The article from The Wall Street Journal highlights that U.S. allies in Asia and Europe, despite making billions in investment pledges, are still waiting for President Trump to lower tariffs on key exports like cars and steel as promised. The delays and discrepancies have created significant uncertainty for businesses and policymakers. Japan and South Korea, for instance, were told that the 25% tariff on imported automobiles would be reduced to 15%, but the levy is still being collected, leading to mounting losses for major car manufacturers like Toyota. The U.K. is also awaiting a reduction in tariffs on steel.
The report notes that the current U.S. approach to trade policy, which favors “bold pledges and handshake agreements” over formal, detailed legal texts, is creating a new normal of delays, disputes, and misunderstandings. This approach stands in contrast to traditional trade agreements that provide stability and confidence. An administration official stated that the president reserves the right to adjust tariff rates if he judges that the other side has reneged on its commitments. The article also points out several “cracks” in the agreements, such as South Korea’s finance minister denying that he discussed providing market access for U.S. rice, a claim made by the White House.