GTRI Report: Trump Uses Tariffs As Tools, Not Trade Partnerships

Did you know that U.S. President Donald Trump is using tariffs more like a pressure tactic than a way to build fair trade partnerships?

According to the Global Trade Research Initiative (GTRI), instead of following the usual path of Free Trade Agreements (FTAs)—which involve mutual tariff cuts and give-and-take benefits—Trump is demanding that other countries lower their tariffs and buy more U.S. products, all without offering much in return. GTRI points out,

“Trump’s trade strategy circumvents traditional Free Trade Agreements (FTAs), demanding tariff cuts and purchase commitments from partner countries without reciprocal U.S. concessions.”

So, what does this mean? Simply put, countries are being pushed into one-sided deals that don’t feel very fair or stable. How do you think this kind of pressure affects global trade relationships?

Uncertain Deals And Ongoing Tariff Threats

One of the report’s key warnings is that none of Trump’s trade deals offer lasting security. Even after signing, countries face the looming threat of fresh tariffs. Recently, Trump announced a 10% tariff threat on BRICS nations, including India, citing their “anti-American policies.” India, despite submitting its final trade offer and nearing a deal, might still face unilateral tariff hikes. GTRI notes,

“Even if a deal is struck, Indian exports may still face a minimum 10 per cent additional levy, making it a pressured compromise, not a true partnership.” The report stresses that the 26% surcharge imposed on Indian goods in April might not be fully withdrawn, leaving exporters vulnerable.

Tariff Deadlines And Impact On Trade

President Trump has given countries a bit more time to wrap up their trade deals, pushing the deadline from July 8 all the way to July 31. But here’s the catch—if countries don’t meet the deadline, they could face hefty tariffs of up to 40% starting August 1. India, for example, has already received formal warning letters about these tariffs. These new duties will stack on top of existing Most Favoured Nation (MFN) rates, but they won’t affect sectors like steel, aluminum, autos, and auto parts since those already have separate high tariffs. Take Japan: products like pharmaceuticals, semiconductors, and smartphones won’t see any new tariffs, staying at zero, but steel and aluminum will stick at 50%, and autos at 25%. Other products could see tariffs jump from 10% to 25%. 

Legal Challenges And Limited Benefits

GTRI points out that Trump lacks Fast Track Trade Authority from Congress, preventing him from legally reducing MFN tariffs. Instead, he offers to roll back the so-called “Liberation Day” tariffs imposed in April under emergency powers. However, a U.S. federal court ruled those tariffs unlawful, and the decision is under appeal, casting legal uncertainty over Trump’s tariff actions. The report concludes these deals provide limited benefits and leave open the possibility of future tariff hikes. This situation raises concerns about the stability and fairness of trade agreements negotiated under this strategy.

Table: Key Points on Trump’s Tariff Strategy

(With Inputs From ANI)

Also Read: Tariff Target List Of Trump: Who’s In And Who’s Out?