The Trump administration is reportedly lowering its aspirations for comprehensive reciprocal deals. Instead, it is favoring narrower agreements to avoid the reimposition of U.S. tariffs.
What Happened: The US is now seeking phased deals with key countries, with the aim of reaching agreements by July 9, reported the Financial Times on Tuesday. This shift in strategy is a departure from the White House’s initial plan to secure 90 trade deals during the 90-day pause in reciprocal tariffs announced by President Donald Trump in April.
Despite this change in approach, the U.S. has only managed to secure a trade pact with the U.K. and a tentative truce with China. The U.S. Commerce Department has launched national security investigations into a range of products, including copper, lumber, aerospace components, pharmaceuticals, semiconductors, and critical minerals.
Why It Matters: This shift in the U.S. trade strategy comes on the heels of President Trump’s announcement that he will bypass individual trade agreements and set new tariff rates unilaterally for various trading partners through letters.
Despite the uncertainty surrounding the upcoming tariff deadline, ETF investors seem to be maintaining their composure. While Trump’s return to tariff diplomacy has reignited diplomatic turmoil and corporate jitters, ETF performances have been surprisingly resilient.
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