President Trump is complicating discussions with China and the European Union, taking two steps on Wednesday to condemn Chinese President Xi Jinping on social media and to raise tariffs on steel and aluminum.
Discussions with China are stalled, awaiting a phone call between the two leaders, which the White House has stated will happen soon. However, a message from the president on Truth Social at 2:17 AM ET alleged that dealing with Xi is 'extremely difficult'.
This is a message that immediately raised questions about a discussion that Beijing has stated they have no need to rush — and how much will be achieved if it ultimately takes place.
There is a resemblance to the situation with the European Union, which is the United States' top trading partner.
Trump expressed his own surprise last week with plans to increase existing tariffs on steel and aluminum imports from 25% to 50%. This will take effect at 12:01 AM on Wednesday.
This is a move that impacts various trading partners, particularly Europe, which is outraged by this action and has promised to take additional countermeasures as both sides meet for discussions in Paris this week.
U.S. Trade Representative Jamison Greer has traveled to Paris this week for a meeting with European Trade Commissioner Maros Sefcovic.
In a statement on Wednesday, he described the discussions as 'moving quickly' and 'very constructive,' but he seems likely to return home without any concrete signs of an imminent deal.
Overall, the events of this week across three continents suggest that after a week of discussions surrounding the idea that TACO ('Trump Always Chicken Out') could calm the market through trade, trade tensions are likely to escalate further this summer.
As Terry Haynes of Pangaea Policy noted in a recent memo, 'TACO is the latest victory in the wrong market... As quickly as TACO grew, events arose just as quickly to hit it.'