US weaponising tariff policy could become the new normal

IN A MASSIVE diplomatic push, economic advisors of US President Donald Trump have said US countries have come forward to negotiate for better tariffs from the country.

- ASHLEY LECHMAN

This comes after Trump announced sweeping tariffs across the board last week that brought the global economy to its knees, with markets crashing to lows that economists and analysts alike are fearing for a global recession.

Countries are keen on restructuring these financial barriers in order to strengthen trade relations while alleviating the strains of recent trade disputes. These tariffs have not only altered the landscape of international commerce but have also triggered retaliatory measures from some nations, further complicating global trade relations.

With inflation rates and economic recoveries at the forefront of global policies, the need for constructive negotiations has never been more pressing.

Professor Raymond Parsons from the North-West University Business School told Business Report that the fact that many countries want to negotiate with the US about its higher tariffs confirms the tensions inherent in President Trump's tariff strategy.

“On a more basic level, there may be scope for several countries to now ameliorate their tariff situation with the US. For example, SA may be able to replace the non-renewal of AGOA with a new free trade agreement. SA must therefore mobilise the necessary economic diplomacy to negotiate new trade relations that protect SA's economic agriculture sector.”