Introduction to Trade Tensions
President Donald Trump and other heads of state will gather in Canada just a few days after the unprecedented strike of Israel. Such a development would usually dominate the high-ranking discussions, but this time the world leaders probably also have to concentrate on another urgent topic: trade.
The Urgency of Trade Discussions
"You cannot afford not to talk about it from a country’s perspective," said Josh Lipsky, chairman of the international economy in the Atlantic Council. It is less than a month to July 9, the self-imposed period of President Donald Trump, if dozens of countries, including several at the session, could be confronted with higher tariffs, unless they make them in an ink trade that avert further escalation.
Potential Consequences of Trade War
If no trading agreement was negotiated before this period, it is unclear whether Trump would have his so-called "mutual" tariff-free of up to 50% or whether the federal states could be exposed to even higher installments. Trump also increased the opportunity to extend the break even further, although the finance minister Scott Bessent said last week that only for countries that "negotiate in good faith". Already the 10% tariff, the Trump, which has practically raised the exports of each country to the USA, and the additional 50% tariff on steel and aluminum and 25% for cars begin to burden the economies of some foreign countries.
Impact on Global Economy
For example, the last week in Great Britain showed that his economy shrank at prices in April, which had not been observed for almost two years because exports to the USA decreased by a record amount. And it can only be a matter of time for other economies to score a goal, and the World Bank predicts according to a report that the group published last week, which quoted Trump’s trade policy as the main catalyst, according to a report. In particular, the World Bank predicts that the United States and Europe are admitted to some of the sharpest growth declines compared to what is forecast at the beginning of this year due to reduced trade and uncertainty in relation to tariffs that expected economic activity.
The Summit Agenda
There is little doubt that every world leader who travels to the summit in the Canadian Rocky Mountains wants to leave with a plan to avoid that higher tariffs are confronted. But it is less certain whether this will happen. A high-ranking US official is discussed on a call on Friday with reporters in which Trump’s agenda is progressing for the summit, including international security. "The president endeavors to pursue his goals in all of these areas, including American trade relationships fair and mutually," said the official.
Trade Negotiations with Japan and EU
Japanese Prime Minister Shigeru Ishiba told reporters on Friday on Friday that his one-on-one conversation with Trump on the summit will concentrate on ongoing trade negotiations. But Lipsky does not keep your breath to a trade agreement with Japan or another country that is present at the meeting. Discussions with the EU develop into the largest game card. Two weeks ago, Trump threatened to increase tariffs to 50% of EU exports to the United States at the beginning of this month, and said the discussions with the EU leaders "never gone anywhere".
Challenges in Trade Discussions
"The countries would be happy to go with the USA to a contract that lowers the tariffs and brings some concessions with which they can live," said obstacle. But the EU will certainly not change its VAT (VAT) to make a deal with us. Although Trump will probably meet with French President Emmanuel Macron, the German Chancellor Friedrich Merz and the Italian Prime Minister Giorgia Meloni, after her recent visit to the White House, trade is probably not a great topic of discussion with you because of Leyen is the senior negotiator, said Lipsky. "This creates a strange dynamic during the meeting."
