China is winning the trade war Trump started

FreeinChrist said:

Yeah, he has trade agreements with some countries but they say it is a bit different from what Trump says, and say that Trump is using "political rhetoric" that they differ on.
For instance:

https://www.reuters.com/business/autos-transportation/korea-us-prepare-summit-with-details-trade-deal-unresolved-2025-08-04/

The absence of a written agreement underpinning last week's talks could open the way for disputes, with some differences already emerging in the two sides' accounts of the deal.​

​

Key among these was Sunday's denial by a South Korean presidential adviser of U.S. claims that it would take 90% of the profit from project investments of $350 billion by South Korea, which also agreed to open up its domestic rice market.​

"Even a binding deal like the FTA has been efficiently scrapped," warned Choi Seok-young, a former chief negotiator for the Korea-U.S. free trade deal, signed in 2007. "And this is just promise."​

The agreement with South Korea is not written yet....and South Korea differs on the details from Trump.

The deal with Vietnam is also not a written agreement as details need to be finalized.


And neither of these show the US winning over China in terms of world trade and influence.

The ending of USAID took away US influence. The ending Voice of America is lowering US influence, and China is stepping up.

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I searched online to find out which trade deals were signed by the President, but found no clear answers. Right-wing media praise Trump for making these deals, while left-wing outlets criticize them, yet none mention that these agreements require congressional approval and that the President has limited authority to unilaterally sign binding trade agreements.

This is our current situation. Public understanding of the basic congressional authority required for binding trade agreements is non-existence or discussed by major media outlets. It appears that many journalists may not research these matters thoroughly, often focusing on either praising or criticizing presidential actions. Likewise, many citizens are either unaware of or indifferent to the legal process. Some strongly support the President regardless of whether agreements receive congressional approval, while others are primarily engaged in offering criticism.

Always in His Presence said:

Yes -
Japan and the United States have finalized a major trade agreement that reshapes tariffs, boosts investment, and signals a new phase of economic cooperation. Here's a breakdown of the deal and what it means:

Tariff Reductions

• Auto Tariffs Cut: Japanese car exports to the US will now face a 15% tariff, down from the previously threatened 25–27.5%.
• Other Goods: Tariffs on various Japanese goods that were set to rise to 25% have also been capped at 15%.
• No Import Caps: Japan secured a win by avoiding volume restrictions on vehicle exports.
• Rice & Metals: Japan retains restrictions on rice imports and faces separate 25–50% tariffs on steel and aluminum.

Investment Commitments

• $550 Billion Pledge: Japan will invest $550 billion into US supply chains, targeting sectors like:
  • Semiconductors
  • Electric vehicles
  • Energy infrastructure
  • Artificial intelligence
  • Pharmaceuticals and shipbuilding
• Profit Split: The US will retain 90% of the profits from this investment, according to the White House.

Automotive Sector Boost

1. Japanese automakers like Toyota, Honda, Nissan, and Subaru saw stock surges between 8–16% following the announcement.

• Japan will now accept US automotive standards, eliminating additional safety testing requirements for American vehicles.

Market Reaction

• Japan's Nikkei Index: Rose over 3.5% on the news.
• US Markets: S&P 500, Nasdaq, and Dow Jones all climbed, reflecting investor optimism.

Global Implications

• Economists suggest the 15% tariff cap could become a benchmark for other trade deals, pressuring the EU, China, and others to follow suit before looming August deadlines.
• The deal is seen as averting a potential trade war and stabilizing global markets.

️ Political Context

• President Trump called it “the largest Deal ever made,” while Japanese Prime Minister Shigeru Ishiba described it as a “new Golden Era” for bilateral relations.

S. Korea

Yes:
Just days before a steep 25% tariff was set to hit South Korean exports, Seoul and Washington reached a last-minute trade deal that reshapes their economic relationship. Here’s a breakdown of the key elements:

Tariff Terms

• 15% Tariff Cap: South Korean exports to the US will face a 15% tariff—lower than the threatened 25%, but higher than the previous 10% rate.
• No Tariffs on US Goods: American exports to South Korea will enter duty-free, including cars, trucks, and agricultural products.
• Avoided Worst-Case Scenario: Analysts say the deal puts South Korea on equal footing with Japan, which also secured a 15% rate.

Investment & Energy Commitments

• $350 Billion Investment: South Korea pledged to invest in US-based projects selected by President Trump.
• $100 Billion in Energy Purchases: Seoul will buy US liquefied natural gas and other energy products.
• Additional Investments Pending: More funding announcements are expected during President Lee Jae-myung’s upcoming visit to the White House.

