Trump’s Inconsistent Statements on Tariffs Cause Global Economic Concerns

## Trump’s Confounding Tariff Plans

WASHINGTON (AP) — It seems President Donald Trump can’t help but contradict himself regarding [his own tariff plans](https://apnews.com/article/trump-economy-poll-tariffs-inflation-prices-recession-1d320115e8801e4970bd5cccf2742fc4). How very perplexing for both allies and adversaries across the globe.

### Conflicting Statements Leave Partners Perplexed

President Trump claims he’s on the brink of cutting numerous trade deals in mere weeks. Yet, he also mentions that it’s [“physically impossible”](https://apnews.com/article/china-us-tariff-negotiations-trump-481ff4402f5c34776ffcb8ced4c8ae42) to conduct the necessary meetings required. Quite the predicament, isn’t it?

Moreover, while he asserts that negotiations with the Chinese are underway, both Beijing and U.S. Treasury Secretary Scott Bessent reveal that [talks have not even commenced](https://apnews.com/article/tariffs-trade-taxes-trump-china-bessent-treasury-66668fa26957ece530a250fa8ea19faa).

### Economic Uncertainty and Potential Recession

Such contradictory statements breed uncertainty, a sentiment shared by American businesses, as noted in [The Federal Reserve’s beige book](https://apnews.com/article/inflation-economy-prices-67791b46f1ad3c197975a75ee35226be). The unpredictable nature of tariffs has forced businesses to rethink hiring and investments.

Additionally, imposing [tariffs totaling 145% on China](https://apnews.com/article/tariffs-trade-taxes-trump-china-bessent-treasury-66668fa26957ece530a250fa8ea19faa) has led to retaliation from China with tariffs of 125% on U.S. goods. Experts voice concerns over these developments potentially ushering in [a recession](https://apnews.com/article/economy-trump-recession-78e4513c8990fcc9daa9fdab0dd84e45).

### International Confusion and Negotiation Tactics

World leaders and finance ministers, gathered at the [International Monetary Fund conference](https://apnews.com/article/trade-tariffs-imf-georgieva-trump-china-c04d94c8917ebb67785ca80645d3bdae), express dismay over the Trump administration’s lack of clarity. Josh Lipsky of the GeoEconomics Center notes, “There’s not a coherent strategy at the moment on what the tariffs are supposed to achieve.”

To add, Swiss President Karin Keller-Sutter mentioned that Switzerland is among 15 nations slated for “privileged” negotiations. Nonetheless, a memorandum of understanding remains essential before any formal talks can begin.

Other countries employ various strategies as well. South Korea seeks tariff relief, targeting an agreement by July. Meanwhile, the European Union proposes a mutual tariff reduction to zero, though Trump takes issue with their value-added tax.

### Negotiations with Japan and Auto Standards

Trump confidently asserts imminent deals with countries like Japan. However, there is contention over Japanese auto safety standards, crucial as the U.S. pushes for changes benefiting American vehicles. Yet, Prime Minister Shigeru Ishiba suggests a review of their standards to ensure fairness.

### Impact on Prices and Goods Availability

Consequently, businesses prepare for increased prices and potential shortages, particularly from China. Ryan Petersen of Flexport highlighted a significant decline in ocean container bookings from China to the U.S., dropping over 60%.

Consumers face higher prices on items from lamps to furniture, as retailers incorporate tariff-related charges. The showerhead company Afina serves as a case study: their U.S.-made product was too expensive compared to imports, revealing challenges for domestic industries to compete.

Ramon van Meer, Afina’s founder, expressed the struggle for small businesses adapting to the tariffs’ “scale and speed.” He remarked that idealism falters once a price tag is attached.

While Trump continues to paint an optimistic picture of forging successful deals, the accompanying uncertainty and economic implications remain a challenge, both domestically and internationally.

—
AP economics writer Christopher Rugaber in Washington and AP writers Jamey Keaten in Geneva and Mari Yamaguchi in Tokyo contributed to this report.