Former Commerce Secretary Wilbur Ross, who served in the first Trump administration, believes that President Donald Trump’s 90-day tariff pauses are not only a trade strategy but also a political tactic.
What Happened: In an interview with Fortune, Ross said that the pauses align with the U.S. political calendar, particularly the congressional timetable. Ross suggested that Trump may have implemented these pauses to avoid controversial decisions around the time of the mid-term elections.
“There’s nothing like a deadline to encourage people to negotiate seriously. I think it’s right that he did it,” said Ross.
President Trump has often implemented 90-day tariff pauses. The most recent instance involves China, with both nations agreeing to a 115% reduction in rates during ongoing negotiations.
Ross further explained that the 90-day pause aligns with the congressional timetable, especially as lawmakers shift focus to midterm elections around September. “It fits the congressional timetable," stated the former Commerce Secretary. The tactic, while initially effective, is becoming less powerful as it turns into an expectation rather than a last-minute reprieve, according to Ross.
Despite the limited staff and numerous tasks, significant progress has been made in trade negotiations, demonstrating the U.S.’s power to influence outcomes, Ross added.
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Why It Matters: Prior to this, Treasury Secretary Scott Bessent had suggested that the Trump administration may consider extending the current 90-day tariff pause beyond July 9 for the U.S.'s top trading partners, contingent on their “good faith” in ongoing trade negotiations, however, Trump doesn’t think it is a ‘necessity.’
A deal framework has been established with the U.K., and a truce has been declared with China, but detailed and comprehensive agreements have yet to be disclosed. However, experts have expressed doubts about the long-term viability of the new trade deal framework with China, warning that the U.S. may be giving up its strategic advantage in the agreement.
Notably, China also expressed disapproval of the trade agreement between the U.K. and the U.S., adding more complexity to ongoing efforts to rebuild relations with Beijing.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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