Tougher Trade Tactics Inspired by China’s Example as China’s firm stance during recent tariff negotiations with the United States is prompting other countries to reconsider their own strategies. Many now believe that a stronger, more assertive approach could produce better outcomes than the diplomatic path they’ve followed so far.
2. The Geneva Agreement’s Ripple Effect
Although a temporary agreement was reached between the US and China, it still leaves Chinese imports facing significant US tariffs. Despite this, many nations view the outcome as a win for Beijing and a sign that standing firm against Washington may be more effective than expected.
3. Rethinking Concessions
Countries like South Korea, India, and those in the European Union are beginning to question whether their cooperative posture has put them at a disadvantage. China’s ability to push back appears to have secured it better terms than what others have received or expect to receive.
4. Trump’s Changing Tone
President Trump has admitted that striking trade deals with all 150 countries interested may not be realistic within the 90-day negotiation window. As a result, the US might begin imposing higher tariffs unilaterally, putting pressure on other nations to either accept terms or risk penalty.
5. India Holds Off Despite US Claims
While Trump has publicly claimed that India is ready to eliminate tariffs on American goods, Indian officials have cautioned that discussions are still ongoing. Commerce Minister Piyush Goyal’s trip to the US signals a desire to negotiate, but not necessarily to rush.
6. Japan and the Waiting Game
Japan is another key US trading partner reconsidering its pace. Officials in Tokyo may delay making major concessions, sensing they could benefit from taking their time rather than rushing an agreement.
7. EU Discontent Grows
The European Union, which has struggled to unify its response to US tariffs, sees the US-China truce as lacking substance and failing to address long-term concerns. EU officials believe the current trade environment is fragmented and lacking real progress.
8. Latin America Walks a Tightrope
Latin American leaders are balancing relations with both the US and China. Recent visits to Beijing by presidents from Brazil and Colombia demonstrate a willingness to deepen ties with China, even as they reassure Washington of continued alliance.
9. Smaller Nations Face Limitations
Not all countries have the leverage to push back. For example, Vietnam, which relies heavily on US trade, has limited options beyond symbolic resistance. Its attempt to reduce trade imbalance by purchasing US goods hasn’t shielded it from tariffs.
10. Leverage is Key to Strategy
Ultimately, a country’s ability to negotiate tough terms with the US depends on its economic influence. While China may force the US to soften its stance, most other nations—especially smaller ones—must tread carefully. Services trade could be one area for leverage, particularly for countries with large deficits in this sector.
