Tariff Threats & Retreats: What exactly is Trump looking for in a trade deal?

Trade Policy & Tariffs - The current US effective tariff rate stands at 15%, increasing to 17% after recent trade agreements, significantly higher than the pre-administration level of 2% or less [9] - The imposition of tariffs is viewed as taxes on American businesses and consumers, ultimately leading to higher prices and reduced spending [14][17] - The US trade policy is causing a reshaping of global supply chains, trade relationships, and geopolitical dynamics [11] - There is concern that the US President's approach to trade deals lacks binding commitment and can be unilaterally altered, making it difficult for other countries to offer meaningful concessions [6][7] Economic Impact - The tariffs are expected to negatively impact economic growth and employment in the latter half of the year [17][18] - Consumers are starting to feel the impact of tariffs through increased costs, as exemplified by unexpected tariff charges on imported goods [15][16] Federal Reserve & Monetary Policy - The US President is expected to exert pressure on the Federal Reserve to lower interest rates, potentially compromising the Fed's independence and its broader economic objectives [21][22]