Trump’s Tariff Deadline Extension: Who Benefits?
As **President Trump** once again delays the deadline for tariff negotiations, nations grapple with uncertainty. While extended timelines offer negotiating opportunities, the ongoing trade disputes create winners and losers in unexpected ways.
Japan’s Frustration with US Trade Tactics
“Deeply regrettable”
is how Japanese Prime Minister **Shigeru Ishiba** characterized the latest tariff threat from the US. Despite repeated visits to Washington by trade officials, **Trump** has labeled Tokyo “spoiled”
as trade talks stall. Now, a 25% levy looms over Japanese goods.
Global Impact of Delayed Tariff Deadline
An extension grants targeted countries additional time to strike deals with the US. **Suan Teck Kin**, head of research at United Overseas Bank, suggests the delay puts pressure now to engage in further negotiations before the 1 August deadline.
Asian Manufacturers Face Uncertainty
The persistence of tariffs creates insecurity for businesses worldwide, impacting exporters, importers, and consumers. For Asian economies reliant on manufacturing, these tariffs hinder economic progress. Vietnam faces levies up to 40%, while Cambodia negotiates amidst threats of 35% tariffs.
US-Japan Alliance Under Strain
**Jesper Koll**, an economist, notes that Despite its close economic and military relationship with the US, Japan is being treated the same as other Asian trade partners.
Japan’s resistance to US demands, including increased military spending, further complicates relations.
Geopolitical Implications
Some observers argue that **Trump**’s tactics diminish the US’s bargaining position. Economics professor **David Jacks** believes that the bargaining position of the US has actually been diminished as they have revealed that their hand isn’t actually as strong as they would like.
This creates an opportunity for China to present itself as a more stable partner.
Despite trade tensions, global merchandise trade is expected to grow 2.6% in 2024 and 3.3% in 2025, after declining 1.2% in 2023, signaling a potential rebound amid these challenges (WTO, April 2024).
