The Trump administration has set a three-month deadline for trade negotiations, with clear consequences for countries that fail to reach agreements. While China faces immediate 125% tariffs, other nations have been granted temporary relief – provided they don’t retaliate and agree to a new 10% reciprocal tariff.
President Trump left little ambiguity about the stakes during a recent press conference. “The deal must be good for both parties,” he stated. “If not, we go back to the original tariffs.” The president noted that negotiations would be customized for each trading partner based on their specific economic relationship with the U.S.
Characterizing China’s trade surplus as excessive, Trump contrasted it with more balanced relationships with other nations. The 90-day pause creates a window for negotiations, but the threat of returning to previous tariff levels looms large for countries that can’t reach satisfactory agreements.
