Friday, February 21, 2025

No Rational Country Would Enter Into a Trade Agreement with Trump

Trump hopes to negotiate a major new trade agreement with China. But why would China make any trade deal with Trump? In only one month back in office, Trump has already casually broken several deals that the U.S. has with other countries. Trump doesn’t even honor agreements that Trump himself made!

In 2018 the first Trump Administration negotiated the USMCA (the successor to NAFTA), which is an agreement for a low-tariff free trade zone between the U.S., Mexico, and Canada. And yet, Trump ordered the imposition of 25% tariffs on all goods on Canada and Mexico, a clear violation of that deal, immediately after becoming president. While the tariffs haven’t gone into effect yet (technically they are still on the table, he just delayed their imposition for 30 days), the fact that he is willing to completely disregard his own binding agreement with foreign countries speaks volumes.

Why would any country make any concession to the U.S. in exchange for anything else? Trump has made it clear he won’t feel bound by any deal. Trump has made it clear to the world that no one should make any deal with the U.S. We don’t keep our promises.