Though this hasn’t stopped former President Donald Trump from asserting he’s a master of such negotiations. Further, he claims he can cut lucrative deals that will save money, rebuild American infrastructure, and grow the U.S. economy. His self-proclaimed expertise is looking pretty rotten. With the world already anxious about America losing its firm footing in global finance, the muscularly contracting U.S. economy would be another indictment of his ad-hoc leadership.
Trump unrepentantly asserts that he’s the best at cutting business deals. He doubled down on this idea when recently announcing his vision for trade negotiations going forward. To back up his vision, he claimed on day one that he could ink “a few dozen agreements at once.” He called on naysayers to “calm down with all that deal nonsense.” We maintain this argument even amid rising trade tensions and steadily escalating tariffs. These changes are beginning to have a profound impact on all sectors of the economy.
Under Trump’s direction, the U.S. trade deficit with Canada remains insignificant. While Canada has greatly benefited from the U.S. trade practices, he feels just as deeply that the U.S. has been harmed by Canada’s exploitative and predatory trade practices. This view runs counter to any economic and trade analysis which shows incredibly positive trade flows in both directions between the two countries.
In the past months, the U.S. auto industry has taken an enormous hit. That last sector, which is publicly favored by Trump—as he never tires of telling us—depends immensely on free cross-border trade with Canada and Mexico. With the future of trade agreements in question, experts from the auto industry are concerned over what could happen to American manufacturers as a result.
Trump’s credibility took a hit when Treasury Secretary Scott Bessent testified under oath that no trade talks had commenced between the U.S. and China, directly contradicting Trump’s claim of receiving a call from Chinese President Xi Jinping regarding negotiations. This difference is concerning about the transparency and effectiveness of the administration in dealing with trade disputes.
On the ground, the effects of Trump’s tariffs are already being seen throughout multiple industries. Many U.S. importers have canceled shipments from China in response to the steep 145% tariffs imposed on most Chinese imports. Cargo arriving at the Port of Los Angeles from China is down by 50 percent. This stark drop is an indication that the conflict has severely impacted normal trade flows. Consumers can expect to see shortages of some affected goods and higher prices within a matter of weeks as these tariffs take effect.
Trump’s trade policies are not limited to China. He has teased a “very, very big announcement” related to tariffs on movies produced overseas, reflecting his administration’s broader approach to international commerce. These nebulous plans only add to the economic uncertainty, creating confusion for businesses that don’t know what their increasing regulatory costs will be in the future.
“I wish they’d… you know, stop asking, ‘How many deals are you signing this week?’ Because one day we’ll come and we’ll give you 100 deals.” – Donald Trump
As America’s credibility as a cornerstone of global finance is seemingly shaken under Trump’s leadership, concerns deepen about the long-term impacts of his administration’s decisions on both domestic and international fronts. There’s no question that the U.S. economy is about to drop off a cliff. This unjustified situation has led to major calls for transparency and accountability.
