China-US trade truce prompts nations to eye tougher tactics

CHINA's defiant stance in negotiating a tariff truce with the US has convinced some countries they need to take a tougher position in their own trade talks with the Trump administration.

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The pause reached a week ago gave structure to what promised to be prolonged and difficult rounds of talks between Washington and Beijing, which still faces average US import taxes near 50% when past levies are factored into the 30% rate agreed to in Geneva, Switzerland.

Yet US President Donald J. Trump's willingness to retreat so much from the earlier 145% duty on China surprised governments from Seoul to Brussels that have so far stuck with the US's request to negotiate rather than retaliate against its tariffs.

After China's tough negotiating tactics earned it a favorable albeit temporary - deal, nations taking a more diplomatic and expedited approach are questioning whether that's the right path.

"This shifts the negotiating dynamic," said Stephen Olson, a former US trade negotiator who's now a visiting senior fellow with ISEAS - Yusof Ishak Institute in Singapore. "Many countries will look at the outcome of the Geneva negotiations and conclude that Trump has begun to realize that he has overplayed his hand."

Left for now at 10%, the higher bespoke rates will kick in unless deals are signed or postponements are granted before a 90-day suspension ends in July.

While officials are loathe to signal publicly any hardening of their approach, there are signs particularly from larger nations that they're realizing they hold more cards than previously thought and can afford to slow the pace of negotiations.

South Korea's leading presidential candidate Lee Jae-myung said there's no need to rush for an early agreement in trade negotiations with the US, criticizing the interim government for what he called a hasty engagement with the Trump administration.

Mr. Trump himself indicated last week near the halfway point of the 90-day reprieve that there isn't time to do deals with about 150 countries lining up for them. So the US may assign the higher tariff rates unilaterally in the next two to three weeks.