Industry Impact

• Autos & Electronics: South Korea’s major exports—cars, chips, and steel—are protected from higher tariffs, a relief for companies like Hyundai and Samsung.
• Market Reaction: The KOSPI index rose modestly, signaling cautious optimism.

️ Political & Strategic Implications

• President Lee’s First Major Win: The deal is seen as a political victory for South Korea’s newly elected leader, who took office in June after a snap election.
• Strengthened Alliance: Both sides emphasized mutual benefit and deeper industrial cooperation.

US–EU Trade Deal Finalized: Key Details and Reactions

The United States and European Union have reached a sweeping trade agreement that averts a tariff war and reshapes transatlantic commerce. Here's what you need to know:

Tariff Framework

• 15% Tariff Ceiling: The US will impose a flat 15% tariff on most EU exports, including cars, semiconductors, and pharmaceuticals—down from the threatened 30%.
• Strategic Exemptions: Aircraft, certain chemicals, generic drugs, and natural resources are exempt from new tariffs.
• Steel, Aluminum & Copper: These remain subject to 50% US tariffs, though both sides agreed to establish tariff-rate quotas to ease the burden.
• EU Tariff Suspension: Brussels suspended €93 billion in retaliatory tariffs that were set to begin August 7.

Investment & Energy Commitments

• $750 Billion in US Energy: The EU will purchase American liquefied natural gas, oil, and nuclear energy over the next three years.
• $600 Billion in US Investments: EU companies will invest in US sectors including AI, pharmaceuticals, and infrastructure by 2029.
• €40 Billion in AI Chips: The EU will buy US-made artificial intelligence chips.

Regulatory Alignment

• Zero-for-Zero Tariffs: On select strategic goods like aircraft and semiconductor equipment.
• Digital Trade: No duties on electronic transmissions; both sides will work to reduce digital trade barriers.
• Industrial Standards: The EU will accept US auto and industrial standards for the first time.

Market & Political Reaction

• Investor Sentiment Drops: Eurozone investor confidence fell sharply, with Germany hit hardest.
• Mixed Political Response:
  • French PM François Bayrou called it “a dark day” for EU sovereignty.
  • Belgian PM Bart De Wever said it’s “a moment of relief, but not of celebration”.
• US Commerce Secretary: Called the deal a “historic unlocking” of the EU’s $20 trillion market.

️ Strategic Implications

• The deal mirrors recent agreements with Japan and South Korea, suggesting a new US-led trade framework.
• EU officials say the agreement restores predictability and safeguards jobs and SMEs across Europe.

yup

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Why does Trump keep raising tariffs to ~15%, which is way above the previous levels?

Hans Blaster said:

Why does Trump keep raising tariffs to ~15%, which is way above the previous levels?

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Why is he doing it? That is what is so baffling. Is all this trade chaos part of some secret master plan that will work out in the end? I'm sure his supporters must think so. All I can see is a decline into an economy based on plantation agriculture and natural resource extraction, along with foreign-owned manufacturing plants taking advantage of cheap labor.

FreeinChrist said:

Per AI, the US and Japan have an agreement, but there are still some issues to deal with.

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yup - that's what I said - thanks

BCP1928 said:

Why is he doing it? That is what is so baffling. Is all this trade chaos part of some secret master plan that will work out in the end? I'm sure his supporters must think so. All I can see is a decline into an economy based on plantation agriculture and natural resource extraction, along with foreign-owned manufacturing plants taking advantage of cheap labor.

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The simple answer is that Trump does not understand economics and had a very wrong idea about international trade stuck in his head. When he says over and over that other countries will "pay the tariffs", I trust that he actually believes that no matter how many times he is corrected on it. It isn't a bit. He's an economic idiot.

FAITH-IN-HIM said:

“Finalizing” means nothing.

Let's set aside Japanese, South Korean, and EU legislative procedures for now and focus on US law.

President of the United States cannot unilaterally sign a binding trade deal without Congressional approval. The Constitution grants Congress the power to regulate foreign commerce and impose tariffs, meaning the President needs congressional authorization to enter into and implement trade agreements.

The U.S. Constitution, specifically the Commerce Clause, vests Congress with the power to regulate foreign trade.

While the President can enter into certain executive agreements, these are typically not binding on the U.S. in the same way as treaties or trade agreements approved by Congress.
Do you know if congress approved any trade deal in 2025 ?

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Hmm. Well there are 218 rubber stamps in the House and 53 in the Senate and not a backbone among them.

Fantine said:

Hmm. Well there are 218 rubber stamps in the House and 53 in the Senate and not a backbone among them.

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The GOP-controlled Congress was expected to approve every trade deal, but that hasn't occurred. Still, the president and his supporters continue to claim they've signed the greatest trade deals ever.