they are expected to be light on specifics. Vice President JD Vance recently highlighted progress in talks with India during a speech in Jaipur, noting advancements in discussions with Prime Minister Narendra Modi. However, the extent to which these frameworks will calm markets remains uncertain.
President Donald Trump’s announcement of reciprocal tariffs on over 50 countries and the European Union in April caused significant market disruptions. Although a 90-day pause on tariffs was implemented, economic uncertainty persists. The Japanese government has expressed reluctance to rush into a deal, emphasizing the importance of thorough negotiations. Meanwhile, pressure mounts on the White House to demonstrate meaningful progress in trade deals to reassure markets and stakeholders.
Experts caution that rushing negotiations may result in less durable agreements. Wendy Cutler, a former U.S. trade negotiator, suggests taking the time to craft meaningful agreements that could govern trade relationships for years. Any agreements pressuring China’s neighbors to restrict trade with Beijing are likely to face resistance due to deep economic ties. China’s Commerce Ministry has warned against deals that harm its interests.
— new from Politico