US-EU, Taiwan Trade Talks Signal Rising Tariff Risks

President Trump has implemented an aggressive tariff campaign as part of his ongoing trade war strategy, raising the U.S. average effective tariff rate to its highest level since 1936. While some tariffs on electronics have been temporarily eased, tariffs on steel have doubled to 50%, affecting major trading partners including the EU, Japan, and Canada, which have responded with retaliatory measures. Despite a goal of securing 90 trade deals in 90 days, only preliminary agreements with the UK and Vietnam have been reached, with key partners like the EU, Japan, Canada, and India still in negotiations amid growing uncertainties. These tariffs are pressuring U.S. consumer prices and industries such as autos, while also impacting private equity deal-making and capital expenditures. Additionally, Trump has threatened and imposed tariffs on various countries, including a 25% tariff on Japan and South Korea, a 19% tariff on the Philippines, and a 50% tariff on Brazil, sometimes motivated by geopolitical or personal considerations. Trade experts express concern that these escalating tariff tensions could harm U.S. agricultural exports and complicate trade relationships, underscoring the complex challenges in global trade negotiations.