Trump’s Trade War Reloaded? GTRI Says Tariffs Now As A Pressure Weapon, Not Partnership Tool

As trade talks pick up again under US President Donald Trump’s leadership, a new report by the Global Trade Research Initiative (GTRI) — cited by ANI — warns that tariffs are no longer being used just as policy tools, but as pressure tactics.

According to the report, Trump’s approach to trade is built more on coercion than cooperation. Instead of negotiating fair two-way agreements under traditional Free Trade Agreements (FTAs), the U.S. is demanding that other countries lower their tariffs and buy more American goods, without offering similar concessions in return. These deals, GTRI notes, are often signed under pressure and lack balance.

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Deals without long-term certainty

One of GTRI’s main concerns is that these trade agreements don’t offer long-term stability. Even after a deal is signed, countries can still face new tariff threats.
For example, Trump recently threatened a 10% tariff on goods from BRICS countries, including India, citing their so-called “anti-American” stance.
India has already made its final trade offer and may soon close a deal with the U.S. But the report warns that Indian exports might still face extra tariffs, even after a deal is signed. A 26% surcharge imposed on Indian goods in April may not be fully withdrawn, and Indian exporters could still be hit with at least a 10% additional levy.
“Even if a deal is struck, Indian exports may still face a minimum 10% additional levy, making it a pressured compromise, not a true partnership,” GTRI said.

Deadline extended, but with risks

Trump has now extended the deadline for countries to sign trade deals from July 8 to July 31. Countries that don’t comply by then could face new tariffs of up to 40% starting August 1. India is among the countries that have received formal tariff warning letters.

These new tariffs would be on top of the existing Most Favoured Nation (MFN) rates. However, sectors such as steel, aluminium, autos, and auto parts — which already face high duties — will not be impacted further.

In Japan’s case, for instance, tariffs on items like semiconductors, medicines, and smartphones will remain at 0%, while steel and aluminium will stay at 50%, autos at 25%, and other items may see tariffs rise from 10% to 25%.

Legal and policy uncertainty ahead

Trump currently does not have Fast Track Trade Authority from Congress, which limits his power to reduce MFN tariffs. Instead, he is using emergency powers to promise rollbacks of the so-called “Liberation Day” tariffs imposed in April.
But the legal standing of these tariffs is under question. A U.S. federal court has already ruled them unlawful, and although the case is under appeal, this adds more uncertainty to the future of such trade actions.

Final word from GTRI

In conclusion, GTRI warns that Trump’s trade strategy offers little protection or predictability. Countries signing these deals are still vulnerable to future tariff shocks, and the lack of fairness or mutual concessions makes the global trade environment highly unstable and risky.