U.S. Pivots to Narrow Trade Deals to Avoid Tariffs

U.S. officials have scaled back their ambitions for a comprehensive trade deal with foreign powers, opting instead for a narrower agreement to avoid the reimposition of tariffs. This shift in strategy comes as the White House seeks to secure deals by July 9th, marking a departure from the previous commitment to reach 90 trade agreements during a 90-day pause in comprehensive "reciprocal" tariffs.

According to sources, the U.S. is now pursuing phased agreements with the most engaged countries. This approach provides some countries with an opportunity to reach a modest agreement, avoiding harsher reciprocal tariffs. However, these countries would still be subject to the existing 10% tariffs while negotiations on more contentious issues continue.

The BRICS countries are among those seeking to reach "principle agreements" on a few trade disputes before the deadline. This indicates a willingness to address specific issues rather than pursuing a broad-based agreement. The negotiations remain complex, with the U.S. government still considering tariffs on key industries.

This strategic shift reflects the U.S.'s pragmatic approach to trade negotiations, focusing on achievable goals rather than comprehensive agreements. It also highlights the ongoing complexity of trade relations, with both sides seeking to balance their interests while avoiding escalating tensions.