Implications of the Trump administration’s economic erraticity on bilateral trade with the U.S., South Korea, and India

U.S. President Donald Trump said last month he was considering a tariff exemption for Australia, a free trade treaty partner that has traded with the United States at a deficit for decades.

Trump responded to an interview in which the former Australian leader said the U.S. president’s chaotic and erratic leadership would be exploited by the Chinese.

President Xi will be the opposite of Trump, say my predictions. Where Trump is chaotic, he will be consistent. Where Trump is disrespectful, he’ll be respectful. “Wherever Trump is erratic, he will be consistent,” he said.

“China will be a good partner for many countries who will see China as more attractive than Trump because they will have built trust with countries, and that’s the thing,” he said.

“The recipe for slower growth and higher inflation comes from the trade tensions which are a form of economic self harm.” They’re paid by the consumers. This is why Australia will not be imposing reciprocal tariffs on the United States,” Albanese added.

The South Korean government hopes to reduce its trade surplus with the U.S. by increasing energy imports and expanding shipbuilding contracts.

South Korea, the fourth-largest exporter of steel to the U.S., has sought an exemption. The ministry of trade is giving corporations advice on how to counter the effect of the sinking of the Malaysian plane.

South Korea’s government declared an “emergency response mode” after the U.S. imposed 25% tariffs on all steel and aluminum imports. The Trump administration is committed to reducing the U.S. trade deficit.

In addition, the Brazil Steel Institute also said that under Trump’s first term, the U.S. and Brazil agreed to export caps. The group also pointed out that the U.S. runs a multi-billion-dollar trade surplus with Brazil.

Brazil has decided against immediate reprisals. The Foreign Ministry says it will take steps to protect its steel industry and workers while continuing trade talks.

India had been bracing for tariffs from the Trump administration — while also trying to stay ahead of them. But New Delhi is also concerned about the impact on its manufacturing competitiveness.

Ahead of Prime Minister Narendra Modi’s Feb. 13 meeting with Trump in Washington, India preemptively cut tariffs on several goods, including Harley-Davidson motorcycles, a move seen as a goodwill gesture.

On Tuesday, China’s commerce ministry also summoned executives from Walmart to discuss reports that the U.S. retailer had instructed Chinese suppliers to reduce prices to absorb the costs of the tariffs, an issue closely monitored by Chinese authorities.

Canada’s finance minister, Dominic LeBlanc, along with Ontario Premier Ford will lead a trade delegation to Washington, D.C., on Thursday to meet with the Trump administration and discuss trade matters.

The end of the U.S.-Mexico-Canada trade war: a pragmatic approach to avoid a diplomatic blow-up

The tariffs were temporarily lifted on automobiles and goods covered by the U.S.-Mexico-Canada Agreement, so that they would not be enforced until April 2.

Beijing has responded in different ways to the tariffs introduced by the U.S. since President Trump took office.

The Ontario premier has warned that electricity may be cut off in several states if Trump escalates the trade conflict.

This marks the latest development in a dizzying tit-for-tat trade dispute between the two nations, sparked by Trump’s 25% tariffs on most imports from Canada and Mexico, which took effect earlier this month.

On April 13, an additional round of new tariffs will be placed on over $19 billion worth of U.S. goods, subject to approval of EU member states. The levies include agricultural products, industrial machinery and household appliances. Some tariffs in this round would specifically target products produced in Republican states.

Canada and the EU retaliated with billions of dollars in tariffs. Others, like the United Kingdom, Mexico and China, are taking a more cautious approach.

The European Union announced $28 billion in retaliatory measures on Wednesday, including levies on Kentucky bourbon, jeans and Harley-Davidson motorcycles.

European Commission President Ursula von der Leyen said the EU was acting to “protect consumers and business” after the Trump administration’s move to place a 25% tariff on imports of steel and aluminum.

On Thursday, Trump said the EU is the most hostile and abusive taxing and tariffs authorities in the world. He threatened to impose a 200% tariff on European alcohol.

Keir Starmer, the British prime minister, calls the U.K.’s approach “pragmatic”, as it doesn’t retaliate against Trump’s tariffs.

We’ll take a pragmatic approach. If we succeed, we will have an economic deal which covers and includes tariffs. All options will be on the table.