is pressuring the European Union to comply with prior trade commitments, threatening 25% tariffs on European autos if the EU does not fulfill its obligations on industrial goods and non-tariff barriers.
Tensions with China are rising over its reported non-compliance with U.S.
sanctions on Iranian oil, an issue the U.S.
administration plans to address directly with President Xi Jinping.
and its G7 allies are increasingly aligned on the need to counter China's weaponization of critical minerals, exploring a plurilateral agreement to secure alternative supply chains.
The overarching U.S.
trade strategy aims to re-industrialize the country, reduce the trade deficit (noting the EU now has a larger surplus with the U.S.
than China), and increase manufacturing, driving tough negotiations with all partners.
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Concerns Raised
The EU's failure to comply with its trade commitments, risking an escalating tariff conflict.
China's non-compliance with U.S. sanctions on Iran, which the U.S. views as funding terrorism.
China's strategic control and 'weaponization' of critical mineral supply chains.
Opportunities Identified
Forging a plurilateral agreement with Europe and Japan to secure critical mineral supply chains.
Achieving a more favorable trade balance for the U.S. if the EU complies with the agreement.
Using assertive negotiations to advance the U.S. goal of re-industrialization and reducing its trade deficit.