Liberation Day: A Ploy for Trade Deals?
May 12th, 2025
Arnav Goyal
May 12th, 2025
Arnav Goyal
In recent weeks, due to the “Liberation Day” tariffs that President Trump has implemented on virtually all countries, and the 145% tariff rate that the US has implemented on Chinese goods, many countries are willing to make a trade deal with the United States in an attempt to ensure that they don’t get hammered hard by these tariffs. Commerce Secretary Howard Lutnick claimed that roughly 50 countries have reached out for negotiation, yet they weren’t going to negotiate with China. Many were skeptical that they could reach a lot of trade deals, especially with the 90 day pause that the administration implemented after the stock market meltdown in April. So far, 2 countries have reached out to actually talk, and they’ve reached some sort of economic framework with their negotiations.
The United Kingdom and the US announced a trade framework with some funding outlines, however final details are to be determined.
China and the United States, yes, China, met in Geneva these past few days and worked out major trade grievances that the US claims, and a trade deal has supposedly been reached, although final details are to be determined, a major shock considering that US officials flat out denied negotiations.
Treasury Secretary Scott Bessent has stated to lawmakers that trade deals are being negotiated with 18 countries, however, details are currently under wraps.
So were the Liberation Day tariffs just a blatant ploy to ensure that the United States gets favorable trade deals? The signs point to yes. Let’s break through one example, the United Kingdom, and see how it will affect America and the UK.
President Trump and Prime Minister Starmer have praised the deal, however, 10% tariffs are still in effect on the United Kingdom, as that was the hard baseline for the Liberation Day tariffs, regardless of what country it was
It places a heavy focus on things such as beef, ethanol, and steel, however, the White House and most economists agree that this is still a framework
Some specifics include that the duty on auto imports would be lowered from 25% to 10%, and the duties on steel imports from the UK to the US would be lifted, which many have heralded as a win especially with the globalization of the steel industry
Those are some of the specifics from the UK trade deal, and there is cause to assume that the Liberation Day tariffs could very well be a ploy for trade deals while cooling investor fears, as some tariffs have been stuck in place, while markets have gone up after these deals have been announced, signaling some strategic moves within.
However, one of the most shocking developments was the rise in negotiations with China. US officials, such as Treasury Secretary Scott Bessent, were highly hesitant on negotiating with their Chinese counterparts. Yet, a few days ago, US and Chinese officials met in Geneva, Switzerland, to work trade deals out and for a hope to scale back the tariffs that have caused a huge trade war between both countries. This led to a breakthrough on Sunday, as the US announced that some trade deal had been reached, however, specifics would be given a few days later.
These officials have mentioned a total reset in negotiations, as they have admitted that these tariffs aren’t working, which could possibly lead into breakthroughs for negotiation. However, we must wait for the specifics to come out.
Regardless, these Liberation Day tariffs could just be a ploy for trade deals that are favorable to the US. We’ve seen this with the United Kingdom, and the US’ better terms than the UK, with them still imposing 10% tariffs. We must see for China. However, one thing is for certain: these trade deals will not stop coming and we can see even more breakthroughs, even in Heard and MacDonald Island, full of penguins.
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